What is the Australian Sun Tax?

When we first had our solar system installed after moving into our house here in Australia, one of the big “pushes” was the face that we would be paid for any excess energy that we produced. This was the big “selling feature” in Australia by the government and all the solar retailers.

Well, turns out it was a “saying when an agreement is tricked and reversed”

A hidden “Sun tax” slugging Aussies who have made the switch to solar has been slammed by energy advocates as “madness” and a “rip-off”, accusing energy companies of “wanting to charge people” making energy from sunlight.

Distributors in some Australian states have moved in the sneaky tariff, known colloquially as a Sun or solar tax, as households begin to embrace the shift to renewables in the hopes of power bill relief.

But the new measures will result in those households being slugged for sending the solar energy they generate back to the electricity grid during peak times – something providers hope will encourage households to store their self-generated power and use it, rather than hoping for a credit if it is exported back to the grid.

A Sun tax refers to a new export tariff for customers using solar, part of a two-way pricing structure where users are effectively penalised for exporting solar-generated energy when the network is overloaded – such as in the middle of the day.

(source)

Already since we have seen the amount that we are paid for electricity that we feed into the grid cut to a pittance of what it was. And now they are planning to charge us for any electricity that we feed into the grid during the middle of the day, when the sun is at it’s peak.

The solution that the energy companies suggest are for consumers to spend $9,000 – $25,000 for a battery backup, which most people simply can’t afford!

In addition to some retailers now charging users when they export power, in the last few months they have increased the supply fee by 50%! Since the supply fee is fixed, users have no choice but to pay it, regardless of how much power they use.

Should I Clean My Solar Panels?

It’s coming to the time of year that we get reduced cloud cover and a lot more sunshine. This will mean that our solar panels will start to generate more power again, which is helpful. It’s been quite a while since I last cleaned them, so last weekend I picked up a soft bristle brush to have a go at cleaning them.

The last few times that I have cleaned the panels I have just hosed them off, letting the water pressure from the hose do the work of cleaning the solar panels. However this year I’ll be giving them a scrub to really clean them up.

I was curious about what kind of performance increase I would get from cleaning them, and after watching the below video, I reckon it’ll be pretty significant. Paul on the video managed to get a performance increase of about 30 – 40%!

Cleaning the solar panels should help a lot, especially with the ridiculous high cost of electricity here in South Australia…

AGL Digital / Smart Meters Lock You In!

AGL, our current electricity provider, recently updated us to a digital or “smart” meter. The specific model that they installed is an EDMI Atlas Mk10D.

EDMI Atlas Mk10D

Digital Smart Meter CompatibilityWhen we had the meter installed by AGL we were informed that we could opt out from the new meter. We decided to go ahead with it because it would allow us more detail of our energy usage. We also thought that we could change to any other provider we wanted to down the track, since on AGL’s own web site it states, “Yes, the digital meter is compatible with all energy retailers.”.

The screen shot on the right is from their web-site, where it is very clearly stated that it is compatible.

Well, guess what, it’s not!

With AGL’s recent price rise of 12% over last year’s prices (State’s largest energy retailer, AGL, set to hike electricity bill prices) we decided to shop around for a new retailer. We should be able to after all, since according to AGL the meter is compatible will all retailers.

After applying to Simply Energy for a new deal we received an interesting letter back from them:

Thank you for choosing Simply Energy. Unfortunately we are unable to complete your transfer of Electricity to us at this time.

You are not eligible to accept our Electricity supply offer as we cannot supply your meter type. We have terminated this agreement in accordance with the terms and conditions of the offer. This means that your Electricity will continue to be supplied by your current retailer.

Wait, what?

At first I thought that maybe Simply Energy was just behind the times, but after contacting SA Power Networks I was informed that there are other retailers in South Australia that do not support that meter. This goes directly against what AGL says on their own web-site.

Needless to say, I will be following up with AGL about this, I am frustrated, to say the least …

(Update)

On the AGL Facebook page they have pretty much admitted that it is not compatible with all energy retailers, this is what they originally said to our question:

We have been advised that some smaller retailers do not have the systems capable in order to accept customers with active stream digital meters, however, most retailers, especially the larger ones, should have no issue in accepting customers with these meters. In time, all retailers should have the internal systems capable of accepting customers with these types of meters.

So although in time it will be compatible with all retailers, it is not currently possible to transfer to any retailer in South Australia.

They edited their post slightly after originally posting it to say:

Active Stream digital meters have the ability to be compatible with all retailers. We are aware of a select few smaller retailers who currently do not have the systems in place to be able to process the data of customers with these types of meters, however almost all retailers definitely have the capacity to do this. In the very near future all retailers will have the ability to accept customers with an Active Stream meter.

So still, they have the ability to be compatible, but aren’t currently. Going against what they say on their own web-site…

Checking with the Australia Competition & Consumer Commission (ACCC) the define illegal claims as:

It is illegal for a business to make statements that are incorrect or likely to create a false impression. This includes advertisements or statements in any media (print, radio, television, social media and online) or on product packaging, and any statement made by a person representing your business.

For example, your business must not make false or misleading claims about the quality, value, price, age or benefits of goods or services, or any associated guarantee or warranty. Using false testimonials or ‘passing off’ (impersonating another business) is also illegal.

When assessing whether conduct is likely to mislead or deceive, consider whether the overall impression created by the conduct is false or inaccurate.

South Australia Electricity Prices on the Rise

South Australia Electricity RetailersPrices of electricity on South Australia are still on the rise…

Recently AGL, Origin Energy, and Energy Australia all greatly increased their prices by an average of about $200 per year. Unfortunately those big three retails account for nearly 80% of the market in South Australia.

South Australia is already paying an average of $400 per year more than customers in Canberra, with the big energy retails marking up costs by about $650 per year, per customer (source)…

photo credit: GOC The Pelhams 056: Pylons via photopin (license)