Skip to content 
Did you know power prices are set to rise by at least 35% in the next 12 months?
Why is this happening?
The ongoing war between Ukraine and Russia is causing various resources around the world to spike, and natural gas is one of them (this is where our power in Australia mainly comes from). Therefore, power prices will rise by at least 35% over the next 12 months according to the numerous articles linked below.
Just like petrol prices in 2022, the trend of everyday commodities increasing in price is already here.
What does this mean for the average household?
If your average bill is $350 now, (or $2,100 p/a) an increase of 35% gives you a new power bill of $470+ or $2,820 a year. So, your new power bill will increase by an average of $120 or $720 per year.
How does solar help?
On an average $2,100 a year power bill, you could save at least $1,600 a year with the right system. Transfer that to a new bill of $2,820 a year, you should see savings of $2,000+ a year making your new average bill $137 WITH the price increase.
Now for the bad news.
During the height of Covid the cost of solar increased by 20-25% due to a rise in transport & import costs as well as staff shortages, time delays and a panel shortage. Given that the War in Europe has a global impact, more people worldwide will be looking to install home solar systems, spiking huge demands which will see solar prices rise potentially another 20% or more. Factor in that the Government incentive dropped again on the 1st Jan 2023. Demand for solar will likely erupt with increased power prices hitting hard so you can expect to see current install times go from 3-4 weeks to 6- 12 weeks. This demand will likely have a flow-on effect resulting in stock shortages and even longer wait times for installation.
With an increase in demand comes an increase in wages for installers purely because they can. The recent building boom in WA is proof of that. Not only will that also push prices up, but it could also mean shonky, badly installed systems that do not operate properly or are dangerous
What should I do?
- Get solar now while everything is in your favour. Don’t wait for ‘bad’ stuff above to happen before making your move.
- Make sure you select the right company so your solar is installed properly and with quality products. Don’t be looking at the price, look for things that tick the boxes;
- quality install
- quality products
- long warranties
- back up and support
these factors are just as, if not more important than price.
- Look for long-standing companies with good reputations that will be around long term. Watch out for the ‘hit it and quit it’ companies
who jump in when it’s booming and disappear when it’s not.
Stay away from telephone salespeople. They usually aren’t based in WA, or even Australia. Get a professional to visit your home so you know they are local and can also check everything around your house. Another good way to determine if they are credible is to visit their office or warehouse and ask questions.
Click Here for our Synergy Energy Bill Audit Service to see how much Money We Can Save You
Resources:
https://energy.economictimes.indiatimes.com/news/power/australian-electricity-prices-set-to-soar-in-
2023/94782999#:~:text=Jeff%20Dimery%2C%20chief%20executive%20of,months%2C%20reports%20Xinhua%20news%20agency.
https://www.afr.com/companies/energy/electricity-prices-tipped-to-rise-at-least-35pc-in-2023-20221010-p5boif
https://www.theguardian.com/australia-news/2022/oct/12/solar-panel-inquiries-off-the-charts-after-alinta-boss-predicts-35-power-price-rise
https://www.9news.com.au/finance/electricity-prices-forecast-to-soar-alinita/50170b8c-fd5d-4325-be31-9f4d1428cc4d
https://10play.com.au/theproject/articles/power-bills-expected-to-surge-by-35-in-2023-according-to-alinta-energy-boss/tpa221011fvksl
