Australian regulator dumps solar tax proposal to avoid ‘death spiral’

Facebook
Twitter
LinkedIn
Reddit
Email
AEMC was concerned that imposition of charges for export of energy from distributed generators may prompt a death spiral. Credit: ARENA

The Australian Energy Market Commission (AEMC), responsible for regulating the energy market, has dropped a proposal to let power network companies charge rooftop solar owners for feeding their electricity to the grid in a form of ‘solar tax’, after facing resistance from communities.

Shani Tager, senior solar campaigner at PV support group Solar Citizens, said: “It was an outrageous proposal to begin with and has been rightly taken off the table. 2,500 solar owners across Australia made it very clear to the AEMC that this was an unacceptable approach and they should not be charged for exporting their clean solar power to the grid.

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

“The big power stations don’t have to pay to export the energy they generate to the grid and solar households shouldn’t have to pay either.”

Tager said this is the second time that the AEMC has attempted to introduce similar charges and withdrawn after facing opposition from solar owners.

In its Distribution Market Model Final Report, AEMC said: “If consumers want to use the electricity from their solar panels or batteries they can, and if they do not need it – or value the income more from selling it more than their own use – they can sell it to whoever values it the most at a particular point in time.”

After noting that the access and connection charging issue had received the most amount of feedback, AEMC conceded that “further work was needed to understand whether distributed energy resources create benefits, or impose costs on the distribution network”.

It also said: “Further work is needed in order to understand what consumers want e.g. loss of open access for distributed generators or imposition of charges for export of energy from distributed generators may prompt a death spiral.”

AEMC’s report stated that investment in rooftop solar PV systems will continue to grow, with nearly 20GW installed by 2036/37 compared to less than 5GW in 2017. Meanwhile, residential and commercial battery storage uptake will exceed 5.5GW also by 2036/37.

In other positve news from June, Australian utility AGL increased its solar feed-in tariff (FiT) rates to ensure the benefits are not eroded by increasing wholesale electricity prices.

Read Next

May 18, 2026
OX2 has started construction work at its Muswellbrook project, which combines 135MW of solar capacity and 100MW of batteries.
May 18, 2026
ACEN Australia has revealed an 87% year-on-year increase in generation output for the first quarter of 2026, reaching 528GWh.
May 15, 2026
Construction has commenced on New South Wales’ (NSW) first integrated green hydrogen and ammonia production facility in Australia.
May 13, 2026
European Energy Australia is set to commence solar module installation at its 100MWac Winton North solar plant in northeast Victoria.
May 13, 2026
Australia will return AU$1.3 billion in uncommitted funding from clean energy manufacturing programmes as part of broader budget savings.
May 12, 2026
Iberdrola Australia has completed the installation of solar modules at its 377MW Broadsound solar-plus-storage project in Central Queensland.

Upcoming Events

Solar Media Events
May 20, 2026
Porto, Portugal
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Media Partners, Solar Media Events
June 2, 2026
Johannesburg, South Africa
Media Partners, Solar Media Events
June 3, 2026
National Exhibition and Convention Center (Shanghai)