Tasmania Solar Feed-in Tariffs 2025: Maximising Returns for Sorell Homeowners

Last month, a friend, Sarah from Kingston called me in excitement. “You won’t believe this,” she said, “TasNetworks just credited me $127 for the electricity my solar panels sent back to the grid!”

That conversation got me thinking about how many Hobart families still don’t understand how the solar feed-in tariff Tasmania system actually works – and, more importantly, how to make it work harder for their household budget.

Most homeowners I speak with think solar feed-in tariffs are essentially “free money” for excess power. That’s only half the story. The real opportunity lies in understanding how to design and use your solar system to maximise these credits while dramatically reducing what you pay TasNetworks for the power you buy back from the grid.

With electricity rates in Tasmania sitting among the highest in Australia, getting your solar feed-in strategy right isn’t just about environmental benefits anymore. It’s about taking control of your family’s energy costs for the next 25 years.

Understanding Current Hobart Solar Feed-in Tariff Rates

Right now, in Tasmania, you’re getting paid around 8.541 cents per kilowatt-hour (kWh) for the excess solar power you send back to the grid. But here’s where it gets interesting – while TasNetworks pays you 8.541 cents for each kWh you export, they’re charging you somewhere between 28-35 cents for each kWh you buy back from them.

Let me put this in perspective with real numbers from a Glenorchy family I worked with last year:

Morning (7 am – 9 am): Their solar system produces 5 kWh, but the family uses 8 kWh to get ready for work and school. They need to buy 3 kWh from TasNetworks at 32 cents each = $0.96

Midday (11 am – 2 pm): Solar system cranks out 15 kWh, family only uses 3 kWh. They export 12 kWh to TasNetworks and earn 8.541 cents each = $1.02

Evening (6 pm – 9 pm): Solar produces 2 kWh, family uses 12 kWh for dinner and evening activities. They buy 10 kWh from TasNetworks at 32 cents each = $3.20

Even on this sunny day, when they exported more than they imported, they still paid TasNetworks a net amount because of that price difference.

How Feed-in Tariffs Work for Sorell Homeowners

When I explain feed-in tariffs to families in Sorell, I always start with this simple analogy: Think of your solar system like a lemon tree in your backyard and the electricity grid like the local farmer’s market.

During summer, your lemon tree produces way more lemons than your family can use. So you take the extras to the farmer’s market and sell them for $1 each. But when you need lemons in winter, and your tree isn’t producing, you have to buy them back from that same market for $3 each.

Here’s the step-by-step process:

Step 1: Your solar panels generate power

Step 2: Your home uses what it needs first (this is called “self-consumption”)

Step 3: Excess power goes to the grid automatically

Step 4: TasNetworks credits your account 8.541 cents per kWh exported

Step 5: When you need grid power (nights, cloudy days), you pay 28-35 cents per kWh

Because of our coastal location and variable weather patterns, your solar production can vary significantly from day to day. I’ve seen homes where solar panels produce 25 kWh on a clear summer day but only 3 kWh on a cloudy winter day.

Maximising Feed-in Credits for Hobart Families

Here’s where most Hobart families make their biggest mistake with solar – they design their system thinking bigger is always better for feed-in credits. But after helping hundreds of local families optimise their solar systems, I can tell you that’s not how the math works out.

The Thompson family in Sandy Bay initially wanted a massive 10 kW system because they thought exporting lots of power would maximise their feed-in credits. But when we analysed their actual electricity usage patterns, we discovered something interesting.

With a 10 kW system, they would have exported about 35 kWh on sunny days, earning $2.99 in feed-in credits. However, they’d still need to purchase 15 kWh from TasNetworks during non-solar hours, which would cost them $4.80.

Instead, we designed a 6.6 kW system with a 10 kWh battery. Now, they use 22 kWh directly from solar during the day, store 8 kWh in their battery for evening use, export only 5 kWh (earning $0.43), and buy only 2 kWh from the grid (costing $0.64).

