Introduction
Feed-in tariffs (FiTs) can seem simple at first glance: you export solar and get paid a set rate. However, many plans include credits, caps, and time-of-use (TOU) conditions that change how much you actually earn. Understanding these details helps you avoid bill surprises and choose the right retailer.
Key Definitions
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FiT credit: The amount you earn per kilowatt-hour (kWh) exported to the grid.
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Cap: A limit on the maximum kWh or dollar value of FiT you can earn in a billing cycle.
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Threshold: A tiered rule, where your FiT rate drops once you exceed a certain level of exports.
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TOU export: When FiTs vary by time of day, such as higher rates in the evening and lower during midday.
For a quick look at how different states set FiTs, see Compare FiT by State.
Worked Example 1 — Flat FiT with No Cap
Suppose your retailer pays 10c/kWh with no caps or conditions.
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Exporting 300 kWh in a month earns you $30 credit.
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This is the simplest type of FiT and is easy to calculate.
Use the FiT Savings Calculator to test how much this would add up on your own system.
Worked Example 2 — FiT with Export Cap
Another retailer may pay 12c/kWh, but only for the first 200 kWh exported each month. After that, exports earn nothing.
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First 200 kWh → $24 credit
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Next 150 kWh → $0
Even though the rate looks higher, you would earn less than in the flat FiT example above. Always check fine print before switching plans using the Retailer Rates tool.
Worked Example 3 — TOU Export FiT
Some plans offer time-based FiTs, such as:
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20c/kWh from 5pm–9pm
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8c/kWh from 9am–3pm
If your household exports mostly during the day, you may end up earning less than expected. Conversely, if you have a battery or shift exports into the evening, you can benefit more. The Solar ROI Fit tool can help model these scenarios.
Why Credits, Caps & TOU Matter
Retailers design FiTs to balance solar supply and demand. While high headline rates look attractive, caps, thresholds, and TOU restrictions often reduce real earnings. This is why it’s crucial to compare both import tariffs and FiT terms together.
Check recent changes in the Rate Change Tracker to see how plans evolve over time.
FAQs
Q1. What’s the difference between a cap and a threshold?
A cap is a hard limit; exports beyond it earn nothing. A threshold means the FiT rate drops but does not disappear entirely.
Q2. Are TOU FiTs better than flat FiTs?
They can be, but only if your exports occur during the high-rate windows. Otherwise, a flat FiT may be more stable.
Q3. Why don’t all retailers offer the same FiT?
FiTs are set by each retailer, often within guidelines from state regulators. That’s why comparing across providers is essential.
Q4. How can I estimate my export pattern?
You can use the Postcode Estimator to get a starting point, or check your smart meter data.
Conclusion
FiTs are more than just a number on your bill. Credits, caps, thresholds, and TOU export rules can all change how much you earn from solar exports. By comparing offers carefully, running calculations, and understanding the fine print, you can ensure your solar system delivers the best possible savings.