If you have Solar on your roof you might have heard the buzz around the country lately about the Sun Tax. Last week Channel 9’s A Current Affair broadcast a case study example of how people with large solar panel systems are being charged by selling excess kW’s back to the grid.
Officially known as the solar export tariff, this proposed change has sparked plenty of discussion.
But what does it actually mean for you?
Let's break down how the Sun Tax will work, its potential costs, and how it might impact you.
What Exactly is the Sun Tax?
The Sun Tax is an export tariff that's designed to allow less pressure on the grid system by taxing people on the excess kW their home solar systems generate.
Approved by the Australian Energy Market Commission (AEMC) in August 2021, this tariff is part of a broader effort to balance our electricity grids more effectively.
Put simply: Currently, when we send our excess solar power back to the grid, we get paid a feed-in tariff (FiT) regardless of when we export it – whether it's high demand or not-so-busy times.
The 'sun tax' changes this by encouraging us to export our solar energy when it's needed most, like during peak demand periods, 5pm – 9pm in the evenings.
Conversely, exporting during times when the grid is saturated with solar power (think midday sun blasting across the country) could see us paying a small fee.
Now, the burning question:
How will this affect your wallet?
Well, the idea behind the 'sun tax' isn't to gouge us solar enthusiasts but to incentivize smarter energy use.
By aligning our exports with peak demand, we can earn more credit when electricity is most valuable.
Plus, this approach could help reduce strain on the grid, which benefits everyone in the long run.
Why Switching to Solar is still important despite added Tax
The Sun Tax is only conditional on a certain number of factors.
Therefore, switching to solar still makes a lot of sense, and here’s why:
As we navigate these changes, the key takeaway is that going solar in Australia is still the smartest move.
It's about adapting to a more dynamic energy landscape where our choices can make a real difference.
Whether you’re thinking about installing solar panels or already soaking up solar energy technologies, the sun tax is simply part of evolving towards a more sustainable future.
If you're keen to delve deeper into the world of solar energy and how it can benefit you, why not book a discovery call with us?
We're here to assist you every step of the way, whether you're considering installing solar panels, optimising your energy usage, or navigating the implications of the Sun Tax.
Our team provides personalised guidance tailored to your needs and helps you make informed decisions about your energy future.
To schedule your discovery call, visit https://bit.ly/3wkdZtK.
Source: https://www.canstarblue.com.au/solar/what-is-sun-tax/#most
