Australia is a large country, and therefore has one of the longest and most expensive electricity networks in the world. Keeping poles and wires well maintained to move electricity around the nation is very expensive, and can end up making up half of your power bills.
The traditional source of power through coal power plants is gradually breaking down and it comes as no surprise that the older they get, the more unreliable and expensive to operate they become. Unfortunately, Australia has failed to build enough new generation to replenish the retirement of the current coal plants.
The rising cost of your power bills is also caused due to the method of the distribution of electricity, that is, getting it from the power plant to the home. Australia has one of the largest electricity networks in the world. Keeping the poles and wires well maintained and building new parts of the electricity network costs a lot of money which consequently means a higher amount charged to the consumer.
According to the Australian Renewable Energy Agency, the biggest contributor to rising electricity prices has been the substantial increase in network charges. This means money spent on the poles and wires that carry the electricity from power plants to homes and businesses.
The Clean Energy Council’s view on price rises
A variety of different factors are contributing to price rises. The Clean Energy Council outlines them as the following:
A lack of national energy policy beyond 2020. Businesses does not have the necessary certainty to invest in the new infrastructure needed to replace the old power plants which are retiring; Increased charges by energy retailers for winning and billing customers;
The export of gas reducing the amount of gas available for local companies, which makes it more expensive;
The retirement of large old coal-fired power stations with not enough new power generation to replace them;
Game playing by power plant operators in the wholesale electricity market and not enough competition to help reduce prices;
and Complicated consumer information which makes it hard for people to easily understand the options they have available and make smart choices to reduce their bills.
What can we do to combat rising electricity prices?
The best thing we can do to combat rising electricity prices is to reduce or better manage ‘peak demand’ times. This means turning off appliances when they’re not really needed. It also means doing the laundry during off peak times, when electricity is cheaper. This is when the goodness of solar comes in which ensures that all the power you use while your own panels are making power is completely free!
While retailers and regulators work out the best way to lower prices and maintain a stable grid, there is something to be done at the foundational level to truly fight against the rise in prices. Installing solar panels and battery storage in your home or business makes a major contribution to slashing your power bills.
The increasing uptake of rooftop solar panels is already playing a major role in managing peak demand on hot summer days as more and more people are realizing the benefits of this “green” power resource.
Utility companies rely on coal, oil and natural gas to power homes across the country. The cost of all three of these fossil fuels are vulnerable to fluctuating markets, so homeowners may notice rising electricity costs as the years go by. But when you install solar panels, you free yourself from having to worry about how much your electric company will charge you on a monthly basis. With solar panels, you are protecting yourself from having to deal with the rising electricity costs that will inevitably happen within the next few years.
So you see, even though installing solar panels requires a steep financial investment, this home upgrade will pay for itself in no time! Get in touch with our solar expert from Austra Solar today and get a free quote for the right system for your home!
