Do Not Kick Battlers When They Are Down

This article examines the recent implementation of charges on solar panel owners in Australia for feeding excess energy back into the grid during peak sunlight hours.

It highlights the economic challenges facing Australian families, the role of government policies in creating this situation, and the impact of these new charges on households.

I argue that these charges are unfair and counterproductive, especially given the current economic climate.

I strongly believe we need a more balanced approach to managing the transition to renewable energy and I provide a couple of suggestions for citizen action to write to your local member and challenge these policies.

Table of Contents.

1.0 Don’t Kick Battling Solar Panel Owners When They’re Down.

2.0 The Root of the Problem.

3.0 The Impact on Australian Families.

4.0 The Broader Economic Context.

5.0 The Role of Electricity Distributors and Government.

6.0 A Call for Change and Citizen Action.

7. Conclusion: A Path Forward for Fair Energy Policies.

1.0 Don’t Kick Battling Solar Panel Owners When They’re Down.

The current economic climate in Australia is dire, putting enormous financial strain on families throughout the country.

With soaring electricity costs among the highest in the developed world and an ever-increasing cost of living, combined with rising unemployment rates, rising homelessness and an increasing number of people seeking hardship assistance from banks due to their inability to meet mortgage payments, Australian families face unprecedented challenges.

Exorbitant housing costs for both buyers and renters, combined with skyrocketing food and grocery prices, have exacerbated the hardships faced by Australians, making this last few years one of the most difficult periods in Australia’s history. 

Many families are not just struggling to make ends meet; they are no longer able to do so and cannot afford basic necessities.

Countless parents across Australia are distraught about their deteriorating financial situation and how they may be unable to stay in their communities due to the rising cost of living.

These financial pressures have far-reaching consequences, affecting families’ immediate well-being as well as their long-term stability and security.

Families are now facing some of the most difficult decisions of their lives, often sacrificing essential needs or relying on support services to survive and keep their children healthy. 

The current financial strains faced by Australians are causing significant harm, including increased stress, mental health issues, and strained relationships within households.

Charitable organisations are struggling to meet the demands placed on them, working tirelessly to provide practical and emotional support to vulnerable families during these difficult times.

In this context, you wouldn’t expect electricity distribution companies, some of which are partially owned by state governments, to devise plans that exacerbate the financial situation of struggling families.

However, this is exactly what is happening all along Australia’s east coast.

2.0 The Root of the Problem.

The current situation for solar panel owners in Australia is not solely the result of actions by electricity distribution companies.

Indeed, part of the problem stems from well-intended but poorly executed government policies at both the federal and state levels.

In their eagerness to transition to renewable energy sources, Australian leaders have been overzealous in providing funding and approving massive solar farms throughout the country.

While this push for solar energy is commendable in principle, it has been carried out without adequate foresight and planning.

The critical oversight has been the failure to ensure adequate grid storage capacity to handle the massive influx of commercial solar power that is currently being generated.

This lack of infrastructure planning has led to a situation where the electricity grid is overwhelmed during peak sun hours, particularly between 10 am and 3 pm.

The excess power being fed into the grid during these times is causing significant management challenges for electricity distributors.

In response to this issue, instead of addressing the root cause – the lack of adequate grid storage and management systems – these companies have opted for a controversial solution: charging homeowners with solar panels for the energy they provide to the grid during these peak hours.

This ‘sun tax’, as it’s colloquially known, is being implemented along the entire east coast of Australia.

The irony of the situation is stark. Millions of homeowners invested in solar panels in good faith, believing they were helping the country while also reducing their electricity bills.

These purchases were frequently accompanied by government encouragement and subsidies, but now the tide has shifted, and the same people who were once given thousands of dollars in subsidies are about to be penalised for contributing to the very renewable energy goals that the government has been promoting.

This approach not only undermines the financial benefits that homeowners expected from their solar investments but also sends a confusing message about Australia’s commitment to renewable energy.

For me, it certainly raises concerns about equity in the energy market.

While homeowners are subject to these new charges, it is unclear whether the same’sun tax’ is applied to large commercial solar energy providers.

After all, their contribution to the grid overload is arguably greater.

If this disparity exists, it would indicate a troubling imbalance in how the burden of grid management is distributed.

The situation demonstrates the critical need for a more comprehensive and well-planned approach to renewable energy integration.

It emphasises the importance of developing robust energy storage solutions and grid management systems capable of effectively managing the fluctuating inputs from both large-scale solar farms and home solar panels.

Without such infrastructure in place, the laudable goal of increasing renewable energy usage risks being undermined by short-term fixes that disproportionately impact individual homeowners.

3.0 The Impact on Australian Families.

The implementation of these new charges on solar panel owners couldn’t come at a worse time for many Australian families.

Under this system, customers are now being charged for electricity exported from their homes between approximately 10 am and 3 pm, with rates varying across different states and distribution networks.

While proponents argue that this pricing structure is necessary to manage the grid effectively, it disproportionately affects homeowners who rely on solar energy to help offset the current ridiculously expensive and ever-increasing cost of living in Australia.

Many homeowners invested in solar panels years ago in good faith, expecting long-term benefits and support for their contribution to a greener future.

The imposition of these charges during daylight hours places an undue burden on those who cannot afford solar energy storage systems and are already struggling financially.

It is a bleak reminder that mismanagement of the electricity generation and distribution system should not become the problem of struggling families.

One thing we should never do is kick people when they are down, and this principle should extend to the decisions our government leaders make and the companies they completely or partially own or regulate.

