A Guide to the Solar Power Feed-in Tariff in SA for 2026
If you’re a solar owner in South Australia, you've probably noticed that the financial game has changed. The once-attractive solar power feed-in tariff in SA, which paid you well for sending your extra energy back to the grid, has diminished. The days of earning significant bill credits from exporting solar are largely over.
This shift means the old "set and forget" approach of exporting your surplus solar power is no longer the most commercially intelligent strategy. To maximise the return on your solar and battery investment, it's time to rethink how you use the valuable energy your panels are generating. This guide explains the current market and outlines the strategies Australian solar and battery owners can use to optimise their system's financial performance.
The Changing Value of Solar Power in South Australia
South Australia has been a leader in rooftop solar adoption. However, this success has created a new economic reality. There is now so much solar energy flowing into the grid during the middle of sunny days that the wholesale price of electricity has plummeted. This directly impacts the feed-in tariff rates that electricity retailers can offer.
As a result, simply exporting surplus solar power is no longer a sound financial strategy. The issue is that your system is generating far more value than you are capturing. The real financial upside is no longer in what you sell, but in what you avoid buying from the grid.
From Low Returns to High Value
This new landscape requires a more strategic approach to managing your home's energy. Instead of passively exporting for minimal returns, the focus should shift to two powerful strategies:
- Self-Consumption: This involves using your own solar power to run your home. The most effective way to achieve this is by storing it in a home battery for use during the evening peak, when electricity from the grid is most expensive.
- Virtual Power Plants (VPPs): This involves your battery joining a coordinated network that helps stabilise the electricity grid. In return, you can earn allowances or credits that provide a greater financial benefit than standard feed-in tariffs.
As of early 2026, the average feed-in tariff from major SA retailers is around 5-8 cents per kWh. Many plans offer a higher rate for a small daily export limit (e.g., the first 8-10kWh) before the rate drops significantly.
At a Glance: SA Solar Feed-in Tariff Rates for 2026
The table below provides a snapshot of typical FiT rates in South Australia. It highlights the significant disparity between the payment for exported solar and the cost of purchasing electricity from the grid.
| Retailer | Typical FiT Rate (c/kWh) | Peak FiT Rate (c/kWh) & Conditions | Typical Grid Electricity Cost (c/kWh) |
|---|---|---|---|
| AGL | 5c | 10c (with AGL battery) | ~45c |
| Origin Energy | 6c | 12c (first 14kWh/day, then 6c) | ~48c |
| EnergyAustralia | 5.5c | 7.5c (Solar Max plan) | ~47c |
| Simply Energy | 5.2c | N/A | ~46c |
| (Note: Rates are indicative and subject to change. Always check the specific terms of any electricity plan.) |
This data makes the new reality clear: the value is no longer in exporting.
The core principle for modern solar owners is simple: the electricity you avoid purchasing from the grid is worth five to eight times more than the electricity you sell back to it.
Understanding this financial shift is the first step toward maximising the value of your solar investment. Instead of settling for minimal returns, you can transform your solar and battery system into an asset that actively reduces your electricity bills.
Why Have Solar Feed-In Tariffs Dropped So Much?
To understand why your solar power feed-in tariff in SA is so low, it's useful to consider the market's evolution. Not long ago, generous government schemes offered as much as 44 cents per kilowatt-hour (kWh) to incentivise solar panel installation. These legacy tariffs were designed to kickstart the industry but are no longer available.
Today, feed-in tariffs are not set by the government. Instead, the rates are a product of market forces within Australia's National Electricity Market (NEM). The NEM operates as a dynamic energy auction where the wholesale electricity price fluctuates based on supply and demand. When demand is high and supply is tight (e.g., on a hot summer evening), the price increases.
The Midday Solar Glut
South Australia's high adoption of rooftop solar has created a paradox. On sunny days, thousands of solar systems export a massive amount of energy simultaneously, flooding the market with supply.
