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Feed-in tariff for solar

Victoria’s feed-in tariff offers Victorians with solar photovoltaic (PV) systems, up to five kilowatts in size, a guaranteed credit for excess electricity feed back into the grid at any time of the day or year.

A feed-in tariff is a payment to households, community organisations and small businesses from power companies for electricity that is ‘feed into’ the power grid. Customers that install small-scale renewable energy systems can sometimes produce more energy than they can use. If connected to the power grid, these customers can feed this electricity back into the grid.

How Feed-In Tariff be calculated ?


Solar Energy can save you thousands of dollars on your home energy bill and your hot water heating costs if you use the right systems.

Who is eligible?

All electricity retailers (with more than 5,000 customers) must offer a premium feed-in tariff for solar to their customers.

If you already have a solar PV system or are thinking of installing one, there is a good chance that you can access the premium feed-in tariff.

To be eligible you must: .Be a household, community organization or small business;

  • Have a solar PV system no greater than five kilowatts in size;
  • Claim only solar PV systems installed at your principal place of residence (if you are a household);
  • Consume 100 megawatt hours or less of electricity per year (if you are a small business or community organization);
  • Claim only one solar PV system per site.

Understand How Solar power system save your money by case study

The case studies below are just a couple of examples to show what benefits Victorians might receive from accessing the premium feed-in tariff.

Case studies with an estimated average consumption for a retired couple, working couple and family with two children, with solar panels varying in size from 1.5kW to 2kW, showed feed-in tariff benefits of between $600 and $1200.

Retired Coupled
Panel size 1.5 kW
Average annual electricity consumption 5,000 kWh
Average annual solar generation 2,200 kWh
Excess electricity exported to the grid 500 kWh
Premium feed-in savings  
Total electricity bill (before solar panel) $1250 per year
Amount saved on buying electricity by having solar panels $425 per year
Credit through feed-in tariff for electricity sent to the grid $50 per year
Total $ savings $475 per year
Final electricity bill $775 per year
Working Coupled
Panel size 1.5 kW
Average annual electricity consumption 4,000 kWh
Average solar generation 2,200 kWh
Excess electricity exported to the grid 750 kWh
Premium feed-in savings d
Total electricity bill (before solar panel) $1000 per year
Amount saved on buying electricity by having solar panels $370 per year
Credit through feed-in tariff for electricity sent to the grid $75 per year
Total $ savings $445 per year
Final electricity bill $555 per year
Family with two kidsd
Panel size 1.5 kW
Average annual electricity consumption 6,500 kWh
Average solar generation 2,200 kWh
Excess electricity exported to the grid 100 kWh
Premium feed-in savings a
Total electricity bill (before solar panel) $1,650 per year
Amount saved on buying electricity by having solar panels $525 per year
Credit through feed-in tariff for electricity sent to the grid $10 per year
Total $ savings $535 per year
Final electricity bill $1,115 per year