Save Smarter: Combining Solar Batteries with Feed-in Tariffs

3 July, 2025

Want to make the most of your solar setup in Australia? Understanding how solar batteries and feed-in tariffs work together can be your ticket to greater savings and increased energy independence.

As the country continues its shift toward renewables and feed-in tariffs undergo constant changes, solar battery storage is quickly emerging as a smart solution for homeowners to store and use their excess energy. By combining solar batteries with feed-in tariffs, you can lower your reliance on the grid, reduce electricity bills, and tap into available government incentives, while fully embracing clean, green energy.

Ready to boost your energy savings?

Let’s break it down. This guide will show you how to get the most value from feed-in tariffs and solar batteries in Australia.

What is a solar feed-in tariff?

A solar feed-in tariff is a payment you receive for the excess energy that the solar panels on your roof generate that’s sent back to the electricity grid. The feed-in tariff you’ll receive for this excess energy depends on several factors, including the state in which you live, when you installed your solar PV system and how much solar-generated electricity your household feeds back into the grid.

As the solar tariff is lower than the retail electricity tariffs your energy retailer charges you, it’s to your benefit to use the energy that your panels generate for your household’s electricity needs instead of selling it to the grid and then buying it back at a higher price. Alternatively, you can look at joining an independent energy community and help to protect your household and your local community from power outages while releasing yourselves from the rising costs of traditional energy suppliers.

Unlock Big Savings with Solar Batteries and Feed-in Tariffs in Australia

For homeowners in Australia, integrating solar batteries with feed-in tariffs (FiTs) offers a strategic approach to enhance energy independence and financial savings.

But what does a feed-in tariff mean? How do solar batteries work?

These are the core fundamental questions people often ask. So, rather than knowing the strategies to maximize savings, let’s grasp the basics of solar batteries and feed-in tariffs (FiTs) first.

Here is how solar batteries and feed-in tariffs work individually or function collaboratively to optimize energy use and reduce your electricity bills:

Solar Batteries: Storing Excess Solar Energy

Solar batteries or battery energy management systems generally store the excess energy generated by your solar panel during peak sunlight hours. This stored energy is released later whenever electric demand rises, or unexpected power outages occur.

Integrating batteries in your Australian smart homes can be a game changer. For example, by using solar-powered batteries, you won’t need to buy expensive electricity from the grid during cloudy days or power homes at night.

This storage capability reduces your reliance on fossil fuel, lowers your energy costs, and maximizes the power you generate from your solar panels.

Batteries provide reliable backup power during grid failure, offering peace of mind and energy security.

Now, let’s see how feed-in tariff policy works across various Australian states!

Feed-in Tariffs: Getting Paid for Surplus Energy

A feed-in tariff is the payment you receive for exporting extra energy back to the grid from your solar panel. Feed-in tariff rates are typically measured in cents per kilowatt-hour (c/kWh).

So, how does a feed-in tariff policy benefit Australian homeowners?

Australia is already a global leader standing at the forefront of the renewable energy revolution. From its vast open spaces and abundant sunlight to strong coastal wind, the country is blessed with all the suitable conditions needed for energy generation.

And that’s where homeowners can take advantage of the excess energy generated by their solar systems and contribute it back to the grid. This policy allows people to earn extra income while supporting the energy market with clean, renewable power.

However, the compensation they receive from their energy retailer can vary from state to state and can significantly impact the financial benefits of your solar investment.

The amount of money you receive from the feed-in tariff is determined by three basic factors.

• The type and size of your solar battery or solar energy system.
• The exact rates fixed by your state or territory government.
• Whether your energy retailer offers additional payments beyond the government-set rates.

Types of Feed-in Tariffs in Australia: Which Option is Right for You?

Well, in Australia, these feed-in tariff offers come in two different schemes: Gross Feed-in Tariff (Gross FiT) & Net Feed-in Tariff (Net FiT).

So, if you are unsure about which one will be ideal for your needs, here’s a detailed outline for each:

Gross Feed-in Tariff (Gross FiT)	Net Feed-in Tariff (Net FiT)
In this scheme, you are paid for the total amount of electricity generated by your solar system, no matter whether you use it or not.	In a net feed-in tariff, you are paid only for the excess electricity that you export to the grid after fulfilling your needs.
The energy sent to the grid is compensated at a fixed rate set by the government or your utility provider.	In this policy, the rate is typically lower than the gross tariff.