This oversupply, particularly between 10 am and 4 pm, causes the wholesale electricity price to plummet. It can even drop into negative territory, meaning generators must pay to push power into the grid.
Because your electricity retailer bases your feed-in tariff on this low wholesale price, your export payments are minimal. You are essentially selling your valuable solar power at the cheapest time of day.
This is the primary reason the financial return for exporting solar has diminished. The market is saturated with solar energy precisely when your system's generation is at its peak.
Key Market Dynamics Explained
Several factors contribute to the low value of solar exports:
- Wholesale Price Volatility: The NEM's price can swing dramatically. Your low feed-in tariff directly reflects the cheap wholesale prices during peak solar production hours.
- High Solar Penetration: South Australia has one of the highest concentrations of rooftop solar in the world. This concentration is the main driver of the midday price crash.
- Network Constraints: The physical poles and wires have operational limits. At times, the grid cannot accept all the solar energy being produced, which further devalues exports during these periods.
This new market reality demands a fundamental shift in strategy for solar owners. The old model of "set and forget" exporting is no longer commercially viable. The new, smarter model is about maximising self-consumption to avoid purchasing expensive grid electricity later in the day. Understanding this supply and demand dynamic is the first step toward unlocking the true financial potential of your solar and battery system.
The Financial Reality of Exporting Your Solar Power
Understanding the theory behind low feed-in tariffs is one thing; seeing the financial numbers brings the message home. Let's break down the daily financial reality for a typical South Australian household. This analysis highlights why the "export everything" model is failing solar owners.
This daily cycle shows the stark difference between what you earn sending power to the grid and what you pay to buy it back just a few hours later. It makes it clear where the real value of your solar energy lies.
A Typical Day for a South Australian Solar Home
Consider a household with a standard solar setup. On a sunny day, their system generates electricity, but the financial return is limited by the low solar power feed-in tariff SA retailers offer.
Here's a realistic scenario:
- Total Solar Generation: The panels generate 25 kWh of electricity.
- Daytime Self-Consumption: The household uses 10 kWh of that solar power to run appliances.
- Surplus for Export: This leaves 15 kWh of unused solar power, which is exported to the grid.
Now, let's calculate the earnings from that exported power, using a common feed-in tariff of 6 cents per kWh.
Export Calculation: 15 kWh (exported) x $0.06/kWh = $0.90
After a full day of generating clean energy, the household has earned just 90 cents for exporting a significant amount of power. This is the direct result of exporting during the midday "solar glut," when wholesale electricity prices are at their lowest.
The Evening Cost Trap
The story doesn't end when the sun goes down. As the solar panels stop producing, the household’s energy needs increase for lighting, cooking, and entertainment.
Let’s assume this family needs to purchase 10 kWh from the grid during the evening peak. In South Australia, the cost of grid power at this time is significantly higher, typically around 40 cents per kWh.
Grid Purchase Calculation: 10 kWh (imported) x $0.40/kWh = $4.00
In a single day, this household earned less than a dollar for their 15 kWh of exported solar, only to spend $4.00 to buy back just two-thirds of that amount in energy. This leaves them with a net cost of $3.10 for the day, despite being a local power generator.
The core lesson is undeniable: the electricity you use from your panels to avoid grid purchases is worth 5-8 times more than the electricity you export.
This financial gap is the central challenge every solar owner in South Australia faces. Your daytime exports generate minimal income, while your evening grid usage incurs significant costs. It’s clear the smartest strategy is no longer about maximising exports; it’s about minimising imports. This is precisely where a home battery adds value, by enabling you to capture self-generated power and use it when it’s most valuable.
How a Battery Unlocks the True Value of Your Solar
The financial reality of exporting solar in South Australia is clear: you are selling a valuable asset for a low price, only to buy it back for a high price hours later. A home battery is the key technology that allows solar owners to break this cycle of low export earnings and high evening grid costs.
