The feed-in tariff is the amount that your energy company pays you for power you export to the grid. Energy companies set the amount they pay but are not allowed to pay you less than the minimum feed-in tariff we set.
Minimum feed-in tariff review 2024–25
- Draft decision22 November 2023
- Consultation closed22 December 2023
- Final decisionBy 28 February 2024
- Minimum tariffs in effectFrom 1 July 2024
Overview
On 22 November 2023 we released our draft decision on the minimum feed-in tariffs to apply from 1 July 2024.
Submissions on our draft decision were due on 22 December 2023. We will review feedback on our draft decision paper and release our final decision by 28 February 2024.
Key facts about our draft decision
The 2024-25 'flat' minimum feed-in tariff is proposed to be 3.3 cents per kilowatt hour
The flat rate minimum feed-in tariff applies regardless of the time of day or day of the week.
There are two 'time-varying' minimum feed-in tariffs options
Under time-varying minimum feed-in tariff option 1, customers are credited between 2.8 cents and 8.1 cents per kilowatt hour of electricity exported, depending on the time of day.
Under time-varying minimum feed-in option 2, customers are credited between 2.1 cents and 8.8 cents per kilowatt hour of electricity exported, depending on the time of the day.
Wholesale prices during daylight hours are forecast to decline
While wholesale electricity prices on average have increased in recent years, they are forecast to decline in 2024-25. This is especially true for wholesale prices during the day. Increased solar installations has reduced demand and increased supply during daylight hours leading to reduced prices when most solar exports are occurring.
Although the proposed overnight and early evening tariff rates are higher than the day rates, they are also decreasing. This is because wholesale prices are currently forecast to be lower on average across all parts of the day.
The table below shows the draft minimum feed-in tariffs for 2024-25. Retailers can offer solar customers a flat feed-in tariff and/or time-varying feed-in tariffs for electricity exported to the grid.
|
Flat minimum rate |
||
|---|---|---|
| At all times | ||
| 3.3 c/kWh | ||
|
Time-varying minimum rates |
||
| Option 1 | ||
|
Overnight Weekdays: 10 pm to 7 am Weekends: 10 pm to 7 am |
Day Weekdays: 7 am to 3 pm, 9 pm to 10 pm Weekends: 7 am to 10 pm |
Early evening Weekdays: 3 pm to 9 pm Weekends: n/a |
|
8.1 c/kWh |
2.8 c/kWh |
7.3 c/kWh |
| Option 2 | ||
|
Shoulder Everyday: 9 pm to 10 am 2 pm to 4 pm |
Off-peak Everyday: 10 am to 2 pm |
Peak Everyday: 4 pm to 9pm |
|
4.2 c/kWh |
2.1 c/kWh |
8.8 c/kWh |
The inputs to the minimum feed-in tariff model will be updated with the latest information available for our final decision in February 2024.
Next steps
Feedback on our draft decision paper closed on Friday 22 December 2023.
We will review feedback on our draft decision paper and release our final decision by 28 February 2024.
Why do the minimum feed-in tariffs change?
The video below provides a general explanation of what factors might impact changes in the minimum feed-in tariffs.