Victorian households with rooftop solar systems are navigating a significantly altered landscape for their energy export payments in 2026. Since July 1, 2025, the Essential Services Commission (ESC) Victoria no longer sets a mandatory minimum solar feed-in tariff (FiT), shifting the responsibility entirely to electricity retailers. This deregulation, while implemented last year, continues to shape the value of solar exports for hundreds of thousands of Victorian homes and remains a critical factor for solar owners assessing their energy savings today.
Previously, the ESC mandated a minimum rate that all retailers had to pay for surplus solar electricity exported to the grid. For instance, the minimum flat rate for 2024-25 was 3.3 cents per kilowatt-hour (c/kWh), a decrease from 4.9 c/kWh in 2023-24. However, from July 1, 2025, this regulatory floor was removed, meaning retailers now determine their own FiT rates, with the only proviso being they cannot pay below zero cents per kWh.
“From 1 July 2025, the Victorian Government deregulated the Solar Feed-In Tariff, removing the government-mandated minimum rate. Retailers now set their own rates entirely. The only rule is that they cannot pay below zero cents per kWh.”
This change has resulted in a broad spectrum of offers across the market. In 2026, standard flat feed-in tariff rates in Victoria typically range from approximately 1 c/kWh to 11 c/kWh, depending on the retailer and specific plan. For those on time-varying plans, peak evening rates can reach up to 12 c/kWh, though daytime export rates can be significantly lower, sometimes even approaching zero during periods of high solar saturation.
The Current Victorian FiT Landscape (2026)
While the deregulation aimed to foster greater flexibility and competition, the practical effect for many solar owners has been a general downward pressure on export values. Analysis for the 2025/26 financial year indicates an average minimum feed-in tariff rate set by retailers of 1.1 c/kWh. This figure underscores the shift from a guaranteed minimum to a market-driven value, often reflecting the lower wholesale electricity prices during peak solar generation hours.
| Retailer (Example) | Flat FiT Range (c/kWh) | Time-Varying Peak FiT (c/kWh) |
|---|---|---|
| Major Retailers | 1.0 - 8.0 | Up to 10.0 |
| Smaller Retailers | 4.0 - 11.0 | Up to 12.0 |
Note: These ranges are illustrative based on current market reports for 2026 and can vary significantly between specific plans and distribution zones. Always compare current offers directly from retailers.
Why the Shift?
The primary driver behind the decline in feed-in tariff rates is the success of rooftop solar itself. The substantial increase in solar installations across Victoria has led to a surge in electricity supply during daylight hours, pushing down wholesale electricity prices. When everyone’s solar panels are exporting simultaneously, typically between 10 am and 2 pm, the grid is flooded with cheap power, reducing the value of exported energy.
Impact on Solar Savings
For Victorian solar households, this means the financial benefits of solar are increasingly derived from self-consumption rather than exporting surplus energy. Every kilowatt-hour of solar electricity used directly within the home avoids purchasing power from the grid at retail rates, which can range from 26 c/kWh to 35 c/kWh on the Victorian Default Offer. In contrast, exporting that same kWh might only earn 1-11 c/kWh.
This stark difference highlights the importance of aligning energy usage with solar generation. For instance, running dishwashers, washing machines, or charging electric vehicles during daylight hours can significantly enhance savings. Households considering a new solar system in Victoria should factor these dynamics into their calculations. For guidance, refer to our article: Your 2026 Guide: What Size Solar System Do I Need & How Much Will It Cost in Australia?
Strategies for Victorian Solar Owners
- Maximise Self-Consumption: Shift high-energy activities to solar generation periods. Smart appliances and energy management systems can automate this process.
- Invest in Battery Storage: A home battery allows you to store surplus solar energy generated during the day and use it during the evening peak, reducing reliance on grid power when prices are highest. This can be a key strategy to mitigate lower FiTs. Explore options in our guide: Retrofitting Solar Batteries in Australia 2026: Your Guide to $4,200+ Rebates
- Shop Around for Retailers: With no mandated minimum, retailer offers vary widely. Regularly compare electricity plans to find the best combination of retail rates and feed-in tariffs. Our guide on How to Compare and Switch Electricity Providers in Australia 2026: Your Essential Guide to Beating Rising Bills can assist.
- Understand Time-Varying Tariffs: Many retailers offer time-varying FiTs that pay more during evening peak demand. While this requires careful management of exports, it can be advantageous for some households.
The deregulation of Victorian solar feed-in tariffs marks a permanent shift in how solar savings are realised. For current and prospective solar owners, understanding these changes and adapting consumption habits are crucial to optimising their energy bills in 2026 and beyond.