{"id":84493,"date":"2024-06-13T05:56:54","date_gmt":"2024-06-12T20:26:54","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=84493"},"modified":"2024-07-01T10:55:25","modified_gmt":"2024-07-01T01:25:25","slug":"debunking-sun-tax-mb2941","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/debunking-sun-tax-mb2941\/","title":{"rendered":"Debunking The Screams Of “Sun Tax!”"},"content":{"rendered":"

\"Australia's<\/p>\n

Export charges for solar energy in Australia have elicited some strong negative reactions and misinformation – including referring to these charges as a sun tax.<\/p>\n

—-
\nUpdate: July 1, 2024<\/strong>. SolarQuotes has launched a “sun tax” calculator<\/a> that will show the impact two-way pricing will have on your electricity bills. It will initially apply to the Ausgrid network area, but can help you understand the potential impacts wherever you may be. The calculator will soon be updated to also include Endeavour Energy’s 2-way tariffs<\/a>.
\n—–<\/p>\n

Solar energy exports are reaching levels in some parts of the grid during the 10am – 3pm period that they are becoming difficult to manage and could potentially pose a threat to network stability. Export charges applied during this window will act as a signal to system owners to self-consume more of the energy they generate during this time.<\/p>\n

Export charges have been on the cards for quite a while. Back in 2021, provisions in the National Electricity Rules (NER) prohibiting Distributed Network Service Providers (DNSPs) from charging for energy exported to the grid were removed.<\/p>\n

But DNSPs can’t just charge what they want, how they want and when they want. In May 2022, the Australian Energy Regulator (AER) released final Export Tariff Guidelines<\/a> that included guidance on customer protections and the need for any two-way pricing proposals to be justified. Any export tariff plans must be approved by the AER a long time in advance and must have a basic export level\u00a0 – an amount of electricity that a customer will be able to export to the grid at no cost – good for at least ten years.<\/p>\n

Ausgrid As An Example<\/h2>\n

New South Wales electricity distributor Ausgrid is introducing two-way pricing\/tariffs<\/a> for energy exports across its network, and it won’t be the only one. Ausgrid’s two-way tariffs involve a carrot and stick approach.<\/p>\n

The carrot is rewarding solar owners with a payment or credit of 2.3 cents\/kWh for exports during the peak demand period (4pm to 9pm), which would be in addition to any feed-in tariff. The stick is an export charge of 1.2 c\/kWh between the hours of 10am and 3pm. But there will also be an amount of electricity a solar household can send into the Ausgrid network between these times that will not attract a charge.<\/p>\n

Even though there’s a “free threshold” and higher payments for exports during peak, many have chosen to focus on the export charge. That’s understandable as nobody likes charges. But it’s important they are framed correctly and the reasoning behind them understood.<\/p>\n

To provide an idea of the financial impact, in Ausgrid’s case it says a typical solar customer with a 5kW system (granted, small by current standards) – will see a net cost impact of $6.60 a year1<\/a><\/sup>.<\/p>\n

Unless a system owner is getting a 0c feed-in tariff, which is unlikely, they’ll basically just be getting less feed-in tariff unless there’s sufficient offset from export rewards during late afternoons and evenings. And for years now, the real value of having a solar power system has been through avoiding consuming expensive mains electricity; not feed-in tariffs<\/a>.<\/p>\n

Why Not Just Upgrade Electricity Infrastructure?<\/h2>\n

Years ago, there was much criticism of networks spending a bunch of bucks on “gold-plating” parts of Australia’s electricity infrastructure. To avoid the need for export charges, much more of this very costly work would need to happen (infrastructure would need to be “platinum-plated”) and those costs would be passed on to all energy consumers.<\/p>\n

What About Using Remote Shutdown Capabilities?<\/h2>\n

The ability for a DNSP to remotely shut down or throttle systems when solar energy exports are dangerously high have already been implemented in a few states. Some are approaching remote shutdowns (aka emergency backstop) better<\/a> than others<\/a>. But the idea behind these “big red buttons” is they are only used as a last resort, not part of business as usual. Altering consumer behaviour is preferable, but at least remote shutdown capabilities will still be there in extreme situations.<\/p>\n

Better Get A Home Battery?<\/h2>\n

If a solar battery<\/a> suits your energy consumption profile, needs, desires and budget, go for it. But for some, a much cheaper solution may be a device such as Catch Control<\/a> (formerly known as Catch Solar Relay).<\/p>\n

So, Why Is Calling This A Sun Tax Wrong?<\/h2>\n

Words matter. Yelling “sun tax!” only serves to stir up folks unnecessarily, promote confusion and misinformation, and may even discourage some households from installing solar panels – even though the hit will be small compared to the financial benefits of having a system.<\/p>\n

In a nutshell, calling export charges a sun tax or accusing electricity companies of charging for sunlight is incorrect. Sunlight is free – where these export charges apply, you will only be charged (likely taken off your feed-in tariff rate\/credit) if you choose to send your self-generated electricity over and above the free threshold into the grid at certain times of the day, which is a very different thing.<\/p>\n","protected":false},"excerpt":{"rendered":"

