Solar power household energy bills up but non-solar prices slashed under new reform

Households without solar power are set to have their power bills slashed, but the game-changing reforms will come at a cost to those with rooftop panels.

THE four out of five households without solar power will have their power bills slashed under reforms to make it easier for those with rooftop panels to sell electricity back into the grid.

The game-changing changes to the electricity market are seeking to manage how and when rooftop solar power can be sold back into the grid.

They are expected to slash $15 a year off the power bill for the 80 per cent of homes without solar panels.

In a worst-case scenario those with solar panels could miss out on up to $70 a year in savings on their bill.

Significant reforms are coming for rooftop solar. Picture: Raoul Wegat

But the Australian Energy Market Commission, the regulator behind the moves, warned that without the changes they would lose more cash and disrupt the electricity system as solar floods the market.

The changes will make Energex and other distributers upgrade the system into a “two-way street” to better deal with solar power being sold back into the system.

It will prevent power companies from blanket bans on customers selling their rooftop solar back into the grid.

But it allow them to set fees and charges around when it can be done, to encourage people to sell their solar at times of peak demand and use more of their own power during times of energy surplus.

It will be grandfathered so customers with solar panels already will not have their prices impacted until after July 1, 2025.

AEMC chair Anna Collyer said it was about preparing the electricity grid for an influx of more solar panels over the next decade, but in a way which would not disadvantage most users.

“The overall intent is to encourage more people to get solar and get the best benefit out of it … but doing it in a way that takes into account the interests of customers that don’t have access to solar,” she said.

Australian Energy Market Commission chair Anna Collyer. Picture: Supplied

She said the average solar household with 4-6 kilowatts systems currently saved $800 a year through generating their own power and selling some back to the grid.

Modelling indicated if a network imposed solar charges and the customer did not change their behaviour their savings would drop by $70.

But Ms Collyer said solar panel owners could make simple changes, like setting dishwashers and washing machines on timers to run during the day when there is more power generated from rooftop panels.

She said uptake of batteries overtime would also allow some households to store power during the day and sell it at night when there was higher demand to earn a higher price for it.

“By carving a path for smart solar, batteries and electric vehicles, more solar can be used, we will keep costs down for all consumers and protect the value of household solar investments already made,” Ms Collyer said.

“We don’t want to see solar going to waste. That costs everyone more because less cheap renewable energy gets into the system.”