The 14th of March 2025 will go down in the history books as the day the details of the NSW Backstop mechanism were revealed to solar installers for the first time.
The NSW Backstop mechanism will become mandatory in NSW in 2025 and is arguably the single biggest issue facing NSW solar installers and owners. If it goes well, it will help stabilise the grid and allow larger systems to be installed. If it goes badly it could cost tens of millions in lost revenue and grind the industry to a halt. Again..
As an installers association, SEIA made sure that all three DNSPs and NSW Government were in the room, and extended their session to almost an hour at their annual Installers Conference, held in Sydney.
The DNSPs and Government revealed never before heard details of their Backstop plans to almost 140 delegates and SEIA was there to make sure installers views were heard loud and clear. The session was courteous and respectful, but absolutely no punches were pulled.
In summing up, MC Nigel Morris said “We are extremely grateful that you (the DNSP & Government delegates) came today and have been transparent about what you are planning, it’s step 1 of the process. But we implore you to not stop there like your Victorian counterparts who cost Victorian businesses and solar owners >$50Million dollars in lost revenue as a consequence of botching their scheme and failing to listen to industry. Please don’t ^&*^*&^%$$ this up the way they did”.
Here is a summary of just a few of the key issues raised by SEIA and installers on the day:
- Who are DNSP’s legally answerable to if this goes wrong?
- Has the Government developed minimum KPI’s or SLA’s for DNSPs to ensure they are meeting minimum expectations for the mechanisms satisfactory performance?
- Have the DNSPs considered a “Plan B” to minimise impacts, should bugs occur?
- Have the DNSPs considered applying a default export level that is not 0 in the event of connection issues?
- How many times per year is the Backstop expected to be used?
- What happens if owners don’t have internet, cellular or smart meters?
- Has the Government and the DNSPs considered bypassing the CEC Product listing to avoid the unacceptable delays and costs that have occurred as a consequence of their role in VIC?
- Are the DNSPs aware that a class action is being considered in Victoria as a consequence of the losses and impacts on industry and owners?
- Will NSW adopt a policy of “3 strikes and you’re out” for failed connection requirements, like South Australia?
- Have the DNSPs planned for the inevitable surge in call centre and support requests that will inevitably occur when the scheme starts and, will you recruit these staff before the scheme starts rather than afterwards as is the case in Victoria?
- Will the DNSPs introduce a single portal or multiple portals?
- How will legacy (existing) systems be treated?
- Will loads such as EV and HW be included?
- Are you considering Dynamic and Flexible as well as a Backstop mechanism and if so when?
- Will Government and DNSPs provide transparent information about successful and unsuccessful connection rates?
- Will Government and DNSPs provide transparent information about when and how often Backstop mechanisms are triggered, so owners understand system impacts?
- Have DNSPs considered how to overcome the issue of testing needing to occur during solar generation periods, which is hugely impractical?
- Will and industry reference group be established to ensure installers’ views are heard before the scheme rolls out?
The DNSP and Government were able to answer some of these questions on the day, providing invaluable information for members and delegates to prepare for the changes.Many issues (and innovative suggestions) were debated and taken on notice by the panel, who extended invitations to SEIA and members to provide immediate feedback and continue working together on collaborating for the best possible outcome.
SEIA is immensely proud to be the very first industry group to table these issues for NSW solar installers and is committed to ensuring your voices are heard.
Are you interested in hearing what the answers to these critical questions are and how it will affect your solar business? Then join SEIA now.
