The Sun Tax for Homeowners
You might have heard about the so-called “sun tax” coming next year. It’s a new charge that will apply to homeowners who feed electricity from their solar systems into the grid during the middle of the day. Understandably, this has raised some concerns, but we’re here to reassure you—it’s still very much worth it to invest in solar.
What Exactly Is the Sun Tax?
The “sun tax” is essentially a charge for exporting excess solar energy to the grid when there’s already too much power being generated, which usually happens in the middle of the day. Energy companies say this helps manage grid congestion. While this might sound frustrating, the charge is likely to be quite small. It won’t drastically affect the amount you’re saving by having solar, and solar is still one of the best ways to reduce your energy bills long term.
Is Solar Still Worth It?
Absolutely. Solar panels generate electricity for free once installed, and the amount you save on your energy bills will still far outweigh any small charges from the sun tax. Most homes use the majority of their solar power during the day to run appliances and reduce the amount of electricity they need from the grid.
Even with the sun tax, solar panels will significantly lower your electricity bills, especially as grid prices continue to rise. In the long run, you’ll still be saving thousands of dollars, making solar one of the best investments you can make for your home.
How Can You Avoid the Sun Tax?
One option is to install a home battery system alongside your solar panels. A battery lets you store excess electricity during the day rather than feeding it back into the grid, so you can avoid the charges altogether. You can then use this stored power in the evening when energy prices are higher, saving you even more on your bills.
The other option which most people do is to be sure to consume the energy your panels generate during the day within daylight hours. This is easy if one member of the family is typically home during the day, as they can switch on the dishwasher, washing machine and other high demand appliances between 10am and 3pm. If no-one is home during the day, timers can be purchased and set to switch on appliances within this time period, to ensure you’re using up all of your energy.
The Bottom Line
While the “sun tax” might seem like an extra hurdle, it’s not a reason to shy away from going solar. The savings on your electricity bills, plus the environmental benefits, still make solar a fantastic option. And if you want to avoid any charges, there are strategies - like being tactical about energy use, investing in a battery or ensuring your home is even more energy-efficient - that can help.
Solar is still a smart financial decision—both for your home and your wallet.
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