Solar feed-in tariffs in Victoria explained

What is a feed-in tariff?

When your solar panels produce more power than your home is using, the extra flows out to the grid. Your electricity retailer credits you for that exported power on your bill. That credit, usually quoted in cents per kilowatt-hour, is called a feed-in tariff.

Feed-in tariffs are generally much lower than the price you pay to buy electricity from the grid. That is why the biggest savings from solar usually come from using the power yourself, rather than from the credit you earn by exporting it.

What changed in Victoria

For several years, the Essential Services Commission (ESC) set a minimum feed-in tariff that Victorian retailers had to offer. Following a May 2025 amendment to the Electricity Industry Act 2000, the ESC no longer sets a minimum. The last regulated minimums applied until 30 June 2025.

From 1 July 2025, electricity retailers may set their own feed-in tariffs. The ESC states that these cannot be below zero cents per kWh, so you cannot be charged for exporting solar under a feed-in tariff. The ESC keeps an oversight role to make sure retailers' terms and conditions are fair and reasonable. Rules can change, so check the ESC website for the latest position.

Comparing feed-in tariffs

Because each retailer now sets its own rate, feed-in tariffs can differ quite a bit between companies and plans. Some plans pay a single flat rate, while others pay different rates at different times of day. A high feed-in tariff can sometimes come with higher prices for the power you buy, so look at the whole plan, not just one number.

The Victorian Government's Victorian Energy Compare website lets you compare offers using your own usage. Have a recent bill handy, and if you have a smart meter, your usage data will make the comparison more accurate.

Is solar still worth it without a minimum?

For most homes, the case for solar has always rested mainly on using your own power rather than on the export credit. Every kilowatt-hour you use from your panels is one you do not have to buy from the grid at full retail price, and that saving is not affected by changes to feed-in tariffs.

Where feed-in tariffs do matter is in how you size and set up your system. If you are away during the day and would export most of your solar, the feed-in tariff makes up a bigger share of the benefit. That is worth thinking about when choosing a system size, a plan and whether a battery might suit you. We are happy to talk this through with you, based on your own bills.

Getting more value from your solar

With feed-in tariffs set by retailers, using more of your own solar is the most reliable way to get value from your system. Running the dishwasher, washing machine, pool pump or hot water during sunny hours can make a real difference. Timers and smart controls make this easier.

Some households add a battery to store spare daytime power for the evening, and the federal Cheaper Home Batteries Program can reduce the upfront cost. Others choose a system size that matches their daytime use rather than exporting large amounts. Your local distributor may also set limits on how much a system can export, which is worth factoring into your plans.

Next steps

Want help with this at your place? See our Solar Batteries and Solar Panels pages, or start with Solar Installers Bendigo for an overview of how we work across Bendigo and surrounds.