Electricity prices look likely to drop as renewable supply builds

A supplied image obtained on Friday, November 27, 2020, of  a wind farm in Tasmania. Tasmania is officially running entirely on renewable energy after two wind turbines at Granville Harbour on state's remote west coast were connected to the grid. (AAP Ima

Source: AAP Image/Supplied by Granville Harbour Wind Farm

Australians appear likely to save hundreds of dollars on future energy bills as renewable resources increasingly flow into people's homes.


Tom McListon made the switch to solar four years ago.

He says since he jumped across to renewable energy, his bills have gone from several hundred dollars a quarter to practically nothing.

And according to a report by the Australian Energy Market Commission (AEMC), many more Australians will be cutting down on their energy bills.

With renewable energy flowing into homes, and consumers choosing to make the investment in solar panels, energy bills over the next three years could drop to their lowest since 2017.

The average household is predicted to be paying 6 per cent, or $77, less in 2024 than they do today.

South East Queensland is expected to see the biggest drop by 2024 of 10 per cent or $126, whilst Tasmania prices should fall by $124.

A $99 price drop is expected in Victoria, alongside $50 dollars for New South Wales households and $35 in South Australia.

The A-C-T is the only jurisdiction expected to see a rise in energy bills, of $77.

The Climate Council says the drop in energy prices isn't just good on a consumer level, it also has a positive impact on the environment.

However prices are expected to go up slightly before they come down, mostly due to less power coming into the grid when the Liddell Power Station in New South Wales closes next year.

 

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