Originally published: April 2025
Last updated: August 2026

Feed-in tariffs have fallen in many parts of Australia, while electricity networks are changing how solar exports are managed. This has led to the term “sun tax” being used to describe certain solar export charges, lower export values and two-way pricing arrangements.

However, there is no single nationwide “sun tax” that applies to every Australian solar owner. The rules and tariffs vary depending on your state, electricity network, retailer and energy plan.

For households with solar, the practical question is: how can you use more of your own solar energy instead of exporting large amounts when its value is low? Battery storage can help by storing excess solar during the day and making it available when your household needs it most.

What Is the Sun Tax in Australia?

“Sun tax” is an informal term used to describe changes that can reduce the financial value of exporting excess rooftop solar to the electricity grid.

As rooftop solar has grown, large amounts of electricity can be exported during periods when household and grid demand is relatively low. Australia’s electricity market has responded with different approaches, including export charges, export rewards, time-based pricing and other network measures.

This does not mean every solar owner is automatically charged a tax for exporting electricity.

Instead, the impact depends on your local network and electricity plan.

The Australian Energy Market Commission (AEMC) has allowed distribution networks to develop export pricing options, while requiring safeguards such as basic export levels during relevant transition periods.

Is there a sun tax in every Australian state?

No. Solar export arrangements are not identical across Australia.

Some networks have introduced or are introducing two-way export tariffs, while others use different approaches to managing solar exports.

For example, the AEMC’s current pricing work identifies export charges, export rewards and minimum basic export levels as part of the changing network-pricing landscape.

This means solar owners should check their specific electricity network and retailer plan rather than assuming that a nationwide solar tax applies to them.

What About the Sun Tax in Queensland?

Queensland needs particular clarification because the term “sun tax QLD” can make it sound as though every Queensland household is already paying a standard solar export tax.

That is not the case.

For the 2026–27 network year, Energex is running a Residential Two-Way Tariff Trial. The trial uses different import and export price signals to encourage participating customers to shift energy use and exports away from periods when the local network is under stress.

The current Energex trial is aimed at selected residential customers with solar, battery storage and a smart meter. It is therefore more accurate to describe Queensland’s current situation as an evolving two-way pricing and tariff environment rather than a blanket “sun tax” affecting every solar household.

Your retailer also matters. Network tariffs and the retail electricity plan you actually receive are not necessarily the same thing.

If you’re a Queensland solar owner, check your current electricity plan and export arrangements before assuming that a “sun tax” applies to your home.

Why Are Solar Export Payments Changing?

Solar panels generate most of their electricity during daylight hours.

That can create a problem when many homes are generating and exporting electricity at the same time, particularly around the middle of the day.

The AEMC has noted that high levels of rooftop solar can create network challenges when large amounts of electricity are exported at times of low demand. Its current pricing reforms are intended to better reflect how electricity networks are being used and encourage more efficient energy consumption and exports.

For homeowners, this creates an important shift:

Generating solar power is only part of the equation. Using that electricity effectively can be just as important.

How to Reduce Your Reliance on Solar Exports

One of the simplest ways to get more value from your solar system is to increase your self-consumption.

Instead of exporting excess solar immediately, you can:

• Run appliances such as washing machines, dishwashers and pool pumps during periods of strong solar generation.
• Monitor how much electricity your household generates, uses and exports.
• Choose an electricity plan that suits your consumption and solar generation profile.
• Consider battery storage if you regularly export more solar than your household can use during the day.

The goal isn’t necessarily to eliminate all exports.

It is to make better use of the solar energy your system generates.

How Can a Solar Battery Help?

A solar battery stores excess electricity generated by your solar panels during the day so you can use more of that energy later, when solar generation falls and household electricity demand increases.

For example:

During the day:
Solar panels generate electricity → your home uses what it needs → excess electricity charges the battery.

In the evening:
Solar generation falls → your home can use stored energy before drawing additional electricity from the grid.

This can increase solar self-consumption and reduce the amount of excess solar you export during the day.

For homeowners considering battery storage, REA Power offers battery solutions designed to help households store excess solar energy and use it when it is most valuable to their energy needs.

However, the financial benefit of a battery depends on your electricity usage, feed-in tariff, battery capacity, system efficiency and other factors. A battery should therefore be assessed based on your actual household energy profile rather than a generic savings estimate.

Is a Solar Battery Worth It in 2026?

It can be, particularly for households that:

• regularly export a large amount of solar during the day;
• use more electricity in the evening;
• have a low feed-in tariff;
• want to increase solar self-consumption;
• want greater control over when they draw electricity from the grid; or
• are considering backup power as part of their energy setup.

However, a battery isn’t automatically the right choice for every household.

The potential savings depend on factors such as your solar system size, battery size, electricity consumption, feed-in tariff, electricity usage rate, household energy habits and battery efficiency.

That’s why a system should be assessed based on your actual energy profile rather than using a generic savings figure.

With and Without a Solar Battery: An Example

Consider a household that generates 30 kWh of solar energy in a day.

If the home uses 10 kWh while the sun is shining, around 20 kWh could potentially be available for export or storage.

Without a battery, some or all of that excess electricity may be exported to the grid and receive the applicable feed-in tariff.

With battery storage, some of the excess electricity can instead be stored for later use.

