The Essential Services Commission no longer sets minimum feed-in tariffs, following an amendment to the Electricity Industry Act 2000. The 2024-25 minimum feed-in tariffs applied until 30 June 2025. From 1 July, electricity retailers may set their own feed-in tariffs.
Minimum feed-in tariff review 2025–26
- Draft decision10 January 2025
- Consultation closed31 January 2025
- Final decision27 February 2025
- New Act means our decision no longer applies20 May 2025
Overview
The Essential Services Commission no longer sets minimum feed-in tariffs, following an amendment to the Electricity Industry Act 2000. The 2024-25 minimum feed-in tariffs applied until 30 June 2025, but there will be no minimum feed-in tariffs from 1 July 2025.
From 1 July, electricity retailers may set their own feed-in tariffs. However, these cannot be below zero ($0.00) cents per kWh. More information is available from the Department of Energy, Environment and Climate Change.
See this page about our past decision on the 2025-26 minimum feed-in tariffs.
Key facts of our final decision
Wholesale prices were forecasted to decline especially during daylight hours
The flat minimum feed-in tariff for 2025-26 was lower than that for 2024-25 mainly due to lower daytime wholesale electricity prices.
The increased number of households with roof-top solar reduced demand and increased supply. This drove down the wholesale electricity prices especially during daylight hours when most solar exports are occurring.
The time-varying minimum feed-in tariffs ranged from 6.57 cents per kWh in the evening peak to 0.00 during daytime hours. Minimum tariffs differed between the two options due to differences in time-block periods.
The main benefit of solar is avoiding the retail price
Customers avoid retail tariffs by self-consuming the electricity they generate.
For a customer on the Victorian Default Offer prices in 2024–25, the retail price ranged from approximately 26 to 35 cents per kilowatt hour, depending on their distribution zone – these were the actual costs that solar customers avoid.
Please refer to our full final decision report for more detailed analysis.
Read our final decision
Why do the minimum feed-in tariffs change each year?
The video below explains how the wholesale electricity prices during different times of day and night affect the minimum feed-in tariffs.
The minimum feed-in tariffs change each year mostly because of changes in solar weighted wholesale electricity prices. In recent years, solar weighted wholesale electricity prices during the middle of the day, when most solar is exported, have been going down.
The wholesale price is set in a competitive national market, based on electricity supply and demand. The wholesale price is not set by the government or a regulator.
Tips to make the most of your solar
The video below explains how the wholesale electricity prices during different times of day and night affect the minimum feed-in tariffs.
The value for solar customers is avoiding retail prices by using the electricity they produce themselves.
- Customers’ solar systems only export ‘leftover’ electricity. The electricity their systems produce power their homes and businesses first. Where possible, run your power-hungry appliances - washing machines, dishwasher, hot water heater - during the middle of the day and avoid retail prices.
- Consider the advantages (and disadvantages) of 'time of use' feed-in tariffs when working out which electricity retailer meets your needs. Also beware that a higher feed-in tariff may mean you pay higher import tariffs.
Next step
The 2024-25 minimum feed-in tariffs applied until 30 June 2025. From 1 July, electricity retailers may set their own feed-in tariffs.
These cannot be below zero ($0.00) cents per kWh. More information is available from the Department of Energy, Environment and Climate Change.