Earlier this month, the Australian Energy Market Commission (AEMC) chose to amend how power networks compensate solar owners. These radical changes will allow companies to charge customers for exporting solar energy from the electrical grid and many solar owners are not impressed.
Due to prime weather conditions, lots of sunlight and little shade, solar power has been willingly adopted in Shepparton and surrounding areas. More than half a million homes across Victoria have solar panels installed.
While uptake has been high, many homes experience reduced consumption around noon that reverts their power back to the electrical grid. This push-pull effect of homes connecting and disconnecting from grid-power to home-solar creates a traffic jam in the wider electrical system.
The new AEMC rules will reduce the value of solar exports when the grid is congested. However, power companies will provide “solar export plans”, and some companies will reward homes that provide energy at times of high demand.
According to a national enquiry into the Electricity Market, published in July 2021, solar owners still take home the most energy savings. However, electricity costs may be being shifted to non-solar owners, who are much more likely to be renters and asset poor.
When these reforms come into effect in 2025, the AEMC expects power bills for those without solar panels will reduce by $15 each year. Rather than punish early adopters of solar, these reforms aim to alleviate the challenges that sustainable energy has presented and to grow this green movement in a way that is viable for all.
