What is a feed-in tariff (FIT)?

A feed-in tariff is a payment your electricity utility or retailer makes for solar energy you export to the grid. Rates vary widely by country and utility — from 2–5 cents/kWh in some markets to 15–20 cents/kWh in others. In most markets, the FIT rate is lower than what you pay for grid electricity, making self-consumption more valuable than export.

Is it better to self-consume solar or export it?

Self-consumption is almost always more valuable. If you pay $0.15/kWh for grid electricity but earn $0.08/kWh for exports, every kWh you self-consume saves $0.15 while every kWh exported earns only $0.08. The difference is $0.07/kWh — so maximizing self-consumption (via batteries, shifting loads to solar hours) adds significant value.

How do I maximize feed-in tariff income?

To maximize FIT income, increase system size and production. But since FIT rates are typically lower than retail electricity rates, also consider whether a battery to increase self-consumption would be more profitable than simply exporting more. Run both scenarios in the calculator to compare.

Feed-in Tariff Calculator

How much will your solar system earn from feed-in tariffs? Enter your FIT rate and production — compare export income vs self-consumption savings.

Solar production & consumption

Annual solar production?

kWh/yr

Self-consumption rate?

Rates

Feed-in tariff rate?

$/kWh

Grid electricity rate?

$/kWh

Payback analysis

System cost?

Annual feed-in tariff income & savings

$1,656/year total benefit

Exported to grid4,800 kWh

FiT income from exports$576/yr

Grid savings (self-consumed)$1,080/yr

25-yr FiT income$13,568

25-yr grid savings$32,427

25-yr total benefit$45,995

Simple payback period18.1 years

Tip: Your grid rate (0.15 $/kWh) exceeds your FiT rate (0.12 $/kWh). You save more per kWh by self-consuming solar than exporting it. Consider a battery to store excess solar and use it in the evening.

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How to Use This Calculator

Enter your annual solar production

Use your inverter's monitoring app or annual summary to find actual production. For a new system, use NREL PVWatts to estimate. A 5kW system in the UK typically produces 4,000-5,000 kWh/year. In Australia (Sydney), a 6.6kW system produces ~9,000 kWh/year.

Self-consumption rate

This is the percentage of your solar production you use directly in your home, without exporting. A household with daytime occupancy (work-from-home) and smart home devices may self-consume 50-60%. An absent household where production peaks while no one is home may self-consume only 20-30%. Smart EV charging, battery storage, and heat pumps all increase self-consumption.

Feed-in tariff rate

Enter the rate your utility or government pays for exported solar electricity. UK Smart Export Guarantee (SEG): £0.08-0.24/kWh (Octopus offers highest). Australia: varies by state and retailer, $0.05-0.12/kWh. Germany EEG: ~€0.082/kWh fixed for 20 years. US net metering: retail rate credit (equivalent to $0.10-0.30/kWh). Check your current tariff agreement or utility website.

The Formula

Self-consumed kWh = Annual production × Self-consumption rate Exported kWh = Annual production × (1 - Self-consumption rate) Annual FiT income = Exported kWh × FiT rate Annual grid savings = Self-consumed kWh × Grid electricity rate Total annual benefit = FiT income + Grid savings 25-year projection (with 0.5% panel degradation + 2% grid price inflation): Year t production = Year1 × (1 - 0.005)^(t-1) Year t grid rate = Grid rate × (1 + 0.02)^(t-1) Lifetime benefit = Sum of all annual benefits

Example: UK 4kW Rooftop System

Semi-detached home in the Midlands, UK Smart Export Guarantee

A 4kW system produces 3,500 kWh/year. Household self-consumes 40% (1,400 kWh). SEG rate: £0.15/kWh. Grid rate: £0.30/kWh.

Annual production3,500 kWh

Self-consumed1,400 kWh (40%)

Exported2,100 kWh (60%)

SEG rate£0.15/kWh

Result

SEG income£315/year

Grid savings£420/year

Total annual benefit£735/year

25-year total benefit~£23,000

The grid savings from self-consumed solar (£420) exceed the export income (£315) — a strong argument for adding a battery to increase self-consumption from 40% to 70-80%, which could add another £150-200/year in value.

FAQ

Is it better to export solar or self-consume it? ▼

Self-consumption is almost always more valuable when your electricity rate exceeds your FiT rate. If you pay $0.15/kWh for grid power but only receive $0.07/kWh as a FiT, each kWh you self-consume saves $0.15 while each kWh you export earns $0.07 — self-consumption is worth 2x more. The exception is US net metering at retail rate, where exported solar gets credited at the same rate you'd pay. Add a battery to maximize self-consumption and capture more value from your solar.

What is the UK Smart Export Guarantee (SEG)? ▼

The UK's Smart Export Guarantee (SEG) requires larger energy suppliers to offer a tariff for exported solar electricity. Rates vary by supplier — Octopus Energy's Outgoing Octopus often offers the highest rates (£0.15-0.24/kWh). To qualify, you need a smart meter and an MCS-certified system under 5MW. The old Feed-in Tariff ended in March 2019; SEG replaced it without the guaranteed 20-year pricing. Compare SEG rates at ofgem.gov.uk.

How does Australian solar feed-in work? ▼

Australia has state-based minimum FiT rates set by regulators, with retailers offering above-minimum rates to attract customers. Victorian minimum FiT: ~$0.038-0.05/kWh. NSW: varies by retailer (~$0.05-0.10/kWh). Queensland Solar Bonus Scheme ended; new systems get market FiT ($0.06-0.10/kWh). Western Australia: Distributed Energy Buyback Scheme (DEBS) ~$0.10/kWh peak, $0.02/kWh off-peak. Compare rates through the Energy Made Easy website (energymadeeasy.gov.au).