Home Solar Power Electricity Price Rise Myth

21 06 2012

Whenever I mention the fact we make money from selling power to the grid on certain forums, I get attacked for being partly responsible for the recent (and looming) electricity prices.  It doesn’t really matter how often the anti solar morons perpetuate the myth that panels on my roof, subsidies and rebates are a major reason for electricity price hikes; it still won’t make it true…..

And it’s not just the luddite rednecks out there spreading this disinformation… some career journos still fall into the trap of repeating these myths as fact – as do some politicians; which is a bummer given the Carbon free energy future of our nation is at stake.

Energy Matters recently released a study proving this is all hogwash here.  But to save you navigating away from this interesting website, I’ll repost the data….

Home solar contribution to power prices

Home solar power and electricity prices

The report was prepared by the AEMC for the Ministerial Council on Energy following a request from the Council of Australian Governments (COAG).

Solar is but a bit player in recent, current and future price hikes – that is really all there is to it. The next time you hear or read of someone perpetuating myths of home solar power being the electricity price rise bogeyman, you can help set the record straight by pointing those wayward souls to this page.

* Tables from AEMC, Possible Future Retail Electricity Price Movements: 1 July 2011 to 30 June 2014, Final Report, 25 November 2011, Sydney.

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5 responses

24 06 2012
26 06 2012
Trevor Wood

In Qld, Ergon buys coal power for 7c/kwh and sells it for 22c…a threefold markup (no doubt justified?) Can you tell me what they sell the PV power bought at 45c/kwh for? If they just toss all the costs into the “Power costs” bucket and triple it, a 20% renewable component from rooftop PV alone would double current power bills, without any help from increased distribution costs.

26 06 2012
mikestasse

AGL pay me 52c…… but I was told by someone in the know that they STILL sell it at a profit because so much power is needed during the day when the sun shines and peak loads have to be met. The retail price is far more elastic than you think, and unfortunately I can’t remember the details, but I’ll see if I can find the person who told me this, he knew what he was talking about when I asked him the exact same question!

29 06 2012
Solar Installation New Jersey

Screw the non-believers. Its simple logic, save the environment, get free electricity. Thats all there is too it (after you pay for the installation) Haha. There is nothing wrong, only right, with having a solar installation.

-Sharone Tal

8 08 2012
Hung One On

Hi DTM, I read your stuff over at the Drum all the time and admire you. Keep it up dude. Oh there is another ex-Drum site called the Pigsarms.

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