Best Solar Feed-In Tariff VIC 2025
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In this article, we’ll cover everything you need to know about solar feed-in tariffs and solar plans, including the top solar feed-in tariff rates, the best solar plans currently offered, how to choose a solar plan, and more. Whether you’re a solar enthusiast looking to optimise your savings or a homeowner looking to make the switch, we’ve got you covered.
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Comparing solar feed-in tariffs is important for homeowners and businesses looking to maximise the financial benefits of their solar energy investments.
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When choosing a solar plan, it’s important to consider factors such as energy rates, solar feed-in tariff (FiT) rates, system eligibility (and size limits), and potential rebates for which you may be eligible.
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If you’re in the market for a new solar plan or want a higher solar feed-in tariff, contact Electricity Monster. Our solar experts can do a bill-to-bill comparison and help you choose a plan that’s right for you. We’ll also complete a serviceability check on your property to determine the exact solar feed-in tariff rates available in your area.
Best Solar Feed-in Tariffs VIC 2025
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What is A Solar Feed-In Tariff?
As the name suggests, a solar feed-in tariff is a payment from your electricity retailer for the excess electricity produced by your solar panels system and sent back to the grid. It usually consists of a few cents for each Kilowatt hour (kWh). Generally, you will find this credit on your electricity bill.
How Do Solar Feed-in Tariffs in Victoria Work?
A solar feed-in tariff is a financial incentive for solar owners who generate excess power from their solar photovoltaic (PV) system and feed it into the main grid. Essentially, when your solar panels produce more electricity than you use in your household, the excess energy is exported to the electricity grid. In return, electricity retailers will pay you a predetermined rate for each kilowatt-hour (kWh) of surplus energy exported, which is referred to as the solar feed-in tariff. This serves as a form of compensation for contributing clean and renewable energy to the grid, helping to reduce reliance on fossil fuels and lower greenhouse gas emissions. Financially speaking, this can also help offset your electricity bills by being less reliant on the main electricity grid.
7Are There Solar System Size Limits?
In Australia, there are guidelines that regulate the maximum size of your solar system. These guidelines vary depending on your network, where your home is located, and whether your home is a single-phase or three-phase connected property.
But first, let’s break down the main differences between a single-phase and a three-phase connected property. Essentially, what separates these two connections is their capacity to meet different household electricity demands. While single-phase connections are suitable for smaller households, such as small businesses and new homes with moderate energy consumption, three-phase connections are better equipped to handle higher energy demands like large households and commercial properties.
Each state or territory has separate regulations and guidelines set by the local distribution network operators. Here’s an overview of solar system size limits in VIC:
Network | System Size Limits |
|---|---|
|
United Energy |
600/40Mbps |
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Citipower/Powercor |
Single Phase: Up to 5kW (by inverter) Three-Phase: Up to 30kW |
|
Ausnet |
Single Phase: Up to 5kW (by inverter) Three-Phase: Up to 30kW |
|
Jemena |
Single-Phase: Up to 10kVA (by inverter) Three-Phase: Up to 30kVA (by inverter) |
Minimum Feed-In Tariff in VIC
A minimum flat rate feed-in tariff in Australia refers to the lowest price that electricity retailers are legally required to pay to households or businesses for the excess energy they export to the main electricity grid. The minimum feed-in tariff is typically set by government regulators like the Essential Services Commission and serves as a baseline for feed-in tariffs.
The minimum flat rate provides a degree of fairness for solar owners.
For the 2024–25 period, the minimum feed-in tariff rate in Melbourne, Geelong, and the surrounding cities in Victoria, according to the Essential Services Commission, has been set at 3.3 cents per kilowatt-hour, down from 4.9 c per kilowatt-hour that was set in 2023–2024.
The following table breaks down the time-varying minimum rates for VIC (2024-2025).
Option 1
Period | Time | Rate (2024-2025) |
|---|---|---|
Flat Rate |
600/40Mbps |
3.3 c/kWh |
Overnight |
Weekday: 10pm – 7am | Weekend: 10pm – 7am |
7.6 c/kWh |
Day |
Weekday: 10pm – 7am | Weekend: 10pm – 7am |
2.8 c/kWh |
Early Evening |
Weekday: 10pm – 7am | Weekend: 10pm – 7am |
7.0 c/kWh |
Option 2
Period | Time | Rate (2024-2025) |
|---|---|---|
Shoulder |
600/40Mbps |
4.1 c/kWh |
Off-Peak |
Everyday: 10 am to 2 pm |
2.1 c/kWh |
Peak |
Everyday: 4 pm to 9 pm |
8.4 c/kWh |
*Data from the figures above is drawn from the Essential Services Commission Victoria.
9Can I Upgrade My Solar System?
Yes, you can. Many Australians are adding battery storage systems to their existing solar energy setup. An increasingly affordable solution for homeowners looking to remove themselves from the grid or reduce their reliance on grid energy, battery systems are growing in popularity.
If you have an existing PV system, adding a battery storage system to your existing setup or increasing the size of your solar PV system could result in long-term savings – although this ultimately depends on factors such as your budget, your electricity usage, and whether you’re a high exporter or rely on the main energy grid.
Some of the benefits of adding battery storage to an existing solar PV system include:
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Energy Independence: Battery storage systems allow you to store excess solar electricity generated during the day for use during peak demand periods or at night when there’s little sunlight, reducing your reliance on purchased power.
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Backup Power During Outages: Battery storage systems provide backup power during grid outages, so your lights, refrigerator, and devices will remain operational even when the grid is down.
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Time-of-Use Savings: In regions with time-of-use electricity pricing, battery storage systems can help you take advantage of lower off-peak electricity rates by storing surplus energy when prices are low and using it when rates are higher, leading to increased cost savings.
Investing in a solar battery is a great way to maximise the benefits of your solar power PV system. If you’re looking to compare energy providers, need a solar installer, or want to learn more about solar battery systems, call our experts today.
Frequently Asked Questions
- What Are the Financial Benefits of a High Solar Feed-in Tariff?
A high feed-in tariff offers various financial benefits. For one, high exporters will receive more credits than those with a lower rate – or c/kWh. This could expedite the solar system’s payback period, allowing homeowners to recoup their initial investment more quickly – with the eventual goal of enjoying significantly lower electricity bills. With advancements in solar power technology and declining installation costs, coupled with a higher feed-in tariff, the ROI of solar energy systems is becoming increasingly attractive, making them an appealing investment option for homeowners looking to save money in the long run.
A high solar feed-in tariff in Australia not only incentivises the push towards renewable energy through solar power and contributes to environmental sustainability but also delivers tangible financial benefits to homeowners, including lower energy bills, protection against rising electricity prices, and attractive returns on investment. - What is the Difference Between a Single Rate Tariff and a Time of Use Tariff
Solar feed-in tariffs in Victoria come in single-rate and time-of-use tariffs. These options provide different rates for households with solar energy systems. But what’s the difference between these two?
Time-of-use feed-in tariffs are designed to reward solar customers more during peak demand periods. On the other hand, the potential for single-rate feed-in tariffs to be advantageous is based on a flat rate throughout the day, as opposed to time-varying rates that offer peak rates of up to 29 cents per kilowatt-hour.
A single-rate standard feed-in tariff is a simple rate that applies regardless of the time of day the electricity is exported back into the grid.
A Time-Of-Use (TOU) FiT has different rates for different times of the day. The rate also reflects the demand on the energy grid at various times of the day.
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Author
Benjamin TomBenjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.
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