Solar feed-in-tariffs (FiTs) are going down – what can you do?

Offset declining solar FiTs + maximise solar savings with a complete panel, battery and VPP solar solution.

Solar feed-in-tariffs are going down - maybe it’s time to add a solar battery?

While solar feed-in-tariffs (FiTs) were once a generous incentive for getting a solar panel system installed on your roof, the significant reduction in solar FiT payments are causing more and more Aussies to rethink their solar strategy to offset energy prices that are spiralling out of control. 

The shift away from relying solely on solar panels, to batteries and Virtual Power Plant solutions  like ShineHub’s Virtual Power Plant^, is fast becoming a crucial step towards maximising the benefits of a solar lifestyle. Let’s delve into why this is the case.

The decline of solar feed-in-tariffs: a brief overview

The increasing gap: The difference between power prices and feed-in tariffs has grown noticeably, and is now more magnified than ever before because of the high price of grid energy we are experiencing. This is primarily because as more people have solar panels installed, the amount of solar energy sent back to the grid has significantly increased as well. Due to this oversupply, power companies are paying less and less for your exports

Solar feed-in-tariffs used to be very generous back in the day, at around $0.60/kWh. Now they are around $0.05/kWh in most cases.  Not very good!  This is why keeping your power for yourself and using it at night is so important. 


The best way to save big on power bills with solar these days is to use as much of your own power as possible rather than selling it back to the grid for next to nothing, then having to buy grid power at night for around 7 times the cost. 

Why storing solar power with a battery makes sense:

A Shift in Strategy: Previously, high FiTs made it profitable for households to sell back their excess solar power at a great profit. But with current low rates (as low as 5c FiTs), it’s more beneficial for households to use their own generated power, avoiding high grid energy prices both day and night. Adding a solar battery into the equation is essential to achieve this. 

The rise of the solar + battery era: Storing solar power generated by your panels with a solar battery for evening and overnight use is the best way to maximise the benefits of getting solar installed. This protects homeowners, and helps them avoid buying back power their panels originally produced at horribly inflated prices. 

For example, if you get paid 5c/kWh for daytime solar exports and then have to rebuy that power at night in the form of grid energy that cost 35c/kWh you can see that the economics don’t quite stack up! 

That’s not to say that panel systems are not great and won’t save you money, especially if you use most of your power during the day. However, as Australia marches out of its Covid induced hibernation and flocking back to offices around the nation, more and more solar panel systems are producing power when there is no one around to use it.  And that only benefits the electricity companies.

ShineHub VPP: the game changer

Best of Both Worlds: With the ShineHub VPP, you can still gain from the reduced FiTs during daylight hours by storing your extra daytime solar power in a battery to use at night. But the real game-changer is getting a solar battery and connecting to a VPP because you can earn a passive income from energy you don’t use on top of your normal savings.

Profit from VPP Events: The ShineHub VPP allows you to sell unused battery power back to the grid at premium rates during high-demand periods. With payments of $0.55/kWh, homeowners can earn up to $150-$200 annually – that’s up to an additional $2,000 over a decade!

Our $0.55/kWh VPP payments for any power that is discharged from your battery is well above what most electricity plans charge as a flat rate, meaning that even if your battery is discharged and you need to use a small amount of grid power, you will still come out ahead. 

The next gen way of getting paid for your solar energy: You can think of the ShineHub VPP as providing the next generation solar FiT (in the form of VPP payments), it’s just that what you get paid far better than current FITs paid by energy retailers.

Payback Periods and Cost Savings:

Reduced payback time: Solar and battery system paybacks have become incredibly appealing. With current energy price trends, the payback period can be as brief as 3-4 years in some states.

Long-term savings: After the payback period, homeowners can anticipate years of savings*. Considering the warranty and potential VPP income, the financial benefits of getting a solar+battery system are undeniable.

Retailer independent: Unlike a lot of VPP offerings on the market that are tied to specific retailers or energy plans, the ShineHub VPP is retailer independent which means that you can seek out the best grid energy plans with the best FiT payments and grid energy pricing. This means you can improve the savings equation even more!

We can help you find a better energy plan

We are passionate about giving your power bill a complete makeover. That’s why we have an energy comparison service that can help you find out if you have the best energy deal already, or if there are savings to be had with another grid energy provider’s plan. 

Compare energy plans


Solar power is a fantastic investment, but as the energy landscape shifts, so should our consideration for what type of system to install. With solar panels with batteries homeowners can offset declining FiTs while also maximising their solar savings.

And the good news is that you can still benefit from the solar FiT from your retailer, during daylight hours – and even a little money back is better than nothing at all. 

By adding a battery, you can store the energy your panel system produces, for use when the sun has gone down, meaning you are increasing your power self sufficiency during both daylight hours and overnight. 

Finally, when you connect to the ShineHub VPP, you can earn passive income from unused battery power when it’s sold back to the grid during VPP events.

Ready to harness the full power of solar? Get a quote today and discover the incredible savings awaiting you with a ShineHub solar system full solution.

^Must sign up to the ShineHub VPP. Shinehub VPP terms and conditions apply.

* Savings vary according to individual circumstances.  Terms and Conditions apply.

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