How To Weigh Up Electricity Bill Components

What to Consider when Comparing Electricity Plans with Solar

For a Victorian household with rooftop solar, the hard part of choosing a plan is not finding the numbers. Retailers publish them. The difficulty is that three separate numbers move independently, so a retailer can raise one and lower another.

The Three Electricity Bill Components — and Why Only the Total Ranks a Plan

A domestic electricity bill is made up of a daily connection charge, per-kWh charges on the energy you import, and a solar export credit if the home has solar. Every retail offer in Victoria combines those three components.

What Each Bill Component Does

• Daily supply charge: a fixed connection cost, sometimes called a standing charge, billed for every day you are connected. It applies whether you use any energy or not. Victorian Default Offer rates for 2026-27 sit at about $1.19–$1.70 a day by distribution zone (Source: Essential Services Commission).
• Import rates: the per kWh charges applied to every kilowatt-hour you draw from the grid. Victorian 2026-27 flat rates are indicatively about 26–40 c/kWh across zones and plan types. The United Energy default flat rate is 25.96 c/kWh (Source: Essential Services Commission).
• Export credit: the solar feed-in tariff, applied only to the kilowatt-hours you send out to the grid. It is not a discount on the fixed charge, and not a discount on what you import.

The three components are not interchangeable. A cent moved off the solar feed-in tariff and onto the daily supply charge lands on a different part of your bill. The effect on you depends on how much you import and how much you export.

For step-by-step help finding each component on the paperwork, see our guide to how to interpret your electricity bill.

The Short Version — Electricity Bill Components in Plain English

• You pay a rent for being connected, and a price for what you buy. You receive a usually small price for what you sell.
• A retailer can raise one of those and lower another. A better-looking sale price can be paid for by a higher rent.
• Whether that trade helps you depends on whether you buy more than you sell, or sell more than you buy.
• So work out one number for each plan — what a whole year would have cost — and compare those numbers.
• Everything else, including the number in the advertisement, is a distraction until you have that total.

Why Victoria's Feed-In Tariff Floor Ending Changed How You Compare Plans

Until mid-2025 the Essential Services Commission set a mandatory minimum feed-in tariff for Victoria, which put a floor under the export credit. Victorian retailers are no longer required to offer a minimum solar feed-in tariff. That regulated floor ended on 1 July 2025, and retailers now set their own rates. The effective minimum is $0.00/kWh, and there is no regulated ceiling.

The High Feed-In Tariff Catch — When a Bigger Number Can Buy You Less

A plan that advertises a generous export rate is not doing anything improper. It competes on the component most visible to solar households. What you need to check is what the same offer does with the other two components.

Conditions That Commonly Sit Under a Headline Feed-In Rate

• Daily export caps: the advertised rate may apply only to the first block exported each day, commonly around the first 10 kWh. A lower rate can apply above that block (comparison-site reporting, June 2026).
• Promotional periods: some advertised rates of 8 c/kWh and above are reported to run for 12 months. They then revert to a standard rate nearer 4–6 c/kWh.
• Time-varying export windows: the highest rates reported in mid-2026 include 45 c/kWh on a Flow Power plan. Rates that high may apply only inside specific export windows and volume blocks.
• A higher daily supply charge: a retailer can raise the fixed component without touching either headline rate. The fixed component is charged 365 days a year, whatever your solar does.
• Higher import rates: a few cents on the per kWh charges is invisible in an advertisement, but it applies to every kilowatt-hour you buy.

None of this makes high-export-rate plans bad plans. It means the export rate on its own cannot rank them, because the offer has two other dials that can move the other way. An advertised discount raises the same problem in a different form, and that is a separate comparison from this one.

Peak, Off-Peak, Shoulder, and the Solar Soak Window on a Time of Use Tariff

A time of use tariff prices your imports by the clock rather than at one flat rate all day. It adds a fourth dimension to the trade-off. The question is not only how many kilowatt-hours you import, but when you import them.

Exact period rates vary by distribution zone, and the sources reviewed for this guide did not publish them in full. Treat the ranges above as indicative and read the numbers off your own Energy Fact Sheet.

Zone rates change, but the structure does not. On a time of use tariff, one plan gives two households two different deals. A household that imports mostly in the evening peak can pay more for the same kilowatt-hours than one that imports mostly overnight.

A Worked Comparison — Same Household, Two Plan Structures

The two plans below are constructed archetypes. They use figures drawn from rate ranges reported for Victoria in mid-2026. They reproduce no retailer offer and no regulated rate. Plan A leads with the export credit, and Plan B leads with the fixed and import components.

