Govt announces stricter rules for solar power producers

The federal government has announced plans to tighten regulations on consumers generating electricity from solar systems, introducing new measures that could limit the sale of excess power to the grid. Under the proposed amendments to the Net Billing project, consumers would be required to install solar systems only up to their approved load. Currently, under the Net Metering project, users can contract for electricity generation exceeding their approved capacity, with allowances up to 1.5 times the approved load. As per the proposal, the new restrictions will align solar system installations strictly with the approved load. However, experts warn that this could reduce overall electricity production from solar systems, preventing users from selling surplus power back to utility companies. Consequently, energy companies would not be obligated to make payments to solar consumers for excess electricity generated under these conditions. Officials have described the move as part of broader efforts to regulate renewable energy generation and ensure grid stability, though it has raised concerns among consumers and solar energy providers about the potential financial impact.