Victorian households with rooftop solar systems are set to experience a shift in their energy savings from September 1, 2026, following the Essential Services Commission Victoria (ESCV) final determination on minimum feed-in tariffs (FiTs) for the 2026-27 financial year. The new rates will see a notable reduction in the single-rate FiT, potentially cutting annual earnings for some solar owners by up to $90, while time-varying tariffs offer new opportunities for those who can adapt their export patterns.

The ESCV, Victoria’s independent economic regulator, announced its final decision this week, outlining the minimum rates retailers must pay solar customers for electricity exported back to the grid. The changes reflect evolving wholesale electricity prices, network costs, and the increasing penetration of rooftop solar across the state.

What Are the New Victorian FiT Rates?

From September 1, 2026, the minimum single-rate FiT will decrease from 8.5 cents per kilowatt-hour (c/kWh) to 6.4 c/kWh. This 2.1 c/kWh reduction represents a significant change for the majority of Victorian solar owners who are on a flat-rate tariff.

Conversely, the time-varying FiT structure has seen adjustments designed to incentivise exports during periods of high demand and higher wholesale prices. The peak rate for time-varying FiTs will increase from 10.5 c/kWh to 11.2 c/kWh. However, shoulder and off-peak rates will see slight decreases, with shoulder moving from 7.0 c/kWh to 6.8 c/kWh, and off-peak from 5.5 c/kWh to 5.2 c/kWh.

“The ESCV’s latest determination reflects the dynamic nature of Victoria’s energy market, where the value of exported solar power is increasingly tied to grid demand and wholesale prices,” stated an ESCV spokesperson. “While the single-rate FiT has adjusted downwards, the higher peak time-varying rate offers a clear signal for solar owners to consider how and when they export power.”

How Will This Impact Your Solar Savings?

For an average Victorian household with a 6.6 kW solar system exporting approximately 4,500 kWh annually, the reduction in the single-rate FiT could mean a decrease in annual earnings of around $94.50 (4,500 kWh * 0.021 c/kWh). This direct impact will be felt by those who have not opted for a time-varying tariff or do not have a home battery system to manage their exports.

Households on time-varying tariffs, or those considering them, now have a stronger incentive to maximise their solar exports during peak demand periods, typically between 3 PM and 9 PM. However, they will need to be mindful of the slightly reduced shoulder and off-peak rates.

Strategies for Victorian Solar Owners to Maximise Savings

  1. Review Your Tariff: Contact your energy retailer to understand if you are on a single-rate or time-varying FiT. Consider switching to a time-varying tariff if you can shift your energy consumption or export patterns to align with peak rates.
  2. Optimise Self-Consumption: With lower export rates, consuming more of your self-generated solar power becomes even more financially beneficial. Run high-energy appliances like dishwashers, washing machines, and pool pumps during daylight hours when your solar system is generating.
  3. Consider a Home Battery: A home battery system allows you to store excess solar energy generated during the day and use it during the evening, reducing reliance on grid power when import prices are higher. It also enables you to export stored energy during peak FiT periods, capitalising on the higher rates. For a detailed analysis, read our guide: Is a Home Battery Retrofit Worth It in Australia 2026? Costs, Rebates & 3-4 Year Paybacks.
  4. Join a Virtual Power Plant (VPP): VPPs allow you to pool your home battery with others to provide services to the grid, earning additional income. This can significantly boost your overall solar savings, especially with fluctuating FiT rates. Learn more about VPPs here: Join a VPP in 2026: Earn Up To $1,500 Annually & Boost Grid Stability.
  5. Install Energy Monitoring: Understanding your energy generation and consumption patterns is crucial for optimisation. Best Home Energy Monitoring Systems in Australia 2026: Unlock $1,000+ Annual Savings can provide the insights needed to make informed decisions.

The Future of Solar in Victoria

The ESCV’s decision underscores a broader trend in Australia’s energy market: the value of solar exports is becoming more nuanced. While rooftop solar remains a sound investment for reducing electricity bills through self-consumption, maximising export revenue now requires more strategic energy management.

Victorian solar owners are encouraged to review their current energy plans and consider upgrades or behavioural changes to ensure they continue to get the most out of their solar investment under the new tariff structure. The shift towards time-varying rates signals a maturing grid where flexible energy resources are increasingly valued.