"It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong." Richard P. Feynman

Thursday, October 21, 2010

Solar take-up to drive up power bills.

The pain is starting for Australian electricity users as solar rebates cause higher prices says the Australian.

Consumers have rushed to install photovoltaic panels to take advantage of the government's incentives - worth about $6200 for a typical household - and state government subsidies.
The nation's biggest energy retailer, AGL Energy, this week applied to South Australia's pricing regulator to increase power bills by $7.58 per megawatt hour next year - translating to an average of 3 per cent per bill - just to pass on the costs associated with the government's scheme to encourage household-level renewables. The development will put further pressure on the Gillard government over its handling of climate change policy, with warnings that power prices are surging because of the extension of "very expensive" renewables and state-based schemes in the absence of a carbon price.

As the takeup continues more and more consumers will get rebates at the expense of their neighbours who don't ,or can't install solar panels. All this to provide erratic ,horrendously expensive energy that the electricity grid does not want. 
The Energy Users Association of Australia - with members including Rio Tinto and BHP Billiton - estimates the government's renewables target will cost $1.2 billion next year.
"It's certainly going to increase power prices and that cost is going to escalate over time as the target gets bigger," EUAA executive director Roman Domanski said. On top of this, there would be other add-on costs to provide conventional electricity generation as a back-up for when the sun was not shining, Mr Domanski said. Renewables were a "very expensive" way of reducing carbon emissions.
Because of soaring energy costs, businesses "could end up having to make unpleasant decisions about future investment, about how many people they employ and about continuing their existing operations".
 Cheap energy has been the backbone of development of modern society and while China and India continue with cheap power generation,   Western society will ultimately go the way of the Soviets where a bad economic system crippled and finally destroyed the political movement that spawned it. The war on energy is strategically damaging to the country while causing hardship to those in our society who can least afford it, all for the sake of a "green" ideology .

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