Tasmanian Power Prices and Solar Tariffs Rise From July 1

HOBART, 8 July 2026 – Tasmanian households are now facing higher electricity bills, but owners of rooftop solar will see a small increase in payments for their exported power, following new rates that took effect on 1 July. The changes were part of a series of energy-related adjustments, including ongoing updates to the federal home battery rebate, that will affect the financial calculations for homeowners considering renewable energy.

On 25 June, the Tasmanian Economic Regulator (TER) finalised its annual review of regulated electricity prices. The regulator approved an average increase of 4.23% for Aurora Energy’s standing offer tariffs for residential and small business customers. For a typical residential customer, this is estimated to mean an increase of around $108 per year, according to the TER’s report. The regulator and Aurora Energy stated the price rise is primarily driven by an increase in network costs, which cover the expense of maintaining the poles and wires that deliver electricity.

In more positive news for solar owners, the regulator also announced a 5.6% increase to the minimum solar feed-in tariff (FiT). As of 1 July, the rate that retailers must pay eligible customers for surplus electricity exported to the grid rose to 9.276 cents per kilowatt-hour (kWh). The TER attributed this increase to higher wholesale electricity costs and other national market charges. This change means that while the cost of drawing power from the grid is going up, the value of sending solar power back is also slightly improving.

These local price adjustments coincide with ongoing changes to the main federal incentive for home batteries. The federal government’s Cheaper Home Batteries Program, which marked its first anniversary on 1 July with over 450,000 installations nationwide, underwent a significant structural change on 1 May 2026. The Clean Energy Regulator confirmed the rebate, which is delivered as an upfront discount via Small-scale Technology Certificates (STCs), now uses a tiered system.

Under the new rules, the full rebate value is applied to the first 14kWh of a battery’s usable capacity. For any capacity beyond that, the incentive tapers off significantly: the rate drops to 60% for capacity between 14kWh and 28kWh, and to just 15% for capacity between 28kWh and 50kWh. The practical effect for a Tasmanian homeowner is that the program now strongly incentivises batteries that are “right-sized” for a household’s needs, rather than much larger systems, as the financial support is concentrated on that initial 14kWh block.

At the local network level, TasNetworks also implemented administrative changes from 1 July. The network operator has now phased out paper-based forms for new connections and electrical work, requiring all applications to be submitted through its online portal. This move is intended to streamline the process for installers and customers. The regulation of the Basslink interconnector also formally changed on 1 July, becoming a regulated asset, a move which has factored into the network cost changes flowing through to bills.

Looking at the state’s broader energy landscape, the Tasmanian Government in late May celebrated the news that two major renewable projects—the Weasel Plains Solar Farm and Cellars Hill Wind Farm—had secured federal funding support through the Capacity Investment Scheme. While not directly impacting household solar, these large-scale projects are set to significantly increase Tasmania’s renewable generation capacity in the coming years.

These recent changes highlight a dynamic period for energy costs and renewable technology incentives in the state.

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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.