Solar Feed-in Tariffs Changed on 1 July 2026

If you have solar panels and export power to the grid, today matters. Several major retailers changed their solar buyback rates from 1 July 2026, and the direction is down across the board. IPART's official benchmark for NSW feed-in tariffs dropped from 4.8–7.3c last year to 3.4–6.5c for 2026–27, reflecting lower expected wholesale prices at midday when most solar is exported.

This is not a crisis — solar still pays. But the economics have shifted enough that it is worth knowing exactly what you are getting paid, whether it is competitive, and what to do about it if it is not.

IPART (the Independent Pricing and Regulatory Tribunal) sets a non-mandatory benchmark range for NSW feed-in tariffs each year. For 2026–27 that range is 3.4 to 6.5 cents per kWh — the rate that reflects what wholesale electricity is worth at the times solar is typically exported.

This is a guide, not a floor. Retailers can pay less. Some pay more to attract solar customers. The benchmark gives you a reference point: if your retailer is paying below 3.4c in NSW, they are paying below the official benchmark for what your power is worth.

IPART's benchmark dropped from 4.8–7.3c to 3.4–6.5c for 2026–27. This reflects lower expected wholesale electricity prices during midday solar export hours.

EnergyAustralia cut its flat rate NSW FIT from 4c to 3c/kWh from 1 July — below the IPART benchmark floor. AGL removed feed-in tariffs for customers on Standard Retail Contracts entirely.

Best available rates in NSW remain at 10c/kWh from Alinta Energy and GloBird Energy — well above the benchmark — though these apply to specific plans and conditions. If you are on a legacy standing offer, check what you are getting.

NSW solar owners also gain access to the Solar Sharer Offer from 1 July 2026 — 3 free hours of electricity during peak midday solar hours for households with a smart meter. This applies whether or not you have solar panels, and is designed to soak up excess midday solar generation.

Victoria removed its mandatory minimum FIT floor from 1 July 2025. Retailers can now set rates as low as 0c/kWh, with the only constraint being that rates cannot go below zero. The average minimum FIT across VIC retailers has fallen to approximately 1.1c/kWh as a result.

Victorian electricity prices (VDO) dropped approximately 5% from 1 July 2026 — which ironically makes self-consumption more valuable, since you avoid buying more expensive grid power.

VIC does not have the Solar Sharer Offer.

Regional QLD (Ergon): The government-regulated FIT for Ergon customers dropped from 8.66c to 6.006c/kWh from 1 July 2026 — a significant cut from the 2024–25 rate of 12.377c. Despite the reduction, Ergon's regulated rate still significantly exceeds VIC's average minimum.

SE QLD (retailer-set): No regulated minimum. Best available rates are 10c/kWh from Alinta Energy, AGL and GloBird Energy. CovaU offers the highest minimum at 5c/kWh.

SE QLD households with a smart meter also have access to the Solar Sharer Offer from 1 July 2026.

No mandated minimum FIT. Daytime export rates typically range from 2c to 5c/kWh across retailers. Some battery-linked plans offer higher evening export rates.

SA electricity prices rose 1.4% from 1 July 2026 — the only DMO state with an increase — which further increases the relative value of self-consumption over export.

From 1 July 2026, households in NSW, SA and SE QLD with a smart meter can access 3 free hours of electricity during midday peak solar hours. This is part of a broader policy shift to use excess midday solar generation and reduce grid strain.

For solar owners the picture is mixed. The free hours reduce midday grid imports — useful if your system is undersized or you have high daytime usage. But it does not directly compensate for lower export rates if you are exporting significant amounts. Check with your retailer on how to opt in if you have a smart meter.

Feed-in tariff rates reflect the wholesale value of electricity at the times solar is exported — typically between 9am and 4pm. As more Australians install solar panels, midday grid supply increases and wholesale prices at that time drop. The economics are simple: more supply, lower price.

In the early days of solar in Australia, premium government schemes paid 44c to 66c per kWh. Those schemes are closed to new customers. Today, the national range for retailer FITs is roughly 3c to 10c/kWh — against a grid electricity import rate of 29c to 37c/kWh depending on your state and zone.

The gap is roughly 6 to 1. Every unit of solar you use yourself saves approximately six times more than every unit you export. The practical implication: the value of your solar system is increasingly about self-consumption, not export.