A battery functions as a personal energy storage device. It captures the low-cost solar power your system generates during the day, storing it for later use. Instead of allowing this surplus energy to spill onto the grid for a minimal feed-in tariff, you retain it for your own needs.
Shifting Energy From Day to Night
The primary function of a battery is energy time-shifting. It allows you to decouple from the "solar glut" that suppresses the value of your daytime exports.
- During the Day: Your solar panels power your home. Any excess generation is used to charge your battery instead of being exported for a low return.
- During the Evening: As the sun sets and your panels cease production, your home automatically draws power from your charged battery instead of the expensive grid.
This strategy directly addresses the primary financial challenge for solar households. By using your own stored solar energy, you dramatically reduce the amount of electricity you need to purchase from the grid during expensive evening peak periods.
A battery is a financial tool. It "buys low" by storing your own 'free' solar energy and "sells high" by enabling you to avoid purchasing grid power at 40c/kWh or more.
The Financial Advantage of Self-Consumption
The economic case for battery storage over simple exporting is compelling across Australia. With 2026 FiT rates in states like South Australia, NSW, and Queensland averaging just 5-9c/kWh, relying on exports is an ineffective strategy. The real value is in self-consumption, where using your own power saves you from paying 30-50c/kWh or more to your retailer. A battery is what makes this high-value strategy possible.
While the upfront cost of a battery is a consideration, it is best viewed as a long-term investment in energy independence and bill reduction. It moves you from being a passive "price-taker" to an active manager of your home's energy. You can enhance this with advanced tools like home energy monitoring to gain deeper insights into your usage patterns.
A battery doesn't just store energy; it unlocks its true financial potential. Its value extends beyond simple self-consumption. A battery is an intelligent asset that can be optimised further, setting the stage for participation in programs that create additional financial upside.
Going Beyond Self-Consumption With a Virtual Power Plant
Storing your own solar power for evening use is a smart financial move and the first step away from being a price-taker subject to the low solar power feed-in tariff SA offers. However, simple self-consumption is only the beginning. The next level of optimisation involves transforming your battery from a passive storage device into an active, intelligent asset that generates revenue.
This is where a Virtual Power Plant (VPP) comes in. A VPP is a network of individual home batteries, orchestrated by a central operator to work in concert. This network acts like a single, large-scale power plant, providing valuable stability services to the electricity grid during periods of high demand or network stress.
This grid support is highly valuable to the energy market. A modern, retailer-led VPP like High Flow Energy shares this value directly with you, the battery owner, creating a new way to earn from your solar setup that goes far beyond simple bill savings.
The Two Ways Your Battery Creates Value
A battery can make or save you money in two distinct ways. The first is the passive saving from self-consumption. The second, and more powerful, method is actively earning revenue by participating with the grid.
Let’s compare these two approaches:
- Standard Solar Export (FiT): This is the most basic strategy. You export surplus solar power to the grid for a few cents per kWh. It is a passive, low-value transaction.
- VPP Participation: This is an active strategy. Your battery provides high-value services to the grid, such as discharging power during a heatwave when demand is high. In return, you receive payments or bill credits that can significantly reduce or eliminate your electricity bills.
The diagram below illustrates the hierarchy of solar energy use, which forms the basis for these advanced strategies.
The key takeaway is that your battery is in a powerful position. It can either serve your home's needs or participate in the broader energy market for a much greater financial reward.
How a Retailer-Led VPP Works
A retailer-led VPP integrates your energy plan directly with your battery’s grid participation. This creates a seamless system where the value your battery generates is used to directly offset your electricity costs. At High Flow Energy, we coordinate the dispatch of your battery to support the grid when it's most valuable. That value then funds a monthly allowance which can cover your electricity usage and supply charges.
A common concern is that joining a VPP means losing control of your battery. With a modern, transparent operator, this is not the case.
You always retain priority use of your battery. The system ensures you have sufficient stored energy for your household's needs before any power is exported to the grid for VPP events.
