Feed-in tariffs (FiT) determine what you earn for excess solar sent to the grid. Victoria's FiT landscape changed significantly in 2025, and understanding the new system helps you maximise returns.
The 2025 Deregulation Change
What Changed
From 1 July 2025, Victoria removed the minimum feed-in tariff:
| Before July 2025 | After July 2025 |
|---|---|
| Minimum FiT set by ESC | No minimum FiT |
| ~5.2c/kWh guaranteed | Retailers set own rates |
| Annual review | Market-driven rates |
Why It Changed
The Essential Services Commission (ESC) cited:
- 76% increase in rooftop solar since 2019
- Daytime wholesale prices sometimes negative
- Grid management challenges with excess solar
- Market distortion from mandated prices
Current FiT Rates (2026)
Typical rates across major retailers:
| Retailer | FiT Rate | Type |
|---|---|---|
| Flow Power | Up to 45c/kWh | Variable (wholesale) |
| Amber Electric | Wholesale rate | Variable |
| Enova Energy | 10-12c/kWh | Fixed |
| Red Energy | 6-9c/kWh | Fixed |
| Origin Energy | 5-8c/kWh | Fixed |
| AGL | 5-7c/kWh | Fixed |
| Energy Australia | 6-8c/kWh | Fixed |
| Powershop | 8-10c/kWh | Fixed |
| Simply Energy | 5-7c/kWh | Fixed |
Note: Rates change frequently. Always verify current offers.
Types of Feed-in Tariffs
Fixed Rate FiT
| Pros | Cons |
|---|---|
| Predictable returns | Often lower than market peaks |
| Easy to budget | Miss out on high wholesale prices |
| Stable credits | May be below wholesale average |
Best for: Those wanting simplicity and predictability
Variable Rate FiT
| Pros | Cons |
|---|---|
| Can be higher overall | Unpredictable credits |
| Tracks market value | Can go negative at times |
| Transparent pricing | Requires engagement |
Best for: Engaged users who can shift export timing
Time-of-Use FiT
Some retailers offer different rates by time:
| Period | Typical Rate |
|---|---|
| Peak (3pm-9pm) | 8-12c/kWh |
| Shoulder | 5-8c/kWh |
| Off-peak | 2-5c/kWh |
Challenge: Solar generates least during peak demand times.
Understanding Wholesale FiT
How It Works
Retailers like Amber and Flow Power pass through wholesale prices:
| Wholesale Price | Your FiT |
|---|---|
| $150/MWh | 15c/kWh |
| $50/MWh | 5c/kWh |
| -$20/MWh | -2c/kWh (you pay!) |
| $500/MWh (spike) | 50c/kWh |
Wholesale Price Patterns
Typical daily pattern:
| Time | Typical Wholesale Price | Solar Export |
|---|---|---|
| 6am-9am | Medium-High | Low |
| 9am-12pm | Low-Medium | High |
| 12pm-3pm | Low (often negative) | Highest |
| 3pm-6pm | High | Declining |
| 6pm-9pm | Highest | Zero |
The "duck curve" problem: Solar floods the grid midday when demand is low.
Is Wholesale FiT Worth It?
Calculate your average:
- Track exports by time of day
- Apply historical wholesale rates
- Compare to fixed rate offers
- Factor in negative pricing risk
Typical result: Wholesale averages 4-8c/kWh with volatility.
Legacy Premium Feed-in Tariffs
Historical Programs (Closed)
Victoria had generous FiTs that are now closed:
| Scheme | Rate | Status |
|---|---|---|
| Premium FiT (2009) | 60c/kWh | Closed, existing contracts valid |
| Transitional FiT | 25c/kWh | Ended 2016 |
| Standard FiT | 8c/kWh | Ended 2012 |
If You Have Legacy FiT
Premium 60c/kWh holders:
- Keep your contract—it's extremely valuable
- Don't change retailers without checking impact
- Some conditions may void the premium rate
- Consider system expansion carefully (may affect eligibility)
Maximising Your FiT Value
Strategy 1: Right-Size Your System
Don't over-export:
| Approach | Export % | FiT Value |
|---|---|---|
| Over-sized system | 60-70% | Low overall |
| Matched system | 40-50% | Balanced |
| Under-sized | 20-30% | Higher but less savings |
Best approach: Size for 50-60% self-consumption
Strategy 2: Shift Consumption
Use solar when generating:
| Action | Export Reduction |
|---|---|
| Daytime hot water boost | 2-4 kWh/day |
| Pool pump to midday | 3-6 kWh/day |
| EV charging (daytime) | 10-30 kWh/day |
| Run dishwasher/dryer midday | 2-3 kWh/day |
Self-consumption at 28-35c/kWh beats export at 5-10c/kWh.
