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When Does The Sun Tax Come Into Effect?

When Does The Sun Tax Come Into Effect?

When-Does-The-Sun-Tax-Come-Into-Effect

Are you worried about Sun Tax and how it will impact households and small businesses in Australia?

What is sun tax?

The sun tax was introduced to help manage the strain on electricity networks and ensure smoother operation. This new system introduces a two-way pricing structure specifically for solar customers, aiming to balance the flow of energy more effectively.

Under these rules, solar owners receive incentives for supplying clean energy to the grid. This encourages the production and use of renewable energy, supporting the transition to greener power sources. However, the system also includes measures to discourage solar owners from exporting electricity during times when the grid is already stressed or overloaded. By implementing higher charges during these periods, the sun tax aims to prevent additional pressure on the network.

When does the sun tax come into effect?

According to Canstar Blue, the new export tariff rule related to the sun tax was implemented in July 2022. However, the impact on most households and businesses won’t be felt until 2025, depending on the specific state or territory. Each state government has the authority to decide whether to adopt these rules, so it’s possible that you may not be affected at all.

What’s the big deal?

There’s been a lot of discussion about the sun tax, with many people calling it unfair and unnecessary However, the sun tax might not be as detrimental as some say, and the changes could offer more benefits than drawbacks for solar and battery owners.

One key point to remember is that these changes will be implemented gradually and only if state governments approve them. Even if you end up being charged, the impact on your annual expenses is likely to be minimal. Nonetheless, the rules are subject to change, so it’s wise to stay informed and consult with your provider to understand how these changes might affect you.

What can you do to benefit from sun tax?

Consider investing in solar batteries! Solar battery owners stand to benefit significantly by being rewarded for exporting power from their batteries during peak evening hours. This not only provides financial incentives but also helps in balancing the grid’s demand and supply more effectively.

Owning a solar battery can be a game-changer for both households and businesses. It allows you to store excess energy generated during the day and use it when demand is high, typically in the evening. This capability to manage and time your energy exports can lead to greater savings and increased efficiency in your energy usage.

For homes that don’t yet have a solar battery, there are still ways to optimise your solar energy use. One practical approach is to divert your surplus solar generation to power household appliances such as washing machines, dishwashers, or even electric water heaters. By using your solar energy directly, you can reduce the amount of power you export to the grid, helping to stay within the export limits set by your network distributor.

Your Solar & Electrical Experts

Established in 2020, Tropical Solar and Electrical Services is a locally owned and operated company servicing homes and businesses throughout Mackay and surrounding areas including MoranbahSarinaProserpine and Rockhampton. Whether it’s power on the roof or within the property, we’ll ensure it’s running as it should. Get in touch with our electrical experts today for a free quote. We’re available 24/7 for your convenience.

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