Solar Feed-in Tariffs Explained: Should You Export Solar or Use More of It at Home?
By Samsun Energy- Buying Guides
- Sep 07, 2026
- 19 minutes read
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Learn how solar feed-in tariffs work in Victoria and why using more of your solar at home can be more valuable than exporting it. Compare FiTs, batteries, electricity plans and export limits.
Solar Feed-in Tariffs Explained: Should You Export Solar or Use More of It at Home?
If you have solar panels in Melbourne, you have probably noticed something important on your electricity bill: the electricity you buy from the grid can be worth far more than the electricity your solar system exports to it.
That changes the way you should think about solar.
Your solar panels generate electricity during the day. Your home uses some of it immediately. Any surplus can be exported to the grid, and your electricity retailer gives you a credit called a solar feed-in tariff (FiT).
But in Victoria, feed-in tariffs have changed significantly.
Since 1 July 2025, the Essential Services Commission (ESC) has no longer set a minimum feed-in tariff. Retailers now determine their own solar export rates, subject to Victorian rules.
So should you chase the highest feed-in tariff? Not necessarily.
For many Melbourne households, the bigger opportunity is to use more of your own solar electricity at home instead of exporting it.
That might mean running your dishwasher during the day, heating water with a heat pump while the sun is shining, charging an EV during solar hours, or using a battery to move daytime solar into the evening.
The right answer depends on your home, your electricity plan, your solar system and how much electricity you export.
Quick Answer: Export Solar or Use It at Home?
In most cases, using your solar electricity yourself is more valuable than exporting it.
Why? Imagine you generate 1 kWh of surplus solar.
- If your retailer pays you 5 cents for exporting that 1 kWh, you receive a 5-cent bill credit.
- But if you use that 1 kWh yourself instead of buying it from the grid at, for example, 30–40 cents/kWh, you avoid paying the higher retail electricity price.
That difference is the key to understanding solar economics.
Exporting solar earns you a credit. Using your own solar can avoid a much larger electricity purchase. The exact value depends on your electricity plan, location, usage and export rate.
What Is a Solar Feed-in Tariff?
A solar feed-in tariff, often shortened to FiT, is the rate your electricity retailer pays or credits you for solar electricity that your home exports to the electricity grid.
The basic process looks like this:
Solar panels → Your home uses electricity → Surplus solar → Grid → Retailer credits your bill
For example:
- Your solar system generates: 10 kWh
- Your home uses: 6 kWh
- Your system has: 4 kWh surplus
That 4 kWh can potentially be exported to the grid. If your feed-in tariff is 5c/kWh:
- 4 kWh × $0.05 = $0.20 credit
So you receive 20 cents for those exports. But if you had used that electricity yourself instead of purchasing 4 kWh from the grid at 35c/kWh, the avoided electricity cost could have been:
- 4 kWh × $0.35 = $1.40
That is why self-consumption can be much more valuable. The example above is illustrative. Your actual usage tariff and feed-in tariff will depend on your electricity retailer and plan.
What Changed in Victoria?
This is one of the most important parts of this article.
For many years, Victoria had a regulated minimum feed-in tariff set by the Essential Services Commission. That system changed from 1 July 2025.
The ESC no longer sets an annual minimum solar feed-in tariff. Retailers now set their own export rates.
So if you search online for "Victoria minimum feed-in tariff 2026", be careful. You will find older articles quoting rates such as 4.9c/kWh or 3.3c/kWh. Those are historical rates, not a current guaranteed Victorian minimum.
For 2026–27, there is no ESC-set minimum feed-in tariff. Retailer offers can differ considerably.
What does this mean for Melbourne homeowners? It means your electricity retailer matters more than ever.
You should look at:
- Your electricity usage rate
- Your daily supply charge
- Your solar feed-in tariff
- Any higher FiT blocks
- Daily export limits
- Time-of-use conditions
- Contract terms, discounts
- Battery and EV-related conditions
Don't choose an electricity plan based on the feed-in tariff headline alone.
What Are Melbourne Solar Feed-in Tariffs in 2026?
There is no single "Melbourne feed-in tariff". Your actual rate depends on the retailer and electricity plan you choose.
Current retailer examples illustrate just how different plans can be.
- EnergyAustralia currently lists a Victorian flat solar buyback rate of 1.5c/kWh on its solar tariffs page, while its plan structures can also include higher promotional or conditional arrangements.
