The Solar Tax has Arrived - Now What?
The Solar Tax has Arrived - Now What? Starting on July 1, 2024, electricity providers will introduce a new mechanism to charge solar panel...
For years, homeowners across Australia have enjoyed the benefits of solar feed-in tariffs (FIT), getting paid for the excess clean energy their rooftop panels send back to the grid. However, the landscape of solar exports is evolving, and it's important to understand potential changes on the horizon.
As more and more homes embrace solar power (4-million homes in Australia), there's a growing challenge in managing the flow of electricity back into the grid. This is most problematic between 10am and 3pm, when the sun is at its brightest and lots of people are generating excess energy. This can lead to grid congestion and voltage fluctuations, requiring costly network upgrades.
To address this, network operators are exploring ways to incentivise homeowners to use more of their self-generated solar power directly, or to export it at times when the grid needs it most. This also aims to ensure that households without solar panels aren't solely bearing the costs of grid upgrades needed to handle the increasing solar exports.
While the exact approach varies by state and Distributed Network Service Provider (DNSP), AKA the companies that own and maintain the poles and wires, here's a general overview of what's being discussed and implemented:
Ausgrid has already introduced an optional two-way tariff in July 2024, which will become mandatory for most new and existing solar customers in July 2025. This tariff involves:
* https://www.ausgrid.com.au/Connections/Solar-and-batteries/Solar-tariffs
As of April 2025, the governments in Victoria and Queensland have indicated they will not be making their citizens pay solar export charges. However, feed-in tariffs are being reviewed and in Victoria, the minimum FiT is set to drop significantly in July 2025.
These regions do not currently have mandatory solar export charges, but like other states, the value of feed-in tariffs is subject to change based on market conditions.
These regions are not part of the National Electricity Market (NEM) and are unlikely to see solar export charges in the near future.
These changes aim to encourage you to use more of the solar energy you generate at home, rather than automatically exporting it. This could involve running appliances during the day when your panels are producing the most power.
Storing excess solar energy in a battery allows you to use it later in the day (during peak demand periods when export rewards might be higher or when you'd otherwise be buying from the grid) and avoid exporting during the charged hours. This makes battery storage an increasingly attractive option.
As export charges become more common, retailers may adjust their feed-in tariff rates to reflect these changes. You might see lower FiTs during the middle of the day and potentially higher ones in the evening.
While the idea of export charges might sound concerning, initial estimates, like those from Ausgrid in NSW, suggest that the net impact on the average household bill might be relatively small, especially when considering the "free threshold" and potential export rewards. However, larger systems exporting significant amounts during peak hours could see a more noticeable impact.
Reposit's smart technology is designed to help you navigate these evolving grid conditions. Our No Bill program guarantees you no electricity bill and optimises your solar and battery system to:
By learning your energy usage patterns, Reposit prioritises using your own solar power first.
Reposit's algorithms can make intelligent decisions about when to export energy to maximise potential rewards and avoid export charges where possible.
By participating in grid services like FCAS and RERT, your Reposit system can generate revenue that can help offset any potential export charges and contribute to the "No Bill" guarantee.
The way we interact with the electricity grid as solar owners is changing. While the era of simply getting paid for all exported solar might be evolving, the core benefits of solar energy – reducing your reliance on the grid and lowering your electricity bills – remain significant. Smart technologies like Reposit are crucial in helping homeowners adapt to these changes and continue to get the most value from their solar and battery investments in the years to come. Stay informed about the specific regulations and tariffs in your state and consider how smart energy management can help you optimise your energy future.
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