Key points
- The Climate Council says solar energy is saving Australians a combined $3 billion on electricity bills every year.
- More than 300,000 systems are installed in Australian households every year.
- But high upfront costs are a major barrier for many, especially those struggling with the rising cost of living.
When Mamoon Reza installed solar panels on his roof five years ago, his electricity bill dropped significantly.
“For us, it was more about not knowing — about getting exorbitant bills. Sometimes it would be big, sometimes it wouldn’t be so big,” he said.
“The peace of mind of no longer receiving exorbitant bills. Of not receiving a bill that you didn’t expect to be that big.”
By adding solar batteries, Reza went one step further: he’s now making money.
“Once we put the batteries in, we never got any more electric bills this year,” he said.
“We actually have a little bit of credit. So far we have about $400 in credits because we sell some of the excess battery into the grid.”
The Climate Council says Australia’s solar energy industry has grown significantly over the past decade, with more than 300,000 systems installed each year.
The average household saves around $1,500 a year on their electricity bills, and Australia’s 23 gigawatts of rooftop solar capacity represents around 25% of the nation’s electricity capacity.
“Opportunity in progress”
However, the Climate Council found that wealthier households are less likely to install solar panels despite having the necessary resources.
Amanda McKenzie, CEO of the Climate Council, sees this as an area of untapped potential.
“In our research we’ve found that it’s the outer suburbs that have really embraced solar energy to reduce household bills and reduce climate pollution,” he said.
“There are still many opportunities in affluent suburbs, as well as others, such as those living in apartments, who may want to install solar but may not have had the opportunity yet.”
McKenzie said there were ongoing opportunities for solar energy in Australia and that “we’re really only just getting started”.
With Australia being one of the sunniest countries in the world, the Climate Council said it would be a waste not to use it to its full potential.
The next frontier for households is to invest in solar batteries, which store excess energy for later use.
Dani Alexander, CEO of the Energy Institute at the University of New South Wales, said this could help stabilize energy supplies, especially during periods when renewable energy sources are not generating power.
“The benefit of a battery is not to generate new energy, but to store energy generated by other sources and use it at different times of the day. In the context of renewable energy, it is variable,” he said.
“We often hear this story of ‘the wind doesn’t blow’ or ‘the sun doesn’t shine’. Any type of energy storage and battery included can store it at times when there is surplus, so we can use it when there is a deficit,” Alexander said.
But Alexander said the high upfront cost of batteries is a major barrier for many, particularly those already struggling with the rising cost of living.
“If we were to see widespread implementation of battery storage at a household level, there would need to be some sort of government support.
“We have seen this in the solar generation sector, where in the early stages of solar PV development there were government incentives that supported its implementation.”
