Thanks to the Australian Energy Market Operator (AEMO) and the Australian Energy Market Commission (AEMC) for providing the following information in response to questions about solar soaking for April 2025's article Hot tip: Cut costs with the thermal battery already in your home.
Statement from AEMO: 'Highly supportive' of solar soaking
"AEMO is highly supportive of initiatives that enable greater flexibility in the energy system, like the solar soaking trial. Such trials involve distribution network businesses, energy retailers and other service providers enabling smart control of customer's assets on their behalf. It is therefore up to those businesses to design services that meet customers’ needs and up to customers whether they wish to participate. AEMO's role is to primarily manage the grid and ensure its stability.
"We don't control customer equipment; however, we continue to collaborate broadly to identify and pursue opportunities to facilitate greater demand flexibility. AEMO has worked proactively with stakeholders to support development of new inverter standards, conduct innovative projects and trials to enable CER coordination, and progress crucial reforms.
"With effective coordination, our 2024 Integrated System Plan shows that these consumer energy resources have the potential to save around $4.1 billion of additional grid-scale investment that would otherwise be needed by 2050. The National CER Roadmap, endorsed by the Energy and Climate Change Ministerial Council (ECMC) in July 2024, provides a national approach to reforms to ensure Australians can harness the full potential of CER."
Information from AEMC
The current National Electricity Rules already allow networks to implement solar soak tariffs. Endeavour Energy and other distribution networks can expand such programs without requiring any rule changes from the AEMC.
The decision to expand these programs would be an operational matter for the networks themselves, subject to approval from the Australian Energy Regulator.
The AEMC is currently conducting a Pricing Review examining broader market settings, which includes looking at how to better integrate distributed energy resources like rooftop solar, but this review does not affect networks' existing ability to implement solar soaking programs.
Read more about recent decisions/rule changes to improve how customer energy resources (CER) are integrated into the National Electricity Market:
- A final determination on virtual power plants;
- The flexible trading framework for CER that empowers consumer choice and reduces energy costs;
- Work on accelerating the rollout of smart meters.
