Solar for Tasmanian Small Businesses and Farms — A 2026 Guide

Yes, for many Tasmanian households and small businesses, installing solar is a smart financial decision. The key is to use the power you generate yourself, as the price you pay for electricity from the grid (around 28-30 c/kWh) is much higher than the modest feed-in tariff you receive for exporting it (9.276 c/kWh from 1 July 2026). By using your own solar power during the day, you directly reduce your power bills, leading to a typical payback period of around 4 to 6 years for the panels.

What size solar system should I get?

A larger system of around 13kW of panels paired with a 10kW inverter is now the smart, future-proof choice for a typical Tasmanian home. This provides enough power to cover your daily usage and charge an electric vehicle, run a heat pump, and power an induction cooktop as you electrify your home. Unlike many mainland states, TasNetworks rules allow a 10kW inverter on a standard single-phase connection, which most homes have.

While a 13kW system is a great forward-thinking investment, a smaller 6.6kW system might be sufficient if you have low electricity usage and no plans to get an EV or all-electric appliances.

How much does solar cost and what rebates are there?

The main financial support for a new solar system is the federal Small-scale Renewable Energy Scheme (SRES), often called the “solar rebate”. This provides an upfront discount on the system’s cost. You don’t need to claim it yourself; your installer will handle the paperwork and apply the discount directly to your quote.

Because Tasmania is in STC Zone 4, the value of this discount is slightly less than in sunnier parts of Australia. For a 6.6kW system installed in 2026, the discount is typically around $1,500-$1,600, while a larger 13kW system might receive a discount of over $5,000. It’s important to know this rebate reduces every year on January 1st, so the discount will be smaller for installations in 2027.

Should I get a battery with my solar panels?

A battery can be a great addition, but it’s a decision to weigh carefully in Tasmania. The financial payback for a battery is longer here than on the mainland, typically around 7 to 12 years. This is because Tasmania’s electricity prices are relatively low and our feed-in tariff is fair, which reduces the savings a battery can make compared to other states.

The main benefits of a battery in Tasmania are:

Maximising self-consumption: Storing excess solar power from the day to use at night, which is especially valuable if you’re not home during the day.
Backup power: Providing power during a grid outage, which can be a huge advantage in regional or rural areas.

There are currently no state-specific battery rebates in Tasmania. However, the federal Cheaper Home Batteries Program, which started on 1 July 2025, can significantly reduce the upfront cost. This program provides a discount of roughly 30% on an eligible battery when it’s installed with solar panels. The support is strongest for the first 14kWh of battery capacity.

How does the solar feed-in tariff work?

When your solar panels produce more electricity than your home is using, the excess power is sent back to the grid. Your electricity retailer, most commonly Aurora Energy for residential customers, pays you a credit for this exported power. This is called a feed-in tariff (FiT).

From 1 July 2026, the regulated minimum feed-in tariff in Tasmania is 9.276 cents per kilowatt-hour (c/kWh). This rate is significantly lower than the ~28-30 c/kWh you pay to buy electricity from the grid. This difference is why using your own solar power (self-consumption) saves you much more money than exporting it.

Your Action	Value (approx.)	Why it matters
Use your own solar power	28-30 c/kWh	You avoid buying expensive power from the grid.
Export surplus solar power	9.276 c/kWh	You get a small credit for power you don’t use.

What about Virtual Power Plants (VPPs) in Tasmania?

A Virtual Power Plant (VPP) is a network of homes with solar batteries, all working together. A central operator can draw on the stored energy from these batteries to help stabilise the electricity grid, especially during peak demand. While several VPP programs operate on the mainland, offering households payments for participating, there are currently no residential VPP programs offered by energy retailers in Tasmania.

Some advanced systems can be set up to monitor wholesale electricity spot prices, automatically charging the battery when prices are very low (or even negative) and using stored power to avoid buying from the grid when prices are high. This is a more complex approach that requires a specific type of retailer and equipment but shows the future potential of smart battery control.

A final thought: The best way to get value from your solar is to shift your energy use into the middle of the day. Run your dishwasher, washing machine, and hot water heat pump when the sun is shining. This simple habit of using your own free power is the fastest way to pay back your investment and reduce your bills for years to come.

This guide was written by the local team at Solar Generation Tasmania to help our fellow Tasmanians make informed energy decisions.

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Published by Solar Generation Tasmania. General information current as at publication — rebates, tariffs and prices change, so confirm current figures before deciding.