Tasmanian Power Prices Rise, But Solar Feed-in Tariffs Get a Boost

FROM SOLAR GENERATION TASMANIA / 2 JULY 2026

Tasmanian homeowners are facing a shift in their energy bills this winter, with new electricity prices and solar feed-in tariffs taking effect from the 1st of July. The changes, announced in late June by the state’s independent Tasmanian Economic Regulator, will see the cost of drawing power from the grid rise, while the payment for exporting solar energy will also increase, creating a more complex financial equation for households considering a move to solar.

On June 25, the Tasmanian Economic Regulator (TER) gave the final approval for Aurora Energy’s new standing offer prices. From July 1, residential and small business customers will see an average increase of 4.23 per cent on their electricity bills. For a typical residential customer, the regulator estimates this will add around $108 to their annual bill. The TER stated the price hike is primarily driven by an increase in network costs, which are the charges for maintaining the poles and wires that deliver electricity.

In the same announcement, however, there was positive news for current and prospective solar owners. The regulator confirmed the minimum solar feed-in tariff (FiT)—the rate paid for surplus solar power exported to the grid—will increase by 5.6 per cent. The new rate is 9.276 cents per kilowatt-hour (c/kWh), up from the previous rate of 8.782 c/kWh. The regulator attributed this rise to higher wholesale electricity costs and other market participation charges. For a Tasmanian homeowner, this dual change means the cost of using electricity from the grid, especially at night, is going up, while the financial reward for exporting unused solar power during the day is improving.

This local price adjustment comes as the Australian Energy Market Operator (AEMO) released its 2026 Integrated System Plan (ISP) in late June, a blueprint for the future of the national grid. The report strongly endorses the role of household solar and batteries, significantly increasing its forecasts for their uptake. AEMO now anticipates 35 gigawatts of home batteries will be installed by 2050, up from a previous forecast of 27 gigawatts. The plan also projects that consumer-owned rooftop solar will grow to 87 gigawatts by 2050, playing a central role in the nation’s energy supply. AEMO’s plan confirms that a combination of renewables, storage, and transmission remains the lowest-cost option for Australia’s future, with CEO Daniel Westerman highlighting the growing contribution of “homes and businesses through rooftop solar, batteries and more flexible energy use”.

At the federal level, financial support for homeowners looking to manage their energy costs remains in place. The Cheaper Home Batteries Program continues to offer a significant upfront discount of approximately 30 per cent on the cost of installing an eligible home battery system. This program, administered through the Small-scale Renewable Energy Scheme (SRES), is designed to help households store their cheap solar energy for use during the evening peak, directly combating rising grid electricity prices. The long-standing SRES rebate for solar panels, which provides an upfront discount via Small-scale Technology Certificates (STCs), also continues, though its value reduces slightly each year as part of a scheduled phase-out leading up to 2030.

In response to cost-of-living pressures, the Tasmanian Government and Aurora Energy announced on June 23 that they have doubled the funding for the Government’s Energy Hardship Fund for the next year, bringing the total to $700,000 to support vulnerable customers.

On the technology front, the industry continues to evolve. A late June survey of Australian solar installers named Aiko Solar as their preferred panel manufacturer for the second year running, citing the brand’s high-efficiency (around 25%) back-contact cell technology as a key advantage. Meanwhile, researchers at the University of New South Wales announced a pilot program in late June to test an AI-powered system to manage shared solar and batteries for apartment buildings, a breakthrough that could open up solar access for millions of Australians who have previously been locked out.

These developments present a clear picture of increasing costs for grid energy, offset by improved returns and ongoing incentives for self-generation and storage.

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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.