By John Pedler
Published: Wednesday, September 22, 2021
Australia has one of the world’s highest uptakes of household solar and its popularity is increasing.
As awesome as this is for the planet, it has caused problems for our power networks, which were designed for electricity to flow in one direction only ‒ from the wires to the house, not in reverse. With so much solar power now being exported back to the grid, our aging system is starting to struggle.
Here we look at some of the regulations that have been ‒ or will be ‒ introduced to ease the burden.
SA Government Smarter Homes Regulations (introduced in 2020)
When solar panels first started hitting our roofs, feed-in tariffs (FiTs) were alluringly high to attract customers to the expensive solar market.
Fast forward to the present day and solar has become so affordable that about a third of South Australian homes now have panels, according to Renewables SA. On top of this, the typical solar installation these days is 6.6kW compared to the 1.5kW systems that used to be the norm.
While FiTs are much lower than before, the bigger systems today produce more power, so there’s less need to draw energy from the grid – so, swings and roundabouts.
The booming popularity of solar does mean that occasionally the power grid can become saturated with electricity being exported back to the network. In fact, for a short time on 11 October last year, solar panels supplied all SA’s power needs, risking instability in the grid which could’ve led to blackouts.
To counter this, all new solar systems must have the capability to be controlled remotely, so that solar power exports back to the network can be regulated during these times.
These FAQs will help you understand how this affects you.
Can the government switch off my home solar system?
No. Exports can be limited to protect the electricity network, but you’ll still be able to use your system to produce power for your personal use. Systems installed before September 2020 are exempt from the new regulations.
Who has remote access to my solar system?
The only people permitted to limit the export of your solar power back to the network are Relevant Agents, registered with the State Government’s Office of the Technical Regulator. When installing your solar, RAA will help you connect with Relevant Agents best suited to handle your system.
Does this affect my existing system?
The regulations only apply to new installations, but if your existing system needs to be repaired or modified, any replacement parts must comply with the new standards. Parts replaced under warranty are exempt.
What about my FiT?
The FiT (cents per kilowatt hour) offered by your energy retailer isn’t affected by these regulations.
Will it cost me more?
These regulations shouldn’t affect the cost of your solar system installation. If the export of your surplus solar power back to the network is temporarily disconnected, this will briefly affect the amount of FiT you receive. There are too many factors involved to say exactly how often this could happen or the precise dollar amount it will reduce your credit.
What if my system has a battery?
Even if your system is temporarily unable to export power back to the network, you can still use the solar power you’re producing and any electricity stored in your battery. You can also receive power from the grid, if needed.
Smart solar reforms (due to be introduced in 2025)
With the increasing strain on power networks, there’s a fear network operator SA Power Networks (SAPN) could introduce ‘zero export limits’ (blanket bans on exports). This has already happened in some parts of the country. Zero export limits would mean no FiT benefits and wasted surplus solar energy.
To prevent this happening, the Australian Energy Market Commission (AEMC) has developed smart solar reforms. The aim is for network operators to be able to better manage solar exports through a range of plans and incentives, and potentially increase the current export limits from 5kW to near 10kW when energy is needed. The AEMC is also encouraging operators to upgrade their networks to handle the changing electricity supply landscape.
News of the reforms has led to concerns that SAPN could charge consumers for exporting power.
These FAQs will make things clearer.
Will network operators be able to charge homeowners for exporting power to the grid?
Operators like SAPN would be able to offer a range of paid plans – perhaps an annual fee that offers higher export rates at times of high energy demand, and lower rates at other times. Some plans might attract an export tariff (to be paid to the operator) when the network is saturated.
But it’s hoped this will encourage solar householders to better manage their systems by using things like timers, so power-hungry appliances like washing machines, dishwashers and pool pumps can be set to run during the sunniest part of the day. By using all the electricity your panels are producing while the sun’s shining, you’ll reduce the chance of attracting tariffs, plus you’ll likely need less power from the grid at night.
If you have a system with a battery, you can store energy rather than sending it to the grid, and export any surplus power when it’s most needed by the network.
Will everybody have to enter into a paid-plan contract?
No, network operators must also offer a basic free service for solar exports.
How will I know I’m getting a good deal?
According to the AEMC: “If a network business wants to introduce export price plans, they will need to consult extensively with customers and have a transition plan in plain English detailing exactly what they’re proposing approved by the Australian Energy Regulator. The regulator will make the final decision on whether the pricing structures are in the long-term interests of consumers.”
Is solar still a good investment?
Yes. Apart from the environmental benefits, the main reason homeowners install solar is to save on electricity bills. A 6.6kW system can provide a lot of free power for the average household, and by using smart technology like timers, there are considerable financial benefits.
Because installing solar is much cheaper now, FiTs are so low that there’s limited value in sending power back to the grid. But plans offered under the smart solar reforms might provide some worthwhile returns, particularly for those with batteries.