Solar Feed-In Tariff: What Does Proposed Cut Mean for Victorian Solar Owners?
By ZECO Energy
The Victorian Essential Services Commission (ESC) has proposed a staggering reduction to solar feed-in tariffs, slashing them to just 0.04 cents per kilowatt-hour from July 1 of this year for the 2025/26 financial year, down from 10.2 cents just four years ago. While the final decision isn’t set in stone, the writing on the wall raises one key question: how can solar owners respond?
At ZECO Energy , we’re not just here to adapt to change; we’re here to lead it. And is starts with the right size system for your house. Let’s explore smarter ways to maximise Solar investment in a world where feed-in tariffs (FiTs) are no longer the solution they once were.
Firstly, cause for celebration
We should take a moment to celebrate how far we’ve come. The rise of rooftop solar is one of the greatest energy success stories in modern history. The fact that wholesale electricity prices plummet when the sun’s shining? That’s proof we’re doing something right. Sure, we all wish for the days large feed-in tariffs, but let’s not lose sight of the bigger picture.
We’ve achieved what the industry originally set out to do: the widespread adoption of renewable, solar-generated power. Now, the focus shifts to the next chapter. Here are a few ideas going forward.
Electrifying Your Home – The Next Level!
For those ready to embrace full energy independence, Electrification is an exciting and empowering option. While it requires an upfront investment in a high quality Battery, the rewards (and savings) can be significant: complete freedom from energy retailers and the ability to control virtually all of your power generation and usage.
To maximise the benefits of this lifestyle, consider electrifying your entire home. Transitioning from gas to electric appliances - such as heat pump water systems, induction cooktops, and electric heating and cooling - can simplify your energy setup and fully leverage your solar investment. By creating an all-electric home powered by solar, you’ll eliminate gas bills and further reduce your carbon footprint.
Batteries: Maximise The Freedom Of Your Own System
Home Batteries offer an elegant middle ground. By storing your excess solar energy, you can reduce reliance on the grid while still staying connected for peace of mind. Batteries also provide critical backup power during outages, a lifeline for areas prone to blackouts.
And while Battery prices can be steep, new technology is playing a role in falling prices. ZECO works with customers to help identify the best Battery solutions tailored to their needs, ensuring maximum value and long-term return.
Solar Victoria are also incentivising Solar Battery purchases, providing interest-free loans of up to $8,800 for eligible households.
AC-coupled Solar Batteries are a good choice for older systems because?they are easy to install and can work with any type of solar inverter, meaning they can retrofit to any existing system.
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New Tech That Maximises Your Solar
Smart energy devices, like ZECO’s Marshall, are game-changers for solar owners looking to optimise their energy use.
Marshall acts as the brain of your home energy system, seamlessly managing how and when your solar power is used. From prioritising high-energy appliances during peak solar hours to automatically diverting surplus power to batteries or heating water, Marshall ensures your energy is used efficiently.
By integrating real-time insights and automation, devices like Marshall help you reduce reliance on the grid, minimize waste, and maximize savings - all while making your home smarter and more sustainable.
Smart Energy Management: Solar Soak With Your Energy, Not Against It
Following on from the idea of technology changing the game, the key to thriving under these tariff cuts lies in self-consumption. Adjusting your energy habits, like running appliances during peak solar hours, allows you use your own solar energy avoid paying high retail rates. Smart home tech can take this further by automating energy usage, ensuring you’re maximising every ray of sunshine.
Don’t Zero Export
With Solar Feed-In Tariffs falling to near zero, some installers may be tempted to zero export your inverter. But don’t let it happen!
A zero export inverter would leave you stuck with outdated settings and serious problems if policies are changed again in the future. Make sure you insist on your inverter being able to dynamically export back to the grid to give yourself the best chance of being able to adapt to any change in the future.
The proposed tariff changes mark a turning point for Victorian solar owners. But this isn’t the end of the solar journey. It’s a call to innovate! ZECO Energy is here to help you take control of your energy future with smarter systems, personalised solutions, and insights that keep you ahead of the curve.
The sun is still shining and our energy potential has never been brighter.