Utilizer

Energy Procurement

We provide bespoke business cases, feasiblity studies and net zero roadmaps.
Reduce costs and consumption while improving sustainability credentials.
Improve energy efficiency and enhance ESG credentials
Manage your utility accounts resolve problems, validate invoives

Latest Insights

Solar panel
January 01,2023

New Financial Year, New Solar Reality

| Author
2 People Inspecting a Solar Intallation

It’s 1 July, and while businesses are busy wrapping up EOFY admin, a very different kind of reset is happening in the background. The economics and expectations around solar and storage are shifting.

From falling feed-in tariffs to new battery incentives and tighter integration requirements, FY25 begins with a new solar reality. Here’s what' it means's changed:

Battery Incentives Expand

The federal Cheaper Home Batteries Program kicks off today, offering a 30% rebate on systems up to 50kWh. Several states are stacking on additional support:

  • WA offers rebates of up to $3,800, plus interest-free loans up to $10,000 for eligible households
  • TAS provides interest-free loans for battery-backed solar, which can be combined with the federal rebate
  • NSW now offers up to $1,500 for households and small businesses that connect their battery to a Virtual Power Plant (VPP)

But these incentives now come with some expectations. As governments push for more storage on the grid, they're also tightening the rules around how that storage behaves.

Battery value is no longer just about ownership – it’s about responsiveness:

  • In NSW, to access the $1,500 incentive, you must join a VPP, meaning a third party (like an aggregator or retailer) controls when your battery exports or discharges based on grid needs. This supports system stability but reduces your autonomy.
     
  • Networks are also tightening export conditions. In many regions, stricter export caps are in place, and solar/battery systems may need to be remotely controllable to connect, especially in congested zones.
     
  • Aggregators and embedded networks now face more technical and regulatory hurdles. If you're operating solar across an embedded network or managing distributed energy assets for others, you're under increasing scrutiny. You may need to prove your systems are controllable, metered correctly, and compliant with evolving network rules.

If your business manages solar assets across multiple sites or in an embedded network, passive solar is no longer the end game. Flexibility, integration, and smart dispatch are the new requirements.

Feed-in Tariffs Drop Sharply

As part of today’s changes, states across Australia have made major cuts to the rates paid for exporting solar to the grid. Changes to feed-in tariffs across the country reinforce a clear trend: exported solar is becoming less valuable. The return on sending excess energy to the grid has fallen dramatically in most regions — and in some cases, comes with new costs or conditions.

Here’s what’s changed:

  • Victoria - The minimum flat rate has dropped from 3.3c/kWh to just 0.04c/kWh — a symbolic shift that reflects how saturated the grid is during daylight hours.
  • South Australia - The state has removed the mandated minimum altogether. Retailers now set their own feed-in rates, which may fluctuate or vary significantly across providers.
  • Queensland (Regional) - The regulated tariff has been cut to 8.66c/kWh, down from over 12c/kWh last year. The QCA attributes this to lower daytime wholesale prices driven by excess solar supply.
  • Northern Territory - A new time-of-day FiT has been introduced: solar exported between 3pm and 9pm now attracts a higher rate (18.66c/kWh) to encourage generation during peak demand periods.
  • Tasmania - The minimum FiT has decreased slightly to 8.782c/kWh, down from 8.935c. While still relatively high compared to some states, the downward trend continues.
  • Australian Capital Territory (ACT) - There’s no regulated minimum FiT. Retailers offer varied rates, typically between 8c and 12c/kWh — but the bigger shift is the introduction of export charges. Some customers are now paying 1–3c/kWh for exporting excess energy during low-demand periods.
  • Western Australia (WA) - Under the Distributed Energy Buyback Scheme (DEBS):
    • Synergy customers (Perth and SWIS region) receive 10c/kWh from 3pm–9pm and 3c/kWh at other times
    • Horizon Power customers (regional WA) see varied rates depending on location
    • Only systems between 500W and 5kW are eligible, excluding many larger commercial systems.

The trend is clear: the value of exported solar has collapsed. Businesses relying on old assumptions around feed-in credits need to revise forecasts, and revisit the case for self-consumption and battery storage.

QLD's Grid-Scale Projects Face New Oversight

From today, Queensland requires large renewable projects to complete social impact assessments and offer community benefit agreements before development approval. This reflects growing scrutiny over how renewables are rolled out, and it’s likely other states will follow.

For energy users, the implications are clear:

  • Longer project timelines
  • Potential delays in PPA availability
  • More complexity in securing future supply

If your strategy includes corporate offtakes or project-linked agreements, it’s time to factor in longer lead times and rising approval risk.

Post-2025 Market Reform Commences

Today also marks the start of the Post-2025 Market Design rollout — a long-anticipated reform package designed to bring the National Electricity Market (NEM) in line with a more decentralised, decarbonised energy system.

Key shifts include:

  • More flexible, consumer-driven participation (e.g. VPPs, DER aggregation)
  • New firming and capacity mechanisms to support reliability as coal exits
  • Integration pathways for behind-the-meter assets like batteries and solar

These reforms won’t change pricing structures overnight — but they reshape the future value of flexibility, influence how retailers build portfolios, and will have flow-on effects for procurement strategy and risk management.

What Does This Mean for Business?

The solar landscape is shifting, and so are the assumptions that underpin your energy strategy.

  • Exporting excess solar is no longer financially reliable
    Feed-in tariffs have dropped off a cliff. Relying on solar exports as a revenue stream is no longer a viable plan.
  • Battery incentives are rising – but so are the strings
    Rebates are increasingly tied to participation in VPPs or network control schemes. Flexibility is now expected, not optional.
  • Market rules now favour active, flexible participants
    From embedded networks to corporate portfolios, systems that can respond to price, demand, or grid conditions will be rewarded.
  • Arbitrage is becoming more attractive, but more complex
    With time-of-day pricing and spot exposure more common, the ability to charge low and discharge high adds value. But it requires smart tech, accurate forecasting, and the right commercial structure.
  • The game has moved beyond cost savings
    It’s now about control, resilience, and strategic positioning, especially in volatile or multi-site environments.

With incentives shifting and export value diminishing, yesterday’s strategy may no longer stack up. Reach out to our expert energy consultants and we’ll help you reassess and build a smarter, more resilient energy plan.

More power to you.