Australians Sweating On Air-Conditioning Electricity Costs

Despite the majority of Australian households now owning an air conditioner, many people will swelter in their furnace-like homes this summer rather than switch on the cool.
Complaints about high electricity bills are on the rise in NSW.

MEDIA RELEASE 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.

“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.”

Energy Matters is one of Australia’s largest companies solely dedicated to solar energy with warehouses around the country. The award winning business was founded in 2005 and has since installed over 15,000 solar power systems on homes, schools and commercial buildings, including Australia’s largest privately funded solar photovoltaic project – a 200kW rooftop array in Sydney. Energy Matters is committed to helping Australians live in a world of energy abundance by providing quality solar systems at affordable prices. Its nationwide team of passionate and knowledgeable solar advocates, expert installers and reputable brands are the foundation of its success. Energy Matters is 100% Australian owned and sources only products which have been tested in Australia’s harsh conditions. With expertise in both grid connect and stand-alone power, Energy Matters is able to provide flexible clean energy solutions to fit almost all needs. To learn more or join the thousands of Australians who have already gone solar, visit www.energymatters.com.au.

Other related info:

Network Costs – Solar Power Vs The Air Conditioner

Solar Households – Saviours Not Sinners

The Rise Of The Air Conditioner


[1] ABS (various years) Consumer Price Index electricity (category 6401.0)

[2] ESAA Discussion Paper

[3] Bloomberg New Energy Finance

[4] July 2013 Energy Matters sales figures

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