If you’ve got solar panels, or you’re thinking about getting them, you might have heard murmurs about a so-called “sun tax.” While it sounds dramatic, the reality is a bit more nuanced. And as with most things in energy, whether it’s a cost or an opportunity depends on how your home is set up.
Here’s what the sun tax in Australia actually is, how it works, and what it means for you.
So… what actually is the sun tax?
The sun tax (also called a solar export tax or two-way tariff) is a new pricing structure that applies to households with solar. It was introduced by the Australian Energy Market Commission (AEMC) to help the grid manage the huge influx of solar power during the day.
This cost is passed on by networks - the ones who manage the distribution of energy via the poles and wires - to energy retailers. Energy retailers then pass this cost onto consumers.
Put simply: if you export excess solar when the grid doesn’t need it, typically around midday, you might be charged a small fee. But if you export in the late afternoon or early evening when demand is high, you could actually earn more.
So while some see it as a tax on solar feed-in, it’s really a signal: use your solar when it's most useful, store it when it’s not, and get rewarded when you support the grid.
When and where is the sun tax being applied?
As of July 2025, the sun tax is live in parts of Australia:
- NSW: Ausgrid’s mandatory two-way tariff begins from July 2025.
- South Australia: SA Power Networks also introduced solar export charges from July 2025.
- Queensland: A draft proposal for 2026 was rejected for now.
- Victoria, Tasmania, WA and NT: No sun tax in these regions (yet).
Whether you’re affected depends on your state, your electricity distributor, and how much energy you’re exporting.
Why is the sun tax happening?
Australia has one of the highest rooftop solar uptakes in the world, with over 3.6 million homes and counting. That’s great for emissions but tough on a grid that wasn’t designed to handle so much solar all at once.
The result? Midday solar oversupply, low or negative wholesale prices, and increasing grid instability.
The AEMC solar tax, as some call it, is an attempt to fix that by encouraging households to export when it helps the grid, and avoid dumping excess energy when it doesn't.
What does this mean for your bill?
If you’re exporting large amounts of solar in the middle of the day, and you’re on a network like Ausgrid or SA Power Networks, you might start seeing small new export charges from July 2025.
But here’s the flip side: if you export in the late afternoon or evening, your feed-in tariff could be higher than what flat-rate plans used to offer.
In other words, timing is everything.
How to reduce the impact of the sun tax
Here’s how to stay ahead of the changes and maybe even profit from them:
Use more solar at home
Running your washing machine, dishwasher or heat pump during the day helps soak up your own solar and reduce exports when they’re less valuable.
Add a battery
Batteries store excess solar so you can use it later, when demand is higher and prices spike. With Amber’s SmartShift, your battery can automatically charge and discharge based on real-time prices, helping you avoid charges and earn more.
Optimise your EV
EVs have big batteries, sometimes 5 to 10 times the size of a home battery. Charging during the day and, eventually, exporting back to the grid with vehicle-to-grid (V2G) tech unlocks even more value.
Automate it all
Amber connects your solar, battery and EV to live wholesale prices, automating when to use, store or export energy for the best financial and environmental outcome.
The takeaway?
The sun tax in Australia isn’t about penalising solar households. It’s about making the grid smarter, more balanced and more efficient as we move toward a fully renewable future.
If you’re already using solar, or planning to invest in solar, a battery or an EV, Amber gives you the tools to stay ahead of the changes, save more and play an active role in the energy transition.
Because in this next phase of renewables, it’s not just about having solar. It’s about using it well.
