AEMC drafts rules for export charges on rooftop solar feeding into grid

One third of SA homes have solar panels and now the energy market rule maker wants to allow fees for excess solar fed into the grid during low demand periods.

A controversial plan to allow energy networks to charge customers with solar panels for putting their excess power into the grid in times of low demand has been endorsed by the national market’s rule maker.

“Export charges” feature prominently in the Australian Energy Market Commission’s draft determination, released today, on how to integrate home solar and batteries into the electricity grid.

Commission chief executive Benn Barr, pictured, said the package of reforms addressed the growing problem of “traffic jams or congestion” on the electricity network.

“We think there will be a range of options for customers. It’s not going to be one size fits all,” he said. “And we see that there will there will be benefits for customers as well.”

Mr Barr said under the proposed changes, the state’s “poles and wires business”, SA Power Networks, would be able to offer different levels of service, “a bit like broadband”.

“So if you’ve got solar on your roof, you might just want the basic service and that might mean you’re not guaranteed to get all of your energy export into the grid but you wouldn’t pay a charge,” Mr Barr said. “Or you might say I want the premium service, and that means you’re guaranteed your export of all your energy but you’ll pay a small charge.”

Benn Barr, Chief Executive, Australian Energy Market Commission

The original proposal came from SA Power Networks with the St Vincent de Paul Society Victoria, Total Environment Centre and Australian Council of Social Service.

Charities and social services are concerned that people who can’t afford solar are unfairly disadvantaged and will bear the burden of costs to build a better grid that can cope with modern supply and demand.

Mr Barr said modelling in the commission’s report shows solar owners would be better off paying an export charge than losing the capacity to supply to the grid, under the current system.

Currently, home solar set-ups sometimes stop feeding into the grid when there is an oversupply of power, without owners realising.

In areas with limited grid capacity, there are restrictions on the size of new home solar systems. Last year the State Government introduced laws to allow the market operator to switch off inverters and stop solar power going into the grid when supply far exceeds demand. That happened earlier this month, for the first time.

The proposed rules would also provide an incentive for homes to invest in a battery, or an electric vehicle, which is a “battery on wheels”. Submissions are due by May 13.

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