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Why Solar Power is Key to Avoiding Electricity Price Hikes in Australia

Why Solar Power is Key to Avoiding Electricity Price Hikes in Australia

Last updated on July 11, 2024

Australian electricity prices are likely to increase soon.

In several regions of Australia, the hikes may be severe leading to increased stress on consumers. The pressure of increased cost-of-living has driven experts to search for a solution that will help lower the cost of power in Australia. 

One of the best solutions is shifting to solar power consumption. Solar is a clean and free source of energy that every Australian should consider if they would like to spend less on electric power. 

This article discusses why and how solar power consumption will help reduce the cost of electricity in Australia 

Causes of Power Hikes

Before developing a solution, it’s wise to consider the cause of the problem.

Why are electricity prices likely to hike in Australia?

The cost of poles and wires is the common cause of rising electricity prices. However, the looming increase in power prices will be mainly caused by the massive shooting of wholesale energy costs. 

Expected Increase

Electricity costs are expected to increase by as much as 31% in various regions of the Nation.

These regions include the Eastern Coasts, where households and retailers will have to spend more on electricity than ever before. In other regions like New South Wales, prices are set to increase up to more than 20%.

If we think in monetary terms, prices are likely to hike from about $320 to $460 for domestic residents, and $669 to $1738 for retailers and wholesalers. However, the exact increase depends on the residential area of an induvial or the location of a business. 

For instance, Victorian residents are likely to spend $426 more on electricity in 2024 than in 2022-23, for those consuming an average of 11 kilowatt hours daily.

On the other hand, small businesses are likely to spend $1738 more on electricity than the previous year, for those consuming an average, of 55 Kilowatt hours per day. 

How Will Solar Help?

Despite the worry among households and small businesses caused by the expected price hikes, there is still hope. The increase in electricity bills is not guaranteed, since there are still preventive measures that the government and citizens can consider to avoid this looming danger. 

In this case, the best and cheapest solution is a Solar power shift. Let Australia try investing in Solar power.

Australia has a vision of transforming its electric power sources to renewables.

However, there is still much work and time needed to realize this initiative. It might take as long as 10 years before the nation becomes fully or at least greatly dependent on renewable energy. However, going the solar way might be easier and cheaper. 

With solar as a surplus power source, citizens can reduce their dependence on grid electricity. Some households and small businesses might fully transform their electricity sources to be solar-powered, and subsequently not have to pay any electricity bills. 

Households and businesses that use more electricity during the daytime can reduce their expenditure by installing solar systems with stronger solar panels.

On the other hand, those who use more power in the evenings and nights should have storage batteries that can act as energy reservoirs. 

Such stored energy can help individuals and businesses save on electricity costs during their peak usage time. Large solar panels are recommended for efficient performance. Such panels should also be accompanied by sufficient storage batteries, for satisfactory results. 

For instance, households should consider purchasing at least 10kW panels and accompanying them with a 13 or 10-kWh battery to save up to 80% plus on electricity expenditure.

Australians can make great savings on their electricity expenditure if they install solar systems in their homes and businesses as per the figure below:

Why Solar?

As seen in the previous section, solar can help avoid hiking energy prices in various ways. However, why is solar the best choice? 

First, we know that solar is green energy. It causes no harm to the environment and humans. 

Second, it is free energy. Solar energy comes from the Sun, which is a free source of energy, thus, it is less costly after installation. The consumer will only incur initial setting-up costs and will enjoy their solar energy without any expensive payments after that. They will only have to spare maintenance costs, occasionally. 

Finally, the cost of installing solar systems is cheaper than that of other electricity networks that require costly poles and wires. 

Therefore, it is time to consider a shift to solar energy to save Australians from hiking electricity prices. For those on an electricity price hike, shifting to solar can keep them safe from the volatile electricity bills that might rise unexpectedly.

Don’t hesitate anymore; the longer you postpone the shift to solar, the more you will spend on electricity! Choose the best solar panel for a better experience in your homes and businesses.

Solar also has a long-term impact on individual, organizational, and national economies. See the figure below, for just a 5-kW solar panel:

Conclusion

Solar energy consumption is an advancing area that requires more research to develop efficient solar panels and batteries that will satisfy consumers.

With the expected rise in power costs, such research will be crucial to save consumers from economic stress among hiking electric power prices. Even though the available solar system designs may not be that efficient, they can still help Australians reduce power consumption costs by considerable percentages. 

Australians who are worried about the rise in electricity costs should opt for solar power since it will be less costly in the long run.

The government, through its power agencies, should consider subsidizing solar installation to help citizens acquire solar systems at lower prices, to ensure a better future for our nation. A shift to solar will save the whole nation from issues associated with electric power consumption. The time is now, or never!

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E-Green Electrical

E-Green Electrical is a top tier energy efficiency company based in Sydney. We focus on utilising government rebates to help reduce our clients energy consumption by installing energy efficient solutions. E-Green boasts a rich heritage within the realm of energy efficiency, consistently staying up to date with cutting-edge technologies to deliver optimal results for our valued customers.

We don't just sell products and services; we also provides tips and information on how to help reduce energy consumption. We believe in using energy wisely and teaching others how to do the same. For E-Green, it’s important to share knowledge with the community. That's why we regularly write articles about saving energy, new government rebates available and increasing sustainability.

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