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Electricity prices to rise 37% - Solar Power only a bit player

 

A report from the Australian Energy Market Commission (AEMC) estimates residential electricity prices are projected to jump by 37 per cent in nominal terms on average by 2014.

Home solar power is yet again being made a scapegoat by some media outlets, but its contribution to the overall jump in electricity costs will be minor.

In June, the AEMC estimated residential electricity price increases of 30 per cent by 2013. According to the latest AEMC report, the contribution to the revised projected 37 per cent price increase from each component is as follows:

• Transmission: 6.0 per cent
• Distribution: 33.6 per cent
• Wholesale: 40.2 per cent
• Retail: 12.1 per cent
• Feed-in tariff: 2.8 per cent
• LRET (Large Scale Renewable Energy Target): 3.8 per cent
• SRES (Small Scale Renewable Energy Scheme):  -0.8 per cent
• Other state based schemes: 2.3 percent

While the AEMC’s findings clearly show small scale solar power is not the main villain in electricity price hikes over the next few years – less than 5 per cent of the 37 per cent national average – some in the media have again chosen to amplify its impact in the overall situation. Factors related to replacement of ageing infrastructure, gas-fired generation and the upcoming carbon tax appear to play a greater role.

To know more about the elecricity rise, read Eco-Business' full story.

Solar power is the best way to fight electricity rise. Love Energy provides premium solar solutions for residential and commercial projects.

If you are looking for a quality solar system from 2kW to 100kW and more, contact Love Energy today.