What is the controversial 'sun tax'?

A new solar tax has been slammed by energy advocacy groups that say it’s ripping off customers who have made the switch to solar.

Transcript

00:00This is a kick in the guts for the everyday Australian who's been looking after their bottom line.

00:06A new solar tax has been slammed by energy advocacy groups that say it's ripping off customers

00:12who have made the switch to solar by effectively taxing the sun.

00:18The sun tax, as it's been dubbed, is a two-way pricing structure where customers are rewarded

00:24for exporting energy during times of high demand and penalised for sending energy at times

00:30when the electricity grid is overloaded with solar power, for example, in the middle of the day.

00:36At its core, it's designed to reduce congestion on the grid and encourage customers

00:42to consume their self-generated electricity.

00:46However, energy consumer advocacy groups aren't happy about this new reform.

00:51While the controversial tariff has been the cause of recent uproar in NSW,

00:57plans to implement it have been in place for years.