While exploring the different types of feed-in tariffs, you might have heard about flat-rate and time-varying feed-in tariffs.

Eager to know them? Well, flat-rate feed-in tariffs and time-varying tariffs tell us exactly how the rate changes, either staying constant or varying based on time or demand.

The Importance of Solar Batteries and Feed-in Tariffs in Cutting Energy Costs in Australia

In 2025, solar batteries and feed-in tariffs (FiTs) work together to significantly boost savings for Australian homeowners with solar power systems. They maximize energy efficiency and reduce electricity bills, allowing extra income for supplying energy to the grid.

Here’s how solar batteries and feed-in tariffs work together to maximize your energy savings:

When your solar battery reaches full capacity, but your solar panel is still generating energy, you can sell it to the grid without wasting it with the help of Fit programs.

Reducing Grid Dependence

Solar batteries, combined with FiTs, ensure the benefit of generating excess power that can be sold during peak demand periods like hot summer days when electricity demand spikes.

Optimizing Tariff Times

Through time-of-use tariffs, you can charge your battery during cheaper off-peak hours and use it when electricity prices are higher during peak times, minimizing overall energy costs.

Get a higher Return on Investment (ROI)

By investing in solar batteries, homeowners can increase their self-consumption of the energy they produce.

Meanwhile, applying for feed-in tariffs leads to a higher return on investment (ROI) from their solar system since they rely on stored energy rather than buying electricity from the grid.

Additional income from FiT

Even though FiT rates can vary across states, they can add hundreds or even thousands of dollars to your savings annually, especially if you generate more solar energy than you use.

Grid Energy Price Fluctuations

If electricity prices rise, a solar battery merged with a feed-in tariff program will shield you from paying excess electric bills.

Also, FiT provides a supplementary income for your excess energy, fostering economic growth and promoting sustainability.

The Evolution of Feed-in Tariffs in Australia

The structure and rates of FiTs have evolved over time as renewable energy policies, and the market for solar energy have developed across the country. The scheme was first started in June 2008.

The Council of Australian Governments (COAG) established the National Principles for Feed-in Tariff, and most Australian states and territories have mandatory FiT programs.

Here’s an overview of how feed-in tariffs work in various Australian states:

Victoria

• Flat Rate: Minimum FiT is 3.3 cents per kilowatt hour, regardless of the time or day.
• Time-Varying Rate

New South Wales (NSW)

• No set minimum feed-in tariff.
• The benchmark range for FiT is between 4.9 cents and 6.3 cents per kWh

Queensland (QLD)

• No mandated FiT rate for electricity exported to the grid.
• Retailers offer competitive, market-based tariffs.

Tasmania

• Minimum FiT rate was set at 10.869 cents per kilowatt hour in July 2023.
• Reduced to 8.935 cents per kilowatt hour for July 2024–June 2025, but some retailers offer higher rates.

South Australia

• No minimum FiT.
• Retailer-specific FiT rates vary based on market conditions and electricity prices.

Western Australia

• Distributed Energy Buyback Scheme (DEBS) compensates for electricity exported from solar PV, batteries, and electric vehicles
• Offer higher rates for export in the late afternoon/evening due to higher demand.

Australian Capital Territory

• Retailers set fiTs, as the government scheme ended in 2011
• Many retailers now offer competitive deals.

Conclusion

Combining solar batteries with feed-in tariffs is a smart and strategic way to maximise the value of your solar energy system. While feed-in tariffs allow you to earn from exporting excess power to the grid, a solar battery gives you the flexibility to store energy for use when electricity rates are higher, helping you save even more. This dual approach not only reduces reliance on the grid but also ensures better control over your energy usage and costs. As energy prices continue to fluctuate and feed-in tariffs gradually decline, having a battery system in place positions you to make the most of every kilowatt generated. Ultimately, it’s a future-ready solution that enhances energy independence, sustainability, and long-term financial returns.

Reach Out to SunSelect at 1300 867 353 for Expert Guidance and Money-Saving Options.
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