Strategy 3: Battery Storage
Store rather than export:
| Scenario | Value |
|---|---|
| Export midday (5c/kWh) | $0.05 |
| Store and use at night (30c/kWh) | $0.30 |
| Arbitrage value | $0.25/kWh |
Battery payback improves with low FiT rates.
Strategy 4: Choose the Right Retailer
Match retailer to your profile:
| Profile | Best FiT Strategy |
|---|---|
| High export | Highest FiT rate |
| Low export | Focus on usage rates |
| Battery owner | Time-of-use rates |
| Engaged user | Wholesale exposure |
Choosing a Retailer
What to Compare
| Factor | Why It Matters |
|---|---|
| FiT rate | Direct export earnings |
| Usage rates | Total bill impact |
| Supply charge | Daily fixed cost |
| Discounts | Conditional savings |
| Contract terms | Lock-in, exit fees |
Total Bill Approach
High FiT isn't always best:
Example comparison:
| Retailer | FiT | Usage Rate | Annual Bill |
|---|---|---|---|
| A | 12c/kWh | 35c/kWh | $850 |
| B | 6c/kWh | 28c/kWh | $720 |
Retailer B saves $130/year despite lower FiT.
Switching Retailers
Process:
- Compare offers (use Victorian Energy Compare)
- Check contract terms and exit fees
- Apply with new retailer
- They handle the switch
- No supply interruption
- Typically 2-4 weeks to complete
VPP and Enhanced FiT
Virtual Power Plant Programs
Some retailers offer higher FiT for battery owners:
| Program | Benefit |
|---|---|
| ENGIE VPP | $100 sign-up + ~$15/month credits |
| Amber SmartShift | Automated optimisation |
| AGL VPP | Up to 20c/kWh for dispatched energy |
| Origin Spike | High-demand bonus payments |
Requirement: Battery storage (typically 10+ kWh)
How VPPs Work
- You install battery with VPP capability
- Join approved VPP program
- Aggregator can dispatch your battery during grid stress
- You receive payments for dispatched energy
- Typically 10-20 dispatch events per year
The Export Limiting Question
When Export Limiting Applies
Network may limit your export:
| Network | Typical Limit |
|---|---|
| Urban (most areas) | 5 kW per phase |
| Some congested areas | Lower limits |
| New estates | May have temporary limits |
| Commercial | Negotiated per site |
Zero Export Systems
Where export is restricted:
- Inverter limits export to zero
- All generation must be self-consumed
- FiT becomes irrelevant
- Battery storage essential
Future of Feed-in Tariffs
Likely Trends
| Trend | Impact on FiT |
|---|---|
| More solar installations | Lower daytime prices |
| Battery adoption | Reduced exports |
| Time-of-use pricing | Peak FiT value increasing |
| Two-way tariffs | May pay to export at times |
| Dynamic pricing | More volatility |
Implications
- Don't rely on high FiT for system ROI
- Design systems for self-consumption
- Consider battery readiness
- Stay flexible on retailers
The Bottom Line
Feed-in tariffs in 2026:
- No minimum rate — Market determines value
- 5-10c/kWh typical for fixed rate offers
- Wholesale exposure can be higher but volatile
- Self-consumption is 3-5x more valuable than export
- Total bill matters more than FiT alone
- Battery storage changes the equation
Focus on maximising self-consumption first, then optimise export value with the right retailer choice.
Contact H.T Electrics and Solar to design a system optimised for self-consumption and maximum savings.
