On 1 July 2025, Victoria's Essential Services Commission stopped setting an annual regulated minimum solar feed-in tariff. Retailers are now free to set whatever voluntary FIT they choose, with no statutory floor.
Why the change?
Victoria's high rooftop solar penetration means wholesale electricity prices regularly drop below zero during peak midday production. The ESC concluded that a regulated minimum was no longer economically grounded — there's no positive "value of solar exports" at the times when most solar is generated.
What's actually happening to FIT rates?
Sector-average voluntary FITs in Victoria for 2025/26 sit around 1.1 c/kWh, with competitive plans up to about 6.7 c/kWh (Powershop, some Tango plans). The highest published rates come with daily caps (typically 5 kWh/day) — past the cap the rate often drops to 0.
The shift in solar economics
Lower FITs make self-consumption disproportionately more valuable. Households that use power during the day (pool pumps, daytime hot water, EV charging) get the full retail rate avoided. Households that mostly consume in the evening should consider a battery — the export-side spread between FIT and import has effectively reversed.