Key points
- Victoria no longer has a minimum feed-in tariff. Since 1 July 2025 retailers set their own rates, and some pay 0c.
- The 2026–27 Victorian Default Offer brought bills down about 5% and introduced an 11am–4pm “solar soak” time-of-use period.
- The new Midday Power Saver (from 1 October 2026) offers free electricity from 11am to 2pm, up to 24 kWh a day.
- For solar owners, using your own power is now worth far more than exporting it.
If you have solar in Victoria, the way you’re paid for exported power has changed a lot in the past two years. There’s no longer a government-set minimum feed-in tariff, and new midday pricing is reshaping when electricity is cheapest. Here’s what it means for your bills, and what to do about it.
What happened to the minimum feed-in tariff?
For years the Essential Services Commission (ESC) set a minimum feed-in tariff (FiT) that every retailer had to pay. After a change to the Electricity Industry Act 2000, the ESC stopped setting a minimum from 1 July 2025. Retailers can now offer any feed-in rate, including zero.
Watch out: some comparison websites still quote a “minimum feed-in tariff” for Victoria. There isn’t one any more. Always check the actual rate on your retailer’s plan.
What are retailers paying in 2026?
Feed-in rates vary widely and change often. In October 2026, several large retailers offered around 8c/kWh, usually only for the first 8–10 kWh you export each day. Many plans pay a lower rate after that, or nothing at all, and a number of retailers offer 0c on some plans. Some retailers offer rates that follow the wholesale market, which can be negative in the middle of sunny days.
The takeaway is that a kilowatt-hour you export is often worth just a few cents, while a kilowatt-hour you buy in the evening can cost 35–40c or more.
The 2026–27 Victorian Default Offer: a new solar soak period
The Victorian Default Offer (VDO) is the government-set price for customers who haven’t chosen a market plan, and a benchmark for other offers. The ESC’s 2026–27 decision, effective 1 July 2026, lowered average household bills by about 5% (around $84 a year).
Time-of-use VDO customers now have three periods:
| Period | Hours | What it means |
|---|---|---|
| Peak | 4pm – 9pm | Most expensive. Avoid using grid power here. |
| Solar soak | 11am – 4pm | Cheapest. Run appliances and charge batteries and EVs. |
| Off-peak | 9pm – 11am | Mid-priced. |
The Midday Power Saver: three free hours a day
From 1 October 2026, Victorian retailers with more than 1,000 customers must offer the Midday Power Saver, which gives you free electricity from 11am to 2pm every day, up to 24 kWh a day. It’s opt-in and needs a smart meter. About 2.6 million households are eligible, and the government estimates savings of roughly $149 to $1,102 a year depending on how much use you can shift into the free window.
Midday Power Saver plans have their own rates for the rest of the day, so compare the whole plan, including the supply charge, evening peak rate and feed-in rate, before switching.
What this means for solar owners
- Self-consume first. Run the dishwasher, washing machine, pool pump and hot water in the middle of the day.
- Consider a battery. Storing midday solar for the 4–9pm peak is now usually worth several times more than exporting it, and the federal battery discount is at its highest until 31 December 2026. See our Victorian battery rebate guide.
- Electrify your hot water. A heat pump on a timer can heat your water with solar or free midday power. Read about the 2027 hot water rules.
- Check your plan once a year. Feed-in rates and time-of-use windows change regularly.
Can my solar be switched off remotely?
Since 1 October 2024, new, upgraded and replacement solar systems up to 200 kVA in Victoria must support the emergency backstop. It lets distributors reduce exports, or as a last resort switch off generation, during rare grid emergencies directed by AEMO. The government expects this to be needed only about 12–19 hours a year, so the impact on most households is very small.
Sources: Essential Services Commission – Minimum feed-in tariff; ESC – Victorian Default Offer 2026–27 (20 May 2026); Premier of Victoria – Midday Power Saver (28 May 2026); Powercor – Emergency backstop. Retail rates are indicative and change often. Featured image: DXR / Wikimedia Commons, CC BY-SA 4.0.
