Wholesale electricity prices shot straight up after the election win by 7%, and they are forecast to stay high for the next few years according to the Sydney Morning Herald.
Prices look like they will only go higher once the energy industry comes to grips with the continuation of the last few years’ policies.
On the Monday after the election weekend, electricity retailers all got caught in a wild bidding war to each lock in a future price for electricity, which means that we can expect these price rises to be passed onto consumers soon.
The real concern is that electricity retailers are looking to lock-in electricity at its current price – if they’re scared about rising electricity prices, we should be too.
“Prices have continued to rise over the last 10 years and I absolutely expect that trend to continue for the next 6” – Jonathan Fisk, Director of Solaray Energy.
So far, over the course of the current liberal government, there have been a number of great outcomes. We had the most new jobs created in a calendar year on record, however, in the same year, we also had the highest energy prices on record.
I’ll repeat that. We had the highest energy cost on record. Ever.
For months on end, it just kept getting higher. And with the same government in power, we (along with most energy retailers and consumers) are very concerned about the future of energy prices.
Power To The People
Solar power really is a technology for all Australians, and the political gridlock over the future of Australia’s energy market is creating the perfect storm for the solar industry in 2019. There is no obvious political solution in sight for sky-rocketing power prices, whilst solar power prices continue to fall. More and more households are choosing to install good quality solar systems to reduce their power bills and see a return on their money in 3-5 years. In fact, over 25 years the average solar power system can save you over $50,000 on your power bills.
If the wholesale electricity price went up 7% overnight, how much higher will it continue to rise in the next 6 years?
Battery Rebates No More
While we were cautiously optimistic about Labor’s proposed solar battery rebates, we are not in the slightest bit optimistic about any future rebates in the coming years.
The ACCC still stand by their recommendation to axe the current solar rebate, and even without any political intervention, the existing solar rebate is being phased out incrementally over the next 11 years (it reduces every year until 2030). So we’re starting to see a future where there might not be any more incentives for homeowners to get solar, and each year the Federal Government’s incentive to install solar power will be reduced.
We hope for the best, but would strongly encourage homeowners to explore solar power while it is still an affordable option.
Request A Solaray Quote Today
Electricity retailers are expecting electricity prices to keep rising. If you want to take the pressure off paying your power bill, consider taking control of your energy costs with a smart solar system. Once installed, you can be running your home on clean renewable energy from the sun, and if you install batteries alongside your solar system you can essentially run on solar power 24 hours a day.
For more information and personalised advice, the Solaray team is here to help. Call us on 1300 221 58, or request a Solaray Quote below: