Introduction
Not all solar feed-in tariffs are unlimited. Many retailers apply caps and thresholds that limit how much credit you can earn from exports. Understanding these details in your plan is critical — otherwise, you might expect a bigger bill reduction than you actually get.
If you’re new to FiTs, see our What is FiT? guide first.
Key Definitions
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FiT Cap: A maximum export volume (kWh/day, month, or year) beyond which no credit is paid.
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FiT Threshold: A tiered rate structure — e.g., the first 5 kWh/day at 12c/kWh, then 5c/kWh after that.
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Flat FiT: One constant rate, regardless of volume.
Compare FiT rules across states: Compare FiT by State.
Worked Example 1 — Daily Cap
Plan: 10c/kWh FiT with 10 kWh/day cap
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Exports: 14 kWh/day
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Eligible: 10 kWh × 10c = $1.00
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Excess: 4 kWh × 0c = $0.00
Total credit = $1.00 (not $1.40 as expected)
Worked Example 2 — Monthly Cap
Plan: 8c/kWh FiT, capped at 300 kWh/month
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Exports: 400 kWh in a month
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Eligible: 300 kWh × 8c = $24
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Excess: 100 kWh × 0c = $0
Total credit = $24 (not $32)
Worked Example 3 — Threshold Rates
Plan: First 5 kWh/day @ 12c/kWh, after that 5c/kWh
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Exports: 12 kWh/day
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First 5 kWh = $0.60
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Next 7 kWh = $0.35
Total credit = $0.95
Check how this impacts payback with our Solar ROI & FiT calculator.
Why Reading the Fine Print Matters
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A “high FiT” headline rate might only apply to limited exports.
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Some retailers quietly cap credits, especially in states with high solar uptake.
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Tiered FiTs reduce your return if you regularly export more than the first threshold.
Always cross-check offers at Retailer Rates and monitor changes using the Rate Change Tracker.
Tools to Estimate Your Exposure
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FiT Savings Calculator — test if caps shrink your credits.
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Postcode Estimator — see your typical export levels.
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Solar ROI & FiT — check how caps affect payback.
FAQs
Q1. Are FiT caps common?
Yes, especially in high solar states like SA and QLD. Some caps are daily, some monthly.
Q2. What happens after I hit the cap?
Usually, exports above the cap earn no credit — they go to the grid for free.
Q3. How do I find caps in my plan?
Look under “feed-in tariff terms” in the retailer’s energy fact sheet.
Q4. Is a capped high FiT better than an uncapped lower FiT?
Not always — run the numbers with our FiT Savings Calculator.
Conclusion
FiT caps and thresholds can make or break your solar savings. A plan with a 12c FiT cap may deliver less credit than an uncapped 8c plan if you’re a heavy exporter. Always read the fine print and test offers with calculators before switching.
Next steps:
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Compare plans in your state: Compare FiT by State
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Estimate your savings: FiT Savings Calculator
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Check retailer terms: Retailer Rates