Feed-in tariff, explained

A feed-in tariff is the amount your electricity retailer pays you for each kilowatt-hour (kWh) of solar electricity you export to the grid instead of using at home. It is shown on your electricity bill, usually in cents per kWh, and it is a separate figure from the price you pay for electricity you buy from the grid.

Why the export rate is usually much lower

When you use solar electricity at home, you avoid buying that same kWh from the grid, so it is worth the full price you would have paid. When you export it, you are selling surplus electricity into a shared grid, and retailers pay a wholesale-linked rate for it. That is why, in this calculator, self-used solar is worth more per kWh than exported solar, and why raising daytime self-use usually shortens payback more than simply adding more panels.

How to check your own rate

Do not use a rate from an advertisement, a neighbour, or an old bill as if it were yours. Open your most recent bill or retailer plan and find the feed-in tariff in cents per kWh, then enter that exact figure in the calculator. Rates differ by retailer, plan, and location, and they can change, so re-check the figure if your plan changes.

What a low feed-in tariff means for your decision

A low feed-in tariff does not make solar useless — it makes self-use and load-shifting more important. If most of your solar would be exported at a low rate, run the calculator with a low self-use share first and see the result before committing. A battery is sometimes suggested in this situation, but it only helps if you actually have night-time use to shift and the battery cost is low enough — see Battery: pays or not?

Estimates only, not financial advice. See the Disclaimer.