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A Story of ‘The Garden State’ and Rising Electricity Costs
As much as you’re questioning your usage habits and the number of power-sucking appliances in your home, one of the culprits to your high electricity bills is external in the form of network costs.
According to one bipartisan review covered by ABC News, Victorians spend 21% more on their energy than the cheapest price available. But it's not just about Victoria, a study by Grattan Institute shows that household electricity prices in Australia have skyrocketed in the last few years.
At the beginning of 2020, Lily D'Ambrosio (Victorian Energy Minister) was quoted saying “We’ve got ageing infrastructure in Victoria…We know that there are many variables in the system that can go wrong at any particular time.” This statement was made following an announcement by the Australian Energy Market Operator (AEMO) that Victorians should reduce their power usage to ease the load on grids.
Taking all this into consideration, the next question that follows is; if part of the problem lies with my power supply, what can I do to reduce my electricity bills? Well, the answer is up in the sky (literally).
Why Solar Can be a Solution for Victoria's High Electricity Bills
Everyone is feeling the bite of the COVID-19 crisis—both socially and economically. For this reason, it’s important to find ways to cushion the effect as much as possible. When it comes to the steep power bills in Victoria, one effective way to minimize the costs is with the help of solar energy.
To quote an article appearing in The Guardian, “Electricity demand – how much is drawn from the grid – reached record lows for this time of year in Victoria…due to sunny conditions helping rooftop solar generation.” In a way, solar helped overcome the earlier warning of increased electricity demand announced by AEMO earlier in 2020. Here is how switching to solar can reduce your stresses during these turbulent times and help you save money in the long run:
Solar is Good for your Wallet! Sure, installing a solar system incurs considerable initial costs (which have been drastically dropping over the years)—but energy is relatively free to produce going forward. Every kW of solar energy you use to power your home translates directly to reductions in your power bill.
And when you think about it; the cost-saving benefits of solar only increase as electricity prices from energy retailers continue to rise. Even better, solar has low maintenance costs that are negligible in comparison to its benefits.
In addition to reducing the figure on your electricity bill, you also get to enjoy solar rebates. If you have a combined taxable household income of up to $180,000 and your house is worth under $3 million, you are eligible for the Victorian rebate scheme—which significantly reduces the cost of installing a solar system.
The rebate allows you to save 50% of the cost of the solar purchase or $1,850; whichever is lower. Through Solar Victoria, the government is also offering interest free loans for an amount equal to your rebate, to be repaid over four years from the savings on your lower electricity bills. These measures by the Victorian government to reduce the upfront costs of solar installation are offered on top of a larger Federal STC incentive scheme that’s already applied on the advertised price.
As a cherry on top of the cake, solar is good for the environment, it is safe, and the installation is easy. All factors considered, switching to solar is a no-brainer—especially at such uncertain and difficult times. So, are you ready to make the move?
To find out how much solar will cost on your roof, try our Solar Calculator Online Tool and within 60 seconds you will know the costs, savings and payback period available to you.
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