The Australian Solar Tax. Are They Really Going To Tax The Sun?

Why The Solar Tax Isn’t Anything To Worry About

The controversial proposal to tax excess solar power has certainly made some waves in recent weeks, and many people have contacted us with the concern that solar will no longer be worth it.

Nothing could be further from the truth…

First up, it’s important to understand the benefit of installing a solar power system.

Solar power is fed directly into the home to be used as it is generated. This means you aren’t buying power from the grid, which can save you thousands of dollars a year on your power bill. 

In the past (before battery storage became available), we wanted our customers to use at least 70% of the solar power as it was generated. The other 30% would be fed out to the grid, where you would be paid a feed-in tariff (FIT) by your energy retailer.

Let’s assume your FIT is around 12 cents a kWh, and then they introduce a tax of 1-2 cents per kWh for a few hours a day at certain times of the year, as proposed. Your hypothetical $47 credit a year now becomes $38.62. In summary:

Potential Savings on your power bill: $x,000’s (thousands per year)

Feed-in tariff: $47

Tax: – $8.38

Total benefit even with the tax: Totally worth it

These numbers, however, don’t take into account that most households are now looking to include battery storage with their solar system, which, along with Evergen Intelligent Control, is a complete game-changer.

To maximise the benefit of a solar power system, we are helping households size up a solar system to cover their full 24-hour power consumption.

During the day, excess solar power is directed into battery storage to be used at night. After the battery is full, 1KOMMA5° customers then use the Evergen Intelligent Control platform to further maximise the benefit of their system using either a VPP, or relying on the AI-powered software to self-optimise, factoring in 42 different data points including your energy tariffs and even the weather forecast – if a storm is coming, the Tesla battery tops itself up in case there is a blackout.

Taking this into consideration, the last thing on the mind of a 1KOMMA5° customer is a tax of 1-2 cents per kWh for any excess solar power being sent to the grid. It’s just not on the radar of a household with smart solar and intelligent control.

Smart Solar With Evergen Intelligent Control

Evergen Intelligent Control optimises solar and battery system performance, enabling homeowners to monitor their energy consumption, whilst taking control of their electricity costs and environmental footprint.

For households that choose to, there is also the option to sign up to a virtual power plant (VPP) where a set of de-centralised batteries are linked and operated by a single, centralised control system. In this case, any potential solar tax will again be irrelevant.

Once you opt-in to a VPP, your battery will be called upon at times to export stored energy back into the grid when needed.

You will then be paid much more than the standard feed-in tariff during these times, and you won’t be paying a tax.

The advanced functionality of Evergen means 1KOMMA5° customers aren’t the least bit worried about a potential solar tax.

As for households that have an older system solar system without battery storage or the ability to control where you send your excess solar power, now is the time to investigate options to ensure your system is going to be compatible with the smart-energy future that is fast approaching.

For more information, book a call with the 1KOMMA5° Team today, we’d be happy to help you understand your options and how you can move on from the idea of paying a power bill!