{"id":86757,"date":"2024-09-16T05:22:29","date_gmt":"2024-09-15T19:52:29","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=86757"},"modified":"2024-09-16T05:22:29","modified_gmt":"2024-09-15T19:52:29","slug":"powercor-draft-plan-mb3008","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/powercor-draft-plan-mb3008\/","title":{"rendered":"Mandatory “Sun Tax” Not In Powercor’s Plans"},"content":{"rendered":"

\"Powercor<\/p>\n

Victoria’s Powercor has released its 2026-31 Draft Regulatory Proposal for feedback – and mandatory two-way electricity pricing is not on the cards for solar owners.<\/p>\n

Every five-years, the Australian Energy Regulator (AER) reviews Distributed Network Service Provider (DNSP) plans for a 5-year period ahead. Powercor’s draft proposal sets out the company’s preliminary plans for the 2026\u201331 regulatory period.<\/p>\n

Powercor says overall, the $3.3 billion plan would add $2 to the annual network costs for its residential customers. Powercor has 823,905 residential customers, who account for 44% of the DNSP’s revenue.<\/p>\n

Its draft plan is based on the assumptions of energy consumption rising by 35 per cent – due in part to the shift away from gas, renewable generation doubling, 22 per cent of cars being electric, and more frequent extreme weather. Powercor is contemplating a doubling in rooftop solar capacity and growing volatility between maximum and minimum demand, with peak demand growing by 15%.<\/p>\n

Proposed Tariff Changes Summary<\/h2>\n

For residential customers, Powercor has said it wants to add a low-priced “saver” period from 11am\u20124pm into the residential time-of-use tariff (ToU) to help soak up increasing solar energy exports. This will not only help with system stability, but provide more hosting capacity for solar power systems. The DNSP says many of its assets are already operating close to capacity or condition limits.<\/p>\n

It also intends shortening the peak period in the residential time-of-use tariff – when electricity is most expensive –\u00a0 from 3 \u2012 9pm to 4 \u2012 9pm. This is due to rooftop solar pushing residential peak to later in the day.<\/p>\n

Powercor is proposing to remove the residential demand tariff<\/a> due to low uptake over the years, and the ongoing risk that customers “inadvertently” select it. Demand tariffs can be particularly nasty as they are based on maximum power demand (in kW) during a period. The use of multiple power-hungry appliances concurrently, even if only briefly, can tip a customer over the threshold with significant charges applied for the entire billing period.<\/p>\n

Powercor also proposes to introduce a new secondary interruptible tariff (that it controls the availability of) for hot water heat pump systems on a dedicated circuit; providing a discounted tariff for a minimum of 18 hours each day. As for permitting EV chargers<\/a> to use the controlled load tariff – which Powercor also controls the timing of – that’s a no-go as it says EV owners will not know when the option is active.<\/p>\n

What About Two-Way Pricing (aka “Sun Tax”)?<\/h2>\n

Two-way pricing (incorrectly referred to as a “Sun Tax”) involves charge and reward elements. The charge (essentially a feed-in tariff reduction) is to encourage rooftop PV owners to consume more of their self-generated electricity when exports are at their highest, usually around 10am to 3pm. The reward is for exports to the grid during peak demand in the late afternoons and evenings.<\/p>\n

Two-way pricing is a thorny issue, even though impact from a “sun tax” should be minimal<\/a> where it is applied. But in its proposal, Powercor states:<\/p>\n

“The Victorian Government is strongly opposed to mandatory export charges and therefore we have not considered export pricing for the default ToU tariff.”<\/p><\/blockquote>\n

However, it intends introducing a new two-way *opt in* residential CER (consumer energy resources) tariff. This, it says, will provide better price signals to electricity retailers of homes with flexible loads such as home batteries<\/a> and down the track a little, vehicle-to-home (V2H) or vehicle-to-grid (V2G)1<\/a><\/sup>. Powercor says it will opt for weaker price signals focussed on long-term trends, and the tariff being available anywhere.<\/p>\n

While exactly how much these credits and charges will be isn’t clear, Powercor provided this graph regarding structure (a legend would have been handy).<\/p>\n

\"Powercor<\/p>\n

The National Electricity Rules also require a basic free export level before charges can be applied. But Powercor is proposing a zero- kWh threshold:<\/p>\n

“because the CER tariff will be opt-in and therefore no consumer protection is required.”<\/p><\/blockquote>\n

Flexible Exports On The Horizon<\/h2>\n

Flexible solar exports involve remotely sending signals to compatible solar systems instructing how much power they can export during a given period based on network conditions. Flexible exports already have a foothold across the border in South Australia, where SA Power Networks (SAPN) started making the option available to more solar customers in July last year.<\/p>\n

Powercor says:<\/p>\n

“We are proposing to offer a flexible export product to residential customers. The advantage of this product for solar customers is that they would very likely export more energy than if they chose a static export limit.”<\/p><\/blockquote>\n

If Powercor’s plans are similar to SAPN’s flexible exports initiative<\/a>, that wouldn’t be surprising as SAPN’s static export limit for new or upgrading solar customers is just 1.5kW per phase. But a SAPN trial a while back determined flexible export customers were able to export the full capacity of their solar power systems 98 percent of the time.<\/p>\n

Powercor flexible export customers will have the choice of single rate, ToU or CER tariffs.<\/p>\n

The above information is only a small part of Powercor’s 2026-31 Draft Regulatory Proposal, and the company is inviting feedback on it until 30 October 2024. You can read the full proposal and how you can provide feedback here<\/a>. Submission of a final proposal to Australian Energy Regulator for approval (or otherwise) will be in January 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"

