NETCC Fees

One challenge the NETCC program has faced is that annual fees are no longer able to be charged according to the number of kW installed by a business, as not all Approved Sellers install solar PV. As a result, in 2021, Approved Solar Retailers (ASRs) were issued a fee consultation survey which asked retailers what they thought the NETCC fee structure should look like. The survey results indicated that an overwhelming majority of ASRs wanted the NETCC fees to reflect the following principles:

• Fair and proportionate.
• Scalable and financially sustainable.
• Agile and flexible.

More specifically, retailers expressed a strong preference for the fee structure to be fair to those entities who install little new energy tech, or low value energy tech, so that they are not issued the same annual fee as those businesses who enter into a high number of new energy tech contracts or engage in larger-scale new energy tech projects. This led to the tiered fee structure. As of 15 August 2023, 77% of retailers have paid the minimum annual fee.

Additionally, retailers asked for the fee structure to cater for diversified entities (e.g., those businesses engaging in both general electrical work and solar), to ensure that the annual fees charged to retailers are proportionate to their engagement in the new energy tech sector. This led to the annual fee not being charged according to a business’ total revenue, but rather the value of their new energy tech contracts.

This fee structure has been formally approved by the NETCC Council for the 12 months from February 2023. The NETCC Council will review program fees every year, with the next review due at the end of 2023.

The NETCC program has been designed to improve consumer protection standards for residential and small business customers. If a contract does not relate to a residential or small business sale, it does not fall within the scope of the NETCC program and thus should not be accounted for when calculating a business’ annual fee tier.

Definitions for ‘Residential’ and ‘Small Business’ can be found on pages 23-24 of the NETCC.

Signatories to the NETCC should calculate the value of their NETCC contracts using total contract values, prior to the deduction of any rebates or incentives. This decision has been made as the NETCC covers a range of new energy tech, some of which are supported by STCs and rebates, some of which are not. Approved Sellers will thus be subject to the same annual fee considerations, no matter if the new energy tech they are selling is supported by financial incentives, or if the states in which they operate run rebate programs.

This decision will be reviewed again as part of the annual fee consultation process with the NETCC Council.

The annual fees paid by signatories go towards the continual development of the program, including expanding the resources and benefits offered to program participants. This includes:

• Access to exclusive state and territory incentive schemes.
• The ability to use the Approved Seller badge and Approved Seller marketing materials.
• An entry in the Approved Seller directory on the NETCC website.
• Access to industry updates.
• Access to the Approved Seller portal and a range of resources to assist retailers in improving their business practices. As the program develops, this portal will house a range of training and educational material.

The Administrator has recently launched a marketing campaign to raise industry and consumer awareness of the Approved Seller brand. This campaign focuses on consumers in the market for new energy tech, with the aim of promoting the additional protections which come from purchasing through an Approved Seller, expanding consumer knowledge, and increasing consumer confidence to invest in new energy technologies.

The annual fees also play an important role in funding a robust compliance and audit regime to maintain the integrity of the program. As the NETCC program moves out of the initial phase of transitioning retailers from the ASR program, the Administrator will be increasing its audit and compliance activities.