The solar power boom may be
leading to government subsidies such as feed-in-tariffs becoming less viable,
according to an ABC News report.
This is due to the possibility of an energy
oversupply. Basic economics says that once you have an excess of a thing, it
loses some of its value. This could mean that if more power is generated than
can be used, selling it back to the grid may become an inefficient thing to do.
This is the argument of Tony Wood, energy program
director at the Grattan Institute. Mr Wood said where too much energy is
produced in the middle of the day, it can have an impact on grid stability, and
may in time lead to cuts in government rebates
for solar power.
What is driving the solar power boom?
Many Australian households have been searching
for the best solar
quotes online and installing rooftop solar. After all, last year, millions
of solar panels found a place on Australian rooftops. Data from the Clean
Energy Regulator (CER) shows there were more than 9,500 panels installed a day
on average. This is over 40 per cent more than in 2016.
The main factors driving the boom are the rising
costs of electricity from the grid, and the falling prices of solar panels. Solar
panel owners are also saving money by selling the power they can’t use back to
the grid. This reduces their bills and sometimes even earns them a credit.
However, as stated above, while the boom is great
for Australian households and businesses, it could result in an oversupply.
The good news for solar users
A solution for solar panel owners is to store the
excess energy generated in energy
storage batteries. Solar owners can then use the stored energy in the
evenings or on dull days.
As well as an increase in solar panel
installations last year, purchases of solar batteries skyrocketed. This is
largely due to their increasing affordability; batteries can pay themselves off
in savings within a few years.
The second piece of good news is that
improvements in battery technology in recent years has made them more
efficient. Today’s lithium batteries are lighter, have a higher energy capacity
and a longer cycle life than for past models. Solar
credits are still available for solar plus energy storage system
installations, providing further incentive to buy solar batteries.
Source: energymatters