{"id":99066,"date":"2026-04-28T09:01:17","date_gmt":"2026-04-27T23:31:17","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=99066"},"modified":"2026-04-28T11:15:27","modified_gmt":"2026-04-28T01:45:27","slug":"aemc-report-concerns-solar-households","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/aemc-report-concerns-solar-households\/","title":{"rendered":"AEMC Report Raises Concerns For Solar Households"},"content":{"rendered":"

\"\"<\/p>\n

The Australian Energy Market Commission (AEMC) says its proposed network pricing reforms could cut electricity costs and deliver up to $6 billion in savings across 15 years \u2014 but modelling suggests those savings won\u2019t be shared evenly, with some\u00a0 solar owners potentially worse off.<\/p>\n

Will AEMC’s Network Pricing Reforms Save Money?<\/h2>\n

The modelling projects savings of $40 to $80 per household per year on electricity bills by 2040. It estimates some families would be much better off, saving up to $740 a year by 2040, with two-thirds of households that are unable to have solar or batteries benefiting.<\/p>\n

The impact is slightly negative however for solar and battery owners. The payback period for solar extends from approximately 4.4 to 4.7 years, while solar and batteries go from 4.6 to 5.0 years, although home batteries could be better rewarded for easing network pressure during peak periods.<\/p>\n

Quitting gas would become more financially enticing, with payback from going all-electric improving from 8.3 to 7.7 years.<\/p>\n

This follows earlier SolarQuotes coverage<\/a> of the draft proposals, which raised concerns about higher fixed charges and shifting costs onto low-usage and solar households. The latest release doesn\u2019t change that direction \u2014 but it does add further modelling and proposed consumer protections.<\/p>\n

Is This Really About Savings \u2014 Or Cost Shifting?<\/h2>\n
\"AEMC

AEMC projections for potential changes that would see fixed charges go up and usage costs go down.<\/p><\/div>\n

Dig into the detail of the report<\/a> and the focus is less about cutting bills across the board, and more about reshaping who pays what under the AEMC\u2019s so-called \u201ccost-reflective\u201d pricing approach.<\/p>\n

The AEMC also links the reforms to broader benefits, including lower wholesale costs, improved energy security and reduced emissions, although these outcomes are not directly evidenced in the pricing modelling.<\/p>\n

Electricity networks still need to pay for poles and wires regardless of how much energy flows through them. As households install solar and reduce grid consumption, recovering those costs through usage alone becomes more difficult.<\/p>\n

The solution being proposed is not to reduce those costs, but to recover more of them in ways that are less dependent on how much electricity is used. That\u2019s why fixed charges remain central to the discussion \u2014 even if they are not the headline focus.<\/p>\n

What Role Does Peak Pricing Actually Play?<\/h2>\n

A big part of the AEMC\u2019s case relies on higher prices when electricity is used during peak demand, and lower prices when the grid is underused. But that element is more prominent in the modelling than in the media release itself.<\/p>\n

In practice, the reform depends on households responding to these price differences. Those who can shift usage, store energy, or avoid peak periods may benefit. Those who can\u2019t are more exposed \u2014 particularly if a larger share of their bill is fixed.<\/p>\n

What This Means For Solar And Electrification<\/h2>\n

This is where the tension becomes harder to ignore.<\/p>\n

For years, households have been encouraged to install solar, electrify appliances, and reduce reliance on fossil fuels. Those decisions were supported by clear financial signals \u2014 use less grid power, and your bill goes down.<\/p>\n

This reform starts to change that relationship.<\/p>\n

As more costs move into fixed charges, reducing grid consumption delivers smaller savings. At the same time, more complex pricing makes outcomes depend more on behaviour, flexibility, and access to technology like batteries.<\/p>\n

The AEMC argues this supports electrification overall \u2014 and at a system level, that may be true. But at a household level, the incentives become less straightforward.<\/p>\n

Winners, Losers, And Acknowledged Risks<\/h2>\n

The modelling confirms that not everyone benefits.<\/p>\n

Some households \u2014 particularly those with flexibility, storage, or the ability to shift usage \u2014 are better placed to respond to changing price structures.<\/p>\n

Others, including low-usage households and some solar-only homes, may face higher costs depending on how tariffs are designed and implemented.<\/p>\n

The Australian Energy Market Commission acknowledges these distributional impacts. A separate report by HoustonKemp<\/a> examines the likely impacts in more detail and sets out options to manage them, rather than challenging the direction of change itself.<\/p>\n

Those options include limiting how quickly fixed charges can rise, changing how network costs are shared between different types of customers, and requiring retailers to offer clearer choices and obtain customer consent before moving people onto different tariff structures.<\/p>\n

These measures are aimed at managing the transition and reducing the risk of sudden bill increases as reforms are introduced.<\/p>\n

Not Final, But The Direction Is Clear<\/h2>\n

The AEMC has not yet made final recommendations, with more than 2,700 submissions received ahead of a final report due in June 2026.<\/p>\n

Even so, the direction of reform is becoming clearer. It points toward more complex pricing structures, a stronger reliance on fixed cost recovery, and a greater focus on how households use electricity \u2014 not just how much.<\/p>\n

For solar households, savings are becoming more dependent on tariff structure and usage timing, along with how much energy is generated.<\/p>\n

