Energy crisis Qld: ‘Sun tax’ hit looms for solar customers

Solar customers are being urged to make a significant change to their setups ahead of an impending “sun tax” that will see users charged for exporting power when there is low demand, as the state grapples with the ongoing energy crisis.

Solar customers are being urged to install battery systems ahead of an impending “sun tax” that will see users charged for exporting power when there is low demand, as the state grapples with the ongoing energy crisis.

LNP energy spokesman Pat Weir said Queenslanders would “continue to operate in the dark while the Palaszczuk government fails to detail its plan for future energy supply”.

“Solar users are rightly concerned that feed-in tariffs are dropping at a time when there should be incentives for the uptake of renewable energy,” he said. “The events of the last 24 hours have again proved the importance of a reliable energy network that prioritises network security and affordability.”

Clean Energy Council director of distributed energy Darren Gladman said “most solar customers still purchase some electricity from the grid so if electricity prices rise, they will be affected by that”.

He said the increase in wholesale electricity prices will (eventually) lead to an increase in the feed-in tariff (FiT).

Lauren Daley and children Winston (age 3), Charlotte (age 7) and Angus (age 5) with solar panels at their Clayfield home. Picture: Richard Walker

“This will make solar an even more financially attractive option in future, once the electricity prices increases have flowed through to consumers,” Mr Gladman said.

The AEMC Retail Price Trends report for 2021 estimates annual consumption in Queensland to be 5650kWh per annum, which is equivalent to about 15.5kWh per day.

A 5kW system in Brisbane is expected to generate about 21.0kWh per day on average.

But Mr Gladman said to avoid buying from the grid, “the electricity would either need to be consumed when it is generated or stored in a battery”.

“Sales of solar PV in Queensland in May were about 10 per cent above April figures – anecdotal reports from industry suggest sales are rebounding even more strongly in June,” he said.

It comes as the Australian Energy Regulator has confirmed a controversial shake-up to the solar industry that will see households charged for exporting solar electricity at certain times from 2025.

But experts say the impost can be navigated by avoiding peak times and making better use of energy storage systems.

Compare the Market’s general manager energy and utilities Brett Mifsud said when two-way pricing was introduced, families would likely be charged a fee to export during low-demand times, such as the middle of the day when solar electricity was generated.

Changes are set to come into effect from July 1, 2025, in Queensland to ensure the electricity grid isn’t overwhelmed by an upswing in solar use.

Storing excess solar electricity in batteries will allow it to be used when needed most or be exported back to the grid when the payback is higher.

Batteries can cost anywhere from a few thousand dollars for a smaller system to almost $20,000 for systems with more storage and inverter chargers.

Lauren Daley, who runs Al’s Plumbing and Gas from her home in Clayfield, said her family had been reaping the rewards of solar energy since 2017.

“99 per cent of the time it’s sunny Queensland but the solar panels definitely make a difference in summer when the aircon is running non-stop.”

Mrs Daley said they are also considering installing a battery system amid the current energy crisis and following weeks of unpredictable weather.

“It’s just one of those things we haven’t quite got to but you try to do everything in your power to reduce costs,” she said.

Ms Daley said her house is running 24 hours a day with “the business, three young kids, two washing machines and two dryers”.

“If we are not living in it (the house), I’m working in it.”