- Origin currently advertises a Victorian Solar Boost option at 5c/kWh until a daily limit is reached, with its standard retailer FiT listed at 1c/kWh on other plans. Eligibility and plan conditions apply.
- Red Energy's current Victorian residential market offers list 1c/kWh on standard residential offers, while its overall solar plans demonstrate how retailers can use different time-based or conditional structures in other states and products.
Why are the rates so different? Because Victoria's market is no longer operating under a single ESC-set minimum. Retailers can design different offers based on wholesale electricity conditions, customer usage, export volumes, time of day, promotional structures, network conditions, and plan eligibility.
That's why you should compare the whole electricity plan, not just the FiT.
The Biggest Mistake: "I'll Just Find the Highest Feed-in Tariff"
This sounds logical. But it can be misleading.
Imagine two electricity plans.
Plan A
- Higher FiT
- Higher electricity usage rate
- Higher daily supply charge
Plan B
- Lower FiT
- Lower electricity usage rate
- Lower daily supply charge
If you export a lot of electricity, Plan A might look attractive. But if you consume a lot of electricity from the grid, Plan B could potentially produce a lower annual bill.
The only way to know is to compare the plan against your actual electricity consumption and solar exports. That's exactly why the Victorian Government's Victorian Energy Compare tool uses household usage information to compare available offers.
Export vs Self-Consumption: Which Is Worth More?
Here's the simple comparison.
| What happens to 1 kWh of solar? | Financial effect |
|---|---|
| You use it in your home | Avoid purchasing electricity from the grid |
| You export it | Receive your retailer's FiT credit |
| You store it in a battery | Use it later instead of buying electricity |
| You curtail it because of an export limit | Potentially no direct FiT value |
The value of your solar therefore depends heavily on what happens to each kWh.
A Simple Melbourne Example
Let's say your solar system produces excess electricity during the middle of the day. You have two choices.
Option 1 – Export
- Your retailer pays: 5c/kWh
- You export: 8 kWh
- Your credit: $0.40
Option 2 – Use it at home
- You use those 8 kWh instead of purchasing electricity later at: 35c/kWh
- Potential avoided electricity cost: $2.80
That's a difference of $2.40. This doesn't mean every household will save $2.40 in this situation. It demonstrates the underlying principle: The value of solar depends on the difference between the electricity you avoid buying and the value you receive for exporting. Your actual electricity tariff, FiT, timing, losses and usage pattern all matter.
Why Solar Self-Consumption Matters More in Melbourne
Melbourne households often generate most of their rooftop solar during the middle of the day. But many households aren't using most of their electricity then.
Think about a typical weekday.
- 7:00 am – Everyone gets ready. Solar production is only beginning.
- 9:00 am – The adults leave for work. The children leave for school. Solar generation increases.
- 12:00 pm – Solar production may be strong. But nobody is home.
- 3:00 pm – Solar is still generating. Household activity begins increasing.
- 5:00 pm – People return home. Solar generation is falling.
- 7:00 pm – The household is using electricity. Solar production may be close to zero.
That's the mismatch. Solar generation happens during the day. Household electricity demand often peaks later. A battery, smart energy management or deliberate daytime electricity use can help bridge that gap.
How Can You Use More Solar at Home?
You don't necessarily need a battery to improve solar self-consumption. Start with the simplest option:
1. Run appliances during the day
If practical, schedule dishwasher, washing machine, clothes dryer, pool pump, electric hot water, heat pump, and other flexible loads for periods when your solar system is generating. Solar Victoria specifically encourages households to shift some appliance use into the middle of the day to make better use of their own solar generation.
2. Use a Heat Pump With Solar
A heat-pump hot-water system can be an excellent example of solar self-consumption. Instead of exporting surplus solar electricity at a relatively low FiT, your home can use solar electricity to heat water. You are effectively turning: Solar electricity → hot water → stored energy. The water becomes a form of thermal energy storage. This is particularly interesting for Victorian households considering a broader move toward an all-electric home.
3. Charge Your EV During Solar Hours
If you own an electric vehicle, daytime charging can increase solar self-consumption. For example: Solar → Home → EV instead of Solar → Grid → small FiT credit and later Grid → EV → electricity cost. Of course, daytime charging only works when the vehicle is actually at home and the charging schedule fits your routine.
