Regional Queensland households and businesses with rooftop solar systems are facing a significant reduction in their electricity bill credits, with the regulated feed-in tariff (FiT) for 2026-27 confirmed at just 6.006 cents per kilowatt-hour (c/kWh). This represents a substantial 29% decrease from the previous financial year’s rate of approximately 8.6 c/kWh. The Queensland Competition Authority (QCA) finalised this rate on June 5, 2026, for the financial year commencing July 1, 2026, impacting Ergon Energy customers across regional areas including Cairns, Port Douglas, and the Atherton Tablelands.

The confirmed reduction highlights a broader trend across Australia where the value of exported solar power is declining due to the increasing volume of rooftop solar generation during daytime hours, driving down wholesale electricity prices when solar is most abundant. For regional Queenslanders, this means the financial benefit of sending surplus solar power back to the grid has diminished considerably, making self-consumption strategies more critical than ever for maximising savings.

The Impact on Your Regional Queensland Solar Bill

Previously, a regional Queensland solar household exporting excess electricity could receive around 8.6 c/kWh for their contribution to the grid. With the new 2026-27 rate, this payment has fallen to 6.006 c/kWh. This 29% cut directly impacts the credit applied to electricity bills for solar owners who export more power than they consume instantly.

“The Queensland Competition Authority (QCA) sets the solar feed-in tariff each year based on what that electricity is worth in the market. Right now, there’s a lot more solar energy being generated during the day across the grid. That means: There’s more supply of electricity during daylight hours; Wholesale prices during the day are lower; And the value of exported solar has reduced.”

In contrast, the cost of purchasing electricity from the grid on Ergon’s Tariff 11 remains significantly higher, typically ranging from 30 to 35 c/kWh. This widening gap underscores that using your own generated solar power is now approximately five times more valuable than exporting it. For a typical 6.6kW solar system, which might save a household around $1,500 annually with 30% self-consumption, a lower FiT means less credit for exported power, potentially reducing overall savings if export levels remain high.

Strategies to Maximise Your Solar Savings in 2026-27

With the feed-in tariff declining, regional Queensland solar owners should prioritise strategies to increase their self-consumption of solar energy. This means using more of the power generated by your panels directly within your home or business, rather than sending it to the grid for a lower return.

Key strategies include:

  • Battery Storage: Installing a home battery allows you to store excess solar power generated during the day and use it during the evening peak, avoiding expensive grid electricity. The federal Cheaper Home Batteries Program offers a discount of around 30% on eligible small-scale batteries, translating to approximately $252 per usable kWh up to 14 kWh of capacity, making battery storage more financially viable. A 6.6kW solar system with a 10kWh battery can typically cost between $15,000 to $22,000 before rebates, with federal and state incentives potentially reducing the out-of-pocket expense to $10,000 to $15,000.
  • Load Shifting: Adjusting your energy consumption habits to align with solar generation. This involves running high-consumption appliances like washing machines, dishwashers, and pool pumps during daylight hours when your solar panels are producing electricity. Smart energy management systems can automate this process, optimising your energy usage and further reducing reliance on grid power.
  • Reviewing System Size: For some households, particularly those with older, smaller systems, it might be worth assessing if a larger solar PV system could better meet their expanded daytime energy needs or accommodate future battery additions. The average system size for new installations has been growing, reaching 10.9 kW in September 2025.

The downward pressure on feed-in tariffs is a direct consequence of Australia’s success in rooftop solar adoption. The Clean Energy Regulator’s (CER) Quarterly Carbon Market Report for Q2 2026 revealed a record 1 gigawatt (GW) of rooftop solar was installed in Australia during that quarter, breaking previous records. This surge, partly driven by the federal Cheaper Home Batteries scheme, significantly increased daytime supply on the National Electricity Market (NEM).

While lower FiTs reduce the immediate financial return for exported power, the overall economics of solar remain strong due to high retail electricity prices. Installing rooftop solar can still save households approximately $1,500 annually on energy bills, with this figure almost doubling when battery storage is added. The payback period for a solar system after federal Small-scale Technology Certificates (STCs) is typically 3-5 years, offering decades of reduced electricity costs.

The QCA’s decision for regional Queensland underscores the evolving energy landscape. Solar owners must adapt their consumption patterns and consider storage solutions to maintain optimal savings from their renewable energy investments in the years ahead.