The impact of these changes will become clearer as the reforms are finalised and rolled out over the coming years.<\/p>\n

To stay up to date on AEMC’s finalised changes once they are announced and other home electrification news, subscribe to SolarQuotes\u2019 free weekly newsletter<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Australian Energy Market Commission (AEMC) says its proposed network pricing reforms could cut electricity costs and deliver up to $6 billion in savings across 15 years \u2014 but modelling suggests those savings won\u2019t be shared evenly, with some\u00a0 solar owners potentially worse off.<\/p>\n","protected":false},"author":29,"featured_media":99077,"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":[54],"tags":[],"class_list":["post-99066","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solar-policy","entry"],"acf":[],"yoast_head":"\nAEMC Report Raises Concerns For Solar 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With the volume forecast to\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":"Rooftop solar reforms in Australia","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/08\/rooftop-solar-reforms.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/08\/rooftop-solar-reforms.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/08\/rooftop-solar-reforms.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/08\/rooftop-solar-reforms.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/08\/rooftop-solar-reforms.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":97925,"url":"https:\/\/www.solarquotes.com.au\/blog\/fixed-charges-hike-could-wipe-out-battery-rebate-savings\/","url_meta":{"origin":99066,"position":1},"title":"Fixed Charges Hike Could Wipe Out Battery Rebate Savings","author":"Max Opray","date":"February 25, 2026","format":false,"excerpt":"In response to a draft proposal from the Australian Energy Market Commission (AEMC) for higher fixed network charges, new analysis projects that a flat fixed fee for energy bills could disproportionally raise bills for energy-efficient households, and largely wipe out the value of the federal battery rebate. What Does The\u2026","rel":"","context":"In "Electricity Prices"","block_context":{"text":"Electricity Prices","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/electricity-prices\/"},"img":{"alt_text":"australian money","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/cash-money.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\/cash-money.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/cash-money.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/cash-money.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/09\/cash-money.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":48736,"url":"https:\/\/www.solarquotes.com.au\/blog\/solar-batteries-aemc-mb1930\/","url_meta":{"origin":99066,"position":2},"title":"Adding More Home Solar Power To The Grid: AEMC Draft Determination","author":"Michael Bloch","date":"March 25, 2021","format":false,"excerpt":"The Australian Energy Market Commission has released its draft determination on how to integrate more small-scale solar power systems, support home battery uptake and address solar energy \"traffic jams\" in the grid. Australia's grid infrastructure was originally designed to cater to one-way electricity traffic flows - into premises. The rise\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 solar and battery reforms","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/03\/aemc-solar-batteries-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\/03\/aemc-solar-batteries-australia.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/03\/aemc-solar-batteries-australia.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/03\/aemc-solar-batteries-australia.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/03\/aemc-solar-batteries-australia.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":44838,"url":"https:\/\/www.solarquotes.com.au\/blog\/solar-export-charges-mb1761\/","url_meta":{"origin":99066,"position":3},"title":"Rooftop Solar Export “Tax” Draft Determination Deferred","author":"Michael Bloch","date":"November 16, 2020","format":false,"excerpt":"The Australian Energy Market Commission (AEMC) said on Thursday its draft determination on proposed National Electricity Rule (NER) changes impacting rooftop solar and other distributed energy resources will be delayed. First, some background. Back in July, the AEMC called for submissions on proposed rule change requests it had received following\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\/11\/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\/11\/solar-export-charges.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/11\/solar-export-charges.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/11\/solar-export-charges.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/11\/solar-export-charges.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":14351,"url":"https:\/\/www.solarquotes.com.au\/blog\/solar-electricity-charges-aemc-mb0177\/","url_meta":{"origin":99066,"position":4},"title":"AEMC Shies Away From Solar Electricity Export Charges","author":"Michael Bloch","date":"August 23, 2017","format":false,"excerpt":"The Australian Energy Market Commission (AEMC) has ditched a suggestion (for now) that was viewed as an enabler for a \"solar tax\", after protest from thousands of solar supporters. Earlier this year, the AEMC released a draft of its Distribution Market Model, which questioned a clause in rules prohibiting a\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":"Protest against solar electricity export charges","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2017\/08\/solar-charges-protest.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2017\/08\/solar-charges-protest.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2017\/08\/solar-charges-protest.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2017\/08\/solar-charges-protest.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":47903,"url":"https:\/\/www.solarquotes.com.au\/blog\/aemc-solar-inverters-mb1894\/","url_meta":{"origin":99066,"position":5},"title":"AEMC Introducing New Solar Inverter Standards","author":"Michael Bloch","date":"February 25, 2021","format":false,"excerpt":"Where South Australia has already gone with some solar inverter standards, most other states will follow by the end of this year. The Australian Energy Market Commission announced this morning compulsory new standards will come into effect in for new and upgraded solar power systems in Queensland, New South Wales,\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 solar inverter standards","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/02\/aemc-inverter-rules.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/02\/aemc-inverter-rules.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/02\/aemc-inverter-rules.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/02\/aemc-inverter-rules.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/02\/aemc-inverter-rules.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/99066","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\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/comments?post=99066"}],"version-history":[{"count":14,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/99066\/revisions"}],"predecessor-version":[{"id":99098,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/99066\/revisions\/99098"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media\/99077"}],"wp:attachment":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media?parent=99066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/categories?post=99066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/tags?post=99066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}