4. Add a Battery
A battery changes the timing of your solar electricity. Without a battery: Solar → Home → Grid. With a battery: Solar → Home → Battery → Home later. This can allow surplus solar generated around midday to be used in the evening. But a battery isn't automatically the best financial decision for every household. The calculation depends on battery cost, usable capacity, round-trip efficiency, degradation, electricity import rate, feed-in tariff, how much solar you would otherwise export, how much stored energy you can actually use, and your charging/discharging behaviour.
The Battery Question: Is It Better Than Exporting?
This is where things get interesting.
Suppose: Feed-in tariff = 5c/kWh and your evening electricity rate is 35c/kWh.
If you export 1 kWh, you receive $0.05. If you store that electricity and later use approximately 1 kWh, you may avoid buying electricity at around $0.35.
But a battery is not 100% efficient. There are also battery losses, battery purchase cost, installation cost, degradation, inverter losses, and financing costs, if applicable. So you shouldn't calculate battery value as 35c − 5c = 30c and assume that's your actual saving. A proper battery assessment needs to account for the whole system.
Your Solar Export Limit Matters
Here's something many homeowners don't realise before installing solar: You may not always be allowed to export everything your solar system can generate.
Your local distribution network determines the connection conditions and export limits that apply to your property. Solar Victoria advises homeowners to confirm grid connection and export constraints before installation.
For example, in some parts of Victoria, flexible export arrangements are being introduced. CitiPower and Powercor launched the first phase of flexible exports from 1 July 2026, allowing eligible customers with constrained export approvals to potentially export more when network capacity is available. United Energy has also introduced a flexible export approach for eligible customers. AusNet states that export capacity depends on factors including the strength of the local network, system size and current demand.
That's why export approval should be considered before installation, not after.
Melbourne's Five Electricity Distribution Areas
Your location can affect your network arrangements. Victoria has five major electricity distribution areas:
| Distribution Network | Common Area |
|---|---|
| CitiPower | Melbourne CBD and inner-city areas |
| Jemena | Northern and north-western Melbourne |
| United Energy | Eastern and south-eastern Melbourne |
| Powercor | Western Melbourne and regional western Victoria |
| AusNet | Eastern and north-eastern Melbourne and regional areas |
Your distributor isn't usually the company you pay your electricity bill to. Your retailer sends you the bill. Your distributor manages the local electricity network. That distinction matters when you're installing solar.
Your Retailer vs Your Distributor
Retailer
Your electricity company. They generally determine electricity usage rates, daily supply charge, solar feed-in tariff, plan conditions, and bill credits.
Distributor
The company responsible for the local network. They determine or administer connection requirements, export limits, network approvals, and technical requirements.
Solar Victoria explains that your retailer handles the connection process, but recommends checking that pre-approval has been obtained from your DNSP before installation.
Should You Choose a Higher Feed-in Tariff?
Use this quick test.
A higher FiT may matter more if:
- Your household exports a lot of solar
- You have low daytime electricity consumption
- You don't have a battery
- You are away from home most weekdays
- Your system generates substantially more than your daytime demand
Self-consumption may matter more if:
- You use lots of electricity during the day
- You have a heat pump
- You have an EV that can charge during the day
- You have a pool pump
- You have a home office
- You have a battery
- Your retail electricity rate is substantially higher than your FiT
What If I Export a Lot of Solar?
This is where you should look beyond the FiT headline.
Suppose your system exports 5,000 kWh per year.
- At 5c/kWh: that's $250 per year
- At 1c/kWh: that's $50 per year
The difference is $200 per year.
Now compare that with reducing your grid purchases. If you can shift 2,000 kWh of annual electricity consumption from grid purchases to your own solar, the financial impact could be much larger depending on your electricity usage rate.
That's why reducing unnecessary exports can sometimes matter more than finding a slightly higher FiT.
What About a Large Solar System?
This is especially important if you're considering a 10.56kW or 13.2kW solar system.
A larger system can generate more electricity. But if your household doesn't consume much energy during the day, a greater proportion may become surplus.
That doesn't mean a large system is a bad idea. It means the system should be designed alongside:
- Household consumption
- Future EV use
- Heat-pump hot water
- Battery plans
- Pool loads
- Air conditioning
- Roof conditions
- Export limits
"How much of my solar can I use, store or export—and what is each kWh worth?"
