Australian homeowners with rooftop solar systems are facing a significant reduction in the value of their exported electricity, with major retailers implementing substantial cuts to solar feed-in tariffs (FiTs) from July 1, 2026. This shift includes some providers reducing their standing offer FiTs to as low as 0 cents per kilowatt-hour (c/kWh), directly impacting the financial returns for thousands of households across New South Wales, Queensland, South Australia, and Victoria.
This widespread recalibration of FiTs reflects the evolving dynamics of the National Electricity Market (NEM), where a surge in rooftop solar generation is driving down wholesale electricity prices during peak sunlight hours. While beneficial for overall grid decarbonisation, it means less financial incentive for individual solar owners exporting excess power.
The New Reality for Your Solar Exports
Several prominent energy retailers have adjusted their solar feed-in tariffs as the new financial year commences. The most dramatic change comes from AGL, which has reduced the applicable solar feed-in tariff on its standing offers to 0c/kWh in NSW, QLD, and SA from July 1, 2026. This move means customers on these specific plans will receive no credit for the solar power they export to the grid.
Other major retailers have also implemented notable reductions:
| Retailer | State | Old FiT (c/kWh) | New FiT (c/kWh) | Change Date |
|---|---|---|---|---|
| EnergyAustralia | NSW | 4.0 | 3.0 | 1 July 2026 |
| EnergyAustralia | ACT | (variable) | 3.0 | 31 July 2026 |
| EnergyAustralia | SA | (variable) | 3.0 | 1 July 2026 |
| Momentum Energy | NSW | 5.0 | 3.0 | 1 July 2026 |
| Momentum Energy | QLD | 2.9 | 2.0 | 1 July 2026 |
| Momentum Energy | SA | 2.5 | 0.8 | 1 July 2026 |
| Momentum Energy | VIC | 1.1 | 0.9 | 1 August 2026 |
| Ergon Energy | QLD | (variable) | 6.006 | 1 July 2026 |
Note: AGL’s 0c/kWh applies to standing offers in NSW, QLD, and SA. Specific variable rates for EnergyAustralia and Ergon Energy depend on customer contracts prior to the change.
These changes underscore a trend where the value of exported solar power is diminishing. For instance, Momentum Energy customers in South Australia will see their FiT drop from 2.5c/kWh to a mere 0.8c/kWh, representing a 68% reduction.
“A household exporting at 3c and importing at 35c loses those solar exports several times over each evening.”
Why Your Solar Exports Are Losing Value
The primary driver behind these declining feed-in tariffs is the increasing penetration of rooftop solar across Australia. With over 4.4 million solar power systems installed on Australian homes and businesses as of June 2026, the grid experiences a surplus of solar energy during midday hours. This abundance drives down wholesale electricity prices, particularly in the middle of the day, making exported solar power less valuable to retailers.
IPART, the NSW independent pricing regulator, publishes a benchmark range for solar feed-in tariffs. For 2026-27, the all-day benchmark in NSW is between 3.4 c/kWh and 6.5 c/kWh. While retailers are not mandated to adhere to these benchmarks, the market trends indicate a strong downward pressure on rates.
Impact on Australian Households
For solar homeowners, particularly those with older systems or large export volumes, these FiT reductions can significantly impact their electricity bill savings. The traditional model of exporting excess solar power for a decent credit is becoming less economically viable. Households that heavily rely on these credits to offset evening consumption will find their overall savings diminished, especially when usage rates for grid power remain high (typically 25c to 40c per kilowatt-hour).
Strategies for Maximising Solar Value
In response to these shifting market conditions, solar homeowners must adapt their energy consumption habits and consider additional investments to maximise the value of their systems. The focus must now shift from exporting to self-consumption.
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Shift Energy Usage: Run high-energy appliances like washing machines, dishwashers, and pool pumps during daylight hours when your solar panels are generating power. This directly reduces the amount of electricity you need to draw from the grid at higher rates.
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Invest in Home Battery Storage: A home battery system allows you to store excess solar energy generated during the day and use it during the evening peak, when grid electricity is most expensive. This significantly reduces reliance on the grid and maximises the value of your solar generation. The federal Cheaper Home Batteries Program continues to offer upfront discounts, making batteries more accessible. For guidance on potential costs, refer to our guide on Home Battery Backup for Blackouts in 2026: Systems & Costs from $7,000.
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Utilise Smart Meters and Energy Management Systems: Smart meters provide granular data on your energy consumption and exports, enabling better management. Pairing this with a smart home energy management system can automate the shifting of loads and optimise battery charging, ensuring you make the most of your solar power. Learn more about optimising your energy use in our Unlock $800+ Savings: Your Smart Meter Guide for Australia 2026.
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Review Your Electricity Plan Regularly: With FiTs and usage charges constantly changing, it is crucial to compare electricity plans frequently. Some plans might offer lower usage charges in exchange for a lower FiT, which could be more beneficial if you are a high self-consumer. Tools like the Commonwealth Government’s Energy Made Easy website can help compare plans.
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Consider System Sizing for Future Needs: For those considering a new solar installation, or an upgrade, it’s important to size your system to meet future energy demands, including potential electric vehicle (EV) charging or a full home electrification. A larger system geared towards higher self-consumption (especially with a battery) will offer better long-term value. Our guide, What Solar System Size Do You Really Need in Australia 2026? Future-Proofing for EVs & Electrification, provides further insights.
The Broader Energy Transition Context
These FiT reductions are a natural consequence of Australia’s rapid transition to renewable energy. While the immediate impact on solar homeowners can be challenging, the broader goal is a more resilient and decarbonised grid. The increased solar penetration, coupled with growing battery storage (over 450,000 home batteries installed in the last year), is helping to flatten wholesale electricity prices and reduce reliance on more expensive gas-fired generation.
However, it places a greater onus on individual households to actively manage their energy consumption and generation. The era of passive solar savings is drawing to a close, replaced by a need for proactive energy management and strategic investments in home energy technology.
What This Means for You
The July 1, 2026, feed-in tariff changes signal a new phase for Australian solar owners. It is now more critical than ever to understand your energy consumption patterns, explore options for self-consumption and storage, and regularly compare electricity plans to ensure you are still getting the best value from your solar investment. Ignoring these changes could lead to significantly higher electricity bills despite having solar panels on your roof.