Australian Regulator draft ruling against ‘unfair’ solar charges in South Australia

August 2, 2016
Facebook
Twitter
LinkedIn
Reddit
Email
Flickr: Michael Coghlan

The Australian Energy Regulator (AER) has released a draft decision protecting solar users in South Australia from increased charges proposed by utility SA Power Networks (SAPN).

Distribution networks have designed new tariffs to take effect in 2017, which should reflect different patterns of energy use. AER said the aim is for electricity retailers to offer tariffs that support customers using solar panels, air conditioners, energy storage batteries or electric vehicles.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

However, AER recently assessed the South Australian utility’s tariff structure proposals, which involved solar users being charged a different rate to other electricity users. AER supported most of the reform proposals, but it issued a draft ruling that SAPN must address its customer assignment policies before the reforms can be approved.

The AER had already rejected the proposal last year, and this decision was supported by the Federal Court in December 2015. Other solar advocates branded the separate charges as “unfair”.

Clean Energy Council policy manager Darren Gladman welcomed the AER decision as good news for solar customers and businesses in South Australia – adding: “If the SA Power Networks proposal was successful, it would send a message that no matter what action people take to reduce their bills, they’ll get stung another way. Effectively: ‘You’re damned if you do and you’re damned if you don’t’.

“If this push was successful, it would have opened the door for similar and possibly much larger charges by operators in other states. We believed the proposal was unfair and campaigned strongly against it. We are pleased the AER agreed with our position.”

SAPN’s revised tariff structure statement is now due by 4 October 2016 and the AER will make a final decision on the tariff structures in February 2017.

The news comes in the wake of a raging national debate over whether renewables were the cause of major electricity tariff spikes in South Australia. However, new energy minister Josh Frydenburg stepped in to say it was a complex issue that could not be blamed solely on wind and solar farms.

Read Next

April 16, 2026
Tech giant Amazon has announced nine new renewable energy power purchase agreements (PPAs) in Australia totalling 430MW, with eight projects featuring solar generation co-located with BESS.
April 14, 2026
Fortescue has announced plans to build a 1.8GW renewable energy portfolio, with a 4-5GWh of batteries, in Western Australia.
April 14, 2026
Accelerating solar deployment and electrification offers Australia's most effective defence against volatile global energy markets, according to a new Climate Council report released.
April 10, 2026
Bellevue Gold has reported that approximately 90% of its electricity demand at its Western Australian gold mine was met by renewable energy in March 2026.
April 9, 2026
South Australia has opened applications for renewable energy feasibility licences across more than 11,000 square kilometres of land with some of the state's highest coincident wind and solar resources.
April 9, 2026
Researchers at the University of New South Wales (UNSW) have developed the world's first comprehensive map of ultraviolet (UV) radiation for solar modules.

Upcoming Events

Solar Media Events
June 16, 2026
Napa, USA
Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
March 9, 2027
Location To Be Confirmed