Australian ‘sun tax’ utility pairs household PV with large-scale storage

Facebook
Twitter
LinkedIn
Reddit
Email
Computer rendering of the containerised energy storage, screenshot taken from Synergy / ARENA Youtube presentation. Image: ARENA.

A trial project using 1.1MWh of lithium-ion battery storage in two centralised containers to harness power from more than 100 rooftop solar systems has been installed in the Western Australia suburb of Alkimos.

Western Australia utility Synergy, alongside property and infrastructure solutions providers Lendlease and infrastructure developer LandCorp were responsible for the batteries, which are located in two shipping containers to store electricity generated by more the PV systems.

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

Last December, Synergy was embroiled in a spat with solar campaigners and solar homeowners after it proposed charging solar rooftop owners an extra fixed fee. At the time the utility claimed that there was a flaw in the fixed charges element of electricity tariffs, which resulted in many standard electricity consumers paying far more for their power than they should be. Solar industry groups and homeowners with PV systems branded the proposals a “sun tax” and claimed they were unfair.

The new storage trial aims to reduce Alkimos Beach’s demand for electricity from the grid, lower residents’ energy bills and cut grid-connection costs for any future developments. If successful, the trial will pave the way for follow-on projects with a view to establishing similar installations as a standard practice for new residential developments in Australia. Other trials of residential storage paired with solar have focused on smaller-scale batteries distributed at household level, in some cases connecting or aggregating those systems together to form 'virtual power plants'

Referring to the Synergy trial project, ARENA chief executive Ivor Frischknecht said: “Combining community-scale battery storage and rooftop solar presents a win-win for energy retailers, developers and consumers and can provide households with the benefits of storage without on-site installation and maintenance.”

“There is also a need to better understand how solar and community-scale storage can operate within traditional networks. For example, right now there are no tariffs that allow community energy storage to discharge onto electricity networks.”

Frischknecht said it was not yet clear which model would work better, placing batteries in individual households or centrally and that at present both options should be explored.

“There is not good data yet to say which model is better or which circumstances which model works in. You could have the same sort of impact on both the Network and people’s home energy costs by having lots of little batteries spread around all of these houses,” he told a press conference.

The latest AU$6.7 million (US$5.16 million) trial will run until 2020, having been supported with AU$3.3 million funding from the Australian Renewable Energy Agency (ARENA),

Environment minister Greg Hunt’s recent redirecting of AU$1.3 billion of ARENA funding into an innovation fund caused much controversy after industry commentators described it as a “disguised stripping” of the Agency's renewable energy budget.

ARENA is providing AU$17 million funding for nine renewable energy research and development projects looking at energy storage and solar PV among other technologies, but again questions have been raised about the long-term prospects of such R&D funding in Austrlia.

In related news, Western Australia's feed-in-tariff (FiT) comes to an end in 2021 and commentators have said that this represents a “perfect marketing opportunity” for energy storage retailers.

Read Next

July 27, 2026
Construction has begun on two new transmission lines as part of Western Australia's Clean Energy Link - North project.
July 27, 2026
Trinasolar, a Chinese module manufacturer, has started mass production of a 515W solar module developed exclusively for the Australian residential and commercial rooftop market, with first deliveries expected this month.
July 24, 2026
Ark Energy has secured a financial investment decision (FID) for its AU$1.3 billion Richmond Valley solar-plus-storage project in Australia.
July 24, 2026
Australia's CEFC the federal government's green bank, has named Paul McCartney as its new CEO, effective 18 September 2026.
July 24, 2026
Halocell Energy has signed a memorandum of understanding with MSWay to support the scale-up of its roll-printed perovskite solar cells.
July 23, 2026
Australia's Clean Energy Investor Group has urged the federal government to accelerate the implementation of the reformed Environment Protection and Biodiversity Conservation (EPBC) Act.

Upcoming Events

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
April 20, 2027
Istanbul, Türkiye