Australian homeowners who installed solar panels in previous years may have noticed that the payments they receive for exporting excess electricity are lower than they used to be. For households that expected solar exports to provide a worthwhile financial return, this change can be disappointing.
However, falling feed-in tariffs do not necessarily mean solar power has lost its value. Instead, they highlight a shift in how households can benefit from their solar systems.
Rather than relying mainly on payments for exporting electricity, homeowners can focus on using more of their solar generation at home, considering battery storage and reviewing their electricity plans.
In this guide, Aussie Energreen explains why solar feed-in tariffs have declined and what Australian households can do to make better use of their solar energy.
What Is a Solar Feed-in Tariff?
A solar feed-in tariff (FiT) is a credit or payment your electricity retailer provides for surplus electricity exported to the grid from your solar system.
When your panels generate more electricity than your home needs at that moment, the unused power can flow into the electricity network. Depending on your electricity plan, your retailer credits your account for the energy exported.
Feed-in tariffs have historically provided an additional financial benefit for solar owners. However, rates vary between retailers, locations and electricity plans, and many households now receive less for exported electricity than they did in earlier years.
This makes it increasingly important to understand how your solar system can help reduce the amount of electricity you need to purchase.
Why Are Solar Feed-in Tariffs Decreasing?
Several changes in Australia’s electricity market have contributed to lower payments for exported solar electricity.
1. Rooftop Solar Adoption Has Increased
Australia has experienced substantial growth in rooftop solar installations. As more homes generate electricity during daylight hours, the volume of solar power entering the grid can increase significantly when the weather is sunny.
During periods of high solar generation, electricity supply can exceed demand. This can place downward pressure on wholesale electricity prices during certain hours, influencing the value of electricity exported to the grid.
As a result, surplus solar power may be worth less during the middle of the day than electricity supplied during periods of stronger demand.
2. Electricity Demand Changes Throughout the Day
Household electricity use often increases in the late afternoon and evening as people return home, prepare meals and operate heating, cooling and other appliances.
Solar panels, however, generate most of their electricity during daylight hours and produce little or none after sunset.
This creates a mismatch between when solar electricity is commonly available and when household demand may be highest. Electricity exported during periods of abundant daytime supply can therefore attract a lower value than electricity available when demand is stronger.
3. Electricity Market Conditions Have Evolved
Electricity prices change according to supply, demand, network conditions and broader market factors.
As rooftop solar generation has increased, the value of electricity exported during some daytime periods has changed. Retailers also have different pricing structures and approaches to feed-in tariffs, meaning the rate offered by one provider may differ from another.
These factors help explain why solar owners should review their electricity plans rather than assume their existing feed-in tariff remains competitive.
Is Solar Still Worth Installing or Keeping?
Lower feed-in tariffs do not automatically make solar power a poor investment.
The value of a solar system depends on several factors, including installation costs, electricity prices, system performance, household consumption and the amount of solar electricity used directly at home.
When you use solar electricity as it is generated, you may avoid purchasing the same amount of electricity from your retailer. Depending on your tariff, this avoided purchase can be worth more than the credit you would receive for exporting that electricity.
For example, running a washing machine during the day using available solar generation may reduce your need to draw electricity from the grid. The potential benefit depends on your system’s output, appliance consumption and electricity pricing.
For existing solar owners, the focus should be on getting the most practical value from the system already installed.
How Can Homeowners Get More Value From Solar Power?
There are several ways to adapt to lower feed-in tariffs and make better use of the electricity your panels generate.
1. Shift Electricity Use to Daylight Hours
One of the simplest strategies is to operate suitable appliances when your solar system is producing electricity.
Where practical, consider scheduling:
- Washing machines and dishwashers during sunny periods
- Pool pumps to run during daylight hours
- Hot water heating when sufficient solar generation is available
- Other flexible household appliances during peak solar production
The aim is to use more of your own electricity rather than exporting it and buying electricity back later.
Your results will depend on your household routine, solar generation and appliance requirements, so choose schedules that are practical for your home.
2. Consider Whether a Home Battery Suits Your Needs
A home battery can store surplus solar electricity for use later, including during the evening when your panels generate less power.
Instead of exporting all unused daytime generation for a feed-in credit, a battery may allow you to use some of that electricity after sunset. This can reduce grid electricity purchases when the battery has sufficient stored energy.
Before investing, consider:
- Your average daily electricity consumption
- How much surplus solar power your system produces
- Your evening and overnight energy requirements
- Battery capacity and efficiency
- Installation costs and available incentives
- Your electricity tariff and feed-in rate
Battery storage is not automatically the most economical option for every household. Compare the upfront investment with the potential benefits based on your actual energy usage and circumstances.
3. Review Your Electricity Plan Regularly
Feed-in tariffs and electricity usage rates can differ between retailers and plans. A plan offering a higher export rate may not necessarily deliver the lowest overall bill if its electricity usage charges or other fees are higher.
