Regional Queensland solar homeowners are set to see a significant reduction in their solar feed-in tariff (FiT), with the Queensland Competition Authority (QCA) finalising a 29% cut effective from July 1, 2026. The new rate for eligible Ergon Energy network customers will drop to 6.006 cents per kilowatt-hour (c/kWh), down from the current 8.660 c/kWh.
This reduction directly impacts the financial returns for thousands of regional Queensland households and small businesses exporting surplus solar energy to the grid. The QCA’s final determination, published on June 5, 2026, reflects a continued trend of declining export values as more solar capacity comes online and wholesale electricity prices in the middle of the day are pushed lower.
Why the Drop in Regional Queensland’s Solar FiT?
The QCA, responsible for setting the regional Queensland feed-in tariff, explained that the 29% decrease for the 2026–27 financial year is primarily due to a reduction in underlying energy costs and the increased availability of solar export data from advanced digital meters (ADMs). This improved data allows for a more precise valuation of exported solar energy based on an “avoided cost” methodology.
“Customers should not expect the solar FiT to remain the same when deciding whether to install or upgrade PV systems. The solar FiT is updated each year to reflect changes in energy costs and any new information that becomes available.”
The QCA’s methodology estimates the costs retailers avoid by sourcing energy from solar customers rather than the National Electricity Market (NEM). As wholesale prices during peak solar generation hours become increasingly suppressed due to abundant rooftop and large-scale solar, the value of exported energy naturally declines.
This marks a substantial shift from previous years, as illustrated below:
| Financial Year | Regional QLD FiT (c/kWh) |
|---|---|
| 2024–25 | 12.377 |
| 2025–26 | 8.660 |
| 2026–27 | 6.006 |
Source: Queensland Competition Authority, Ergon Energy
Impact on Regional Solar Owners
For regional Queenslanders with solar panels, this cut means a reduced credit on their electricity bills for every kilowatt-hour they send back to the grid. With average electricity purchase prices in Queensland around 30 c/kWh, the gap between the value of self-consumed solar and exported solar is widening. This further incentivises maximising self-consumption over exporting.
While South East Queensland (Energex network) does not have a regulated minimum feed-in tariff, rates offered by retailers in that region currently vary significantly. Some retailers like Origin Energy are offering up to 22 c/kWh, with others such as Alinta Energy, AGL, and GloBird Energy providing maximum rates around 10 c/kWh, depending on the plan. This contrasts sharply with the fixed, lower rate now mandated for regional areas.
Strategies for Maximising Solar Savings
With the feed-in tariff decreasing, regional Queensland solar owners are increasingly looking for ways to reduce their reliance on exporting power. Key strategies include:
- Maximising Self-Consumption: Shifting high-energy activities like running dishwashers, washing machines, or pool pumps to the middle of the day when solar generation is at its peak. This ensures you’re using your own free solar power rather than buying from the grid or exporting at a lower rate.
- Investing in Battery Storage: A home battery system allows you to store excess solar generated during the day and use it during the evening peak, significantly increasing your self-consumption. This can drastically reduce your reliance on grid electricity and provide backup power during outages. For more on this, see our guide: Home Battery Backup for Blackouts in 2026: Systems & Costs from $7,000.
- Optimising System Size: While larger systems generate more power, the diminishing returns from lower FiTs mean that sizing your system to closely match your household’s consumption profile (especially with a battery) becomes more critical. Consider your future energy needs, including potential EV charging. Our guide, What Solar System Size Do You Really Need in Australia 2026? Future-Proofing for EVs & Electrification, can provide further insights.
It’s important to note that the long-standing Queensland Solar Bonus Scheme (SBS), which offered a generous 44 c/kWh FiT, is closed to new applicants and is legislated to expire on July 1, 2028. This new regional FiT cut affects all other eligible solar customers outside of this legacy scheme.
The Clean Energy Regulator (CER) has also highlighted the strong growth in home battery installations nationally, with over 401,000 new batteries installed since the Cheaper Home Batteries rebate program began on July 1, 2025, representing a 1,326% increase on 2024 installs. This trend underscores the growing homeowner focus on energy independence and maximising the value of their solar investment amidst evolving tariff structures.