CANBERRA, 12 February 2026 – Australian energy consumers are facing a significant shift in how they pay for the power grid, as the Australian Energy Market Commission (AEMC) and the Australian Energy Regulator (AER) move toward a “Netflix-style” subscription model. These reforms, aimed at addressing the rapid uptake of solar and batteries, have sparked intense debate over equity and the future of household energy savings.
Fixed Charges on the Rise
Recent proposals from the AEMC suggest a radical restructuring of network tariffs—the portion of the bill that covers the cost of poles and wires. The new direction involves increasing the share of fixed charges while reducing the variable component based on actual usage. Advocates for the change argue this provides more predictable revenue for distributors as grid electricity use declines due to self-generation.
However, consumer advocates have raised alarms this week, warning that the shift could result in a “Robin Hood scheme in reverse.” Reports indicate that low-income households could see their annual bills rise by up to $200, while those who have invested in solar and battery systems to lower their costs could be up to $700 out of pocket annually due to the diminished value of their energy-saving efforts.
The Shift to Midday and Export Tariffs
The National Electricity Rules (NER) now require distributors to set tariffs that reflect the “long-run marginal cost” of providing services. This has led to two major trends in 2025 and early 2026:
- Midday Off-Peak Tariffs: To combat negative pricing—which occurred in South Australia for nearly 30% of all hours in 2025—networks are introducing ultra-low or “free” electricity windows during the day to encourage consumption when solar production is at its peak.
- Export Tariffs: Often referred to as “sun taxes,” these charges apply to households exporting solar energy back to the grid during times of congestion. While controversial, regulators argue they are necessary to manage grid stability without expensive infrastructure upgrades.
Network Tariff Structure Overview
The following table outlines the primary components and objectives of the current Australian network tariff framework based on AER and AEMC guidelines.
| Tariff Component | Description | Regulatory Objective |
|---|---|---|
| Fixed Charge (Daily) | A set fee per day regardless of energy used. | Revenue stability for Distribution Network Service Providers (DNSPs). |
| Usage Charge (Volumetric) | Charged per kilowatt-hour (kWh) consumed. | Reflects the cost of transporting energy at different times. |
| Demand Charge | Based on the maximum power draw during peak periods. | Encourages customers to smooth out their energy usage. |
| Export Charge/Reward | Fees or credits for solar energy sent to the grid. | Manages grid congestion and incentivises battery storage. |
Impact on Solar and Battery Owners
The latest news from February 2026 suggests that the “golden era” of solar savings is being challenged by these regulatory reforms. As fixed costs rise, the “avoided cost” benefit of generating your own power shrinks. For many, the return on investment for home batteries is being recalculated as networks move toward subscription-based pricing that prioritises grid access over individual energy independence.
In New South Wales and South Australia, retailers are experimenting with “Solar Sharer” offers, providing free electricity for at least three hours a day to soak up excess renewable generation. While beneficial for those at home during the day, these offers often come with higher fixed daily supply charges.
Frequently Asked Questions
What is network tariff reform?
It is a process mandated by the National Electricity Rules to make electricity prices more accurately reflect the actual costs of maintaining the grid. This involves moving away from simple flat rates to more complex structures like time-of-use and demand charges.
Why are fixed charges increasing?
As more Australians install solar panels, they buy less electricity from the grid. Because network maintenance costs are mostly fixed, distributors are increasing daily supply charges to ensure they can still afford to maintain the poles and wires.
Will I be charged for exporting solar energy?
In some network areas, “export tariffs” have been introduced. These apply charges if you export large amounts of solar power during the middle of the day when the grid is already saturated, but they often include “reward” periods where you are paid more for exporting during the evening peak.
How can I avoid higher bills under these changes?
The best way to mitigate these changes is to shift heavy appliance use (like dishwashers, pool pumps, and laundry) to the middle of the day to take advantage of lower midday usage rates and reduce the amount of solar energy exported during “sun tax” periods.