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As we've mentioned previously, \"sun tax\" is a label that has been incorrectly applied to two-way pricing for solar owners; but it looks like we're stuck with\u2026","rel":"","context":"In "Announcements"","block_context":{"text":"Announcements","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/announcements\/"},"img":{"alt_text":"Sun Tax Calculator guide","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/07\/sun-tax-calculator-guide.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/07\/sun-tax-calculator-guide.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/07\/sun-tax-calculator-guide.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/07\/sun-tax-calculator-guide.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/07\/sun-tax-calculator-guide.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":86500,"url":"https:\/\/www.solarquotes.com.au\/blog\/sun-tax-analysis-mb3001\/","url_meta":{"origin":84493,"position":1},"title":"“Sun Tax” Financial Impact A Nothing-Burger","author":"Michael Bloch","date":"September 5, 2024","format":false,"excerpt":"There has been much gnashing of teeth and rending of garments over the so-called \"Sun Tax\". But initial analysis from SolarQuotes based on real-world data indicates the impact will cost less than a carton of beer a year for most solar power system owners affected by it. While two-way pricing\u2026","rel":"","context":"In "Announcements"","block_context":{"text":"Announcements","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/announcements\/"},"img":{"alt_text":"Sun Tax calculator analysis","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/sun-tax-impact.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/sun-tax-impact.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/sun-tax-impact.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/sun-tax-impact.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/sun-tax-impact.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":50283,"url":"https:\/\/www.solarquotes.com.au\/blog\/sun-tax-australia-mb1995\/","url_meta":{"origin":84493,"position":2},"title":"“Sun Tax” Threatens Electricity Network Death Spiral – Or Does It?","author":"Michael Bloch","date":"May 13, 2021","format":false,"excerpt":"The results of a recent survey run by Solar Citizens regarding a controversial draft determination from the AEMC will have solar battery manufacturers salivating. In March, the Australian Energy Market Commission (AEMC) released its draft determination on how to integrate more small-scale solar power systems into Australia's grid. Among the\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Solar tax - Australia","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/05\/sun-tax-australia.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/05\/sun-tax-australia.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/05\/sun-tax-australia.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/05\/sun-tax-australia.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/05\/sun-tax-australia.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":50520,"url":"https:\/\/www.solarquotes.com.au\/blog\/aemc-sun-tax-facts-mb2005\/","url_meta":{"origin":84493,"position":3},"title":"AEMC Responds To “Solar Tax” Confusion And Misinformation","author":"Michael Bloch","date":"May 21, 2021","format":false,"excerpt":"The Australian Energy Market Commission has copped some undeserved flak over its proposals to help ensure many Australians can benefit more from installing solar panels well into the future. Just to briefly recap to this point: Australia\u2019s grid was originally designed to cater to one-way electricity flows \u2013 into premises.\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"AEMC sun tax","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/05\/aemc-sun-tax.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/05\/aemc-sun-tax.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/05\/aemc-sun-tax.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/05\/aemc-sun-tax.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/05\/aemc-sun-tax.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":62780,"url":"https:\/\/www.solarquotes.com.au\/blog\/queensland-sun-tax-mb2516\/","url_meta":{"origin":84493,"position":4},"title":"BS Called On Queensland “Sun Tax” Scare","author":"Michael Bloch","date":"June 16, 2022","format":false,"excerpt":"An article claiming a \"sun tax\" looms for solar power system owners in Queensland had the interwebs abuzz yesterday; well, a corner of it. The paywalled article in a News Corp publication claimed solar owners are being urged to install battery systems ahead of this so-called sun tax that will\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Queensland \"Sun Tax\"","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/06\/sun-tax-queensland.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/06\/sun-tax-queensland.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/06\/sun-tax-queensland.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/06\/sun-tax-queensland.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/06\/sun-tax-queensland.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":41759,"url":"https:\/\/www.solarquotes.com.au\/blog\/solar-export-charges-mb1624\/","url_meta":{"origin":84493,"position":5},"title":"Have Your Say On Proposed Solar Export Charges","author":"Michael Bloch","date":"July 31, 2020","format":false,"excerpt":"The Australian Energy Market Commission (AEMC) is calling for submissions on proposed changes to National Electricity Rules, including allowing for charges to be whacked on those who export solar electricity. Surplus electricity generated by residential solar power systems is exported to the mains grid and the system owner usually receives\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Solar export charges","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/07\/solar-export-charges.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/07\/solar-export-charges.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/07\/solar-export-charges.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/07\/solar-export-charges.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/07\/solar-export-charges.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/84493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/comments?post=84493"}],"version-history":[{"count":11,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/84493\/revisions"}],"predecessor-version":[{"id":84844,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/84493\/revisions\/84844"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media\/84494"}],"wp:attachment":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media?parent=84493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/categories?post=84493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/tags?post=84493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}