4.0 The Broader Economic Context.

These solar charges are being introduced against a backdrop of significant economic challenges in Australia.

Many Australians are facing unemployment, underemployment, or reduced income due to businesses struggling in difficult economic times.

The timing of such a decision exacerbates financial stress and could send many households into a tailspin.

For many families, solar energy has been a lifeline, the fact they took on the added expense of purchasing their solar systems in previous years has helped them to reduce costs in the face of rising living expenses.

This penalty undermines their efforts to manage their household budgets and contradicts the government’s purported support for renewable energy adoption.

The saying ‘Don’t kick people when they are down’ is a powerful reminder that governments and related bodies should exercise compassion, empathy, and care during harsh economic times, rather than imposing additional burdens on citizens.

After all, the fundamental role of government is to serve the people who elect it. Very roughly below are seven of their key responsibilities that I can think of:

1)    Representation: Governments are elected to represent the interests and will of the people. This includes making decisions that reflect the needs and desires of the populace.

2)   Legislation: Governments create and enforce laws to maintain order, protect citizens’ rights and promote justice.

3)   Public Services: Governments provide essential services such as healthcare, education, infrastructure and public safety.

4)   Economic Management: Governments manage the economy through policies that should positively influence employment, inflation and economic growth.

5)   Protection: Governments ensure national security and protect citizens from external threats.

6)   Social Welfare: Governments support the most vulnerable of the population through social programs and initiatives aimed at reducing poverty, helping them get through the toughest times in their lives and inequality.

7)   Responsible Governance: Governments are responsible for implementing policies and initiatives that protect the environment and promote sustainable practices. They must ensure that their actions are well-planned and do not create new problems while addressing existing ones. This includes conducting thorough assessments and prioritising comprehensive planning and infrastructure development to support sustainable solutions without imposing undue burdens on citizens.

In essence, the government is there to ensure the well-being and prosperity of its citizens, even if it means that they might need to admit they are wrong on occasion and apologize to their citizens.  One thing for sure, rational leaders inspire nations and irrational leaders with irrational grand green aspirations tend to do more harm than good.

When people are already struggling financially, the last thing a government or regulatory body should do is make their lives more difficult by increasing costs or imposing new charges.

Such actions are akin to ‘kicking them while they’re down,’ exacerbating their hardships and potentially pushing them further into financial distress.

Instead, governments should strive to alleviate the burdens on citizens during tough economic periods.

This could involve providing financial assistance, subsidies, or tax relief to help ease the strain on households.

It may also involve investing in social safety nets, job creation programs, and other initiatives to support those most impacted by economic downturns.

Ultimately, if governments wish to maintain public support, they must demonstrate empathy and compassion for their constituents’ struggles.

Imposing additional costs during harsh financial times is likely to be seen as insensitive and tone-deaf, potentially eroding public trust and confidence in leadership.

5.0 The Role of Electricity Distributors and Government.

It’s important to note that many of the electricity distribution companies implementing these charges are partially owned by state governments.

This suggests that these governments are fully aware of how unfair this policy is to people but are prepared to go ahead with it anyway.

For instance, in New South Wales, Ausgrid, one of the largest electricity distributors, is 49.6% owned by the state government.

Similar ownership structures exist in other states. This government involvement raises serious questions in my head about the motivations behind these charges and the prioritisation of corporate interests over the welfare of the citizens they are supposed to serve.

The situation becomes even more perplexing when we consider that these same governments have been actively promoting and subsidizing the adoption of solar energy for years.

It sends a conflicting message to homeowners who, in good faith, invested in solar panels with the expectation of long-term benefits and support.

6.0 A Call for Change and Citizen Action.

Given the unfairness of this situation, it’s crucial for Australian citizens to take action and by this I only refer to rational and legal action as anything other than this just makes the problems worse.

Here are some steps that concerned individuals can take:

1)    Contact your local political representatives: Reach out to your local MPs and state representatives. Express your concerns about these solar charges and how they impact your household budget. Remind them of the government’s commitments to renewable energy and ask what they’re doing to protect solar panel owners.

2)   Engage with media: Consider contacting local and national media outlets, including talkback radio stations. Share your story and express your dissatisfaction with these new charges. Public pressure through media can be a powerful tool for change.

3)   Join or form community action groups: Look for local community groups focused on renewable energy or cost of living issues. These groups can amplify individual voices and apply collective pressure on decision-makers.

4)   Participate in public consultations: Keep an eye out for public consultations on energy policy. These are opportunities to have your say on future regulations and policies.

5)   Support advocacy organizations: Consider supporting organizations that advocate for renewable energy and fair energy policies. These groups often have the resources and expertise to challenge unfair policies at a higher level.

6)   Educate and inform others: Share information about these charges with friends, family, and neighbours. The more people are aware of the issue, the more pressure can be applied for change.  Create a website such as this and start writing articles about the things that matter to you most.

7)   Consider your vote: Keep these issues in mind during elections. Support candidates and parties that have strong, fair renewable energy policies.

Remember, your voice has power. While it may seem daunting to challenge large corporations and government policies, history has shown that collective action can lead to significant change.

By speaking up and taking action, you can contribute to a fairer, more sustainable energy future for Australia.

The saying ‘Don’t kick people when they are down’ should serve as a reminder to our governments and energy companies that they have a responsibility to support citizens during tough times, not add to their burdens.

There’s only one thing I can think of worse than kicking someone when they are down and that is kicking a struggling battler experiencing severe financial hardship when they are down.

It’s time for a more equitable approach to managing our transition to renewable energy – one that doesn’t unfairly penalize those who have already invested in a cleaner future.