Origin Energy offers the best feed-in tariff right now in Melbourne. The retailer offers 14 c/KWh or 20 c/KWh, depending on whether your system is bigger or smaller than 7KW. Closely following, we have Dodo Energy and 1st Energy, which offer 12 c/KWh and 11.7 c/KWh, respectively.

If you have a solar system in Melbourne and want to get the best solar savings possible, you should be interested in this discussion about the best feed-in tariffs right now in Melbourne.

In this article, we’ll:

  • Tell you what the best feed-in tariff in Melbourne is.
  • Compare the feed-in tariffs of the different energy retailers in Melbourne.
  • Tell you whether feed-in tariffs in Melbourne are worth it.
  • Tell you what to look out for besides feed-in tariffs when choosing an energy retailer.

Let’s get started.

Who gives the best solar Feed-In Tariff rate in Melbourne?

In Melbourne, Origin Energy currently gives the highest feed-In tariff for excess electricity that is exported to the grid.

For its highest plan, you can get 14 cents per kilowatt-hour of electricity that you send to the grid if your system is over 7KW. However, if your system is less than 7KW, you can get as much as 20 cents per kilowatt-hour of electricity exported. We hope you don’t have an 8kw system! Yikes.

When choosing electricity retailers, people usually look for big feed-in tariffs so that they’ll get as much as possible for the excess electricity that their solar system produces.

However, as we’ll see later in this article, feed-in tariffs may not be worth it any longer. Companies may offer high feed-in tariffs and collect this back via other avenues such as a high usage rate.

Thus, when choosing your energy retailer, you may want to look beyond the feed-in tariff that is offered. Other things to consider include:

Usage rate. This is the retailer’s amount per kilowatt-hour of electricity that you use from the grid.

Know that your solar system produces electricity only at certain times of the day. Also, there are times when your solar production may not be enough to meet your energy needs. In these times, when your system falls short, the energy you need will be supplied by the grid.

Daily supply charge. This is the amount that a retailer charges to cover costs associated with metering and distribution.

Just as it is with usage rates, if supply charges are high, they’ll push your electricity bills up for those times when you are supplied by the grid.

What is an average feed-in tariff rate in Melbourne?

A reasonable feed-in tariff rate in Melbourne is anything above 6.7 cents per kilowatt-hour (c/KWh).

The Victorian government has set a minimum feed-In tariff rate for the state. Electricity retailers must not offer anything less than this set minimum for exported electricity. There are two provisions possible – single rate and time-varying rate.

Single rate 

The single rate means that you get the same price for exported electricity irrespective of what time of the day or day of the week it is exported.

Single rate tariff is the simplest electricity tariff, so it is the most popular among solar users for FiT’s. From July 1, 2021, the minimum feed-In tariff for single rate customers is set at 6.7 c/KWh.

Time-varying rate

This means that the price you get for exported electricity depends on what time of the day it is exported. From July 1, 2021, the varying-time feed-In tariff is set between 6.1 c/KWh and 10.9 c/KWh.

PeriodWeekdayWeekendRate (c/KWh)
Off-peak10 pm – 7 am10 pm – 7 am6.7 c/KWh
Shoulder 7 am – 3 pm9 pm – 10 pm7 am – 10 pm6.1 c/KWh
Peak3 pm – 9 pmn/a10.9 c/KWh

Source: Essential Services Commission

Major Retails and Feed-In Tariffs in Melbourne

There are different energy retailers in Melbourne, and when it comes to feed-in tariffs, it is not one rate fits all.

What you get for each kilowatt of power that you export depends on the particular retailer. To help you choose, below is a comparison table of feed-in tariffs in Melbourne.

RetailerMinimum FiT (cents)Maximum FiT (cents)
1st Energy 6.711.7
AGL6.76.7
Alinta Energy6.76.7
Diamond Energy07.0
Discover Energy6.76.7
Dodo1212.0
Elysian Energy010.0
EnergyAustralia7.17.1
Energy Locals6.77.0
GloBird Energy6.76.7
Kogan Energy6.76.7
Lumo Energy6.76.7
Momentum Energy6.710.0
Origin Energy6.714.0 or 20.0
OVO Energy6.78.0
People Energy6.76.7
Powerdirect6.76.7
Powershop6.76.7
QEnergy6.76.7
ReAmped Energy7.19.1
Red Energy6.78.0
Simply Energy6.76.7
Sumo6.710.2
Tango Energy6.710.1

While some retailers stick to the minimum feed-in tariff, others are more generous with their offers. Also, most of the retailers offer different energy plans that allow them to offer a range of feed-in tariffs. That is, higher plans come with higher feed-in tariffs.

From the comparison table, the five highest feed-in tariffs in Melbourne are

The Top 5 Feed-In Tarriffs in Melbourne

Origin Energy

Origin Energy offers Melbourne customers three plans – Basic solar plan, Solar Boost plan, and Solar Boost Plus plan.

