South Australias Essential Services Commission has approved  drastic cuts to minimum feed-in tariffs (FiTs) for 2025/26, leaving solar owners worried. The current flat rate of 3.3c per kWh may drop to a shocking 0.04c per kWh starting July 1, 2025. Time-varying rates are also set to plummet, with proposed rates ranging from 0c to 7.5c per kWh, depending on the time of day.

The approved 0.04c rate applies during daylight hours when solar production peaks—10 am to 2 pm on weekdays and weekends under certain tariff options. The Commission cites the 76% increase in rooftop solar systems since 2019, reducing electricity demand during midday and driving down wholesale electricity prices.

For South Australian solar owners, the feed-in tariffs have shrunk and system payback times  significantly affected (Offsetting your solar power is non viable). For example, a 6.6kW system with a 3c FiT achieves payback in around 6 years, 9 months, but at 0.04c FiT, it jumps to 15 years (non viable).

Solar Owners must adapt and maximize self-consumption by running appliances during the day, investing in home batteries, or adapting alternative uses for solar energy like heating hot water (heat pumps & pool pumps). This change is the future. Previously lucrative solar exports (FiTs) is OVER in South Australia.