The solar feed-in tariff (FiT) is the credit you receive for any excess electricity your solar system send back to the electricity grid. It a small credit you’ll receive on your bill, and it is no longer the primary way to save money with solar as the FiT is now typically only single digit cents, in the order of 1-3 cents. The biggest saving comes from self-consuming the electricity you generate within your property (using it yourself) to avoid purchasing power from your electricity retailer.
In the past electricity retailers were required to offer customers a rate that is generally at or above the minimum rate set by the Essential Services Commission (ESC), however minimum rate was removed on 1 July 2025, allowing all electricity retailers to set their own minimum FiT.
FiT rates vary widely with some retailers offering a higher maximum FiT (up to 10-15 c/kWh), however this is often capped or with limitations, meaning the high rate only applies to the first few kilowatt-hours (kWh) exported each day. After the cap is hit, the rate drops to the low minimum rate.
It’s essential for you to do your own research to find the best electricity plan and rates that suit your homes usage patterns, as there are loads of options out there to choose from. A great place to help your compare is a site called Victorian Energy Compare https://compare.energy.vic.gov.au/
