Victoria's Feed-in Tariff Is Near Zero: What It Means for Your Solar
If your solar credits have shrunk over the past couple of years, it isn't your imagination. Victoria's feed-in tariff rules changed in 2025, and many Melbourne households are now paid very little for the solar they export. Here's what changed, what you're likely being paid, and how to get more value from your panels.
What changed
The Essential Services Commission used to set a minimum feed-in tariff that retailers had to pay. After the Electricity Industry Act was amended, the ESC stopped setting a minimum from 1 July 2025. Retailers now set their own feed-in tariffs. The only rule is that they can't go below $0.00 per kWh (ESC).
For context, the last regulated flat minimum (2024–25) was 3.3c/kWh (Energy Matters).
What are retailers paying now?
Offers vary widely. As at late October 2026, comparison data based on AER plan listings showed the highest generally available flat rate in Victoria was around 8c/kWh on the first 10 kWh exported each day, with the median retailer's best flat rate around 1c/kWh (Solar Power Savings). Some time-varying tariffs pay nothing for exports in the middle of the day.
Meanwhile, buying power from the grid in the evening typically costs many times more than these export rates. Check your own bill for your exact rates.
The new maths: use it, don't sell it
When exports were worth 10c or more, sending your extra solar to the grid made sense. Now, each kWh you use yourself saves you the full retail rate. Each kWh you export may earn a cent or two, or nothing.
That changes the priorities for a solar home:
- Shift loads into the day. Run the dishwasher, washing machine, pool pump and hot water heat pump while the sun is out.
- Store your excess solar. A battery soaks up midday surplus and powers your home after dark.
- Choose a plan that suits you. The best plan for a solar-and-battery home is often not the one with the highest feed-in tariff.
"Solar soak" and time-of-use tariffs
Victoria's 2026–27 Default Offer includes a new three-part time-of-use network tariff with an 11am–4pm "solar soak" period, designed to encourage households to use more power in the middle of the day (Energy Matters). With the right plan, a battery can even charge from cheap midday grid power on cloudy days.
Does a battery pay for itself?
Whether a battery pays back depends on:
- How much solar you export now (check your bill or app)
- How much power you use from the evening through to morning
- Your retail tariff and plan
- The battery's price after the federal discount (STCs)
- Any VPP income
We'll model this from your real usage data rather than guessing.
Should I add more panels instead?
Sometimes, yes. If your system is small and you use a lot of power during the day, more panels can make sense. But with low feed-in tariffs, a bigger system without a battery mostly exports more power for very little return. Often the best outcome is a balance of both.
Frequently asked questions
Is there a minimum feed-in tariff in Victoria in 2026? No. Since 1 July 2025, retailers set their own rates, with a floor of $0.00/kWh (ESC).
Can I be charged for exporting solar? In Victoria, feed-in tariffs can't be below zero, according to the ESC. Network tariff structures are changing, so check your plan's fine print.
Will a battery stop me exporting at all? Not necessarily. Once the battery is full, extra solar is still exported. With a VPP, the battery may also export during peak events.
Which retailer has the best feed-in tariff? It changes regularly. Compare current offers on the Victorian Government's Victorian Energy Compare site.
Make your solar work harder
Sapphire Solar is a family-owned Victorian business. We can look at your current solar, your bills and how you use power, then tell you honestly whether a battery, more panels, or simply a plan change makes the most sense.
Get a free solar and battery assessment or call 1300 308 751.
