Solar power drives down energy costs

Record contributions to the national grid from both large-scale solar and rooftop PV are helping push down the cost of power.

New data shows average wholesale electricity prices over the first quarter of this year are lower than the preceding quarter.

The latest Wholesale Markets Quarterly Report from the Australian Energy Regulator shows wholesale prices for electricity stabilised over the first three months of the year, and are well below 2022 levels. That's despite an increase in demand over the quarter, largely due to heatwave conditions.

The AER says the downward trend is partly due to the Albanese government’s coal price cap intervention, and also the greater supply of low-priced power, including from solar.

"Large-scale solar output achieved an all-time quarterly record and was up 22 percent on a year earlier, accounting for 9 percent of the total generation mix in the quarter."

Wholesale Markets Quarterly Report

The AER also found rooftop solar output hit a new record and contributed to downward pressure on daytime prices.

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