Understanding Australian Solar Feed-in Tariffs: A Plain-English Guide
No jargon. Just what FiT pays, how it works in each state, and the three things that quietly determine whether your solar carport pays for itself.
No jargon. Just what FiT pays, how it works in each state, and the three things that quietly determine whether your solar carport pays for itself.
What a Feed-in Tariff Actually Is
A feed-in tariff (FiT) is an agreement between you and your electricity retailer that pays you a set rate for every kilowatt-hour of solar energy you export to the grid. It is not a government rebate, and it is not net metering. You are selling your surplus solar at a retailer-determined rate, while continuing to buy the power you use at the standard retail rate.
Think of it as two separate meters: one tracks what you consume, another tracks what you export. Your bill is the difference.
Current Rates by State (2026)
Rates vary by retailer and state. These are typical ranges for residential customers:
| State | Typical FiT (c/kWh) | Retail Buy Rate (c/kWh) |
|---|---|---|
| QLD | 6 – 10 | 28 – 32 |
| NSW | 5 – 7 | 30 – 34 |
| VIC | 4.9 – 5.5 | 28 – 31 |
| SA | 5 – 12 | 35 – 40 |
| WA | 2 – 10 | 28 – 33 |
Note: Some retailers offer time-of-export premiums (e.g., higher rates during peak evening demand). Always compare the total package, not just the headline FiT.
The Three Things That Matter
1. Self-consumption ratio
The higher the percentage of solar you use directly, the lower your payback period. A solar carport that powers your EV charger during the day is worth far more than a roof system that exports everything while you are at work.
2. Retailer switching
The difference between the best and worst FiT in your state can be $300+ per year. A 15-minute comparison on the government's Energy Made Easy site pays for itself.
3. Panel orientation and shading
A west-tilted carport array captures late-afternoon sun when grid demand peaks — some retailers pay a premium for that exact export window. SIPO's adjustable frame allows 5–15° tilt tuning to match your driveway's aspect.
What FiT Is Not
FiT is not a guaranteed 15-year contract like the UK's old scheme. Australian FiTs are retailer offers, reviewed annually. The practical safeguard is this: every kWh you self-consume is worth the full retail rate (25–35 c/kWh), while exported kWh are worth the FiT (5–12 c/kWh). So the best investment is always the one that maximises your own use.
A solar carport with an EV charger effectively turns your vehicle into a 50–100 kWh daily battery. That is where the real value lives — not in the FiT cheque, but in the petrol station and power bill you no longer visit.
Counter-intuitive, but it works in your favour.
SIPO Building Solutions Pty Ltd — 25 Pike Street, Rydalmere NSW 2116 | 19 Warehouse Cct, Yatala QLD 4207