Australia has long been a world leader in rooftop solar, with millions of households jumping on board to cut power bills and embrace a greener future. A big part of that success has been the generous solar feed-in tariffs (FiTs), which rewarded homeowners for exporting excess solar energy back to the grid.
But times are changing. Government policies and market shifts mean those once-lucrative FiTs are shrinking fast, leading many to rethink how they use their solar power. If you’re wondering whether your solar setup is still working for you, now’s the perfect time to take a fresh look at how you can maximise your energy savings.
What’s Happening with Feed-in Tariffs?
Gone are the days of 60c per kWh for exported solar energy. Today, most feed-in tariffs sit at just 3c per kWh, and over the next six months, they’re expected to drop even further—to as low as 0.4c per kWh.
The Australian Energy Market Commission (AEMC) has even floated the idea of negative feed-in tariffs—where instead of getting paid, you could be charged for exporting power during times of low grid demand.
This shift isn’t happening just to frustrate solar owners. The reality is that the grid wasn’t designed for an influx of solar power, and during peak sun hours, there’s often too much energy flooding the system. Instead of upgrading infrastructure to handle this clean, free energy, regulators have opted to discourage exports. Unfortunately, this means homeowners are seeing their solar earnings dwindle.
What This Means for Your Solar Investment
For years, exporting excess solar power was a great way to offset electricity costs—but with FiTs now so low (and still falling), selling your solar back to the grid is barely worth it. Instead of giving away your power for next to nothing, the smartest move now is to use as much of your own energy as possible.
This is where battery storage comes into play.
Batteries – The Best Way to Keep Your Solar Savings on Track
Adding a battery to your solar system means you can store excess energy during the day and use it when the sun isn’t shining—like in the evening when electricity rates are highest.
More than that, a battery helps you sidestep low FiTs altogether. Instead of exporting power for cents on the dollar, you can store and use every bit of solar you generate, cutting your reliance on the grid and keeping more money in your pocket.
And it’s not just about solar—some energy retailers, like OVO Energy, are now offering free electricity during certain midday hours. With a battery, you can capture that free energy when it’s available and use it later when grid prices climb. Whether it’s excess solar or a free midday top-up, a battery gives you the flexibility to take advantage of the best energy opportunities.
Making the Switch: What You Need to Know
If you already have a solar system, adding a battery is easier than you might think. Many modern inverters are battery-ready, and battery prices are steadily dropping as technology improves. Some states even offer rebates and incentives to help with the upfront cost.
If you’re installing a new solar system, choosing a hybrid system with battery capability from the get-go is a smart move. It future-proofs your investment and gives you flexibility, no matter what energy policies come next.
The Bottom Line: Take Control of Your Energy Future
It’s clear where things are headed—feed-in tariffs are shrinking fast, and grid exports aren’t the money-saver they once were. But instead of letting these changes eat into your solar savings, a battery lets you take full advantage of the power you produce.
And with options like OVO’s free midday energy, a battery can do more than just store solar—it lets you leverage free grid power too, turning the system in your favour.
By storing and using your own energy, you can:
- Reduce reliance on the grid
- Avoid selling power for next to nothing
- Take advantage of free midday charging
- Protect yourself from future tariff changes
- Maximise your solar (or battery) investment
At the end of the day, solar and battery storage are still one of the smartest investments you can make. Whether you’re looking to boost self-consumption, dodge low FiTs, or soak up free energy from the grid, having the right setup puts you in control.
Rather than waiting for the next policy shift, take control of your energy now and make your system work for you.
