After spending thousands of dollars on solar panels, homeowners have criticized energy providers for lowering the credits they receive on their electricity bills.
Judith, a single senior citizen in Sydney, invested $6,000 in solar panels for her home and estimated it would take her 20 years to recoup her investment.
However, her electricity bill for the most recent quarter was 150 percent higher than the same period last year, despite the fact that she used significantly less electricity.
Giselle Rodrigues, a 32-year-old new homeowner, said she planned to switch to renewable energy but was becoming increasingly concerned about the decline in feed-in tariffs and government rebates for new solar panel owners.
Judith was taken aback when her electricity bill for the most recent quarter was 150 percent higher than the same period previous year, despite her using significantly less electricity.
The increase in her electricity cost is partially attributable to the decreased feed-in tariff credits she has been receiving.
A feed-in tariff is a credit scheme in which homeowners are compensated for putting their solar system’s excess electricity into the mains grid.
In the past eight years, Judith’s energy company, AGL, has lowered the feed-in tariff twice.
First, the fee was reduced from 11 cents to 10 cents, and subsequently to 7 cents.
The decrease in feed-in tariff occurred at the same time as energy providers increased prices across the nation owing to a global shortage of coal and gas.
Her most recent bill was $44, a 150 percent increase from the $17 she paid at the same time in 2021.
By shutting off appliances at the wall, installing energy-efficient light bulbs, and doing her laundry during the day, Judith had already been doing her best to reduce expenses.
She added, “They emailed me the bill with a link on how I could save more, despite the fact that I have already done everything possible to save costs.”
Judith consumed less electricity in the last quarter compared to the same period in 2021, yet her power bill increased.
After spending thousands of dollars on solar panels, homeowners have criticized energy providers for lowering the credits they receive on their electric bills.
However, Judith stated that the shift to solar energy was still a no-brainer and encouraged other residents to make the switch.
Another homeowner, who wished to remain anonymous, shelled out $7,500 for solar panels and disclosed that she was spending more on electricity bills this year than in 2021.
A few weeks remain in the year, but she has already spent $1,393, a big rise over the $1,085 she spent last year.
Her energy provider, Red Energy, also informed her by mail that the feed-in rate will be reduced from 11 cents to 7 cents.
She admitted she would have spent more if she had not put solar panels: “It’s incredibly sad.”
She thinks that it would take her several additional years to recoup the $7,500 she spent on solar panel installation.
The decrease in feed-in tariff occurred at the same time as energy providers increased energy prices nationwide owing to a global coal and gas shortage.
Giselle Rodrigues, a 32-year-old new homeowner, said she planned to switch to renewable energy but was becoming increasingly concerned about the decline in feed-in tariffs and government rebates for new solar panel owners.
In an effort to encourage more homeowners to install solar panels and save hundreds of dollars in the process, the government announced subsidies in 2011.
The program is gradually being phased out, with savings diminishing until the end of the campaign in 2030.
Ms. Rodrigues stated, “My mortgage payments have increased, as have gas and food prices, therefore I do not have thousands of dollars to spend on solar panels at this time.”
Financial comparison site A survey done by Canstar at the beginning of the year revealed that only one-third of solar panel owners in NSW were satisfied with their feed-in tariff.
When solar panels were first introduced to the market, rates reached as high as 44 cents per kilowatt-hour, but have since decreased as more people opt for cleaner energy.
Still, Judith advises households to switch to solar, stating that the choice has ultimately saved her hundreds of dollars in electricity costs.
In the past year, electricity rates have climbed dramatically across the nation.
Treasury disclosed in its October federal budget that prices will likely increase by an average of 20% in late 2022 and 30% in 2023.
Canstar reports that the average Australian family power bill has hit $1,402.
A representative for the Australian Energy Council stated, ‘The best value people can obtain from their solar systems is by consuming the electricity directly, as this allows them to purchase less electricity from the grid.
Retail pricing for grid-supplied electricity include not just retail costs but also network charges and other environmental scheme costs.
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