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Getting the most value from your solar

Here’s why your solar Feed-in Tariff is changing and what you can do about it.
Solar

Solar power is great – and that’s not changing

We love that so many people are opting to have their own solar systems at home. More solar entering the energy grid is great news for the planet. And with renewables on the rise, fossil fuels can take a back seat.


Here’s what is changing

The value of the solar energy you generate is changing. That’s because the price of energy is based on balancing supply and demand. And with more rooftop solar being generated, supply is outpacing demand during daylight hours. This typically means that while the sun is shining prices decrease, contributing to lower Feed-in Tariffs (FiT).

You might think “Hey, I’ll just feed all my solar into the grid while I’m at work” but your neighbour Jerry and his mum down the street are now doing the same thing. And when everybody’s doin’ it, more solar supply means lower export value.

Solar generation in Australia chart

Fig 1. The proportion of solar in the grid has increased exponentially over the last ten years, and hopefully will continue to grow. Source: AEMO

Is there any value in having solar these days? 

Let's meet Tom, Ben and Jane.

Tom
TOM
No solar
Ben
BEN
Normal solar user
Jane
JANE
Solar savvy

Let’s compare: No solar versus solar 

Tom and Ben live in the Powercor network in Victoria. They’re both on the 2026-27 Victorian Default Offer (VDO) on a flat tariff.

Tom doesn’t have solar installed. He thinks that given solar feed-in tariffs are so low these days, it’s not really worth having solar.

His neighbour Ben has home solar installed. Even though he doesn’t earn any feed-in tariff on his solar exports, his annual electricity costs are over $1000 less than Tom’s.

The saving comes down to Ben using some of his solar power to run his household appliances, rather than paying for electricity from the grid.

Energy use graph

Fig 2: A comparison of electricity usage and estimated potential annual savings (incl. GST) between a typical energy user, a typical energy user with solar, and another energy user with solar who uses their appliances at times to consume more of the solar they generate. Actual savings will vary based on your own individual circumstances.*

"I’m not saving as much as I used to. How can I save more?"

These days, saving with solar is a matter of time. You can save more on your power bills by being conscious about when you use electricity. 

Let’s compare: Normal solar usage vs savvy solar usage

Let’s look at Jane’s energy use. Similar to Tom and Ben mentioned above, Jane also lives in the Powercor network and is on the 2026-27 VDO on a flat tariff. Jane aims to use her solar power, instead of power from the grid, as much as she can. She often uses her large appliances during daylight hours, so she needs less electricity during the evening peak.

This is different to Ben, who generally uses the most electricity during the evenings when he draws power from the grid. With his typical usage, Ben would pay $2255 whereas Jane would pay $1946, meaning Jane saves $309 a year in electricity costs compared to Ben.

Shifting more of your usage to daylight hours, like Jane, doesn’t take a huge effort, but it means you’ll use more of your solar and draw less from the grid during peak times (saving you more money). 

Energy use graph

Fig 3: A comparison of electricity usage and estimated potential annual savings (incl. GST) between a typical energy user with solar, and another energy user with solar who uses their appliances at times to consume more of the solar they generate. 

How we ran the numbers openclose

*In this example, Tom, Ben and Jane all live in the Powercor distribution area in Victoria and use 10,000 kWh of electricity per year. They pay a fixed flat usage rate of $0.2822 per kWh for their electricity, and a daily charge of $1.3805. Tom, who doesn’t have solar, pays $3,326 on electricity annually.

Ben and Jane both have a 6KW solar system that generates an average of 3.6 kW an hour, or 21.6kW a day (7,900 kWh per year), but no battery. That means they need to use the solar power as its generated – during the day. They are on the minimum allowed feed-in tariff in Victoria, which has been 0c/kWh since 1 July 2025.

Ben would use 17kWh of electricity from the grid each day because he uses more in the evening (6205kWh over the course of a year), whereas Jane, who uses more of her solar power, would use 14kWh of electricity from the grid each day (5110kWh annually). Ben would pay $2,255 and Jane would pay $1,946, meaning Jane saves $309 a year in electricity costs compared to Ben.

All amounts outlined are inclusive of GST.

Maximise your solar savings

Give your appliances a day job

Appliances account for a decent percentage of your energy usage. And if you’re only running them at night, you’re paying for power to run them rather than using your solar for free - missing out on a big opportunity to save. Most appliances have a delay setting so you can set them up to run during peak solar-generating times (instead of the evening peak energy-consuming hours).

  • Your feed-in tariffHot water - Water heating can account for up to a third of your energy use. If you have electric hot water, make sure the timer is set to heat during the day.
  • The size of your solar systemCleaning - Set your dishwasher, washing machine or dryer to run a cycle in the middle of the day.
  • Where you live.Heating / cooling - Using a timer or remote app, set your split system to heat or cool while the sun is shining. Don’t forget to insulate well to maintain the temperature.
  • How you use your power.Cooking - Try to cook energy-intensive meals during the day. Get the slow-cooker out, or batch cook in the oven on the weekend and freeze.

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