Emergency Backstop in Australia: A Guide for Solar Consumers

Australia has made notable strides in renewable strength, with solar power main the way. But with this transition comes new challenges, especially at some point of instances while solar electricity manufacturing exceeds call for. In reaction, Australia is introducing an emergency backstop for sun structures, designed to save you capability grid instability and ensure a steady power supply. This weblog will explain what the emergency backstop is, how it works, and what it means for sun customers in Australia, in particular in Victoria.

What is the Emergency Backstop?

An emergency backstop is a mechanism designed to stabilize the electricity grid during rare instances when the energy supply is at risk of becoming unbalanced. Specifically for solar energy, this occurs when solar energy exports (the energy generated by rooftop solar panels and sent to the grid) are too high while electricity demand is low.

In such scenarios, the grid could become overwhelmed, leading to instability, local voltage issues, or even outages. To prevent this, the emergency backstop allows distribution businesses to remotely turn down or temporarily switch off rooftop solar systems. This measure is used only as a last resort and will not affect the electricity supply to your home.

The backstop is a safeguard or contingency plan that steps in to stabilize or restore normalcy when regular mechanisms or markets fail.

Why Does Australia Need an Emergency Backstop?

Australia, particularly in states like Victoria, has seen a rapid increase in the number of households and businesses installing rooftop solar panels. According to the Victorian Government, the goal is to have 1 in 3 households equipped with solar panels by 2025.

However, the surge in solar energy production can sometimes exceed the capacity of the electricity grid to handle it, especially on mild, sunny days when energy consumption is low. This creates a risk of destabilizing the grid.

The emergency backstop helps ensure that as more solar systems are installed, the grid remains secure and capable of managing the increasing energy exports. This way, Australians can continue to benefit from clean, renewable energy without compromising the stability of the electricity network.

How Does the Emergency Backstop Work?

The emergency backstop is part of a broader effort by the Australian Energy Market Operator (AEMO) and distribution businesses to manage solar exports during rare energy emergencies.

How does it work?

The backstop is only activated in situations where there is too much solar energy being exported to the grid, which threatens to cause instability.

What happens?

If the grid becomes unstable, your solar exports will be reduced. Initially, this means that the energy you send to the grid from your rooftop system will be minimized. In extreme cases, your solar system may be temporarily switched off, but only as a last resort and for a short period​.

Your electricity supply

The emergency backstop does not impact your household’s ability to use electricity. You will still be able to consume power, including from your own solar generation, even if the export is limited.

Who Will Be Affected by the Emergency Backstop?

The emergency backstop applies to new and replacement solar systems with a capacity of 10 kilovolt-amperes (kVA) or more. It is being introduced in two phases:

From October 25, 2023:

Large solar systems (greater than 200 kW) must be equipped with emergency backstop functionality.

From October 1, 2024:

Small and medium-sized systems (equal to or less than 200 kW) will also need to comply.

If you already have a rooftop solar system installed before October 2024, these changes will not affect you unless you decide to upgrade or replace your system. New installations must be equipped with compatible inverters that can be remotely managed and have a reliable internet connection.

What Do Solar Customers Need to Do?

If you are planning to install or upgrade your solar system after October 2024, there are a few requirements to ensure your system is emergency backstop-enabled-

• Compatible Inverter: Your inverter must be capable of having its export and generation remotely managed by distribution businesses.

• Reliable Internet Connection: This allows communication between your system and the grid to ensure the backstop can be activated when necessary.

If your system is not connected to the internet, a lower export limit may be applied. However, once you reconnect your system, you can apply to have this limit removed.

Impact on Solar Export Earnings

One concern for solar customers is how the emergency backstop might affect their feed-in tariffs—the money they earn from exporting excess energy to the grid. If the emergency backstop is activated, your solar system will stop feeding energy into the grid, and you won’t receive income for that period.

The Victorian Government has estimated that the loss in income will be minimal—between $4 and $7 per year for most households. This can be reduced further by consuming more of your own solar energy rather than relying on feed-in tariffs.

How Will You Be Notified of Backstop Activation?

Whenever possible, distribution businesses will notify you in advance if the emergency backstop is going to be used. Information will also be posted on their websites, similar to how power outages are communicated.

Final Thoughts

How the Emergency Backstop Fits into Australia’s Energy Future?

The introduction of the emergency backstop is one of several measures being taken to manage the growing use of solar energy in Australia. Other initiatives include:

• Flexible Exports: This system allows solar customers to export more power when grid conditions permit, offering more flexibility than the current fixed export limits.

• Increased Energy Storage: The government is investing in grid-scale battery systems to store excess solar energy, which can be used during peak demand.

These efforts are designed to reduce the need for the emergency backstop in the long term and ensure that more Australians can install solar panels without overwhelming the grid.

For solar customers in Australia, particularly those in Victoria, the emergency backstop is a necessary measure to ensure the stability of the electricity grid as more households adopt solar power. While it may limit solar exports during rare emergencies, the backstop ensures that the transition to renewable energy continues smoothly and that the grid can handle growing solar capacity.

By understanding the requirements and implications of the emergency backstop, solar customers can make informed decisions about their energy systems and continue to benefit from clean, renewable energy without compromising grid security.

What Does the Emergency Backstop Mean for You?