What is it?
The Victorian Emergency Backstop Mechanism (VEBM) or known as the "emergency backstop" is a policy introduced by the Victorian Government mandating newly installed solar PV systems must be able to be remotely managed. The Victorian Government believes this is required as the Government believe it needs to use this mechanism to manage days of high solar energy generation during periods of low electricity demand. The Vic Government writes their rationale is that without this mechanism that this could lead to a possible unstable electricity supply, local voltage issues with possible outages. According to the Victorian Government, the VEBM provides a last-resort measure to maintain system security by enabling the remote curtailment or disconnection of rooftop solar systems when necessary.
Timeline:
- Stage 1 – Large Solar Systems (>200kW): Effective from 25 October 2023, the VEBM applies to all new, upgraded, and replacement solar systems greater than 200 kW.
- Stage 2 – Small and Medium Solar Systems (<200kW): 1 October 2024, the VEBM applies to all new, upgraded and replacement solar systems less than 200kW. The implementation date for systems less than or equal to 200 kW was initially set for 1 July 2024 but was delayed after feedback from industry.
How it works:
Under the VEBM, Distribution Network Service Providers (DNSPs) are mandated to have the capability to remotely manage solar exports. When directed by the Australian Energy Market Operator (AEMO) during minimum system load (MSL) emergencies, DNSPs can temporarily reduce or halt the export of solar energy to the grid. The Victorian Government has advised this measure is intended to be used only in rare emergencies and will not affect the supply of electricity to homes.
Requirements:
To be allowed to connect to the DNSP grid and be able to export your solar PV power, from 1 October 2024 (originally 1 July 2024), all new, upgraded, or replacement rooftop solar systems up to 200 kW must:
- Use an approved inverter that is capable of remote management - this uses the Common Smart Inverter Profile Australia (CSIP-Aus) protocol as listed on the Clean Energy Council's website.
- Use an inverter that is approved by the DNSP you are connecting to. Each DNSP has a list of approved inverters on their website:
- Maintain a reliable internet connection to facilitate communication between the inverter and the DNSP.
- Installation of the solar PV inverter be configured to communicate with the DNSP's utility server.
To ensure the installation is appropriately configured, in the majority of cases, this will require a smart meter or energy meter to be connected and configured. An example is if you are installing a Fronius solar PV inverter, then a Fronius Smart Meter will need to be installed.
These requirements do not apply to systems installed before 1st October 2024 date.
These requirements do not apply if installed on or after 1st Oct 2024 and if a DNSP network application was submitted for pre-approval prior to 1st October 2024. This is because the backstop requirement is considered to be required to take effect based from the date of network application pre-approval.
This does not apply to existing solar PV systems.
Cost:
For those interested to know what the cost implications are for the implementation of this policy. The Australian Energy Regulator (AER) has approved cost pass-through applications from DNSPs to recover expenses related to implementing the VEBM with costs to be borne by electricity consumers in the 2025-26 financial year (starting 1st July 2025). Mostly these costs are attributed by the DNSPs to cover digital upgrades, setting up new documentation, training and business processes.
| DNSP | Consumer bill increase in 2025-26 FY | Revenue increase for 2025-26 FY | Source |
| Ausnet Services | $14 to average residential consumer bill | $17.2 million | Ausnet AER Application |
| CitiPower | Not on AER website | Not on AER website | |
| Jemena | $10.3 to average residential consumer bill | $8.3 million | Jemena AER Application |
| Powercor | $7.4 to average residential consumer bill | $11.5 million | Powercor AER Application |
| United Energy | $5.6 to average residential consumer bill | $6.5 million | United Energy AER Application |
No Internet Export Limits:
In the event for example the solar PV inverter cannot be accessed via the internet or is not on the list of the DNSP's compliant inverters, then the DNSP will not be able to remotely access the solar PV system. Consequently the solar PV system's solar export limit will reduce the Total Export Limit (typically 5kW per phase pending the DNSP pre-approval outcome) to the DNSP's advised Total Export Limit.
As per the CSIP-AUS protocol, when the inverter loses internet connection, The DNSP Total Export Limit reduces as below:
DNSP | Total Export Limit (kW) | Source |
Ausnet Services | 1 | Ausnet website "Installation compliance" |
CitiPower | 0 | Citipower website FAQ, "What happens if I change internet provider or replace my modem?" |
Jemena | 0.5 | Jemena website "Important Information" |
Powercor | 0 | Powercor website FAQ, "What happens if I change internet provider or replace my modem?" |
United Energy | 0 | United Energy website FAQ, "What happens if I change internet provider or replace my modem?" |
Monitoring:
To ensure you get the most of your solar PV system, it's very important that you continue to monitor your solar PV system via the monitoring portal applicable to your solar PV inverter system chosen.
Check that your solar PV system is exporting and if you find it isn't exporting, then ensure to check that your Wi-Fi internet is on and check the inverter Wi-Fi settings.
