The Looming Energy Crisis - Reducing Energy Bills
It’s undeniable – Australia is in the throes of an energy crisis. And it could worsen. The crisis, which began in mid-2022, has not only seen energy prices spike, but has also seen much of the Australian east coast suffer from supply issues that result in power outages or ‘blackouts’ affecting households and businesses – especially during what are increasingly known as ‘extreme weather events’.
The situation has become so bad, that households with an income of $150,000 are spending around 2% of their disposable income on energy, while households in the lowest income bracket are spending 12% or more, according to a December 2022 report from Energy Consumers Australia(1).
What’s more, Australia’s energy infrastructure is in a state of crisis with local coal generators failing – as many as 25% are offline at any time(2) – and adverse weather conditions, most notably rain, affecting large-scale renewable efficiency. What this means for households nationwide, is that we expect more price increases to follow, with energy prices pain expected to continue for the next 5 years.
How to lower household energy bills
While there isn’t much that we can do about escalating energy rates, there are, however, numerous ways to save on electricity by reducing your household’s energy consumption. These include:
- Switching off appliances at the wall
Did you know that appliances like TVs and microwaves consume electricity even when they’re not being used? If you can’t remember to switch off appliances, consider buying a smart power board.
- Monitoring energy usage
Tracking your electricity usage with an energy monitor helps identify opportunities to save electricity. You can access electricity monitoring with a smart meter, otherwise, you’ll need a meter attachment.
- Washing clothes with cold water
Along with using ‘eco’ settings and setting the correct load size, choosing cold wash settings over warm is an easy way to reduce electricity usage. And hang clothes to dry rather than using the dryer!
- Taking shorter showers (less hot water)
Hot water guzzles power, so the less time you spend in the shower the better! – unless you’re taking cold showers, but still consider your water usage – less electricity is used to heat the water when you have cold showers.
- Installing energy-efficient lighting
Many households are surprised by just how much light bulbs can contribute to monthly power bills. While LED light bulbs are more expensive, they’re far more energy efficient and provide real savings.
- Choosing appliances with a good energy rating
Just like LED bulbs, the most energy-efficient appliances often come with the heftiest price tags – but not always. Quite often, opting for a more expensive model can actually be cheaper in the long run.
- Checking appliance settings (TV, fridge, etc.)
And on that note, check the settings on appliances like fridges, washing machines, air conditioners and the TV – the difference that adjusting appliance settings can make on power bills is remarkable.
- Blocking draughts, insulate home and close doors and curtains
Whether it’s the AC in summer or the heater in winter, the harder it works. More power used the bigger your bills will be, so keep your doors, windows and curtains closed and block draughts.
- Adjusting the thermostat (heater and air conditioner)
Following on from that tip, keep an eye on the temperature setting to make sure it isn’t higher or lower than needed and use the timer so the air conditioner or heater doesn’t run longer than necessary.
These are several ways every household can make effective changes to their electricity costs each year, however, implementing these changes won’t have any effect on the electricity rates you pay. While you could compare electricity providers and shop around for a better rate – and this can be an effective way to save on electricity in the short term – switching electricity providers won’t protect you from future bill shock. To effectively lower your electricity costs in the long term, installing solar panels and a home battery system could have the biggest impact on your household energy costs.
How a home battery system can reduce energy bills
The financial benefits that home battery storage can deliver are, for most Australian households, the primary reason for investing in a home battery storage system – and why wouldn’t they be? After all, we’re all using more energy than ever before, energy bills increasingly comprise a larger percentage of every household’s expenditure, and energy prices are rising rapidly with no end in sight!
So, how much can you realistically expect to reduce your electricity bills and save money by installing a battery? With solar panels, you’re only generating energy during the day – you still pay for power at night. Also, even if you’re taking advantage of solar feed-in tariffs, you’re selling your self-generated power at a lower price during the day than you’re paying at night.
Home battery storage is clearly the answer, as you can nearly double your home’s solar-generated energy consumption by storing solar energy in the day for use at night(3). This means you use less grid electricity overall and save money on a monthly basis, plus, when you invest in a home battery, there’s also the potential to achieve energy independence and avoid using grid electricity at all.
If you’re not a sonnenBatterie owner yet but love the idea of throwing off the shackles that rising energy bills are increasingly holding Australian households captive with, explore the range of sonnen home battery storage solutions, like the sonnenBatterie Evo. With the energy crisis unlikely to end anytime soon, now’s the time to empower yourself to store and manage the energy your rooftop solar PV system generates. Not only will installing a solar battery save your household money this year, but energy efficiency upgrades like solar batteries can also increase the value of your home.
