Solar Exports Are Losing Value—Here's How Your Business Can Respond

Solar energy has been one of Australia's greatest renewable success stories. However, the financial incentive for exporting surplus solar energy to the grid has significantly declined—some tariffs now approaching zero or even becoming negative. Businesses heavily invested in solar power generation face a real challenge: how to sustain profitability and maintain their renewable energy commitments.

According to recent reporting by ABC News, solar feed-in tariffs across Australia have dropped dramatically, in some cases by over 99%, leaving businesses to reconsider their strategies for leveraging solar energy effectively. Here is a trend showing feed in tariffs in Victoria over the last 5 years as a case in point.

Responding Strategically to Declining Solar Tariffs

While this might seem daunting, proactive businesses can still maximise the value of their solar investments through smart strategies. Here's a practical hierarchy of actions businesses can take, complete with examples and insights:

1. Prioritise Energy Efficiency Improvements

Improving energy efficiency should always be the first step, offering immediate and ongoing financial benefits. Energy-efficient upgrades reduce reliance on grid electricity at all times, making your business less vulnerable to fluctuating solar tariffs.  

While this is not going to address export issues when prices are negative, it helps optimise your cost base across the full time horizon of your energy use -whether thats 24/7 operations or day and afternoon shifts or just the traditional 8-10 hour daily business operations.

For instance, upgrading to energy-efficient lighting, equipment, or optimising manufacturing processes can significantly cut consumption. A recent Energy Efficiency Council report highlighted businesses achieving reductions of 20-30% in energy use with simple equipment upgrades.

2. Shift Flexible Loads to Midday

Solar power peaks around midday, making this the ideal time to consume self-generated electricity. Businesses can easily reschedule tasks and processes to match solar output, significantly reducing grid dependence.

For example, fleet managers can strategically schedule Electric Vehicle (EV) charging between 11 am and 2 pm. A company with a fleet of 10 EVs recently reported reducing their electricity bill by over 35% simply by timing their fleet's charging schedule to match their peak solar production hours.

3. Adjust HVAC Operations

Heating, Ventilation, and Air Conditioning (HVAC) systems can be major energy consumers, but they're also highly adaptable to load shifting. Systems such as split-system air conditioners are easy to program, enabling pre-cooling or pre-heating of buildings during peak solar production.

Additional HVAC systems suitable for rescheduling include:

• Chilled water plants

• Rooftop package units

• Centralised Variable Refrigerant Flow (VRF) systems

• Air handling units managed through Building Management Systems (BMS)

A recent case study from a medium-sized commercial building in Brisbane showed energy savings of 25% after implementing simple time-of-day adjustments via their BMS to align HVAC operation with midday solar production.

4. Install Export Curtailment Systems

Negative solar export prices aren't overly common yet, but they can quickly erode savings, and we expect they will be all too common as solar system penetration continues to grow. Businesses can install export curtailment systems that automatically reduce or halt solar exports during negative price periods.

Amber Electric’s technology is a practical example of how curtailment can protect businesses from unexpected charges while still enabling effective solar use.  everfocus is using Amber and we regularly see negative export prices here Queensland, so the curtailment function was highly valuable to our operations when rolled out in late 2024.

5. Negotiate Flexible Retail Energy Contracts

Working with energy retailers to secure tariffs rewarding load shifting and high self-consumption is essential. Flexible contracts might offer lower tariffs during midday or incentives for reducing peak-time consumption.

An example from Victoria highlighted a manufacturer who renegotiated their energy contract to leverage cheaper daytime rates due to their solar generation, resulting in annual savings of around 15% on their energy bills.

6. Explore Peer-to-Peer Energy Trading

Peer-to-peer (P2P) energy trading enables parties to sell excess solar energy directly to local parties. Platforms like the RENeW Nexus project in Fremantle, Western Australia, demonstrate the viability and potential of localised energy trading. In this project, residents traded solar-generated electricity directly, bypassing conventional retailers and achieving higher returns on their solar energy.

Such community-based trading creates local energy resilience and offers higher value for excess solar generation compared to traditional feed-in tariffs.  One of the partners in the RENeW Nexus project, Powerledger, has a solution called xGrid that enables households and businesses to sell energy generated from their solar panels to other energy consumers connected to the same electricity grid.

7. Invest in Battery Storage—but Consider Timing Carefully

Battery storage offers significant advantages, allowing businesses to store solar energy generated during low-demand periods for later use. Batteries can help businesses avoid unfavourable grid interactions and manage peak energy costs. Recent reports by the Australian Energy Market Commission (AEMC) indicate that the average payback for battery storage at mid-sized manufacturing facilities has reduced significantly—from approximately 19 years in 2016 to around 7.5 years in 2025.

However, battery technology is rapidly evolving, becoming cheaper and more efficient every year. Businesses considering battery investment might benefit from waiting a few more years. The cost reductions and technological improvements over the next 3-5 years may deliver even shorter payback periods, potentially making future investments substantially more attractive.

Taking a Holistic and Strategic Approach

While declining solar export tariffs may initially seem problematic, businesses have multiple avenues to maintain, and even enhance, the value derived from solar investments. Focusing first on efficiency and load management strategies can yield immediate financial and environmental benefits, with peer-to-peer trading adding an innovative revenue opportunity.

In the medium to longer term, strategic timing of battery investments can significantly improve returns, further enhancing your business’s energy independence.

Businesses that adopt these strategic responses proactively will not only mitigate the impact of changing solar tariff structures—they'll position themselves as leaders in sustainable, resilient business practices.

Ready to Act?

If your business is feeling the impact of declining solar export tariffs, start exploring these practical solutions today. Adopting an integrated, proactive energy management approach ensures your business can effectively navigate and thrive amidst the evolving Australian energy landscape.

everfocus can help you build your custom approach, or even just point you in the direction of applicable grants you might be able to access to assist with your investment into energy optimisation solutions.