#What Is the Sun Tax in Australia?

The Sun Tax is a new energy tariff that charges businesses and homeowners for exporting excess solar power to the grid. It has already been implemented in Victoria, will take effect in NSW from July 1, 2025, and is expected to expand to other states in the near future.

Under the new rules:

Solar users will be charged for exporting excess energy during peak solar hours (10am – 3pm)
Feed-in tariffs are decreasing, with payments for exported power dropping significantly
Businesses will face increasing solar export costs, making battery storage more critical than ever

This shift means businesses can no longer rely on selling excess solar power to offset costs. Instead, Battery Storage is now essential to maximise solar savings and avoid rising export charges.

#How to Avoid the Sun Tax

To eliminate export charges and take full control of your energy costs, businesses should:

1️⃣ Install a Battery Storage System – Store excess solar energy instead of exporting it.
2️⃣ Use Stored Power During Peak Pricing – Avoid paying premium rates for grid energy.
3️⃣ Reduce Grid Reliance – Future-proof your business against rising government tariffs.

Battery storage ensures that your business maximises every kilowatt of solar energy produced, saving thousands on energy bills over time.

#Current Solar Export Charges by State

(As of March 2025)

State	Export Tax (10am - 3pm)	Feed-In Tariff (4pm - 9pm)	Impact on Business
NSW	1.2c/kWh	2.3c/kWh	Rising export costs, battery storage recommended
VIC	0.4c/kWh	Variable	Feed-in tariffs reduced, less return on solar exports
Other States	Expected soon	Expected soon	Solar tax likely to expand nationwide

Last updated: March 2025 – Rates may change as more network providers update their pricing structures.

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