In the plan for how renewable energy will replace outdated and failing coal-fired power plants, Solar Citizens urges the National Electricity Market (NEM) Review Panel [1] to ensure that households and small businesses will be fairly supported to continue to play a leading role.
Solar Citizens CEO Heidi Lee Douglas said:
“The NEM Review will set the electricity market rules for the future—who consumers can contract with to buy and sell energy, how prices will be set and how they will be rewarded, which will impact how quickly Australia can shift to renewables.
“Our current National Electricity Market (NEM) was designed in the late 1990s, long before the rooftop solar boom. It was built for centralised, one-way power flow from large generators (coal, gas, hydro) to consumers.
“Now we have 4.2 million homes and small businesses with rooftop solar, who are both energy producers and consumers. They collectively make up about 12.8% of all electricity produced in Australia. [2] And this rooftop solar potential backed by battery storage can be doubled by 2035.
“So, we need an energy system that is designed to support and reward home energy producers, not just big energy businesses.
“The National Energy Market Review Panel’s recommendations will decide how fair and supportive home energy producers in our energy system will become. We urge them to take help to lead the world in the creation of a truly democratised, renewable energy system that then can be replicated globally.”
Distributed Energy Consultant Dr Gabrielle Kuiper said:
“This important review of the National Electricity Market provides a vital opportunity to ensure that households and businesses benefit from the renewable transition that Australia needs.
“To truly benefit households and businesses, tomorrow’s National Electricity Market must focus on rewarding demand-side solutions like smart use of hot water, efficient electric appliances, and electric vehicles including vehicle-to-grid technology.
“Households should be paid for flexing their demand when it's needed to support the grid, and be able to contract their flexible demand with a third party without being locked into their energy retailer. They should be able to access fair pricing and network cost sharing—so low-income and solar households aren’t penalised. Consumers should also have access to a national program to support the purchase of efficient, electric appliances and equipment that can be used flexibly to reduce peak demand.”
Solar Citizens urges the NEM Review panel to:
- Prioritise the demand side: Support a greater focus on smart demand-side solutions—like flexible appliances and vehicle-to-grid (V2G)-enabled EVs—to make households and businesses central to the energy transition.
- Empower all customers: Advocate for rule changes that allow small customers (households and small businesses) to choose new energy partners, not just big companies. Flexible trading relationships should be for everyone.
- Unlock household demand response: Back reforms that enable households and small businesses to easily join wholesale demand response programs and get rewarded for helping balance the needs of the energy market.
- Reform outdated network regulation: Call for a root-and-branch re-examination of how distribution networks are regulated. Ensure the system supports innovation, fair competition with consumer assets and consumer value, not just old monopoly practices.
- Say no to unfair higher fixed charges: Reject any push to raise the fixed portion of network charges. High fixed charges hurt low-income and low-usage consumers, and discourage the uptake of solar and energy efficiency.
- Deliver a national flexible demand deployment scheme: Push for a unified national program that rewards households and businesses for purchasing equipment which allows for shifting energy use to times when renewables are plentiful and prices are low, replacing outdated state-based schemes.
“This is our once in a century chance to secure a cleaner, fairer, and more flexible energy future, where households and businesses can fully participate in the rewards of moving to a more flexible, distributed and renewable energy system,” concluded Ms Douglas.
Download Solar Citizens Submission + supporting documents
a) Australia needs more efficient, smarter home hot water systems, Dr Gabrielle Kuiper, August 2024
b) NEM Reform: Unlocking the demand side in future energy markets, Dr Gabrielle Kuiper, July 2025
NOTES
(1) National Electricity Market Wholesale Market Settings Review, Dept of Climate Change, Energy, the Environment & Water
(2) Rooftop Solar hits 26.8GW as home battery uptake surges PV magazine, 15/9/2025