Apply both plans to one household in the Central Highlands with a 6 kW solar system. It imports 12 kWh a day, which is 4,380 kWh a year. It exports 10 kWh a day, which is 3,650 kWh a year.

1. Plan A supply: 365 × $1.50 = $547.50.
2. Plan A import: 4,380 kWh × $0.30 = $1,314.00.
3. Plan A export credit: 3,650 kWh × $0.08 = $292.00.
4. Plan A total annual cost: $547.50 + $1,314.00 − $292.00 = $1,569.50.
5. Plan B supply: 365 × $1.24 = $452.60.
6. Plan B import: 4,380 kWh × $0.27 = $1,182.60.
7. Plan B export credit: 3,650 kWh × $0.05 = $182.50.
8. Plan B total annual cost: $452.60 + $1,182.60 − $182.50 = $1,452.70.

Plan B costs this household $116.80 a year less, and it gives up $109.50 in export credit. Two savings more than cover that credit. The daily supply charge saves $94.90, and the import rates save $131.40.

To run the same arithmetic on your own figures rather than on an archetype, you need your real annual import and export totals. The NEM12 Smart Meter Data Analyzer reads both totals straight out of the data file from your smart meter.

Finding Your Own Crossover — the Break-Even Export Calculation

Plan B does not win for everyone. It wins for that household. The two plans differ by a fixed amount on supply, and by per kWh amounts on imports and exports. One export volume therefore makes them cost the same.

1. Fixed gap: 365 × ($1.50 − $1.24) = $94.90 that Plan A must earn back.
2. Import gap: annual import kWh × ($0.30 − $0.27), which is another $0.03 per imported kWh that Plan A must earn back.
3. Export advantage: Plan A earns $0.03 more per exported kWh ($0.08 − $0.05).
4. Break-even export: ($94.90 + $0.03 × annual import) ÷ $0.03.
5. Worked at 4,380 kWh imported: ($94.90 + $131.40) ÷ $0.03 ≈ 7,540 kWh exported a year, or roughly 21 kWh a day. That is far above what a 6 kW system typically exports.
6. Worked at 1,460 kWh imported: ($94.90 + $43.80) ÷ $0.03 ≈ 4,620 kWh exported a year, or about 12.7 kWh a day. A home with low daytime occupancy can reach that figure.

That second household imports 4 kWh a day and exports about 12.7 kWh a day. It pays about $616 a year on either plan. Below that export volume Plan B is ahead, and above it Plan A is ahead.

Nothing about the two plans changed. Only the household did. Working out where you sit on that line is the purpose of the calculation. You can gather the inputs with our online tools.

Where Victorian Energy Compare Helps, and Where It Stops

Victorian Energy Compare is the government-backed comparison service. It is independent of retailers, and it runs your own usage against the full set of Victorian offers. It is the right starting point, and for a household without solar it is often the whole job.

What the Official Comparison Does and Does Not Do for a Solar Household

• Does: compare across all Victorian retail offers using your actual consumption rather than a generic profile.
• Does: return an estimated total annual cost, which is the one figure that can legitimately rank two offers.
• May not: fully model capped-volume feed-in tariffs, where the advertised rate applies only to the first block exported each day. It could rank a high headline rate with a tight cap more favourably than the fine print supports.
• Does not: tell you which of the three components produced the ranking, so it cannot tell you which one to negotiate.
• Does not: model what happens when a promotional export rate expires part-way through the year.

Treat the ranking as a shortlist rather than a verdict. Then re-run the three-component arithmetic by hand on the top two or three offers, using the Energy Fact Sheet figures for each one. What no ranking supplies is the shape of your own year. Independent analysis of your interval data, done yourself or through an energy assessment, closes that gap.

If you would rather have a professional turn all of this into a clear, costed plan for your home, find out more about how our Energy Assessments can help you.

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Practical Features to Look For

When you have two or three offers in front of you, these are the specifics that decide the total annual cost:

Practical Features Checklist

• Daily supply charge: multiply by 365 before you compare anything else. A 30 c/day difference is about $110 a year, which outweighs several cents of feed-in tariff for many households.
• Import rates and structure: flat, or time of use with peak, off-peak, shoulder, and solar soak bands. Match the structure to when you actually import.
• Solar feed-in tariff and its export cap: the headline rate, the daily export volume it applies to, and the rate that applies beyond that volume.
• Promotional expiry: whether the advertised export credit reverts after 12 months, and the rate it reverts to.
• Demand charges: whether the offer includes a demand tariff billed on your peak half-hourly draw, which behaves differently from flat or time-of-use pricing.
• Controlled load: whether hot water or another circuit is billed at a separate cheaper rate, and whether that arrangement survives the switch.
• Your own export profile: annual export kWh and average daily export, measured rather than estimated, because that input decides which way the trade-off falls.
• Your own import profile: annual import kWh, and how much of it lands in the evening peak.
• Total annual cost: the single derived figure of supply plus import minus export credit, calculated the same way for every offer on the shortlist.

