Reclaim Control Over Your Energy Bills
October 26, 2017 | 3 minute read
This article will go through:
- A brief overview of Australia’s energy market
- Energy market shifts from conventional practices
- Why Solar Power is leading the change
How the Market Currently Works
Australia’s energy production is governed by a number of system bodies that control how industries, business, and individuals can pay and receive power. The Australian Electricity Market Operator (AEMO) is the main body that consists of two other key subordinates: the National Electricity Market (NEM) and the Wholesale Electricity Market (WEM).
AEMO's core goal is to create a holistic energy market with a central point of information for investors and market participants. However, their general operational task revolves around controlling the spot market; by managing the exchange of electricity between producers and consumers, in accordance with the national energy market commission (AEMC). Whereas:
- NEM facilitates the operation of the electricity and gas market and its connected grids that spans from the eastern and southern Australian states.
- WEM facilitates electricity to the South-West Interconnected System of Western Australia (SWIS), including Perth. WEM was developed to supply energy to the SWIS and generate a healthy competition.
Shifts in the Energy Market and why Solar Panels are Leading it
With three major retailers announcing energy price increases of up to 20%, increasingly large amounts of consumers and businesses that once relied on the conventional energy grid are now going off-grid - catering their own electricity needs through alternative energy production methods.
How AEMO and subsequent utility providers adapt with this change in the next 5-10 years will determine their level of control over Australia’s power generation.
The most prominent reason for a shift in the energy market can be broadly denoted to the increase in awareness of climate change, in particular, the last 10 years. The aforementioned energy price hike also accelerates this trend. This growing environmental awareness has led to larger investments into research and development (R&D) around the issue.
As a result, renewable energy technology has grown by leaps and bounds, allowing for an economical adoption of such systems, namely within the solar industry. A special mention should also include wind power, tidal energy creation, and more recently seaweed farms within the aquaculture industry.
Why Solar Power?
Below are the four most significant factors that lead solar power to be highly in-demand and continue to stimulate the solar industry:
1. Increase in Active Users
In the adoption curve, it goes inline from the most innovative or risky adopter to take on new idea or invention they believe in, to the late-majority or ‘laggards’ accepting and becoming normalised to the concept of such an idea or invention and finally implementing it.
Within the business world, it generally starts off with a few key business giants taking the first step, mostly because they can. Examples of such businesses include tech giants Google, Facebook and Apple. They pledged themselves to achieving 100% of their energy needs from carbon-neutral energy sources, with a large portion coming from their solar framework systems.
To date, Google is set to be the first to reach 100% of its energy needs this year (2017), with other large businesses rapidly approaching this global benchmark. As far as the adoption model goes, there are other economic participants that have actively invested their energy needs in solar energy production:
- Market disruptors, namely Elon Musk, and his companies - SolarCity that manufactures and installs solar panels in the United States, and Tesla, a global electric car company. In addition, he has rescued many countries for poor energy production systems through the power and effectiveness of solar energy, including our own state, South Australia.
- Governmental entities - It’s important to remember that the government exists to serve the wider population and its citizens, part of this means looking after their future and that means cleaner energy. There are various government initiatives in place to offset the implementation of solar panels, allowing businesses to recoup money spent on solar systems.
- The wider population including individuals and SMEs - this portion of the economic system is by far the largest where dramatic adoption rates are on the incline.
2. Proven Financial Investment
Like all investments, a business looks for it to be both secure while holding the highest return possible. Solar energy can achieve these goals:
- Solar is more secure than other forms of energy due to it being generated and consumed in the same area. The transportation and storage of energy remain to be one of the safest forms for any energy resource.
- In terms of high returns, you only have to acknowledge the businesses around your own to realise the potential for return on investment.
Queensland remains the largest state users of solar energy in Australia due to its sunny weather. For example, a hospital in the suburb of Bundaberg has recently taken advantage of its ability to go off-grid with solar cell technology.
Sick of their unpredictable and high bills, they installed 1200 solar panels which go to generate 545 kW of electricity. This system will reduce their energy bill to zero within 3 years and save the business $3.1 million in the first 10 years.
3. Gorilla Marketing - Sponsors of the Future
By installing solar energy panels for your business, it is a clear message that your organisation is a part of a positive change for the future of our world. It also showcases the forward-thinking and understanding culture of your company to adopt future trends and responding to global dynamic change.
4. Reduction in Solar Cell Price
The concept 'Swanson’s Law' plays on the exponential process of solar photovoltaic (PV) modules dropping in price, due to scientists improving the level of output in power of the PV Cells and manufacturers' ability to increase production efficiency.
With PV Solar Panels being more efficient and better priced than ever before, this is the best time to start thinking about your business' energy needs and the benefits of going off-grid.
Installing solar panels or updating your solar systems is a smart business investment that will allow you to regain control over your energy bills. Stay ahead by investing now and reap all the benefits that come with it.
AAE Industries is an accredited designer and installer of top quality solar panels and solar photovoltaic grid connect systems. We can design and install solar power systems that suit your property needs and budget for maximum savings.