The Solar Value Equation
A useful way to think about your solar system is:
Solar value = self-consumed solar + exported solar + stored solar value
Where:
- Self-consumed solar = electricity you don't have to buy from the grid.
- Exported solar = electricity your retailer credits through your FiT.
- Stored solar = surplus solar stored for later use, less system losses and the cost of storage.
This is much more useful than looking only at the feed-in tariff.
A Quick Interactive Test
Ask yourself these five questions.
Question 1 – Are you home during the day?
Yes → You may already have good self-consumption opportunities. No → Look at appliance scheduling, hot-water control, EV charging or battery storage.
Question 2 – Do you have an EV?
Yes → Daytime solar charging could absorb surplus generation. No → You may have fewer large flexible daytime loads.
Question 3 – Do you have electric hot water or a heat pump?
Yes → Consider running it during solar-generation hours. No → Hot water may be an opportunity for future solar self-consumption.
Question 4 – Do you export a large amount of solar?
Check your electricity bill. If exports are consistently high, your FiT and self-consumption strategy deserve a closer look.
Question 5 – Do you have a battery?
Yes → Look at how often it charges from solar and how much stored energy you actually use. No → Compare the cost of a battery with the value of the solar you're currently exporting.
Don't Compare Feed-in Tariffs in Isolation
When comparing electricity plans in Melbourne, build a simple table.
| Check | Plan A | Plan B | Plan C |
|---|---|---|---|
| Daily supply charge | $ | $ | $ |
| Day usage rate | ¢/kWh | ¢/kWh | ¢/kWh |
| Evening usage rate | ¢/kWh | ¢/kWh | ¢/kWh |
| Solar FiT | ¢/kWh | ¢/kWh | ¢/kWh |
| Higher FiT block? | Yes/No | Yes/No | Yes/No |
| Export limit | kWh/day or other | --- | --- |
| Contract conditions | Check | Check | Check |
| Estimated annual bill | $ | $ | $ |
Then calculate the whole-year cost, not simply the highest FiT.
Victoria's free Victorian Energy Compare tool can compare electricity offers using your household's actual or estimated energy usage and also provides a solar savings calculator.
What About the Victorian Default Offer?
The Victorian Default Offer, or VDO, is not the same thing as a solar feed-in tariff. The VDO is a regulated benchmark for electricity pricing. Your FiT is the rate your retailer credits you for solar exports. They should not be treated as the same number.
For 2026–27, Victorian electricity pricing also includes a new solar-soak period in the three-period time-of-use structure used in the Victorian Default Offer framework, encouraging electricity use during the middle of the day.
This reinforces an important trend: The value of using electricity at the right time is becoming increasingly important.
Solar Feed-in Tariffs and Batteries: The Bigger Picture
The old solar model was relatively simple: Generate solar → export excess → receive FiT
The modern home energy model is more complicated: Generate → use → store → shift → export
That's where technologies such as solar, batteries, heat pumps, EV chargers, smart energy management, and home energy monitoring can work together.
10.56kW solar
↓
Home uses daytime electricity
↓
Heat pump uses surplus
↓
EV charges during solar hours
↓
Battery stores remaining surplus
↓
Remaining electricity exports
This can potentially create much greater value from the same solar generation than simply exporting everything you don't immediately use.
What Doesn't a Feed-in Tariff Tell You?
A FiT tells you what your retailer pays for exported electricity. It doesn't tell you:
- Whether your solar system is correctly sized
- How much electricity you consume
- How much solar you self-consume
- Whether a battery is financially worthwhile
- Whether your roof has shading
- Whether your system has an export limit
- How much your electricity retailer charges for imports
- Your annual electricity bill
- Your solar payback period
That's why a homeowner should never choose a solar system based on: "This retailer has a 5c feed-in tariff." The entire energy profile matters.
How Samsun Energy Would Approach Your Home
At Samsun Energy, the useful question isn't simply: "How much can we export?" It's:
"How can we make the most useful electricity from your solar system?"
1. Assess
Review recent electricity bills, annual kWh consumption, daytime usage, evening usage, roof orientation, shading, available roof space, existing solar, EV plans, hot-water system, and battery requirements.
2. Calculate
Model expected solar generation, self-consumption, exports, electricity imports, battery requirements, and potential savings.
3. Recommend
Depending on the property, that could mean solar only, solar + smart energy management, solar + battery, solar + battery + EV charging, or solar + heat pump + smart energy management.
