Increasing domestic electricity prices improves business case for home solar

By Ray Wills

A new report released 21 March by the Energy Users Association of Australia (EUAA) suggests Australian household electricity prices are amongst the highest in the world.

The report Australian Electricity Prices: an International Comparison does not document pricing for business customers

The report states clearly that it was not possible to document a case for “commercial and industrial end-users because price data … is not available in Australia”.

Curiously the Australian Chamber of Commerce and Industry (ACCI) offered a dogmatic response using the report to comment on the impact on business competiveness, and attack the ‘green policy agenda which mandates grossly unaffordable renewable and other mitigation schemes’ - yet neither of these issues were analysed in the EUAA report.

Reality of network costs

While it is often difficult to get the most important message in reports such as this, especially when attempts are made to pervert the message of the report, the Sustainable Energy Association of Australia (SEA - www.seaaus.com.au), a business chamber representing enterprises around Australia, notes the final paragraph of the report that highlights “three-quarters of all expenditure … is for equipment imported from other countries” and that it is “reasonable to expect that household electricity price increases in Australia between 2007 and 2011 would be even higher than they have been, had the Australian dollar not appreciated relative to the U.S. Dollar and Euro.”

Impact on households

Focussing on the content of this report, there is no doubt that rising price rises are a key concern for both customers and politicians.

With the price of electricity for both domestic and business customers increasing, solar panels deliver electricity that, combined with existing rebates, can potentially pay the investment in panels back within 4-7 years, with the effect that electricity sourced from those panels after that point will be at no further cost.

‘Domestic customers swapping to solar will not be exposed to rising electricity prices, and for those with mortgages, self-supply of electricity through solar energy means home owners paying a mortgage will not have their ability to pay being compromised by rising energy bills,’ says Professor Ray Wills, SEA Chief Executive.

More information on solar panels can be obtained from SEA’s www.factsonsolar.com.au, or about SEA and its members from SEA’s website www.seaaus.com.au.

Media contact:
Prof Ray Wills 0430 365 607