Energy consumers in NSW are embracing solar. Around 1 million households and small businesses in NSW have rooftop solar systems, which is around a quarter of all homes in the state.
The NSW Government has committed $290 million through the Consumer Energy Strategy to ensure everyone can benefit from energy saving technologies like rooftop solar and batteries while keeping the grid stable and reliable.
We are supporting the uptake of energy saving technologies by working with industry and distribution networks to improve the way we connect rooftop solar and batteries to the electricity grid.
We are also introducing important protections to keep the grid stable and reliable. This will help us as we transition away from gas and coal, and towards clean energy, like rooftop solar, wind, hydro, and large-scale solar.
The Emergency Backstop Mechanism
The Emergency Backstop Mechanism is a safety measure that helps protect the electricity grid during rare emergency conditions to reduce the risk of potential power outages. It is a key protection required by the Australian Energy Market Operator (AEMO). The Emergency Backstop Mechanism will allow NSW distribution networks (Ausgrid, Endeavour Energy and Essential Energy) to temporarily reduce rooftop solar exports to the grid or pause generation, but only when instructed by AEMO. A backstop mechanism has already been implemented in Western Australia, South Australia, Queensland, and Victoria.
Why we need an Emergency Backstop Mechanism
Homes and businesses with energy saving technologies such as solar often generate more electricity than they use and feed excess power back into the grid. This is a great way for households to save money and cut emissions.
As more households invest in these technologies, there are times when a lot of electricity is being sent to the grid, especially during sunny days when demand is low. This can create an imbalance that puts pressure on the electricity system and may lead to power outages if not managed properly.
The emergency backstop is a last resort to keep the power system secure in rare emergency conditions. It will only be actioned to keep the lights on if nothing else is working.
By introducing this last resort safety net for our energy system, it means that more rooftop solar can be safely connected to the grid and provide reliable, clean power.
For more information about the Emergency Backstop Mechanism, see AEMO’s fact sheet on operating electricity grids with rooftop solar.
What the Emergency Backstop Mechanism means for household solar systems
The backstop is expected to be an uncommon event, potentially only occurring once or twice a year and lasting just a few hours. In these events, some households may have their solar generation paused or exports temporarily lowered.
If you have rooftop solar or are thinking of installing it soon , the emergency backstop will have little impact on you.
Installing compliant rooftop solar
From mid-2026, solar installers must make all new, upgraded, and replacement rooftop solar systems backstop-enabled.
We are developing a Consumer Energy Resources (CER) Installer Portal, a new online tool that makes it easier for installers anywhere in NSW to comply with key safety and technical standards and register the installation of new energy saving technologies. The installer portal will support the implementation of the Emergency Backstop Mechanism in NSW.
Households installing a new rooftop solar system or making changes to an existing system can ask their installer about compliance. If you are planning any of these changes, please keep in mind:
- all new, upgraded, and replacement rooftop solar systems smaller than 200kW must be fitted with inverters that comply with a new Australian standard, called Common Smart Inverter Profile - Australia (CSIP-AUS)
- installers must register all new, upgraded or replacement rooftop solar systems with the relevant distribution network's utility server through the NSW CER Installer Portal.
These requirements will not apply to existing rooftop solar systems. If you have an existing rooftop solar system and are not upgrading or replacing it, no action is required.