What You Can Do to Bypass Rising Electricity Costs

Australians are already struggling with paying higher and higher electricity bills, and the bad news is that there is no sign of that stopping; in fact it is expected to get much worse. Nationally an increase of more than 50% or so is expected in the next decade, and it will be higher in some states such as New South Wales. These higher energy prices will take an increasing toll on Australians from all walks of life, and will impact on quality of living.

Reasons for the price hike

Currently Australia still heavily depends on fossil fuels; the supply cannot keep up with the demand, and as mining methods need to be more invasive to extract enough coal so the extraction costs increase. However it is not only reason, there are many factors that affect energy prices and it includes the grid itself. Every state grid requires continual upgrades and expensive maintenance and the cost is eventually pass down to the consumers.

Moreover, the price of electricity will be affected by the carbon tax. The proposed tax will be implemented in July of 2012 and as soon a price in carbon is set the costs of carbon intensive energy sources and goods will significantly rise. Heavy polluters like coal fired electricity generators will have no choice but to pass down the cost to the consumers or shut down completely.

As the carbon tax is imposed it will not only directly increase energy prices but the cost of maintenance and upgrades of the girds will also rise – and yes you as consumer will take it as another burden.

Solution

The simplest and most obvious solution is to conserve energy. You can improve your home’s energy efficiency by installing energy efficient light bulbs and upgrading your appliances with 5 star energy ratings. Ultimately the main solution is not depending on carbon intensive energy sources for your power supply.

The federal government of Australia is encouraging the application of renewable energy sources such as rooftop solar panels and solar hot water systems for two major reasons. 1st you can make significant cuts in carbon emissions and therefore contributing to the global efforts of environmental protection. And 2nd there are significant financial benefits that you can enjoy. A small solar power/a> system can reduce your electric consumption by about 50%. If you’re average electric bill is $2,000 annually it can be cut down to $1000 or so and as energy prices shoot up savings will proportionally increase as well. If you have the space though a larger solar panel system that will produce enough power to eliminate your electricity bill is an even better financial investment long term.

From the cost savingsoff your energy bill alone a solar powered system is going to pay for itself in about 7 years and it will last at least 20. If you are eligible to be accepted into the Premium Tariff Scheme in your area, then it’s possible to have solar power actually provide a additional stream of income for you as well.

It is without doubt that non carbon emitting, renewable energy sources are the way of the future, and their use will better the lives of Australians in many ways.