The basic plan comes with the minimum FIT, which is 6.7 c/KWh. For the solar boost plan, the FIT is 10 c/KWh. The solar boost plus plan comes with the highest FIT, which is 14 c/KWh or 20 c/KWh.

For the biggest plan, the size of your system determines the FIT. You get 14 cents per kilowatt-hour if your system is over 7KW and 20 c/KWh if your system is less than 7KW. Also, your system must be installed by Origin Energy, and you must not export more than 10KW of power.

Dodo

Dodo Energy promises to deliver simplicity, and it does so with a very straightforward feed-in tariff for Melbourne customers. You’ll get 12 cents for each kilowatt-hour of electricity exported.

1st Energy

1st Energy Solar is third on the list of retailers with the highest feed-in tariffs. The company has several energy plans. For most of these plans, the FiT is 6.7 c/KWh, but for the “1st Solar Bonus” plan, the FiT is 11.7 c/KWh.

Sumo

Sumo Energy has a number of plans for Melbourne residents. For the Assure, Assure Advantage, and Freedom plans, the FiT is 6.7 c/KWh, but for the Assure Plus and Freedom Plus plans, the FiT is 1.2 c/KWh.

Tango Energy

Tango Energy completes our top 5. The company has 6 energy plans for Melbourne. Four of these come with the minimum FiT tariff of 6.7 c/KWh.

There’s a Solar Saver Como plan with a FiT of 8.5 c/KWh. Its maximum FiT tariff comes with the Solar Bonus plan, which is 10.1 c/KWh. This comes with the conditions that Tango must install the solar system and that you cannot get FiT for more than 3.4 kWh of electricity per day.

Are feed-In tariffs in Melbourne worth it?

Feed-in tariffs have dropped significantly since the days of a 60c/kwh national rate. When you sell electricity to the grid, what you get is now ower than what you pay to buy electricity from the grid. So, it may be best to use the electricity that your solar system generates instead of selling it. However, they do provide a good way to monetise the power you don’t use.

Feed-in tariffs are steadily going down. Just over a decade ago (2009 to be precise), households in Victoria were receiving 60 c/KWh of exported electricity. The rate had continually dropped until the current minimum rate of 6.7 c/KWh.

Even the 2020-2021 minimum feed-in tariff rate was 10.2 c/KWh. So the current rate represents a 34% drop-off from just a year ago. Interestingly, it is expected that feed-in tariffs for exported electricity will drop even further in the coming years.

If the drop in feed-in tariff is proportional to the decline in retail electricity price, feed-in tariffs may still be worth it because what you’ll be getting for electricity sold will be close to what you pay for electricity when you buy it from the grid. 

However, that is not the case at the moment. Retail electricity price is now way higher than the feed-in tariff. The 60 c/KWh feed-in tariff in the noughties was about twice the then retail price. But in Melbourne today, the minimum feed-in tariff of 6.7 c/KWh is less than half the current retail price (which is between 15c/KWh and 25 c/KWh depending on the retailer). 

Getting only 6.7 cents for a kilowatt-hour of power when you sell it and then paying 15 – 25 cents for it when you need it is not the best scenario. It makes more sense to save your excess power.

Conclusion

Melbourne has a minimum feed-in tariff of 6.7 c/KWh for single rate users. While some energy retailers offer this set minimum as their feed-in tariff, some retailers offer rates higher than it. Origin Energy currently has the highest feed-in tariff rate, offering customers 14 c/KWh for systems over 7KW and 20 c/KWh for systems under 7KW.

However, feed-in tariffs in Melbourne have dropped significantly from what they used to be and are now way lower than energy retail prices. So, they may not be worth it. You may be better served using your excess electricity yourself than selling it to the grid.

If you are interested in looking at the best feed-in tariffs in other states click below:

The Best Feed-In Tariff Right Now in Adelaide

The Best Feed-In Tariff Right Now in Brisbane

Our Guides to Solar Rebates, Tariffs and More

We have a series of unique guides to solar, solar finance, batteries and more, if you are looking to do more in-depth research into solar finance check the below:

1. What Are Solar STC’s?
In this regard, the Australian government has provided incentives under the Solar Credit Program to encourage the installation of solar power systems. STCs or Small-scale Technology Certificates are incentives provided to small-scale energy generators. The most common example is the residential facilities.

2. How To Claim STCs
You can claim small-scale technology certificates (STCs) by assigning them at the point of sale to a registered agent like a retailer or solar installer. Each STC claim is unique to an installation. However, you can make more than one STC claim if you use different addresses for each installation. 

3. State-Based Solar Incentive Guide For Australia
State-Based solar incentives in Australia offer low-interest loans, interest-free loans, free solar system installation, or free battery installation. The incentives are given depending on your state location. However, you receive solar incentives only if you are eligible. 

4. Solar Incentives for Businesses in Australia
There are many incentives that business owners in Australia with solar power can enjoy. Some of them include Small-scale Technology Certificates (STCs), Feed-in Tariffs, Retailer Energy Productivity Scheme (REPS), and more. These incentives promote the adoption of solar by lowering the installation costs.

Next Steps…

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