Solar Feed-in-Tariffs Are Almost Gone, Why Draught Proofing Matters More Than Ever

For years, solar feed-in tariffs (FiTs) have played a crucial role in driving the adoption of rooftop solar across Australia. Households have benefited from selling excess solar energy back to the grid at a reasonable rate, helping to offset their power bills. But now, a significant change is on the horizon.

Victoria’s Essential Services Commission has announced a further reduction in the minimum FiT - now down to 0.04 cents per kilowatt-hour (kWh) - a negligible amount. This shift marks a turning point for solar households. While it underscores the importance of self-consumption, it also highlights the growing need for energy efficiency measures—like draught proofing—to get the most out of every kilowatt of power generated.

A Brief History of Solar Feed-In Tariffs in Victoria

Feed-in tariffs were originally introduced as an incentive to encourage rooftop solar uptake. In the early days, FiTs were exceptionally generous—sometimes exceeding 60c per kWh—as governments sought to accelerate the transition to renewable energy. These high tariffs allowed homeowners to recoup their investment in solar systems quickly, making solar an attractive financial decision.

Over time, as the cost of solar panels plummeted and adoption skyrocketed, FiTs began to decline. The logic was simple: with more households generating solar, there was an oversupply of energy during peak daylight hours, and the wholesale price of electricity during those times dropped.

In recent years, Victoria’s minimum FiT has steadily decreased:

• 2017-18: 11.3c per kWh

• 2018-19: 9.9c per kWh

• 2019-20: 12.0c per kWh (single rate)

• 2020-21: 10.2c per kWh

• 2021-22: 6.7c per kWh

• 2022-23: 5.2c per kWh

• 2023-24: 4.9c per kWh

Now, with the drop to 0.4c per kWh, the trend is clear: solar households can no longer rely on selling energy back to the grid for significant returns.

Self-Consumption: The New Solar Strategy

As FiTs shrink, self-consumption—using as much of your solar power as possible within your own home—becomes the best way to maximise savings. Rather than sending power to the grid for a meagre return, homeowners can reduce the amount of energy they need to buy from the grid, where rates often exceed 30c per kWh.

Here’s how to shift your energy habits to focus on self-consumption:

Time Your Energy Use to Match Solar Generation

• Run major appliances like dishwashers, washing machines, and air conditioning during peak solar hours (usually between 10 AM – 4 PM).

• Use programmable timers or smart home automation to schedule high-energy tasks during sunny periods.

Invest in Battery Storage

• Home battery systems allow you to store excess solar energy during the day and use it at night, further reducing reliance on the grid.

• While batteries require upfront investment, falling prices and government incentives make them increasingly viable.

Improve Home Energy Efficiency

• Every kilowatt of power you don’t waste is a kilowatt saved. Improving home efficiency reduces overall consumption, making it easier to operate within your solar generation window.

• Draught proofing, in particular, is a high-impact, cost-effective way to reduce energy waste.

Why Lower FiTs Make Draught Proofing Even More Important

With the financial payback from FiTs diminishing, the focus shifts to reducing overall energy consumption. This is where energy efficiency measures, like draught proofing, become more valuable than ever.

Draughts—uncontrolled air leaks around doors, windows, vents, and other gaps—can account for up to 25% of heat loss in winter and cool air escape in summer. This means:

• Your heating and cooling systems work harder, consuming more energy.

• You require more power during non-solar hours, increasing reliance on expensive grid electricity.

• Your home is less comfortable, leading to higher energy bills year-round.

By sealing gaps and reinforcing your home’s thermal envelope, draught proofing helps you:

• Reduce overall energy demand—cutting reliance on both grid electricity and solar power.

• Optimise your solar savings—because the less energy you waste, the more you can use when the sun is shining.

• Improve home comfort—by keeping warm air inside during winter and cool air in during summer.

The Big Picture: Solar, Energy Efficiency & a Sustainable Future

While the drop in FiTs may seem like a setback, it’s actually part of a broader transition towards a more efficient, sustainable energy system.

• Solar is now the standard, not an incentive-driven bonus. The priority is shifting from getting paid for excess energy to using it wisely.

• Efficiency is the new frontier. As feed-in rates decline, minimising wasted energy is the most effective way to keep bills low.

• Draught proofing is a no-brainer. It delivers long-term savings, reduces household carbon emissions, and helps make the most of self-generated solar power.

At Draught Fix, we believe in smart, sustainable homes—where renewables and efficiency work hand in hand. If you’ve invested in solar, now is the time to maximise its impact by improving your home’s energy performance.

Take Action: Draught Proof Your Home Today

With Victoria’s FiT dropping, now is the perfect time to take control of your energy usage. Draught proofing is one of the fastest, most cost-effective ways to make your home more efficient—reducing energy bills and increasing comfort all year round.

Get in touch to book a draught proofing audit for you home!