Life after the Feed-in Tariff (FiT)

If you live in NSW or Victoria then your Feed-in Tariff, or FiT for short, is coming to an end on the 31 December 2016.

What is the Feed in Tariff?

The Feed in Tariff is a payment from energy suppliers for the electricity your solar system exports to the grid. That is electricity you have generated and cannot use at that particular moment in your home or business. The FiT varies between energy suppliers and states and may even be different depending on when you had your solar system installed. Early adopters were encouraged by generous FiT tariffs such as 60c per kilowatt in NSW, however, this has reduced as more people installed solar systems. Now tariffs are typically around 5c / 7c per kilowatt, depending on where you live.

Why is it ending?

In simple terms it’s because the government is ending all subsidies to the energy companies. These subsidies helped the energy companies provide the FiT to it’s customers.

Why are some states and energy providers keeping the FiT?

Ultimately this is down to the energy companies and the contracts they agreed with the government at the conception of the FiT agreement. Some states such as ACT have not set a deadline for the FiT to end and other states have long term FiT agreements.

So how does the end of the FiT affect me?

If you are within one of the states ending the FiT, such as Victoria, South Australia and New South Wales, then you will lose any payment from your energy company for the electricity that’s fed into the grid under the current agreement. Energy companies are sending letters to all of their customers outlining the options you may have for any future incentives. Most companies will offer an ‘offset’ scheme where they encourage you to use more of what you self generate during your solar systems maximum generating period.

What are my options?

There is also the option to add battery storage to your solar system to store what energy you don’t use for later when you need it most.  If you’d like to learn more about storage, monitoring or upgrading your solar power system ahead of the FiT ending, contact an Energy Expert on 1300 660 704 or


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