Solar panel is not behind Australia’s electricity price increase

Author: Darvin Tocmo  Date Posted:20 July 2016 

Solar panel is not behind Australia’s electricity price increase - Optimus Energy is the leading wholesale distributor of solar energy products

Australians discover that turning to solar panel and battery storage is the best response to volatile electricity prices in the country.

The Reason Behind Australia’s Electricity Price Increase

The solar panel is NOT behind your shocking electricity bills.

Some people blame wind and solar power for an increase in electricity price. But just because this has already happened, it doesn’t mean it’s true in every case.

Adelaide’s shocking gas price increase

The quadrupling of gas prices in Adelaide, for instance, has nothing to do with renewable energy. No less than Clean Energy Council Network Specialist, Tom Butler, confirmed this.

According to Mr. Butler, heavy reliance on expensive gas power plants causes South Australia’s skyrocketing power prices. He added that there’s only a small number of companies generating that gas power in the state’s energy market.

These are the same reasons behind previous price increases in the state. And apparently, these occurred even before installation of the first wind turbine and solar panel in the state.

Australia-wide price increase

A combination of factors caused the spike in the cost of wholesale power last week. There was cold snap. Maintenance on an interconnector between South Australia and Victoria happened, too. There's also the cost of gas generation to blame. It has been steadily creeping upwards.

However, it seems that this issue won’t end with South Australia. Tom Koutsantonis warned that South Australia’s experience would become an Australia-wide one. The South Australian Treasurer and Energy Minister added that the inefficiency of the National Electricity Market has a part in this.

Mr. Koutsantonis had foreseen this trend reaching Victoria and NSW. In fact, New South Wales and Queensland just got their new power price pain brought from the new financial year. For the Energy Minister, only the presence of interconnected states results to a true national electricity market.

Solar and wind's role in this issue

Last week, a report indicated that Australia has the world’s most overpriced electricity before taxes. Households aren’t alone in suffering higher electricity bills. Business is spending big on electricity as well, forking out around $19 billion in 2014-15.

It’s no surprise then that increasing numbers of Australians are turning to solar power systems, specifically solar panel. Interest in battery energy storage is likewise building. People are beginning to realize that renewable energy is not the cause of power woes in Australia, but a solution.

Solar panel is on every corner these days. There are now approximately 1.60 million solar power systems installed across Australia, according to the latest data from Australia’s Clean Energy Regulator.