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Australia intends to impose a tax on rooftop photovoltaics

Australia intends to impose a tax on rooftop photovoltaics

Apr 28,2021

As the Australian grid is unable to carry the huge local power transmission, the Australian Energy Market Council (AEMC) proposes to charge solar users for the transmission of solar energy to the grid. According to the published draft, AEMC proposes to impose a tax of 2 cents per kilowatt hour on solar power connected to the Internet at noon.

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Thanks to the government’s strong support, more than a quarter of Australia’s total power generation in 2020 will come from renewable energy for the first time, accounting for 27.7% of the total power generation, an increase of 3.7% from 2019. This increase is largely due to rooftops. Photovoltaic.

In 2020, Tasmania will become the first state in Australia where 100% of its electricity comes from renewable energy. The Tasmanian government has set a goal of 200% renewable energy by 2040. South Australia achieved a milestone breakthrough in October 2020, with 100% of its electricity coming from solar energy within one hour.


The status quo of the rooftop photovoltaic market


2020 is a year in which Australia's rooftop photovoltaic continues to surge, and both the number of installed capacity and the installed capacity have set a new record in history. A total of 378,451 systems were installed, with 3GW of newly installed capacity, an increase of 36% over 2019, and accounting for 23.5% of the total renewable energy power generation in 2020. Among them, the scale of photovoltaic systems installed in homes has also increased again, with the average system scale exceeding 8kW for the first time.


New South Wales ranked first in rooftop photovoltaic installations in 2020, reaching 927MW, an increase of 55% year-on-year in 2019, Queensland ranked second with 787MW installed capacity, an increase of 34% year-on-year, Victoria, Western Australia, South Australia, etc. The state closely behind.


Questions and suggestions


Due to the surge in rooftop photovoltaic installations, the Australian power grid is unable to carry the huge local power transmission. The Australian Energy Market Commission (AEMC) proposes to impose a solar tax on solar users. We believe that, without damaging Australian households’ enthusiasm for rooftop solar energy, introducing tariffs or formulating plans to promote the use of household energy storage equipment will help relieve the pressure on the grid.

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