Solar Industry Urges Governments for Better Emergency Switch-off Plans
New South Wales is facing a significant challenge in its solar industry as plans are underway to enforce a rooftop solar switch-off mechanism. This move is considered the most critical issue affecting both the state’s solar sector and PV system owners. Concerns have been raised about the potential financial losses and disruptions to businesses if the implementation is mishandled.
Last Friday, the NSW Emergency Backstop Mechanism, designed to limit solar exports during emergencies to prevent blackouts and ensure grid stability, was disclosed to industry stakeholders. It is expected that compliance with this mechanism will become compulsory later this year.
Implications for Solar Installers and Consumers
For solar installers and consumers, the new regulation means that all solar systems installed or upgraded after the expected implementation date in Spring 2025 must meet specific technical requirements. These requirements will enable the systems to be remotely controlled and switched off during emergency situations.
Lessons from Victoria’s Experience
The solar industry is urging the NSW government and network companies to learn from Victoria’s mistakes. Victoria’s hurried introduction of a mandatory backstop mechanism in 2024 led to chaos for installers and a loss of consumer trust. It is crucial to avoid repeating such errors to maintain industry credibility and consumer confidence.
The concept of emergency solar switch-off powers, also known as the Big Solar Button, was first introduced in Australia in 2020. South Australia implemented the Smarter Homes regulation, requiring new residential rooftop solar systems to disconnect and reconnect from the grid as directed by the Australian Energy Market Operator (AEMO) through a third-party agent.
AEMO has since advocated for the establishment of emergency rooftop solar switch-off mechanisms nationwide to manage the increasing number of solar systems, which collectively have a substantial generation capacity. This capacity could potentially meet almost half of the country’s energy demand during peak sunlight hours.
Challenges Faced by Installers
Installers have encountered difficulties adapting to varying rules and technical standards across different states and networks. In Victoria, where multiple network companies implemented different approaches, the rushed rollout of the backstop mechanism caused significant disruptions within the industry.
According to the Smart Energy Council, the aftermath in Victoria resulted in financial losses, operational challenges, and a negative impact on mental health within the industry. Efforts are now underway to address these issues and improve coordination between stakeholders.
Industry Calls for Collaboration
The Solar Energy Industries Association (SEIA) has been actively engaging with the NSW government and network companies to ensure that installer concerns are taken into account. There is a collective push for a consistent national approach to emergency backstop mechanisms to avoid the pitfalls experienced in Victoria.
The SEIA emphasises the importance of industry involvement in decision-making processes to prevent costly mistakes and maintain industry integrity. Suggestions have been made for a more coordinated and inclusive approach to policy development in the renewable energy sector.
Efforts are being made to align industry interests with regulatory requirements to foster innovation and sustainable growth in the solar and battery sector. The focus is on finding effective solutions to energy demand challenges through collaborative initiatives and supportive schemes.
The solar industry is advocating for a strategic and well-coordinated approach to emergency backstop mechanisms to ensure a smooth transition and minimise disruptions. By learning from past experiences and prioritising industry input, the aim is to build a robust and reliable framework for the future of solar energy in New South Wales.
