Solar Power Now 50% Cheaper Than Grid Power in Australia

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Photo credit: Some rights reserved by greensambaman via Flickr

Photo credit: Some rights reserved by greensambaman via Flickr

Solar energy prices are falling. It’s an established fact that many green energy advocates already knew and acknowledged quite some time ago. In fact, many people even expect the cascade to continue all throughout the next decade and beyond.

In continuation to this trend, it seems that Australia too has been enjoying the lowering cost of solar power; and according to CleanTechnica, the price has even fallen down to almost half the cost of regular grid power as of December 2012.

According to the calculations from Solar Choice made by CleanTechnica, the average installed cost of household rooftop solar was 2.19 USD per watt at that time. When this value was equated to the amount that can be borrowed by Australian home owners for the installation, and if standard regular energy price increases are taken into account, that would mean that the average cost of solar power would be just around 12 cents per kilowatt-hour.

Another main driving factor for the decrease in price was said to be the Renewable Energy Certificates, which can be effectively used by homeowners prevent themselves from paying the full cost of a solar energy system. Even with the addition of taxes in the calculation, the amount still stays well below the cost of what you could have paid if that energy came from the grid. As the report puts it, unless regular grid electricity also experiences a huge drop in price (which is, by the way, quite unlikely to happen), solar electricity would be the cheapest source of energy in the continent. Yes, even cheaper than other standard green energy sources like hydroelectric and wind energy.

With solar prices having dropped that low there, the only thing that’s left is to let the people know and be enlightened about it. People who would learn about it would definitely have no reason not to invest in something that great of a deal. The impetus for having a rooftop solar installation in Australia now no longer just lies on energy security and environmental countermeasures. Instead, they could now see this as an actual economic investment, much as how many Indians view solar energy today.

Christian Crisostomo
About Christian Crisostomo (260 Posts)

Christian Crisostomo is just your average tech geek that loves to see man's newest and most recent technological exploits. He holds great interest in the potentials of green technology, and is enthusiastic about the continuous development of environment-friendly alternative energy.

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