Days of expensive power bills might soon be behind us

PATIENCE is running out for Australians who are tired of paying ridiculous electricity bills. But a golden era of cheap power is on the horizon.

PATIENCE is in short supply in many Aussie households that have been slugged with huge electricity bill rises year after year.

Australian Bureau of Statistics data shows that the price of power has more than doubled in a decade, rising four times faster than overall inflation.

It has more than tested peoples’ patience, but if they are willing to wait perhaps a just a few more years, a golden era of cheap power appears to be approaching quickly — thanks to a sharp decline in renewable energy costs and a rapid rise of battery storage technology.

Renewable energy has copped a lot of flak for forcing up power prices after governments offered generous financial incentives several years ago in the form of high payments to households for the power they generated but did not use.

Those incentives have since been scrapped, but solar panel buyers today are paying less than half of what they were for the same system a few years ago.

Couple this with the emerging home battery storage market, where prices are falling fast, and it’s not hard to imagine that a growing number of homes will be fully self-powered in the coming years.

Minister for Water Ian Hunter, Labor Member for Fisher Nat Cook and SA Water Chief Executive Officer Roch Cheroux discuss the announcement of a plan to achieve zero net electricity costs by 2020, at the Happy Valley Water Treatment Planet in SA. Picture: AAP/Emma Brasier

Australia has some of the most expensive electricity in the world, but it’s not because of the costs of solar energy — typically less than 10c a kilowatt hour to produce. Most of the cost of household electricity comes from the transmission side, other infrastructure and bureaucracy in governments and businesses.

The big question for consumers is should they switch to solar?

It often depends on usage patterns and the size and cost of the system. Research is important and there’s good information online. You can compare system sizes and their average output with your recent bills to get an idea of potential savings.

Battery storage is still in its infancy and relatively expensive, but is expected to drop in price dramatically, so keep an eye on developments.

Cheap electricity in self-generating homes, just like self-driving cars, may be closer than you think.