Key strategies for maximum value:

1. Right-size your system to your usage, not maximum export potential
2. Use time-of-use optimisation – run appliances during peak solar hours
3. Consider battery storage – storing power saves 28-35 cents vs earning 8.541 cents
4. Smart load management for hot water, pool pumps, and EV charging during solar hours

How Tasmania Compares to Other Australian States

I get asked this question at least once a week: “Are we getting ripped off compared to the mainland?”

Here’s how Tasmania actually stacks up:

State	Feed-in Tariff	Electricity Rate	Gap
Tasmania	8.541 cents	28-35 cents	19.5-26.5 cents
Queensland	6.2-8.2 cents	25-30 cents	16.8-23.8 cents
Victoria	5.2-7.1 cents	22-28 cents	14.9-22.8 cents
NSW	4.6-7.9 cents	24-32 cents	16.1-27.4 cents

Tasmania’s feed-in tariff rate of 8.541 cents is actually competitive and sits in the upper range nationally. Plus, we have unique advantages:

1. Longer summer days – nearly 15 hours of daylight during peak season
2. Cooler temperatures – panels work more efficiently than in mainland heat
3. Stable policy environment – rates haven’t been cut like other states

When I ran the numbers for a typical 6.6kW system across different states, Tasmania households actually achieve payback periods that are competitive with anywhere in Australia.

Real Sorell Family Results: Mitchell Case Study

When the Mitchell family contacted me in March 2024, they were frustrated by conflicting advice about maximising feed-in benefits. After monitoring their energy usage for two weeks, we discovered their 4-bedroom Sorell home used 45 kWh daily with heavy evening usage.

We installed an 8 kW solar system with a 10 kWh battery, split between north-facing (5 kW) and west-facing (3 kW) panels. We added smart scheduling for their pool pump and hot water during peak solar hours.

Results after 12 months:

Before solar: $770 quarterly bills ($3,080 annually)

After solar: $63 average quarterly bills ($252 annually)

Total annual savings: $2,828

Feed-in credits earned: $157.67 for the year

The Mitchell family’s success wasn’t about maximising feed-in credits – they only earned $157 for the entire year from exports. Their real savings came from avoiding $2,985 worth of grid electricity purchases through smart system design.

Export Limiting vs Battery Storage in Tasmania

This is probably the most important decision you’ll make about your solar system. Should you limit how much power your system can export to the grid, or should you invest in battery storage?

TasNetworks now requires export limiting in many areas:

1. Most residential areas: 5kW export limit
2. Some constrained areas: 3kW or 1.5kW limits
3. New subdivisions: May have zero export during peak solar hours

Financial comparison example:

Export Limiting (3kW limit):

1. Daily export earnings: $1.28
2. Daily grid purchases: $6.40
3. Net daily cost: $5.12

Battery Storage:

1. Daily export earnings: $0.26
2. Daily grid purchases: $2.24
3. Net daily cost: $1.98
4. Daily savings: $3.14 ($1,146 annually)

A 13.5 kWh battery costs $12,000-$ 15,000 to install, paying for itself in 10.5-13 years through avoided grid purchases.

Choose battery storage if:

1. You’re subject to export limits below 5kW
2. You use significant evening power (6 pm-10 pm)
3. You value energy independence and backup power

Choose export limiting if:

1. You have no current export restrictions
2. Your evening usage is minimal
3. You prefer lower upfront costs

Optimising Your Solar Investment Strategy

The most important thing to understand is that feed-in tariffs are just one small piece of your solar investment puzzle. Whether you choose export limiting or battery storage, the real money is always in avoiding those expensive grid electricity purchases during the 16 hours per day when your solar panels aren’t producing power.

For most Hobart and Sorell families, battery storage makes financial sense when export limits are 3kW or below. Above that threshold, the economics become more marginal, and the decision often comes down to personal priorities around energy independence versus upfront cost.

You don’t have to decide forever right now. Many families install “battery-ready” solar systems and add storage later when battery prices drop further or when their energy needs change.

Every family’s energy situation is different, but the principles remain the same – understand your usage patterns, design for self-consumption first, and treat feed-in credits as a bonus rather than the main event. The best solar feed-in tariff strategy is the one that minimises your reliance on any tariff at all.