What a feed-in tariff is
When your system generates more than your home is using, the surplus flows to the grid. Your retailer credits you a feed-in tariff for each exported kilowatt-hour. It appears as a credit on your bill, not as a payment.
Why it has fallen so far
Victoria has a great deal of rooftop solar, and nearly all of it exports at the same time — the middle of the day. That has pushed midday wholesale prices very low, and on some days negative. Feed-in tariffs broadly track that wholesale value, so as solar penetration grew, export rates fell.
This is not a temporary dip. The structural cause — abundant midday generation — keeps getting stronger.
Confirm the current Victorian minimum rate The Essential Services Commission reviews the minimum feed-in tariff, and the arrangements have been restructured in recent years. Check the current position rather than quoting a remembered figure.
What this means for your system
The gap between what you pay to import and what you are paid to export is now large. In practical terms a kilowatt-hour you use yourself is worth several times one you export.
That has three consequences for design:
- Orientation should follow your usage. West-facing panels produce less annually but produce later, when you are home and the air conditioning is on. That is often worth more than a higher annual total.
- Load shifting is nearly free money. Running the dishwasher, washing machine and pool pump during the day converts export at a low rate into avoided import at a high one. It costs nothing but a timer.
- Batteries got more attractive. The wider the import/export gap, the more valuable it is to store your surplus rather than sell it. That gap, plus the federal battery discount, is the whole case for storage.
Do not choose a retailer on feed-in rate alone
A high advertised feed-in tariff is frequently paired with a higher usage rate or a higher daily supply charge. Since most households import more than they export, a headline export rate can easily cost you money overall.
Compare offers on total annual cost using your own consumption data. Victorian Energy Compare will do this with your actual usage.
If you are on a legacy premium tariff
A small number of Victorian households remain on early premium feed-in contracts at rates far above current offers. These are genuinely valuable and generally cannot be reinstated once lost.
Expanding or modifying your system can end that arrangement permanently. If this is you, check the terms before touching anything. Sometimes the right advice is to leave the existing system exactly as it is and install a separate one alongside it — and we will say so.