How To Save Money Despite Australia’s Surging Energy Prices In 2022
It is an expensive time to be an Australian. You’ve probably heard that the cost of living has been increasing over the past few months due to inflation reaching a multi-decade high, but did you know wholesale energy prices have surged by 141% in the past year? The increased energy costs vary from state to state, but households and small businesses across Australia will begin seeing this change reflected in their energy bills as early as July 2022. The Victorian government has even offered payments to eligible households to help cover these rising costs and is renewing the program in July. But what is causing this massive increase in the price of electricity and how can we save money despite these surging prices?
The Real Price of Coal
Coal provides around 75% of all electricity used by Australians. Though harmful to the environment, the burning of coal has historically been a reliable power source. However, coal plants across the country have become less and less dependable. The price of coal has more than tripled due to the global energy crunch, making this electricity source more expensive than ever. A major shift is underway in Australia, and that shift favours energy efficiency.
Data source: Quarterly Energy Dynamics (QED) - AEMO
Clean Energy Saves Money
From electric vehicles to rooftop solar to battery storage, Australians are turning toward clean and efficient energy. If you’re one of the 3 million Aussie households with rooftop solar, you’re well on your way to reducing your energy bills as well as your carbon footprint. However, it’s not as simple as installing a solar system and raking in the savings. In order to make the most of your solar, you need to align your solar generation with understanding its impact on your home’s energy usage. Why? Because you are now paying 300-500% more for energy you consume from the grid compared to energy your solar system generates and “feeds-in” to the grid. In other words, there is a big incentive to use what your solar generates when it is generating it.
Understand and Save Today
There are plenty of sources available to help you understand your home energy usage in order to make major savings throughout the electricity price surge, even if you haven’t made the transition to solar energy.
Check out Victorian Energy Compare (VIC) or Energy Made Easy (TAS, SA, ACT, NSW, QLD) to make sure you’re getting the best price in your state.
Many Australians are keen on WATTever, an energy saving site offering comparisons between 58 different retailers as well as energy saving guides.
Sustainability Victoria has some great tips on making the most of your household energy.
Reduction Revolution has an Appliance Electricity Cost Calculator to help estimate any of your electrical appliance's total energy usage and annual running cost.
If you do have solar, check out our article on how to maximise your solar savings for helpful tips to get the most out of your solar system.
If you’re looking for ways to immediately start cutting back on energy spending, check out these creative tips we’ve found for saving on energy every day:
Use a hot water bottle or heat pack instead of turning on the heater
Use a Kettle to boil your water, it’s more energy efficient than boiling water on the stove
Letting your house cool down and warm up again takes less energy than keeping it warm
Use lids on your pots to cook things quicker
While cooking, turn down the heat once your pan is already hot/water is boiling
Cook in large batches and store the leftovers, reheating takes less energy than cooking from scratch
Fill unused space in your fridge and freezer with bottles (empty or filled with water). The cold mass will reduce temperature fluctuations, so less energy is needed to cool
And in the long run, you can consider adding some of the below features to your home to make it more efficient:
Image: anatomy of an energy efficient home
Finally, if you really want to understand your home energy usage and its impact on your power bill, you’ll want to look into home energy management and monitoring. This is where we recommend Powersensor for homes with and without solar! Powersensor is the easiest way to start understanding your home’s energy usage, and to save money on your energy bills. The DIY-install, simple setup saves you time and money by eliminating the need for a costly electrician visit and the risk of costly switchboard upgrades. Powersensor’s patented technology also gives you a comprehensive breakdown of all your home’s imported energy, exported energy and solar generation in real-time.
Image: Powersensor Energy Monitoring Solution (Also known as Essentials Solar Monitoring Solution)
Powersensor has solutions for everyone, from people who are thinking about installing solar, to the most tech-savvy homeowners who have a sophisticated solar setup. Monitor your appliances with the Powersensor WiFi plugs to tell which ones are running up your energy bill, and view your total household consumption and solar generation to unlock more solar savings. Powersensor’s team will be here to support you throughout your journey from thinking of installing solar, installing solar, to enhancing your solar monitoring setup. It’s possible to make the most out of your solar investment and create opportunities for savings despite the current energy price surge!
See what Powersensor can do for your with The Powersensor Buying Guide
