The costs of renewable energy continues to fall, to the extent that wind- and solar-powered energy can now compete with the costs of oil, coal, and gas-fired power plants in Australia. According to recent reports, wind and solar are now the cheapest sources of energy across more than two-thirds of the world—including here in Australia.
This may not sound like news to you. Earlier reports show that energy produced by new renewable energy facilities are cheaper than energy produced by a newly built coal or gas-fired power station. But progress has taken one step further.
According to recent research undertaken by Bloomberg New Energy Finance, renewable energy is not only cheaper than energy produced by new-build coal but also existing gas-fired power stations. The study revealed that it is now the same cost – or cheaper – to build a new solar plant in Australia than it is to continue operating an old station, where construction and build costs are already fully paid for.
As the world’s second largest exporter of fossil fuels, these findings could be pivotal for Australia. Investment in renewable energy is now much more attractive, with private investors committing millions towards new developments in Australia which could see the export of solar power to Asia.
The International Renewable Energy Agency also suggests that the lower costs of renewable energy should play a central role in tackling climate change.
Renewable energy will help electricity prices to drop
Good news for Australians—the Australian Energy Market Commission forecasts that overall electricity prices will fall in the coming years, thanks to the increase of renewable energy production, which continues to drive down the average price nationally. Switching to a renewable energy source will help everyone. It’s never been a better time to invest in renewable energy and our sun!
What does this mean for you?
You may be wondering how and when you can enjoy the benefits of these findings. While the big picture looks great, many Aussies still can’t afford access to solar energy. However, new companies and business models are emerging to solve this problem.
Solar subscription-based solutions can allow more Aussies to access affordable energy. A subscription-based model enables an homeowner to subscribe for access to a solar panel system usually at zero investment of the system and maintenance to themselves. By removing the large upfront cost, homeowners can access clean, affordable energy faster.
Take control of your electricity bills and subscribe to our Solar Network to access cheaper, cleaner energy. Start enjoying the benefits of renewable energy without paying out money for solar infrastructure. Connect with our solar experts to learn how you can access the most affordable energy rates in Australia.