Australian households with rooftop solar systems are grappling with a significant shift in the value of their exported power, as major electricity retailers slashed feed-in tariffs (FiTs) from July 1, 2026. Most notably, AGL has moved to a 0 cents per kilowatt-hour (c/kWh) FiT for customers on its Standard Retail Contract, drastically altering the economics for many solar owners.
This widespread reduction across New South Wales, South Australia, Queensland, and Victoria reflects the increasing abundance of solar generation during midday hours, which is driving down wholesale electricity prices. For solar owners, this means a renewed focus on self-consumption and strategic energy management is now more critical than ever to maximise savings.
Major Retailers Cut Solar Export Payments
The changes, effective from the start of the new financial year, have seen substantial cuts to the rates paid for excess solar electricity fed back into the grid. The Independent Pricing and Regulatory Tribunal (IPART)‘s non-mandatory benchmark for NSW feed-in tariffs for 2026–27 dropped to 3.4 to 6.5 c/kWh, a decrease from the previous year’s 4.8–7.3c range.
Several prominent retailers have adjusted their rates:
- AGL: Customers on Standard Retail Contracts now receive 0 c/kWh for exported solar. Market offers may vary, but the trend is clear.
- EnergyAustralia: Reduced its NSW flat rate FiT from 4c to 3c/kWh from July 1, 2026.
- Momentum Energy: Saw reductions across multiple states. NSW fell from 5c/kWh to 3c/kWh, Queensland from 2.9c/kWh to 2c/kWh, and South Australia from 2.5c/kWh to 0.8c/kWh. Victoria’s rate also decreased from 1.1c/kWh to 0.9c/kWh after August 1, 2026.
- Ergon Energy (regional QLD): The feed-in tariff dropped from 8.66c to 6.006c/kWh.
“Across 2025 and 2026, regulators and retailers have pushed export rates to near-zero — and in one major case, to exactly zero for default customers. The direction is unmistakable, and it’s documented at the source.”
These reductions underscore a fundamental shift in Australia’s energy market. With over 4 million rooftop solar systems installed nationwide, midday solar generation frequently outstrips demand, leading to low or even negative wholesale prices. Retailers argue that they are simply reflecting the diminishing market value of this surplus power.
What the FiT Changes Mean for Your Wallet
For current solar owners, lower FiTs mean less credit on their electricity bills for exported energy. This makes the strategy of self-consumption—using as much of your generated solar power as possible within your home—paramount. Every kilowatt-hour used directly avoids purchasing grid power at retail rates, which typically range from 30 to 45 c/kWh across Australia.
The table below illustrates the recent FiT changes for major retailers:
| Retailer | State/Region | Old FiT (c/kWh) | New FiT (c/kWh) | Effective Date |
|---|---|---|---|---|
| AGL | NSW, SA, SE QLD | Varies | 0 | 1 July 2026 |
| EnergyAustralia | NSW | 4 | 3 | 1 July 2026 |
| Momentum Energy | NSW | 5 | 3 | 1 July 2026 |
| Momentum Energy | QLD | 2.9 | 2 | 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 | Regional QLD | 8.66 | 6.006 | 1 July 2026 |
Note: AGL’s 0c/kWh applies to Standard Retail Contracts. Market offers may differ. All figures are approximate and subject to individual retailer plans.
For households considering solar, the falling FiTs mean that the payback period for systems will increasingly depend on how effectively they can use their generated power rather than relying on export credits. This reinforces the value proposition of properly sized solar systems that match household consumption patterns. You can explore strategies for optimising your usage in our guide: Maximise Your Solar Savings in Australia 2026: Unlock $1,500+ Annually with Smart Strategies.
The Role of Batteries and Smart Energy Management
With export payments dwindling, home battery systems are becoming an increasingly attractive option for solar owners. Batteries allow households to store excess midday solar generation and use it during evening peak demand periods, further reducing reliance on grid electricity and cutting bills. While the federal Cheaper Home Batteries Program offers Small-scale Technology Certificates (STCs) as an upfront discount, these rebates are also declining over time, making timely installation beneficial.
Victorian households are also anticipating a separate ‘Midday Power Saver’ offer from October 1, 2026, which, similar to the Federal Solar Sharer Offer in NSW, SA, and SE QLD, aims to encourage daytime energy consumption to utilise abundant solar. While this offers free import power, it’s distinct from the value of exporting your own solar generation.
To navigate the evolving landscape, consumers with smart meters should actively engage with their energy retailers to understand available tariffs and explore plans that reward flexible energy use. Shifting high-consumption activities like running dishwashers, washing machines, or charging electric vehicles to solar-rich midday periods can significantly offset lower FiT earnings.
Understanding your current solar feed-in tariff and exploring options that align with your energy usage is crucial to maintaining the financial benefits of your solar investment. For a detailed look at how FiTs work and strategies for self-consumption, refer to our comprehensive guide: Unlock $2,000+ Annually: Your 2026 Guide to Australian Solar FiTs & Self-Consumption.
For those considering a battery to enhance their solar savings, our guide on home battery options can provide valuable insights: Best Home Solar Batteries in Australia 2026: Models, Prices & Post-May Rebates.
While the era of high solar export payments may be drawing to a close, the fundamental value of generating your own clean electricity remains. The focus has simply shifted from exporting surplus to maximising direct consumption and intelligent storage. Australians are encouraged to review their electricity plans and adapt their energy habits to continue reaping the rewards of their solar investment.