Once you have those nine figures for each offer, the choice becomes arithmetic rather than judgement.

Choosing between plan structures for a particular household setup, such as solar only, solar and battery, EV, or all-electric, is a separate question. Our guide to how to choose an electricity plan for your setup covers that branching decision.

Visualise Your Smart Meter Data Online

Two of those nine figures describe your household rather than the offer. Your annual import and annual export sit in the interval data from your smart meter, on separate registers: E1 for import and B1 for export. Visualising that usage pattern turns the household half of this comparison from an estimate into a measurement.

Try our NEM12 Smart Meter Data Analyzer Tool

Frequently Asked Questions

• What are the three electricity bill components? A domestic electricity bill is made up of a daily connection charge, per-kWh import charges that may vary by time of day, and a solar export credit if the home has solar.
• What is a daily supply charge, and what does it add over a year? It is a fixed charge for being connected, billed whether or not you use any energy. Victorian Default Offer rates for 2026-27 of about $1.19–$1.70 a day work out to roughly $430–$620 a year (Source: Essential Services Commission).
• Does the solar feed-in tariff reduce my daily supply charge? No. The export credit applies only to the kilowatt-hours you send to the grid. A household that exports little therefore gains little from a high rate.
• Is an 8 c/kWh solar feed-in tariff better than 5 c/kWh? Not on its own, because the higher rate may sit alongside higher fixed or import charges. Calculate (365 × daily charge) + (annual import × import rate) − (annual export × feed-in rate) for both offers, then compare the totals.
• What is the high feed-in tariff catch? Because the three bill components move independently, a retailer can fund a generous headline export rate through a higher daily supply charge, higher import rates, a daily export cap, or a 12-month promotional period. The headline can rise while your total annual cost also rises.
• Do Victorian retailers still have to offer a minimum solar feed-in tariff? No. The regulated minimum ended on 1 July 2025, and Victorian retailers now set their own rates. The effective floor is $0.00/kWh, and there is no regulated ceiling.
• Why does my advertised feed-in tariff not apply to all my exports? Many offers cap the headline rate at a daily export volume, and pay a lower rate beyond it. Reported caps in mid-2026 commonly sit around the first 10 kWh a day. The threshold is stated on the Energy Fact Sheet.
• What happens when a promotional solar feed-in tariff expires? On some offers, advertised rates of 8 c/kWh and above are reported to run for 12 months. They then revert to a standard rate nearer 4–6 c/kWh (comparison-site reporting, June 2026). That raises the second-year total annual cost above the figure the original comparison showed.
• How do I compare electricity plans with solar on total annual cost? Use the same annual import and export figures for every offer. Then calculate supply charge × 365, plus import kWh × import rate, minus export kWh × feed-in rate, and rank the offers on that one number.
• What is the break-even export volume between two plans? It is the annual export at which two offers cost the same. You find it by dividing the annual difference in fixed and import charges by the difference in feed-in rates. Below it the leaner-charge plan wins, and above it the higher-export plan wins.
• What is a time of use tariff? It is a plan where the per kWh charges change with the time of day rather than staying flat. The same kilowatt-hour then costs a different amount depending on when you import it.
• What are peak, off-peak, and shoulder periods in Victoria? Peak is typically 4pm–9pm, and off-peak is typically 9pm–11am. Shoulder is the in-between band, which some plans define and others no longer do. Indicative peak rates run about 35–50 c/kWh and off-peak about 15–28 c/kWh under the 2026-27 Victorian Default Offer.
• What is the solar soak period? It is an 11am–4pm window introduced in the 2026-27 Victorian Default Offer structure. Its import rates sit below peak, which rewards consumption at the time rooftop solar generates most.
• Does Victorian Energy Compare handle solar plans properly? It compares all Victorian offers against your actual usage and returns a total, but it may not fully model capped-volume feed-in tariffs. Verify any high-headline offer against its Energy Fact Sheet.
• Where do I find a plan's per kWh charges and export credit in writing? On the retailer's Energy Fact Sheet, which lists the daily supply charge, the usage rates, and the feed-in rate in tabular form. It does not calculate an annual bill for you.
• Why can self-consumption be worth more than export credit right now? A household importing at about 30 c/kWh and exporting at about 8 c/kWh has roughly a 22 c/kWh gap. Using a kilowatt-hour at home can therefore be worth several times what exporting it earns (Source: SolarCalculator).
• What is a demand tariff? It is a tariff that bills partly on your highest half-hourly power draw in the billing period rather than on total consumption. That structure makes the charge harder to predict.
• What is a controlled load rate? It is a separately metered circuit, most often electric hot water, billed at its own per kWh rate. That rate is usually lower than the main import rate and available only during set hours.
• Does a controlled load survive a change of electricity plan? Not automatically. Check that the new offer still prices the controlled load circuit separately, because losing it moves that consumption onto your main import rate.
• How do I find my own annual import and export figures? They are in the interval data from your smart meter, where import and export sit on separate registers. See our guide on how to interpret your smart meter data, or load the file into the NEM12 Smart Meter Data Analyzer.