The value of that stored energy depends on the electricity rate you would otherwise pay, the amount of energy the battery can actually store and discharge, and the battery’s efficiency.

For this reason, a battery calculation should not assume that every exported kilowatt-hour can simply be converted into an equal amount of avoided grid electricity.

The actual financial benefit will vary from household to household.

How to Work Out Whether a Battery Could Save You Money

Before investing in a battery, start by checking your energy data.

Look at:

1. How much solar your system generates each day.
2. How much electricity your home uses during daylight hours.
3. How much solar you export.
4. How much electricity you purchase from the grid at night.
5. Your current feed-in tariff.
6. Your electricity usage rate.
7. Your existing solar and inverter setup.

Your inverter or energy monitoring app may already provide much of this information.

This data can then be used to determine whether increasing self-consumption with battery storage could make financial sense for your household.

Why Choose REA POWERBANK?

If battery storage makes sense for your home, REA POWERBANK can provide a way to store excess solar energy and use more of it when your household needs it.

The system can be configured around your home’s energy requirements, helping you make better use of the electricity your solar panels generate rather than relying entirely on daytime exports.

Battery storage can also provide greater flexibility as electricity pricing, feed-in tariffs and network export arrangements continue to change.

Why Choose REA Solar for Your Installation?

Choosing the right installer is just as important as choosing the right solar and battery technology.

REA Solar is headquartered in Redland Bay, Queensland, and services homes and businesses across South East Queensland and other areas of Australia. The company has an in-house team and designs solar and battery systems around each property’s energy requirements, rather than relying on a one-size-fits-all approach.

For a household considering battery storage, the assessment should take into account your existing solar system, electricity consumption, solar exports, available battery capacity and local network requirements.

REA Solar can assess your existing setup and discuss whether battery storage could help you make greater use of the solar energy your system already generates.

Practical Ways to Get More Value From Your Solar

A battery isn’t the only way to improve solar self-consumption.

You can also:

Use more electricity during the day

Run appliances such as your dishwasher, washing machine or pool pump while your solar system is generating electricity.

Monitor your exports

Check your inverter or energy monitoring app to see whether you’re regularly sending large amounts of electricity to the grid.

Review your electricity plan

Feed-in tariffs and electricity rates can vary between retailers and plans, so review your current plan regularly.

Consider battery storage

If you consistently export substantial amounts of solar while purchasing electricity later in the day, a battery may help shift more of your solar generation into your evening consumption.

Get a system assessment

An energy assessment can help determine whether battery storage is likely to make financial sense based on your actual consumption and solar generation.

Your Next Step: Assess Your Solar and Battery Options

The “sun tax” is not a single nationwide tax, and its impact varies between electricity networks, retailers and tariffs.

What is changing is the way excess solar electricity is valued and managed.

For many households, the most useful response is to increase self-consumption—whether that’s by shifting appliance use into daylight hours, reviewing your electricity plan, adding battery storage, or combining several strategies.

If you’re considering a battery for your existing solar system, REA Solar’s Redland Bay team can assess your current setup and discuss your options.

Call 1300 360 047 to speak with REA Solar about solar and battery storage for your home.

Frequently Asked Questions

What is the sun tax in Australia?

“Sun tax” is an informal term used to describe certain solar export charges, reduced export values or two-way pricing arrangements. It does not refer to one nationwide tax that applies to every Australian solar owner. The exact arrangement depends on the electricity network, retailer and tariff.

Is there a sun tax in Queensland?

Queensland does not have one blanket “sun tax” applying to every solar household. However, Energex is conducting a 2026–27 Residential Two-Way Tariff Trial involving different import and export price signals for participating customers.

Does the sun tax apply to all solar owners?

No. Solar export arrangements vary between networks and electricity plans. Some networks have introduced export pricing, while others use different approaches to manage solar exports. Check your network and retailer plan to understand what applies to your property.

How can I reduce the impact of low feed-in tariffs?

Increasing your solar self-consumption can help. You can shift some electricity use into daylight hours, review your electricity plan and consider battery storage if you regularly export excess solar during the day.

Can a solar battery help with the sun tax?

A battery can help reduce the amount of solar you export by storing excess generation for later use. However, the financial benefit depends on your electricity rates, feed-in tariff, energy usage and battery system.

Is a solar battery worth it?

It depends on your household. A battery may be more useful if you have significant daytime solar exports and higher electricity consumption later in the day. A proper assessment should consider your actual energy data rather than relying on a general savings estimate.

Can I add a battery to my existing solar system?

In many cases, yes. The available options depend on your existing solar panels, inverter, switchboard, system configuration and other electrical requirements. REA Solar can assess an existing system and discuss suitable battery options.

Should I still install solar in Australia?

Solar can still provide significant value by allowing households to generate and use their own electricity. However, the financial return depends on factors including system cost, electricity prices, feed-in tariffs, household consumption and how much of the generated electricity is self-consumed.

What should I check before buying a solar battery?

Look at your current solar generation, daytime consumption, grid purchases, solar exports, feed-in tariff and electricity usage rate. These figures provide a much better basis for determining whether a battery is suitable for your home.

Will solar export pricing continue to change?

Electricity network pricing is continuing to evolve as rooftop solar, batteries and other distributed energy resources become more common. The AEMC’s 2026 pricing review includes recommendations aimed at creating a more consumer-focused and efficient electricity pricing framework.