Victoria’s Powercor has released its 2026-31 Draft Regulatory Proposal for feedback – and mandatory two-way electricity pricing is not on the cards for solar owners.<\/p>\n","protected":false},"author":17,"featured_media":86758,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[678],"tags":[],"class_list":["post-86757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solar-battery-news","entry"],"acf":[],"yoast_head":"\nMandatory "Sun Tax" Not In Powercor's Plans<\/title>\n<meta name=\"description\" content=\"Victoria's Powercor has released its 2026-31 Draft Regulatory Proposal - and mandatory two-way pricing is not on the cards for solar owners.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solarquotes.com.au\/blog\/powercor-draft-plan-mb3008\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mandatory "Sun Tax" Not In Powercor's Plans\" \/>\n<meta property=\"og:description\" content=\"Victoria's Powercor has released its 2026-31 Draft Regulatory Proposal - 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Powercor is the DNSP for central and western Victoria, and\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":"Powercor network upgrades and solar energy","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/powercor-solar-network-upgrades.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/powercor-solar-network-upgrades.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/powercor-solar-network-upgrades.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/powercor-solar-network-upgrades.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/powercor-solar-network-upgrades.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":53607,"url":"https:\/\/www.solarquotes.com.au\/blog\/powercor-solar-connections-mb2142\/","url_meta":{"origin":86757,"position":1},"title":"Victoria’s Powercor Lifts Its Solar Exports Game","author":"Michael Bloch","date":"September 3, 2021","format":false,"excerpt":"Recent work by Victorian DNSP Powercor on some problematic parts of its network is enabling more solar power from rooftop panels to be exported to the grid. Powercor is the Distributed Network Service Provider for central and western Victoria, as well as Melbourne\u2019s western suburbs. It owns and operates 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":"Powercor - solar export limits","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/09\/powercor-solar-network.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/09\/powercor-solar-network.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/09\/powercor-solar-network.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/09\/powercor-solar-network.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/09\/powercor-solar-network.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":62591,"url":"https:\/\/www.solarquotes.com.au\/blog\/tarneit-neighbourhood-battery-mb2508\/","url_meta":{"origin":86757,"position":2},"title":"Tarneit Neighbourhood Battery Location Revealed","author":"Michael Bloch","date":"June 9, 2022","format":false,"excerpt":"Victoria's Powercor has announced where it will be locating a neighbourhood battery in the Melbourne suburb of Tarneit. In Tarneit, solar panels are just about everywhere you look. More than 16,832 small-scale (<100kW) systems had been installed in the 3029 postcode area - which also includes Hoppers Crossing and Truganina\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":"Location of Powercor's Tarneit neighbourhood battery","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/06\/tarneit-battery-powercor.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\/tarneit-battery-powercor.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/06\/tarneit-battery-powercor.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/06\/tarneit-battery-powercor.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/06\/tarneit-battery-powercor.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":34892,"url":"https:\/\/www.solarquotes.com.au\/blog\/victoria-electricity-costs-mb1288\/","url_meta":{"origin":86757,"position":3},"title":"Higher Electricity Network Charges For Victorians In 2020","author":"Michael Bloch","date":"November 12, 2019","format":false,"excerpt":"Victoria's households and small businesses will be digging deeper into their pockets from January 1 next year to cover electricity network charges after a decision by the Australian Energy Regulator (AER). The AER announced yesterday it had approved increases for the state's five Distributed Network Service Providers (DNSPs). Network charges\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":"Victorian electricity network charges","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/11\/network-charges-victoria.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/11\/network-charges-victoria.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/11\/network-charges-victoria.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/11\/network-charges-victoria.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/11\/network-charges-victoria.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":86851,"url":"https:\/\/www.solarquotes.com.au\/blog\/vebm-solar-cost-mb3013\/","url_meta":{"origin":86757,"position":4},"title":"The Cost Of Victoria’s Emergency Backstop For Solar","author":"Michael Bloch","date":"September 23, 2024","format":false,"excerpt":"In just over a week, Victoria's Emergency Backstop Mechanism (VEBM) requirement for rooftop solar systems comes into effect. Here's what's happening, why and how much it might cost all electricity customers. Why An Emergency Backstop For Solar? Uptake of home solar power in Victoria is still progressing at a rapid\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":"Victoria's Emergency Backstop For Solar","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/vebn-timeline-cost.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\/vebn-timeline-cost.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/vebn-timeline-cost.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/vebn-timeline-cost.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/vebn-timeline-cost.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":78350,"url":"https:\/\/www.solarquotes.com.au\/blog\/ev-council-sapn-charging\/","url_meta":{"origin":86757,"position":5},"title":"EV Council Slams SA’s Proposed Charging Tariff as Australia’s Worst","author":"Richard Chirgwin","date":"August 30, 2023","format":false,"excerpt":"The Electric Vehicle Council (EVC) is once again opposing a distributed network service provider\u2019s tariff plans on the basis that it discourages high-power EV charging. Back in May, the EVC took exception to Ausgrid\u2019s 2024-2029 regulatory proposal. This time, it\u2019s taking aim at SA's local electricity network, SA Power Networks\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":"","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/08\/50kw-dc-charger.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/08\/50kw-dc-charger.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/08\/50kw-dc-charger.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/08\/50kw-dc-charger.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/08\/50kw-dc-charger.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/86757","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=86757"}],"version-history":[{"count":9,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/86757\/revisions"}],"predecessor-version":[{"id":86768,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/86757\/revisions\/86768"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media\/86758"}],"wp:attachment":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media?parent=86757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/categories?post=86757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/tags?post=86757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}