Unleashing the Power of Solar Energy and Feed-in Tariffs in Melbourne

Melbourne solar feed-in tariff is renowned for its vibrant coffee culture, thriving art scenes, and now, its burgeoning reputation as a solar energy hub. If you’re contemplating harnessing the sun’s energy for your Victorian home, you’re embarking on an exciting journey. But hold on, have you heard about the game-changing element known as the “feed-in tariff”?

Understanding the Feed-in Tariff:

In the year 2023, Melbourne’s feed-in tariff varies depending on your chosen energy retailer and the specific plan you opt for. Anticipate earning anywhere between 4.9 cents to 20 cents per kilowatt-hour for the electricity you contribute to the grid.

The Essential Services Commission (ESC) annually establishes a minimum feed-in tariff for Victoria. This mandates that all energy providers must offer a feed-in tariff of at least 4.9 cents per kilowatt-hour. However, many retailers sweeten the deal by offering higher feed-in tariffs as an incentive to attract customers.

Furthermore, some energy providers offer time-varying feed-in tariffs. This implies that you’ll earn a more generous feed-in tariff for exporting electricity during peak demand hours, such as in the bustling afternoon.

To secure the most favorable feed-in tariff in Melbourne, it’s crucial to explore offers from different energy retailers. You can effortlessly achieve this by utilizing a complimentary solar quote comparison service to gather quotes from various retailers in your vicinity.

RetailerFeed-in tariff (c/kWh)Type of tariff
Origin Energy20Time-varying
Simply Energy16Flat rate
EnergyAustralia14Flat rate

How Does the Feed-in Tariff Operate?

The feed-in tariff (FIT) stands as a government incentive designed to compensate you for the surplus electricity generated by your solar panels that is exported to the grid. This scheme encourages homeowners to adopt solar panels, contributing to Australia’s quest to reduce reliance on fossil fuels.

Upon installing solar panels on your residence, you’ll consume the electricity generated by them to power your appliances and lighting. Any excess electricity produced is sent back to the grid. Your energy provider will then remunerate you for the electricity you contribute, based on the FIT rate applicable to your plan.

The earnings from the FIT hinge on several factors:

  • The size of your solar panel system.
  • The amount of electricity your solar panels generate.
  • The FIT rate specific to your energy retailer and plan.
  • While FIT rates differ based on your chosen energy provider and plan, it’s reasonable to anticipate earnings ranging between 4.9 cents and 20 cents per kilowatt-hour for the electricity you export.

To receive these FIT payments, it’s imperative to have a smart meter installed. This specialized meter keeps tabs on the electricity your solar panels generate and the amount exported to the grid. Your energy provider will automatically calculate and transfer FIT payments to you, typically on a quarterly basis.

Here’s an illustrative example of how the FIT functions:

  • You install a 5kW solar panel system on your property.
  • Your solar panels generate 5,000 kWh of electricity annually.
  • You export 3,000 kWh of electricity to the grid annually.
  • Your FIT rate is set at 15 cents per kilowatt-hour.

How to Secure the Best Feed-in Tariff in Melbourne:

When evaluating feed-in tariffs, consider the following elements:

  • The per-kilowatt-hour rate offered.
  • Any time-dependent rate variations.
  • Additional terms and conditions, including minimum contract durations.
  • Selecting an energy retailer renowned for reliability and excellent customer service is equally vital.

Here are some strategies to obtain the most advantageous feed-in tariff in Melbourne:

  • Compare offers from various retailers instead of hastily selecting the first one you encounter. Diligently assess multiple proposals to ensure you secure the most favorable deal.
  • Explore the potential benefits of time-varying rates offered by certain retailers. These rates reward exporting electricity during peak hours, an ideal option if you have a battery storage system for off-peak energy storage.
  • Don’t hesitate to negotiate with your energy provider if you find their feed-in tariff unsatisfactory. Many retailers are open to negotiation, particularly for new customers or bundled service offerings.
  • If your existing energy provider fails to meet your feed-in tariff expectations, consider switching to a different retailer. With numerous energy retailers in the market, you’re bound to find one that offers a more appealing feed-in tariff.


The feed-in tariff scheme represents a government initiative that compensates homeowners for surplus electricity contributed to the grid from their solar panels. Melbourne solar feed-in tariff is subject to variation, contingent upon the energy retailer and plan chosen.

Nonetheless, you can anticipate earning between 4.9 cents and 20 cents per kilowatt-hour for your exported electricity.


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