The minimum feed-in tariffs are the minimum amounts your electricity retailer must pay you for exporting solar energy. Electricity retailers choose the amounts they pay but must not pay you less than the minimum.
Minimum feed-in tariff review 2025–26
- Draft decision10 January 2025
- Consultation closed31 January 2025
- Final decision27 February 2025
- Minimum tariffs expected in effect1 July 2025
Overview
We have completed our review of the 2025-26 minimum feed-in tariffs.
Electricity retailers can offer a flat rate feed-in tariff or two time-varying feed-in options. The feed-in tariff rates electricity retailers offer must be at or above the minimum.
Key facts of our final decision
The 2025-26 'flat' minimum feed-in tariff is 0.04 cents per kilowatt hour
The flat rate minimum feed-in tariff is the same any time of day or day of the week.
We have averaged the different prices over the day into a single rate by the amount of solar exported into the grid in each half-hour.
Wholesale prices are forecast to decline especially during daylight hours
The flat minimum feed-in tariff for 2025-26 is lower than that for 2024-25 mainly due to lower daytime wholesale electricity prices.
The increased number of households with roof-top solar has reduced demand and increased supply. This drives down the wholesale electricity prices especially during daylight hours when most solar exports are occurring.
The time-varying minimum feed-in tariffs range from 6.57 cents per kWh in the evening peak to 0.00 during daytime hours. Minimum tariffs differ 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 ranges from approximately 26 to 35 cents per kilowatt hour, depending on their distribution zone – these are the actual costs that solar customers avoid.
Please refer to our full final decision report for more detailed analysis.
The table below shows the minimum feed-in tariffs for 2025-26. Retailers can offer solar customers a flat feed-in tariff and/or time-varying feed-in tariffs for electricity exported to the grid.
Flat minimum rate |
|---|
At all times |
0.04 c/kWh |
Time varying minimum rates | ||
|---|---|---|
Option 1 | ||
Overnight Weekdays: 10 pm to 7 am Weekends: 10 pm to 7 am | Day Weekdays: 7 am to 3 pm, 9 pm to 10 pm Weekends: 7 am to 10 pm | Early evening Weekdays: 3 pm to 9 pm Weekends: n/a |
| 7.55 c/kWh | 0.00 c/kWh | 5.91 c/kWh |
Option 2 | ||
Shoulder Every day: 9 pm to 10 am 2 pm to 4 pm | Off-peak Every day: 10 am to 2 pm | Peak Every day: 4 pm to 9pm |
| 1.42 c/kWh | 0.00 c/kWh | 6.57 c/kWh |
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.
We estimate solar weighted wholesale electricity prices using the latest information available at the time of publication of each decision. 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.
The chart below shows how the minimum feed-in tariff and its different pricing components have changed over time.
Tips to make the most of your solar
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 new minimum feed-in tariffs are expected to take effect in Victoria on 1 July 2025.