Energy advocates criticise new charges on users: 'Madness and rip-off'
- Replies 24
The Australian spirit is one of fairness and mateship, but many Aussies feel nothing but comradery when it comes to the recent introduction of a 'sun tax'.
The new tariff, which has been quietly rolled out in some states, is causing outrage among households that have invested in solar panels, with many feeling they are being unfairly penalised for their environmentally conscious choices.
The sun tax, a term coined to describe the new export tariff, is part of a two-way pricing structure that effectively charges customers for exporting solar-generated energy back to the grid when the network is congested, typically in the middle of the day.
Energy advocates and consumers have criticised this move by energy distributors, arguing that it undermines solar power's financial and environmental benefits.
Heidi Lee Douglas, a renewable energy advocate and the chief executive of Solar Citizens, has opposed the tax, labelling it as 'madness' and a 'rip-off'.
She argued that charging people for making energy from sunlight is simply not fair, especially during a cost-of-living crisis.
‘'Energy companies want to charge people with solar panels to make energy from sunlight, and that's simply not fair,’ she said.
‘The new two-way tariff is a blunt instrument that charges people with solar panels for feeding their energy into the grid during the day, rather than supporting them to store their energy or feed it back into the grid at another time.’
‘Rather than stick people with penalties for not having batteries they can't afford in a cost of living crisis, households need more support to access the benefits of battery storage.’
‘People in NSW were absolutely furious, and Queenslanders will be livid when they find out more about the big tariff rip-off planned for households with solar panels.'
The sun tax sends a discouraging message to those considering solar installation, potentially slowing down the adoption of renewable energy.
While the tariffs were introduced in mid-2022, most households and businesses will feel the full impact the following year, as distributors need to submit a price proposal to the Australian Energy Regulator (AER) to justify the need for the tax.
Some distributors, like Ausgrid, have already outlined the changes.
They plan to charge customers 1.2c/kWh for electricity produced during peak export periods and offer a payment of 2.3c/kWh for electricity exported during peak demand hours.
Another hurdle for many households is the cost of solar batteries, which can store unused energy for later use.
Prices range from $8,750 to over $20,000, making it a significant investment.
While the NSW State Government has announced a rebate starting at $1,600 for battery storage systems, and Queensland had a similar rebate that has since closed, the upfront cost remains a barrier for many.
‘The Queensland government must find ways of getting more households powered by solar and create the incentives to shift people into having solar and batteries,' Ms Douglas added.
‘About 60 per cent of the community is currently locked out of the benefits of solar, including renters and people living in apartments or social housing, and they have among the most to gain from reduced energy bills.’
These groups stand to gain the most from reduced energy bills, yet they are often left behind in the transition to renewable energy.
Data from the clean energy regulator shows that solar and battery storage uptake is significantly higher in Sydney's outer suburbs compared to more established areas.
As energy costs continue to rise, the push for solar and battery storage is expected to grow despite the challenges posed by the sun tax.
David Sedighi, chief operating officer of VoltX Energy, notes that solar makes new homes more energy-efficient and attractive to prospective buyers.
Energy savings aside, solar has made these new homes more energy efficient, enabling people to meet compliance for a Building Sustainability Index (BASIX) certificate,' he said.
‘We know having solar makes a new home more attractive to prospective buyers in the future, too, as the cost of energy increases.’
'The so-called sun-tax where energy providers charge customers a tariff for rooftop solar exported to its network will also drive demand for batteries.'
In related news, the NSW government has launched a $200 million initiative to boost energy efficiency for 24,000 homes.
The program covers upgrades like draught-proofing, insulation, heating and cooling systems, and solar power, with subsidies for 10,000 low-income renters and apartment residents. Learn more here.
Have you been affected by the sun tax, or are you concerned about how it might impact your decision to go solar? Share your thoughts and experiences in the comments below.
The new tariff, which has been quietly rolled out in some states, is causing outrage among households that have invested in solar panels, with many feeling they are being unfairly penalised for their environmentally conscious choices.
The sun tax, a term coined to describe the new export tariff, is part of a two-way pricing structure that effectively charges customers for exporting solar-generated energy back to the grid when the network is congested, typically in the middle of the day.
Energy advocates and consumers have criticised this move by energy distributors, arguing that it undermines solar power's financial and environmental benefits.
Heidi Lee Douglas, a renewable energy advocate and the chief executive of Solar Citizens, has opposed the tax, labelling it as 'madness' and a 'rip-off'.
Outrage over hidden 'sun tax' for Australian households with solar panels. Credit: Shutterstock
She argued that charging people for making energy from sunlight is simply not fair, especially during a cost-of-living crisis.
‘'Energy companies want to charge people with solar panels to make energy from sunlight, and that's simply not fair,’ she said.
‘The new two-way tariff is a blunt instrument that charges people with solar panels for feeding their energy into the grid during the day, rather than supporting them to store their energy or feed it back into the grid at another time.’
‘Rather than stick people with penalties for not having batteries they can't afford in a cost of living crisis, households need more support to access the benefits of battery storage.’
‘People in NSW were absolutely furious, and Queenslanders will be livid when they find out more about the big tariff rip-off planned for households with solar panels.'
The sun tax sends a discouraging message to those considering solar installation, potentially slowing down the adoption of renewable energy.
While the tariffs were introduced in mid-2022, most households and businesses will feel the full impact the following year, as distributors need to submit a price proposal to the Australian Energy Regulator (AER) to justify the need for the tax.
Some distributors, like Ausgrid, have already outlined the changes.
They plan to charge customers 1.2c/kWh for electricity produced during peak export periods and offer a payment of 2.3c/kWh for electricity exported during peak demand hours.
Another hurdle for many households is the cost of solar batteries, which can store unused energy for later use.
Prices range from $8,750 to over $20,000, making it a significant investment.
While the NSW State Government has announced a rebate starting at $1,600 for battery storage systems, and Queensland had a similar rebate that has since closed, the upfront cost remains a barrier for many.
‘The Queensland government must find ways of getting more households powered by solar and create the incentives to shift people into having solar and batteries,' Ms Douglas added.
‘About 60 per cent of the community is currently locked out of the benefits of solar, including renters and people living in apartments or social housing, and they have among the most to gain from reduced energy bills.’
These groups stand to gain the most from reduced energy bills, yet they are often left behind in the transition to renewable energy.
Data from the clean energy regulator shows that solar and battery storage uptake is significantly higher in Sydney's outer suburbs compared to more established areas.
As energy costs continue to rise, the push for solar and battery storage is expected to grow despite the challenges posed by the sun tax.
David Sedighi, chief operating officer of VoltX Energy, notes that solar makes new homes more energy-efficient and attractive to prospective buyers.
Energy savings aside, solar has made these new homes more energy efficient, enabling people to meet compliance for a Building Sustainability Index (BASIX) certificate,' he said.
‘We know having solar makes a new home more attractive to prospective buyers in the future, too, as the cost of energy increases.’
'The so-called sun-tax where energy providers charge customers a tariff for rooftop solar exported to its network will also drive demand for batteries.'
In related news, the NSW government has launched a $200 million initiative to boost energy efficiency for 24,000 homes.
The program covers upgrades like draught-proofing, insulation, heating and cooling systems, and solar power, with subsidies for 10,000 low-income renters and apartment residents. Learn more here.
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THIS IS NOT HOW AUSTRALIA SHOULD BE!!!!
