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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

How you can make hay (and save money) while the sun shines

While your FiT may be reducing (like those polar ice caps), the best way to get maximum value from your solar is to use what you’re generating. The money you save on your bills by actually using the solar is generally going to be greater than what you’d make from your FiT.

To compare, let's look at three people: One is an electricity user named Tom, plus two energy users with solar installed - Jane and Ben. They each use the same amount of power over the course of a day, and Jane and Ben both generate the same amount of solar as each other.

Meet Tom, Ben and Jane

Tom
TOM
Doesn't have solar
Ben
BEN
Not-so solar savvy
Jane
JANE
Solar savvy

Difference in yearly costs

Tom doesn’t have solar installed (yet). Ben does have home solar installed and he spends less on his electricity bills than Tom.

However, Ben pays more than Jane because he uses his appliances during the evening when he draws power from the grid. Jane uses her large appliances mostly during daylight hours, so she needs less energy during the evening peak. While having solar saves Ben a bit on his electricity bills over a year, Jane saves even more by being savvy with her use.


Cost breakdown chart

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.*

Shifting when you use energy

Ben (dotted line) is an average energy user. He uses a lot during the morning and the evenings but not much during the day.

Jane (solid line) schedules her major appliances to run during the middle of the day. As a result, Jane uses less power in the evening peak.


Energy use graph

Fig 3: 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 money).

How we ran the numbers openclose

*In this example, Tom, Ben and Jane all live in the Powercor distribution area in Victoria and use 10MWh of electricity per year. They pay a usage rate of $0.3009 per kWh for their electricity, and a daily charge of $1.3684. Tom, who doesn’t have solar, pays $3,508 on electricity annually.

Ben and Jane both have a 6KW solar system that generates an average of 3.6 kW an hour, or 21.6kWh a day (7.9 MWh per year). They are on the minimum allowed feed-in tariff in Victoria, which is 0c/kWh from 1 July 2025.

Using these figures with the usage pattern shown above, Ben would use 16.816kWh of electricity from the grid each day (6138kWh over the course of a year), whereas Jane, who uses more of her solar, would use 14.074kWh of electricity from the grid each day (5137kWh annually). Ben would pay $2,346 and Jane would pay $2,045, meaning Jane saves $301 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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