Power Prices for Australian Businesses — Where Are They Going This Year?
It’s been a tough few years for the Australian economy, and energy prices are no exception to this trend.
Events like the Russia-Ukraine conflict, shifts in energy infrastructure, supply and demand issues, and more have all combined leading to sky-high energy prices for households and businesses — a trend which doesn’t seem to be stopping.
In this article, we’ll dig a little deeper into this trend. We’ll take a look at what happened in 2022, how 2023 is shaping up so far, and what the future could look like. We’ll also explore how solar energy could solve many of the problems small businesses are facing when it comes to energy bills.
How Much Were Businesses Paying Last Year?
Last year saw a pretty significant increase in the amount of money businesses were paying for energy. Between October 2021 and October 2022, annual electricity bills for SMEs consuming 20,000 kWh increased by approximately 19%.
The increase varied depending on where your business was located in Australia. Businesses in New South Wales were hit the hardest, with an average increase of $2,375, a staggering 42%. Those in Western Australia got off the lightest, paying just $165 more, an increase of 3%.
Queensland businesses landed roughly in the middle — seeing an increase of $1000 or so on average. Gas bills saw a similar trend — increasing across the country.
On top of many other financial stresses, this rise in energy costs was just another major headache for businesses. Many are desperate for a return to some kind of normal, but is that a realistic hope? Let’s find out.
What’s in Store for 2023?
Unfortunately for Australian businesses, 2023 looks set to be another challenging year when it comes to energy costs.
Upcoming increases in retail electricity prices were recently announced — due to come into effect on 1 July 2023 — and the news is not pretty. In the Default Market Offer (DMO) and Victorian Default Offer (VDO), increases averaged 21% and 31% respectively.
These prices could have been even higher — up to 50% — if not for the Energy Price Relief Plan announced by the Federal Government at the end of last year.
Could Solar Energy Be the Answer?
With more and more businesses feeling concerned about the future of their energy prices, many are turning to solar energy as an alternative.
Solar gives businesses more control and power over their energy. Instead of being fully dependent on the energy grid and energy companies (and the prices they set) solar panels allow you to generate large portions of your own power.
Here are some of the key advantages to switching to solar:
- More stable and reliable energy prices, especially valuable during an energy crisis when traditional energy costs can be high and unstable.
- Better for the environment, allowing you to shift away from reliance on fossil fuels and nonrenewable energy sources to a source of power (solar) that is much better for the planet.
- Cost savings over time — although solar requires an upfront investment to get started, the savings you’ll make over time mean that solar panels typically pay for themselves in just a few years.
Prepare For The Future
The current energy crisis is making life tough for businesses all over Australia.
And the unfortunate truth is that, as long as you depend on traditional energy sources to run your business, these kinds of crises will always be a problem. By switching to solar, you can future-proof your business against these shocks, giving yourself a much more sustainable, reliable, and cost-effective energy solution.
At SnapSolar, we help businesses in Mackay and the surrounding Queensland area make the shift to solar confidently and successfully. We’ve helped countless companies do this over the years, and we can do the same for you.
Get in touch with us to learn more and get started today.
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