The financial incentive to adopt smarter strategies is growing. As new rules from the Australian Energy Market Commission (AEMC) take effect, VPPs will be able to compete more directly with large-scale generators. Battery owners who are part of a VPP are best positioned to maximise their solar investment and hedge against volatile FiT rates.
Joining a VPP transforms your battery from a simple cost-saving appliance into a genuine performance asset. Instead of just avoiding grid costs, you actively participate in the market to create new financial value—a strategy we explore in our guide on how Virtual Power Plants are driving Australia's renewable energy revolution.
Key Takeaways for South Australian Solar Owners
For solar owners in South Australia, the old 'set and forget' strategy of exporting surplus solar power for bill credits is no longer effective. To get the most out of your solar investment, a change in strategy is required.
Here are the key takeaways:
- Feed-In Tariffs are Low: The standard solar power feed-in tariff in SA is now between 5-8c/kWh. Relying on this for financial returns is an inefficient strategy.
- Self-Consumption is High Value: The greatest value comes from using your own solar power. Every kilowatt-hour you self-consume saves you from buying grid electricity at 30-50c/kWh or more.
- A Battery is a Financial Tool: A home battery enables you to store your low-cost solar energy generated during the day and use it during the expensive evening peak, maximising self-consumption.
- VPPs Create New Value: A Virtual Power Plant (VPP) allows your battery to earn revenue by providing valuable services to the grid. This creates a financial return that goes beyond simple bill savings from self-consumption.
- Optimisation is Key: Most battery owners focus on installation quality. Far fewer focus on ongoing performance and optimisation. A well-managed VPP turns your battery from a simple storage device into a performance asset.
Frequently Asked Questions (FAQ)
Here are answers to common questions South Australian solar and battery owners have about feed-in tariffs and getting the most value from their systems.
Can I Still Get The Old 44 Cent Feed-In Tariff In SA?
No. The high legacy feed-in tariffs, including the 44c/kWh premium scheme, are closed to new applicants. These schemes are only available to a small number of households that have maintained their original system and eligibility since the program's inception. Any new solar system, or a significant upgrade to an existing one, will be on a standard retail market offer, which in South Australia is typically a solar power feed-in tariff between 5-8c/kWh.
Are Solar Panels Still Worth It In SA With Low Feed-In Tariffs?
Yes, absolutely. The strategy has simply shifted from earning export credits to reducing electricity bills. The key is self-consumption. Every kilowatt-hour of solar power you use yourself is one you don't have to purchase from the grid at a much higher rate (often 30-50c/kWh). The value you get from using your own solar power is five to eight times higher than the credit you receive for exporting it. A battery is what makes this strategy effective by allowing you to store daytime energy for use at night.
Does My Battery Earn A Feed-In Tariff When It Exports Power?
No, not in the traditional sense. Standard feed-in tariffs typically apply only to electricity exported directly from your solar panels as it is generated. However, this is where a Virtual Power Plant (VPP) provides a different, more valuable opportunity. A VPP enables your battery to be paid for providing valuable grid stabilisation services, which is a more sophisticated and often more lucrative use for your stored energy than exporting it for a standard FiT.
How Should I Choose an Electricity Plan for My Solar & Battery System?
Focusing only on the headline feed-in tariff rate is a common mistake. Many high FiT rates come with restrictive daily export caps, after which the rate drops significantly. The more important factors are the daily supply charges and the time-of-use rates you pay for electricity imported from the grid. Your greatest savings will come from maximising self-consumption. Therefore, the optimal plan is not the one with the highest (but capped) FiT, but one that integrates with your battery and VPP strategy to minimise your overall grid consumption and costs.
Most battery owners focus on installation quality. Far fewer focus on ongoing performance and optimisation. High Flow Energy is an electricity retailer built around unlocking the full value of your existing solar and battery system.
If you would like to understand whether your battery is underperforming financially, request an eligibility assessment today at https://www.highflowenergy.com.au.