Energy prices are set to increase once again. As Perth’s population continues to grow, the costs of energy generation continue to rise. Based on a decision by the State Government, Synergy will increase its pricing starting in July. Here’s our breakdown of the 2024 electricity price change and some potential solutions to help you regain control of your energy expenses.
How much will electricity prices rise in 2024
Electricity prices in Western Australia will increase by 2.50% in July [1]. This is because Synergy’s Home Plan (A1) has increased. Synergy also plans to raise some of its standard fees, such as its demolition fee (increasing from $518.10 to $576.95) and meter reprogram fee (increasing from $101.30 to $106.92).
Why are Electricity Prices Going Up?
These prices are changing after a review of regulated electricity tariffs. This review by the State Government sets the retail tariffs each year by looking at the cost of supplying electricity.
The main reason for this price increase is a rise in wholesale prices. Most of WA’s electricity is generated using natural gas and coal. These are finite resources meaning their price depends on supply and demand. When the supply of coal and gas can’t meet demand, their price will increase. The combination of a global shortage and increasing demand for energy has created the perfect storm for electricity price increases.
History of Rate Increases
Using historical data, we can determine that energy prices have been consistently increasing. In the last ten years, the price of one kilowatt hour (kWh) has increased by about 28.4 per cent. These trends suggest that the cost of power will likely continue to rise.
We can expect the amount of money paid back for feeding solar energy into the grid through the Distributed Energy Buyback Scheme (DEBS) to decrease every year. Since 2020, there’s been an over 30 per cent decrease in Synergy’s DEBS rate.
Synergy DEBS Rates
| Year | Peak Rates (3pm to 9pm) per kWh | Off-peak Rates (9pm to 3pm) per kWh |
|---|---|---|
|
2020 |
10 c |
3 c |
|
2021 |
10 c |
2.75 c |
|
2022 |
10 c |
2.5 c |
|
2023 |
10 c |
2.25 c |
|
2024 |
10 c |
2 c |
Would Solar Panels Reduce My Bill?
Installing solar panels will minimise the impact of ongoing electricity bill increases. Owning solar panels reduces your reliance on traditional energy and improves energy cost stability. How much you save by using solar depends on your energy consumption habits.
Government solar incentives such as the DEBS (Distributed Energy Buyback Scheme) also contribute to reducing your bill. Energy retailers will pay a fixed rate for the excess energy produced by your solar panels.
As of July 2024, the DEBS buyback rates will change to:
- Electricity exported between 3pm and 9pm will earn 10 cents per kilowatt hour (kWh)
- Electricity exported at all other times will earn 2 cents per kilowatt hour (kWh)
The addition of a solar battery can further increase your energy savings. In a standard solar setup, solar panels generate electricity during the day.
Any excess energy produced is sent back to the grid. When you add batteries to your system, they store the excess energy for later use. This is useful during the evenings or in case of power outages when your solar panels can’t generate power. Solar batteries will therefore decrease your reliance on the grid and reduce the impact future price increases will have on your power bill.
As the price of power increases, home battery systems become a more valuable investment. This is because you’ll recoup the upfront cost of the battery quicker (payback period) and see a greater return on your investment (ROI) over time.
Increasing the total amount of renewable energy used in WA also reduces our dependence on coal and gas for energy. This can decrease the infrastructure required for electricity generation and potentially prevent significant price increases in the future. WA having a percentage of solar panel ownership has already had a significant impact on price increases. States with lower solar ownership such as New South Wales are seeing higher energy price increases [2].
If you’re considering installing solar panels, Perth Solar Force is here to help. Contact our team to learn more about residential solar and your potential energy savings.
[1] Changes to your electricity prices, Synergy
[2] Electricity bills set to rise as Australian Energy Regulator sets new network transmission costs, Adam Langenberg