Try our NEM12 Smart Meter Data Analyzer Tool

Printable Checklist for Comparing Electricity Plans

Glossary

Controlled Load

A separately metered circuit controlled by a signal from the DNSP. These circuits typically contain a single specific appliance or type of appliance - eg. an Electric Hot Water Service (and historically Air-Conditioners or Electric Slab Heating). They are typically billed at a discounted rate and often run only during off-peak hours. They appear on a separate Meter Register on an Electricity Bill. See also: Dedicated Circuit.

Daily Supply Charge

The fixed amount an electricity or gas plan charges for each day a property is connected to the network, whatever amount of energy the household uses. Also called a Daily Connection Charge.

Demand Tariff

A tariff that bills partly on the highest rate of power draw recorded in a billing period, usually measured over a half-hour interval, rather than on total energy consumed.

Distribution Zone

The network area operated by a distribution business (in Victoria: Powercor, United Energy, AusNet Services, Jemena, or CitiPower). Regulated supply and usage rates differ by zone.

Energy Fact Sheet

A standardised summary a retailer must supply for each offer, listing the daily supply charge, usage rates, and feed-in rate. It does not estimate an annual bill.

Essential Services Commission

Victoria's state regulator for essential services, including electricity retail pricing. It sets the Victorian Default Offer and, until 1 July 2025, set the state's minimum solar feed-in tariff.

Export Cap

A daily volume limit on how much exported energy attracts a plan's headline feed-in rate. Exports beyond the cap are credited at a lower rate.

Feed-in Tariff

The rate a retailer credits you for electricity your system exports to the grid, usually counted per kilowatt hour.

Flat Rate Tariff

A tariff charging a single per-kilowatt-hour import rate at every hour of the day, with no peak, off-peak, or midday distinction. Also called a single-rate tariff.

Interval Data

Energy readings recorded at fixed time steps — typically every 30 minutes (but sometimes 5 or 15 minutes on newer meters) rather than as a single billing total. This allows charging different Tariffs at different times of day or days of the week. See also: Time-of-Use (TOU) Tariff.

Kilowatt Hour

The unit of energy an electricity bill counts, written kWh. One kilowatt hour is the energy a 1,000-watt appliance uses in one hour.

NMI

National Metering Identifier — the unique 10-digit identifier for an electricity connection point (11 with the Check Digit), permanent to the property. Note that the electricity connection point identified by the NMI, typically has multiple NMI Suffixes, and can have multiple Physical Meters. See also: Check Digit, NMI Suffix.

Off-Peak Period

The lowest-priced window on a time-of-use tariff, typically overnight and into the morning — commonly 9pm–11am under Victorian 2026-27 structures.

Peak Period

The highest-priced window on a time-of-use tariff, typically the evening — commonly 4pm–9pm in Victoria, when demand is high and solar generation is falling.

Self-Consumption

The share of the electricity generated by your own solar panels that your household uses on site, rather than exporting it to the grid.

Shoulder Period

The middle-priced window on a three-part time-of-use tariff, sitting between peak and off-peak. Not every plan defines one.

Smart Meter

An electricity meter that records consumption and export in fixed intervals and reports them remotely. Time-varying tariffs and free-hours schemes require one.

Solar Soak Period

A midday window — 11am–4pm in the 2026-27 Victorian structure — priced below peak to encourage consumption while rooftop solar output is highest.

Time-of-Use (TOU) Tariff

A tariff with different prices at different times of day or days of the week (Peak, Shoulder, Off-Peak).

Victorian Default Offer

A mandated maximum electricity price set by the Victorian Government that all Electricity Retailers in Victoria must offer to Households and Small Businesses. Acts as a safety net for consumers who do not shop around.

Try our NEM12 Smart Meter Data Analyzer Tool