Why are solar tariffs changing?
Over the next five years and beyond, we expect the number and average size of solar systems located in our network to continue to grow. As more residential and small business customers invest in their own energy solutions, they are using distribution networks (like Ausgrid’s) to not only receive energy but also to export solar energy back to the grid.
This changing use of our network means we also needs to change, to support the exported energy while continuing to provide a safe, reliable supply to all our customers. There is a cost to making this change. While we expect the total cost increase over in the next five years to be fairly small, it could grow significantly in the future. That's why we want to encourage customers to send their exports into the grid later in the day.
This tariff encourages customers to consume their own solar power first themselves or time their grid exports to later and keep energy bills lower for everyone across the network in the long term. It ensures that customers who cannot access rooftop solar systems or behind the meter batteries do not shoulder most of the increased costs.
These arrangements have been approved by the independent regulator (AER) after detailed consultation with key stakeholders, including customer representatives. Similar approaches are being adopted by other networks in New South Wales.
Who does this tariff impact?
The introduction of these prices is opt-in for the first year and comes after detailed consultation with key stakeholders, including customer representatives.
The impact on customers will depend on how retailers pass through the charges and rewards, and how and when households use the power from their solar systems.
Find out more in our factsheet: Two-way pricing for grid export.
How does the tariff work?
If the retailer fully passed through our two-way tariff, a typical 5 kW solar customer will see an annual bill increase of $6.60 per year. This includes $13.30 a year of charges offset by $6.70 of export rebate.
The tariff includes a free threshold. The amount you can export to the network for free depends on which month of the year your solar system or battery is exporting. The following free export thresholds apply to energy sent into the Ausgrid network between 10am and 3pm.
Solar Export Example
The example chart below shows how the threshold is applied on a typical November day.
The customer sends 307 kWh into the network between 10am and 3pm. As the free threshold for November is 205 kWh, the customer is only charged for 102 kWh ($1.19 for the month).
The customer is rewarded for 52 kWh that is sent into the network after 4pm ($1.21 for the month). The overall export charge to the customer for November is a credit of 2 cents.