4. Install
The system should be designed around the property and relevant network connection requirements.
5. Monitor & Support
After installation, monitoring helps you understand: How much solar are you generating? How much are you using? How much are you exporting? How much are you buying from the grid? Those numbers tell you far more than the FiT on its own.
Real-World Melbourne Scenario
Imagine a Melbourne family has rooftop solar, two air conditioners, electric hot water, four occupants, an EV, and high electricity consumption.
The household exports a large amount of electricity between 10am and 3pm. Instead of asking: "How can I find the highest FiT?" the better question may be: "Can I use more of this electricity myself?"
Solar → Heat pump hot water
Solar → EV charging
Solar → Household appliances
Solar → Battery
Remaining surplus → Grid
This approach doesn't eliminate exports. It simply makes exports the last step after useful household consumption and storage.
What Should Melbourne Solar Owners Do Now?
If you already have solar, start with your electricity bill. Look for:
- Solar generation – How much electricity did your system generate?
- Solar exports – How many kWh did you send to the grid?
- Grid imports – How much electricity did you still purchase?
- Feed-in tariff – How much are you being paid for each exported kWh?
- Electricity usage rate – How much are you paying when you buy electricity?
Then ask: "Could I use more of my solar instead of exporting it?" That one question can lead to meaningful savings.
If You're Installing Solar in Melbourne
Don't make the feed-in tariff your first question. Ask these questions first:
- How much electricity do I use?
- When do I use it?
- How much solar can my roof generate?
- What is my export limit?
- How much electricity will I export?
- What electricity rate will I pay for imports?
- Should I consider a battery?
- Would a heat pump increase my solar self-consumption?
- Can I charge an EV during the day?
Then compare electricity retailers.
Frequently Asked Questions
What is a solar feed-in tariff?
A solar feed-in tariff is the rate your electricity retailer credits you for electricity exported from your solar system to the electricity grid.
What is the Victorian feed-in tariff in 2026?
There is no single Victorian feed-in tariff in 2026. Since 1 July 2025, the ESC no longer sets a minimum FiT. Retailers set their own rates and plan conditions.
Is a higher feed-in tariff always better?
No. A higher FiT may be useful if you export a lot, but a plan with a lower FiT can potentially be cheaper overall if it has lower electricity usage rates or supply charges.
Is it better to use solar electricity or export it?
Usually, using your own solar can be more valuable when the electricity you avoid buying from the grid costs substantially more than your FiT. The exact result depends on your electricity plan.
Should I get a battery because Victorian feed-in tariffs are low?
Not automatically. A battery should be assessed against its purchase and installation cost, usable capacity, efficiency, degradation, electricity prices, FiT and your actual solar exports.
Can I change my solar feed-in tariff?
Your FiT is part of your electricity plan. You can compare electricity retailers and plans and may be able to switch to a different offer, subject to eligibility and contract conditions. Victorian Energy Compare is the Victorian Government's free comparison tool.
Can my solar system export unlimited electricity?
No. Your local distribution network may impose an export limit or other connection conditions. Solar Victoria recommends confirming export constraints before installation.
Why are solar feed-in tariffs falling?
High levels of rooftop solar generation mean that large amounts of electricity can enter the grid during sunny daytime periods. Wholesale electricity values can therefore be low at the same time that solar generation is highest. The ESC's current wholesale analysis explicitly considers the timing of solar exports and wholesale spot prices.
The Bottom Line
The solar feed-in tariff used to be one of the most important numbers for a solar homeowner. It still matters. But in Melbourne in 2026, it shouldn't be the number you focus on first.
The better strategy is:
Generate solar. ↓
Use as much as practical at home. ↓
Store surplus if a battery makes financial sense. ↓
Export what you don't need. ↓
Choose an electricity plan that works for your actual usage.
That's the difference between simply having solar and actually optimising your home's energy system.
Your solar panels don't have to send every spare kilowatt-hour to the grid to save you money. Sometimes, the most valuable solar electricity is the electricity you never have to buy.
Ready to Find Out What Your Solar Is Really Worth?
Samsun Energy can assess your home's electricity usage, solar generation, export potential and future energy needs.
If you're considering a new solar system, upgrading existing solar, a solar battery, EV charging, heat-pump hot water, or a more energy-efficient home, start with your latest electricity bill.
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