Antinuclear

 Back in 2012, energy market and regulatory analyst Bruce Mountain broke the bad newsthat thanks largely to network business gold plating (not the carbon price), Australia was about to end up with the most expensive retail electricity prices in the developed world.

But while this was happening a revolution was unfolding in the affordability of solar power systems. Rather fortunately for Australia, we are one of the best positioned nations to take advantage of this revolution.

Hugh Bromley, an analyst at Bloomberg New Energy Finance, provided an illuminating presentation at the Australian Solar Council conference explaining how Australia has the most affordable solar systems in the developed world.

Once you do the sums it indicates that Australian households and small businesses now have access to some of the cheapest electricity in the developed world and that makes for our charts of the week.

Firstly, Bromley points out (illustrated in the chart below on original article) that the local system price (without subsidies) in Australia is about the same cost as it is in Germany – the country with the most solar installed per capita in the world. But the edge we have over Germany is that the output or capacity factor we get out of a unit of solar capacity is vastly greater thanks to better solar radiation. California manages to match Australia’s capacity factor but they pay almost double to install a solar system.

Source: Hugh Bromley, Bloomberg New Energy Finance

In addition we have another edge over other countries – we manage to achieve lower installation costs even though our solar systems tend to be of smaller size.

When you then put the cost of a household solar system against capacity to pay metrics the end result, according to BNEF, is that Australia is the most affordable solar PV market in the world.

Figure 2: Solar system cost relative to capacity to pay metrics –  see chart at top

Source: Hugh Bromley, Bloomberg New Energy Finance

This analysis, in conjunction with Origin Energy offering power for 11 cents per kilowatt-hour, or close to a third of grid prices got me thinking – could this in fact mean Australian households and businesses have access to some of the cheapest, rather than the most expensive, electricity in the developed world?

The answer is yes……..http://www.businessspectator.com.au/article/2015/5/15/renewable-energy/thanks-solar-australia-has-cheapest-electricity-developed-world