Topic: Solar Power, Solar PV
Writing for the Australian Financial Review, David Hetherington, Executive Director of independent progressive think tank Per Capita, says new “solar plus storage” technology for homes and small businesses offers a way for retirees and others to future proof against rapidly escalating electricity costs.
Mr Hetherington says if a power bill is $1,000 a year and it’s paid for with post-tax earnings from BHP dividends today, $47,000 worth of BHP shares would be needed to cover the cost of that bill. However, a 2kW solar power system, costing a fraction of the BHP share value required, would be all that is needed to offer the same financial benefit – and without any other incentives such as solar feed in tariffs taken into account.
Solar power provides an additional financial boost over many investments as the dollar benefits are in savings – which are not taxed. Other forms of investments, such as shares or rental property are taxed; meaning the tax liability should be taken into consideration when performing an apples-to-apples comparison of solar compared to other investments.
Sometimes referred to as the Internet of distributed electricity generation, rooftop solar energy will also play an important role in providing energy security for the nation.
Mr Hetherington points out that on top of the financial benefits, investing in a solar power system will also reduce a retiree’s greenhouse gas emission impact and take load off Australia’s mains grid; an issue becoming more pressing as Australia’s population and hunger for electricity grows.