Rule change proposal aims to support even more solar

SA Power Networks has joined ACOSS, St Vincent de Paul and the Total Environment Centre in proposing AEMC consideration of a rule change to help support more solar and other ‘Distributed Energy Resources’ (DER) connect to electricity distribution networks.

The issue needs addressing as many electricity networks are reaching their capacity to support DER and new investments are required to support additional DER take-up. We are proposing clearer rules on access to the network for solar and other DER customers and a pricing approach for that access.

The various parties have submitted proposals for a rule change following a 10 month consultation with over 120 stakeholders, across three workshops, undertaken by TEC and ACOSS and six other partners (AEMC, AER, ARENA, Energy Consumers Australia, Energy Networks Australia, and Public Interest Advocacy Centre) via the DEIP Access and Pricing Work program.

Most parties involved agree that a rule change is necessary, but any changes approved by the AEMC should provide customers with significant notice. If approved, they would not be implemented in South Australia until 2025 at the earliest. SA Power Networks is proposing a rule change that would ensure:

Customers have the right to be able to export energy to the grid from rooftop solar and other DER;
Networks invest efficiently to support the continued take-up of solar PV; and
Costs to support solar PV are fairly allocated between customers and in a way that is revenue neutral for distribution networks.

Some key points:

We are passionate about supporting South Australia’s exciting energy transition and have a significant role to play in helping SA achieve net-100% renewable energy supply
This proposal does not increase network revenue (which is approved in a separate process by the Australian Energy Regulator) – it is about how we allocate tariffs to collect that approved revenue from customers for the services they use.
The reason we believe this needs to be actioned is because networks are reaching the limits of their capacity to support solar/DER and without investment, at some stage new DER customers will no longer be able to connect, or will have their export capacity severely limited.
The rule change if approved would be unlikely to take effect until after 2025 in SA and initially only apply to new customers or those upgrading their equipment
We are talking about a minimal charge of ‘tens of dollars’ per annum, with any $ gained from tariffs for exports balanced by a reduction in $ for consumption tariffs
The intent is for solar customers to contribute toward the cost of supporting their connection but also recognising the positive benefits they also bring
There will be significant consultation by the AEMC in finalising a position and any consequent rule change.

You can click here to see our media statement, our Frequently Asked Questions and our rule change submission. More information is also available at the AEMC website.