Solar feed-in tariffs
Learn how a solar feed-in tariff provides you with credits for your excess energy sent to the grid.
Feed-in tariffs explained
When you install a solar panel system, it generates electricity during daylight hours. This energy can be used immediately to power your home. However, if your system produces more energy than your household needs, the excess power is automatically exported to the grid.
A solar feed-in tariff is a credit you get for the excess electricity generated by your solar system that you export to the grid. The rate you receive per kilowatt hour (kWh) varies depending on your energy provider and your state. It will appear as a credit on your bill, reducing the amount you have to pay for electricity.
You’ll see your solar feed-in tariff in your contract in My Account.
Value of solar feed-in tariffs
The market value of electricity changes depending on demand and supply. In the middle of the day, demand in households is low. This is because many people are out of the house and electricity generated by solar is in plentiful supply. As more Australians use solar to generate electricity, there is a surplus of electricity during the day more often. As the value of electricity drops more often, solar tariffs are dropping.
The reason you're paid less for the solar power you send to the grid than you pay for electricity you use from the grid, is because of how much solar energy is already available. During sunny times, lots of homes and businesses are sending extra solar power to the grid, creating more supply than demand. When there’s too much electricity available, its market value goes down, which is why feed-in tariffs are lower.
Also, when you buy electricity from the grid, you're not just paying for the power itself. You’re also contributing to the costs of maintaining the power network, distributing electricity and keeping the system running reliably. When you export solar, you’re only being paid for the electricity. This is part of why solar feed-in tariffs are lower than the cost of electricity bought from the grid.
Solar feed-in tariff rates
The rate we pay you for the energy you have generated and fed back into the grid, also known as your solar feed-in tariff, depends on:
which state you’re in
which electricity plan you’re on
time of day (whether there is a surplus of energy being produced at the time)
if you're receiving a government scheme feed-in tariff.
Solar feed-in tariffs are not subject to GST for residential customers.
Your solar feed-in tariff can change from time to time with five business days' written notice to you.
Eligibility
System capacity
To be eligible for AGL’s solar feed-in-tariff, the inverter capacity of your solar system must not exceed, or must be export limited to:
- NSW - 10kW
- SA - 10kVa per phase
- QLD - 30kW
- VIC - 100kW.
Government schemes
To receive a feed-in tariff from AGL, you must not be receiving a feed-in tariff under any government scheme.
Location
Solar services are not currently available in Western Australia.
Solar feed-in terms
Learn more about solar feed-in information and terms.
