The Essential Services Commission has set minimum feed-in tariffs for 2025-26, which set the minimum amounts electricity retailers must pay solar customers for the electricity they export into the grid.
The tariffs will apply from 1 July 2025 unless the Electricity Industry Act 2000 is amended to deregulate the setting of feed-in tariffs.
The 2025-26 minimum flat feed-in tariff is 0.04 cents per kWh. The two time-varying feed-in tariffs range from 6.57 cents per kWh in the evening peak to 0.00 cents per kWh during the day.
Our pricing methodology considers wholesale electricity costs, avoided costs faced by retailers, and other social and environmental factors.
We received over 300 submissions following the release of our draft decision, including from customers, solar system providers and representative groups.
We appreciate the time and effort people took to make submissions and share their insights, opinions and alternative proposals for calculating the tariffs.
All submissions were considered. Our final decision includes analysis which responds to key themes from the submissions and feedback.
The lower feed-in tariffs reflect the widespread uptake and success of solar panels in the last few years. The amount of rooftop solar in Victoria has increased by 76 per cent since 2019, which has both increased supply and reduced demand for electricity during the middle of the day, resulting in decreasing value of daytime solar exports.
Solar households can maximise their savings by shifting electricity usage to daylight hours during peak solar production times to avoid paying much higher retail costs.
