Introduction
When you install solar, you face a key question: should you use more of your solar power at home, or export it for a feed-in tariff (FiT)? Both strategies save money, but the better option depends on your usage patterns, tariffs, and state regulations. This guide explains the difference, works through examples, and shows you how to calculate which strategy suits you best.
Key Definitions
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Self-consumption: Using your own solar energy at home instead of buying power from the grid.
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Feed-in tariff (FiT): A credit your retailer pays when you export unused solar back to the grid.
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Import tariff: The rate you pay for electricity drawn from the grid when your solar is not enough.
For a full state-by-state comparison, see Compare FiT by State.
Worked Example 1 — Simple Case
Suppose your grid import tariff is 30c/kWh and your FiT is 8c/kWh.
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If you use 1 kWh of solar directly, you avoid paying 30c.
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If you export 1 kWh of solar, you earn only 8c.
Clearly, self-consumption saves more in this situation. Use the FiT Savings Calculator to run your own numbers.
Worked Example 2 — High FiT Plan
Some retailers offer higher FiTs, such as 15c/kWh, but their import tariff may be 35c/kWh.
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Self-consuming 1 kWh avoids paying 35c.
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Exporting 1 kWh only earns 15c.
Even with a higher FiT, self-consumption still gives you the larger benefit. However, if your system produces a surplus, exporting that power is still worthwhile. You can check which retailers pay more with the Retailer Rates tool.
Worked Example 3 — Smart Use of Timing
Imagine you charge your EV during the day while solar is running. By using 10 kWh of solar instead of grid power priced at 30c/kWh, you save $3/day. If you exported that same 10 kWh at 8c, you would only earn $0.80/day.
This shows how shifting loads to daylight hours dramatically increases self-consumption benefits. To estimate how much your household could shift, try the Postcode Estimator.
Why Self-Consumption Often Wins
Most of the time, self-consumption saves more because import tariffs are usually much higher than FiTs. Nevertheless, FiTs are valuable for surplus solar that you cannot use at home. A balanced strategy—maximising daytime usage while still exporting excess—is often the best approach.
To measure whether a battery might help shift more solar into evening use, check the Solar ROI Fit Calculator.
FAQs
Q1. Is it ever better to export solar instead of self-consuming?
Yes, if your retailer offers unusually high FiTs or if your household demand is very low.
Q2. How do batteries affect this choice?
Batteries let you store solar for night use, further increasing self-consumption and reducing imports.
Q3. Do time-of-use tariffs change the outcome?
They can. If your peak import rate is very high, self-consumption during peak hours becomes even more valuable.
Q4. Should I switch retailers for a better FiT?
Sometimes, but always check daily supply charges and import tariffs too. Use the Rate Change Tracker to see recent changes.
Conclusion
For most households, self-consumption saves more than FiTs because grid electricity costs far exceed export credits. Still, FiTs provide valuable income for surplus solar. By understanding your tariffs, using tools like the FiT Savings Calculator, and comparing retailers, you can strike the right balance between self-use and export.