For years, Victorian solar owners were protected by a minimum feed-in tariff set by the Essential Services Commission. That floor is gone. Since 1 July 2025, each retailer sets its own rate, and many now pay only a few cents for the solar power you send to the grid.
Key points
- Victoria no longer has a minimum feed-in tariff. Retailers set their own rates, and they cannot go below zero.
- Many plans now pay between 0 and about 5 cents per kWh, and a few pay more, sometimes with conditions.
- Using your solar yourself is now worth far more than exporting it.
- Batteries, smart timing and EV charging help you keep more of your solar.
What happened to the minimum feed-in tariff?
The Essential Services Commission used to set a minimum flat rate every year. In May 2025 the law changed, and the commission stopped setting a minimum. From 1 July 2025, retailers have been free to set their own feed-in tariffs, as long as they are not below 0 cents.
What do retailers pay in 2026?
Rates change often and differ between plans. As a rough guide, many Victorian plans pay between 0 and about 5 cents per kWh, and a small number of plans pay up to about 8 cents, often with conditions such as higher usage rates or a battery. Always compare the whole plan, not just the feed-in tariff. A high feed-in rate is not a good deal if you pay more for the power you buy.
Use the Victorian Government’s Victorian Energy Compare website to check current offers with your own usage.
Why low feed-in tariffs change the solar maths
Every kWh of solar you use in your home saves you the full price of grid power, which is often around 30 cents or more. Every kWh you export earns only a few cents. That makes self-use about ten times more valuable than export.
Solar is still well worth it, but the way to get the most from it has changed. Read are solar panels worth it in Melbourne? for the full picture.
Five ways to use more of your own solar
- Run big appliances in the middle of the day. Use timers on the dishwasher, washing machine and dryer.
- Heat water with solar. A heat pump hot water system on a timer can run on your midday solar.
- Pre-cool or pre-heat your home. Run the air conditioner in the afternoon while the sun is still up.
- Charge your EV from solar. A solar-aware EV charger can soak up spare power.
- Add a battery. A home battery stores your midday solar for the evening, and the federal discount makes it cheaper than ever.
Should I still install solar with low feed-in tariffs?
Yes, for most homes. Solar panels are cheaper than ever, and the savings come mostly from using your own power. A well-sized system often pays for itself in a few years. See our solar cost guide for an example.
Frequently asked questions
Is there a minimum feed-in tariff in Victoria in 2026?
No. Retailers set their own rates, and they cannot be below zero.
Can my retailer change my feed-in tariff?
Yes. Retailers can change rates on market plans with notice. Check your plan when you get a price change letter.
Is it worth switching retailers for a better feed-in tariff?
Only if the whole plan works out cheaper for your usage. Compare total yearly cost, not just the feed-in rate.
