Air conditioning costs becoming unaffordable for many Australians
Australians Sweating On Air-Conditioning Electricity Costs 20 November, 2013: Despite the majority of Australian households now owning an air conditioner, solar energy advocate Nick Brass of Energy Matters warns many people will swelter in their furnace-like homes this summer rather than switch on the cool. The reason – electricity sourced from the mains grid has simply become an unaffordable luxury. http://www.energymatters.com.au/index.php?main_page=news_article&article_id=4033
“Electricity prices have risen by a whopping 72% in real terms since 2004[1] and the rise of air conditioners is partly to blame,” commented Mr Brass. “There will be 750,000 more air-con units installed this year alone, bringing the total number of household units to over 9.2 million[2].
“For many people, powering their air conditioner has become unaffordable due to the high cost of electricity. Ironically, it’s because of air conditioners that electricity prices have spiralled out of control.
When extreme temperatures hit, everyone turns on their air conditioner at the same time and the power grid is put under massive strain. This has necessitated a very expensive upgrade to Australia’s energy grids so they can handle these extreme heatwave days – an upgrade everyone pays for.”
Mr Brass advises using air conditioning in conjunction with solar. Air conditioners should be automatically programmed to start working the moment a house rises above a certain temperature during the day when solar panels are generating electricity. Then at the end of the day, the house won’t be at a furnace-like temperature requiring a fortune’s worth of electricity to cool down.
“Our advice is to keep your air-con’s thermostat to 24-26 degrees. If everyone used their air-conditioners this way in conjunction with solar, it would dramatically decrease the need for peak demand energy and therefore reduce the need for further billions of dollars in infrastructure upgrades. Imagine eliminating this this investment; it would take a massive pressure off electricity prices and everyone would benefit.”
Mr Brass also predicts the industry standard of northerly facing solar panels may soon extend to west and east/west facing solar installations.
“These used to be considered a no-no in the solar industry; but this view is rapidly changing due to looming ‘time of use’ electricity charging. Many states will soon be charging customers very high rates during peak usage times. These traditionally occur on scorching hot days in the late afternoons when people are arriving home from school or work. A westerly facing solar system will prevent homeowners from having to pay ridiculous prices for energy during these peak usage times.”
While electricity prices have risen by 72% in real terms since 2004, solar power system prices have dropped dramatically by 80% [3], in real terms, over the same period. Even though the cost of solar has decreased dramatically, the initial outlay for some is still a barrier to ownership.
“To break down this barrier, Energy Matters has partnered with a finance company to create an innovative payment plan where, in many cases, there is a zero deposit and the savings each month are greater than the repayments . This could be a real solution for people who would otherwise have to suffer through summer’s heat. A third[4] of new solar installations by Energy Matters are now being paid for through our ‘Save As You Go‘ payment plan – up from a figure of 3% just 12 months ago.”
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