Feed-in tariffs for the 2026 to 2027 financial year, which started 1 July 2026, range from effectively zero in Victoria and South Australia (both deregulated, no state minimum) to about 9.3 cents per kWh in Tasmania. The reason is not that retailers are being stingy. It is that rooftop and utility solar now flood the grid with supply in the middle of the day, and wholesale electricity prices collapse toward zero, sometimes below zero, at exactly the hours your panels export the most.
The short version
- Feed-in tariffs for FY2026-27 range from effectively deregulated (VIC, SA) to 9.276 cents per kWh (Tasmania, the highest set minimum).
- Negative wholesale prices hit 68 percent of dispatch intervals in Q1 2026, up from 12 percent a year earlier, driving tariffs down.
- Real retailer offers vary: AGL pays 8 cents for the first 8kWh daily, EnergyAustralia cut NSW rates to 3 cents, Amber passes through the live wholesale price including negative periods.
- Evening export is usually worth far more than midday export under time varying plans, WA pays 10 cents peak versus 2 cents off-peak.
- Shifting usage to midday, adding a battery, or opting into the Solar Sharer Offer all beat relying on export income alone.
Regulator determination by state, FY2026-27
- Victoria: no mandated minimum, retailers set their own rate (deregulated from 1 July 2025), effective 1 July 2026.
- NSW: benchmark range 3.4 to 6.5 cents per kWh all day, higher in the evening peak on time varying plans, effective 1 July 2026.
- Queensland (regional): 6.006 cents per kWh, down about 29 percent on the prior year, effective 1 July 2026.
- South Australia: no mandated minimum, retailers set their own rate.
- Western Australia: 10 cents per kWh peak (3pm to 9pm), 2 cents per kWh off-peak, unchanged since 2024.
- Tasmania: 9.276 cents per kWh, up 5.6 percent on the prior year, effective 1 July 2026.
Why the tariff is so low
Feed-in tariffs track the wholesale price at the moment you export. AEMO's own market data shows negative wholesale prices occurred in 68 percent of dispatch intervals in the first quarter of 2026, up from just 12 percent a year earlier, and hit two thirds of daytime intervals in South Australia. That is the direct result of more than 4 million rooftop solar systems plus record grid scale solar output pushing supply well past midday demand. Regulators say this plainly in their own determinations: IPART set its 2026-27 NSW benchmark lower specifically because wholesale prices are expected to be lower during solar export hours, and Queensland's regulator attributed its cut mainly to the reduced value of daytime export energy.
What retailers are actually paying
Real offers vary more than the regulator benchmarks suggest. AGL's Solar Savers plan pays a flat 8 cents per kWh for the first 8kWh exported each day. EnergyAustralia cut its NSW flat rate from 4 to 3 cents per kWh on 1 July 2026, tracking the lower IPART benchmark down. Amber Electric passes through the real time wholesale price directly, which means your export payment can go negative at midday and spike well above 20 to 30 cents per kWh in the evening peak, with a zero floor applied if your average across a billing period would otherwise go negative.
The time of day pattern that matters most
Almost every current tariff structure, regulated or not, now pays more in the evening than at midday, sometimes dramatically more. Western Australia's own scheme is explicit about this, paying 10 cents per kWh from 3pm to 9pm and just 2 cents outside that window, and the state energy provider explicitly recommends west facing panels to catch more of the higher afternoon rate. If your retailer offers a time varying export rate, check both numbers, not just the headline one, since the all day average can look worse than the evening rate actually is.
What to do instead of relying on export income
Shift usage into the middle of the day where possible, running pool pumps, washing machines, dishwashers and EV charging between roughly 10am and 3pm, when solar output is highest and export value is lowest, so you are using your own free power rather than buying it back later. Consider a battery, since storing midday solar for evening use captures roughly six times the value that exporting the same energy would earn, given the current spread between feed-in tariffs and retail rates. Where eligible, opt into the new Solar Sharer Offer, a federally mandated three hour free electricity window now available in NSW, South East Queensland and South Australia. Joining a virtual power plant is another option, letting your retailer dispatch stored solar at high value times in exchange for a payment on top of your normal savings.
Is a low feed-in tariff a sign something is wrong?
No. It is the predictable result of a genuinely successful rollout of rooftop solar, and every solar heavy grid in the world is grappling with the same midday oversupply problem. The practical response for a household is not to expect export income to carry the economics of solar, but to plan for self-consumption, whether through timing, storage, or a plan that specifically rewards flexible usage.
See if you qualify for a free power window in our three free hours of power guide, or work out whether a battery is worth adding to capture more of your own solar. Compare batteries and solar on the WattsUp directory.
Frequently asked questions
What is the feed-in tariff in NSW in 2026?
IPART's benchmark for the 2026-27 financial year is 3.4 to 6.5 cents per kWh all day, though evening peak rates on time varying plans can be much higher, and actual retailer offers vary around this benchmark.
Why are feed-in tariffs so low in 2026?
Because rooftop and grid scale solar now regularly oversupply the grid in the middle of the day, pushing wholesale electricity prices toward zero or negative at exactly the hours solar exports the most. Regulators set feed-in tariffs to track that wholesale value.
Which state has the highest feed-in tariff?
Tasmania's regulated rate of 9.276 cents per kWh for 2026-27 is the highest set minimum among the states with a mandated rate. Victoria and South Australia have no mandated minimum at all, so rates there depend entirely on the retailer and plan.
What is a time varying feed-in tariff?
A structure that pays a different rate depending on the time of day you export, typically low or zero at midday and higher in the evening peak. Western Australia's scheme (2 cents off-peak, 10 cents peak) is a clear example.
What can I do instead of relying on feed-in tariff income?
Shift usage to the middle of the day, add a battery to store midday solar for evening use, opt into a free power window like the Solar Sharer Offer where available, or join a virtual power plant.