When comparing plans, examine the complete pricing structure, including:
- Electricity rates for imported power
- Feed-in tariff rates
- Daily supply charges
- Time-of-use pricing, where applicable
- Any relevant plan conditions or fees
Consider both the electricity you export and the electricity you purchase. Comparing your total expected costs can provide a clearer picture of which plan may suit your household.
4. Monitor Your Solar System’s Performance
Understanding how much electricity your solar system generates and how your household uses it can help identify opportunities for improvement.
If your inverter or monitoring platform provides energy data, review it regularly to understand when generation is highest and how much electricity is exported.
You may also wish to check for unusual changes in system output. Dust, debris, shading, equipment faults and other issues can affect performance.
Follow the manufacturer’s cleaning and maintenance recommendations, and arrange a qualified inspection if you suspect a fault. Monitoring can help identify issues, although it cannot guarantee that every performance problem will be detected.
5. Plan Future Energy Upgrades Carefully
Changes to household energy use may create opportunities to make better use of solar generation.
For example, households considering an electric vehicle, heat pump hot water system or upgraded heating and cooling equipment can assess how these technologies might fit into their existing solar setup.
Using some of the additional electricity demand during daylight hours may increase solar self-consumption. However, the outcome depends on equipment compatibility, operating schedules and the household’s available solar generation.
Planning upgrades together can help homeowners assess their options before committing to additional equipment.
Should You Add a Battery Just Because Feed-in Tariffs Are Falling?
Not necessarily. A lower feed-in tariff may make battery storage worth investigating, but it should not be the only reason for purchasing one.
A battery involves an upfront cost, and its financial value depends on how effectively the stored electricity replaces grid purchases, along with the system’s efficiency, lifespan, maintenance requirements and electricity pricing.
Homeowners should compare their current electricity bills, solar export data and evening consumption before deciding.
If you already use most of your solar electricity during the day, a battery may offer less additional benefit than it would for a household that regularly exports surplus power and purchases substantial electricity after sunset.
A personalised assessment can help determine whether battery storage is suitable for your property.
What Does the Future Hold for Solar Feed-in Tariffs?
Australia’s electricity system continues to evolve as rooftop solar, battery storage, electric vehicles and other energy technologies become more common.
Periods of high daytime solar generation may continue to influence the value of exported electricity. At the same time, technologies such as home batteries and smart energy management systems offer households more ways to control when electricity is stored and used.
Feed-in tariffs will continue to depend on market conditions, retailer offerings and relevant regulatory arrangements. Homeowners should therefore avoid relying on a single export rate when evaluating their energy strategy.
Understanding your consumption patterns and making informed decisions about energy use can help you adapt as the market changes.
Final Thoughts: Make Your Solar Energy Work Harder at Home
Falling solar feed-in tariffs have changed the way Australian homeowners may benefit from their solar systems, but they do not mean solar power has become less useful.
The key is to look beyond export payments and consider the broader value of generating electricity for your own household.
By shifting flexible appliance use to sunny hours, reviewing electricity plans, monitoring system performance and assessing whether battery storage is appropriate, homeowners can explore practical ways to improve their solar self-consumption.
Aussie Energreen helps Australians explore energy solutions suited to their properties and household needs.
If you want to understand your options for solar power, battery storage or other home energy upgrades, visit Aussie Energreen or contact the team.
Phone: 1300 231 289
Email: info@aussieenergreen.com.au
Empowering Green Futures.
Frequently Asked Questions
1. Why are solar feed-in tariffs lower than they used to be?
Greater rooftop solar generation can increase electricity supply during sunny periods, placing downward pressure on daytime electricity prices. Retailer pricing structures and other market conditions also influence feed-in tariff rates.
2. Does a lower feed-in tariff mean solar panels are no longer worthwhile?
No. Solar can still help reduce electricity purchases when generation is used directly in the home. The value of a system depends on installation costs, electricity prices, household consumption and overall system performance.
3. How can I increase my solar self-consumption?
You can consider running suitable appliances during daylight hours, scheduling hot water heating when solar power is available, monitoring system performance and assessing whether a battery suits your household.
4. Will a home battery eliminate my electricity bills?
Not necessarily. A battery may reduce grid electricity purchases, but results depend on its capacity, available solar generation, household demand, weather, tariffs and other charges.
5. Should I change electricity retailers for a higher feed-in tariff?
Compare the complete electricity plan before switching. A higher feed-in tariff may be offset by higher usage rates, supply charges or other conditions. Your total expected bill is a more useful comparison.
6. Can I use solar power to charge an electric vehicle?
Yes, when sufficient solar electricity is available and your charging equipment is suitable. Charging during daylight hours may help increase solar self-consumption, depending on your driving schedule and household energy requirements
