How Australia made electricity... Note
Fast Company

How Australia made electricity cheaper while U.S. prices keep rising

Electricity prices are soaring in the U.S., with home bills rising at more than twice the rate of inflation. In contrast, Australia is experiencing falling wholesale electricity prices, leading to offers of free midday power for consumers. This shift is attributed to Australia's distributed energy system, heavily reliant on rooftop solar and home batteries. A government incentive for home batteries has led to widespread adoption, with over 500,000 installed since its launch. These batteries store solar power during the day, reducing reliance on expensive gas plants during peak evening hours. Saul Griffith, a key advocate, explains that subsidizing batteries was cheaper and more popular than building new power plants. Australia's success is also due to the affordability and ease of installing rooftop solar, unlike the U.S. The U.S. system faces bureaucratic hurdles, tariffs, and higher installation costs. In Australia, solar is the cheapest electricity source, leading to substations sometimes generating more power than needed. New initiatives offer free midday electricity in some states, encouraging consumers to shift energy usage. This abundance allows households to decarbonize and save significantly by electrifying appliances and vehicles. The strategy prioritizes rooftop solar and batteries for the lowest electricity system cost. Griffith criticizes U.S. policies and utility monopolies for hindering its rooftop solar market.
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