Self-consumption vs FiT: which saves more?

Introduction

When you install solar, you have two ways to benefit:

1. Self-consume the electricity directly in your home.

2. Export excess power to the grid and get paid a feed-in tariff (FiT).

But the big question is: self-consumption vs FiT — which saves more?
The answer depends on your state’s FiT rates, your retailer plan, and your daily usage habits.

If you’re new to FiTs, first see our What is FiT? guide.

Key Definitions

• Self-consumption: Using your solar power in real time at home (e.g., running the washing machine at noon).

• Feed-in Tariff (FiT): The rate your retailer pays for every exported kWh.

For state-by-state FiT levels, check Compare FiT by State.

Why Self-consumption Often Saves More

Retailers usually charge 25–35c/kWh for imports, while FiTs are typically 5–15c/kWh.
That means every unit of solar you self-consume avoids paying high retail rates, usually giving more value than exporting.

Worked Example 1 — High Self-consumption Household

• Solar produces: 20 kWh/day

• Household daytime use: 12 kWh/day

• FiT rate: 8c/kWh

• Grid import rate: 30c/kWh

Savings:

• 12 kWh self-consumed × 30c = $3.60 saved

• 8 kWh exported × 8c = $0.64 credit
  Total daily benefit = $4.24

Worked Example 2 — Low Self-consumption Household

• Solar produces: 20 kWh/day

• Household daytime use: 5 kWh/day

• FiT rate: 10c/kWh

• Grid import rate: 28c/kWh

Savings:

• 5 kWh self-consumed × 28c = $1.40 saved

• 15 kWh exported × 10c = $1.50 credit
  Total daily benefit = $2.90

Clearly, higher self-consumption improves savings when FiT is lower than import costs.

Worked Example 3 — Time-of-Export FiT Plan

Some retailers pay higher FiTs in the evening.

• Exported solar during 6–8pm could earn 15–20c/kWh, closing the gap between self-consumption and export value.

Use our Rate Change Tracker to monitor which retailers are offering time-of-export FiTs.

Tools to Compare Your Situation

You don’t need to guess. Use these calculators:

• FiT Savings Calculator — estimate bill impacts.

• Postcode Estimator — find your solar output by location.

• Retailer Rates — see which retailer offers the best FiT.

• Solar ROI & FiT — test payback period scenarios.

FAQs

Q1. Is it always better to self-consume solar?
Mostly yes, unless your FiT is unusually high compared to your retail tariff.

Q2. Can batteries increase self-consumption?
Yes. A battery lets you store excess solar and use it later, boosting effective self-consumption.

Q3. What happens if my FiT drops?
Your ROI will depend more on self-consumption. Keep an eye on rates with our Retailer Rates.

Q4. Should I shift appliance use to daytime?
Yes. Running appliances like dishwashers or EV charging during solar hours increases self-consumption and savings.

Conclusion

For most solar households, self-consumption saves more than exporting because grid import rates are much higher than FiT rates.

Next steps:

• Compare your state’s FiTs: Compare FiT by State

• Estimate your bill savings: FiT Savings Calculator

• Check retailers: Retailer Rates