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The Carbon Tax Hit List - Where Will Prices Increase?

Water bills, council rates, airfares, and grocery prices will be the more dominant cost increase sectors when many well known brands are imposed with a carbon tax in 2012.

 

The federal government is refusing to reveal its hit list of the 500 companies that will pay the $23 per tonne tax on their carbon emissions, the suspected reason is they dont want to add fuel to the debate that will work against them.

 

Companies that emit more than 25,000 tonnes of greenhouse gasses per year per production facility will be required to pay the tax.  According to the Department of Climate Change national greenhouse and energy report, the biggest carbon polluters are listed as Water Utilities, Electricity Generators, Mining Companies, Airlines and Food Manufacturers. A Treasury document states that the 500 firms include 60 electricity generators, 100 coal miners and 40 natural gas retailers. Another 190 operate in the waste disposal sector and 60 in industrial processing.

 

Coca Cola Amitil, which emits 54,629 tonnes of greenhouse gasses from its seven bottling plants, is estimated to be charged $1.26m per year in carbon taxes. According to the newspapaer; 'The Australian' a Coca-Cola Amitil spokeswoman has confirmed that all associated costs of a carbon tax will be passed on. This is no surprise and makes common sense in the world of commerce.

 

It is estimated that Brisbane City Coucil, for example, will be required to pay an additional $5.2m per year in carbon tax based on its 222,000 tonnes of emissions, mainly from garbage tips. It is no doubt, this additional cost will be passed on to rate payers, which is estimated to be around $12 per year per ratepayer, which is nominal and affordable to many.

 

Water Uilities use energy guzzling pumping stations, desalination plants, and treatment plants, which will be hit with a minimum 10 percent rise in power costs over the next three years as electricity generators pass on the cost of their carbon taxes. It is without question that Electricity and Water Utilities will pass these costs on to the end user.

 

By 2015, Australia’s electricity will cost more than double its 2008 price, a new study indicates. Among the factors responsible for Australia’s energy price increase will include the carbon tax, but this will have only a 10% to 15% impact. According to a report released by the Australian Industry Group and a second report by SPI 'Electricity Distribution Price Review; 2011-2015; 'It is the massive investment required  in upgrading transmission and distribution networks, coupled with supply and demand movements in the wholesale markets driven by the country’s droughts and mining boom'. As an example of the scale of investment required; South-East Queensland alone is required to spend $3.8 billion over the next 3 years to upgrade the tramission network to keep up with the increased demand for peak power, and forecast population growth. Many of the transformers used in local substations are 30 to 40 years old.

 

Price rises are inevitable, and consumers will have to find ways to manage their energy consumption more carefully, and mitigate against the greatest risk areas.

 

Solar Power and Solar Hot Water is one of the best investment a consumer can make to protect themselves against the inevitable increase in cost of living.

The Feed In Tariff provided in Queensland enables a household and business to earn up to $0.52 per kWh, which is more than double the price paid for power consumerd from the grid. It is this Feed-In Tariff which increases the payback time and feasibility of the investment in solar. For many customers, the payback time can be between 3 years to 5 years.

 

How will a solar power system help protect you from cost of living increases?

As a solar system generates power during the day, in a Net Meter set-up, the solar power is consumed by the appliance in the building that are operating (fridge etc), and what is left over is then exported (sold) into the electricity grid. Depending on which electricity retailer you are with, you can earn between $0.44 to $0.52 cents per kWh. In Queensland, Origin Energy pay $0.50 per kWh, and AGL pay $0.52. However, although AGL pay $0.02 more than Origin, they also charge you more for the power you consume.

When you consume power from the grid, which will predonminantly be at night when your solar system is not generating power, you only pay around $0.227 per kWh (this rate is a general market rate, and may vary with some Queensland electricity retailers). Therefore, the greater earnings from the power you have exported into the grid is likely to off-set the cost of the power you consume in the evening. This reduces your overall electricity bill, and in many cases, the bill is not only eliminated, but the customer receives a cheque from the electricity retailer every quarter. The ability to earn an income from your solar power system depends on the size of the system installed and the energy consumption patterns within your household/ business.

The Clean Energy Centre has the computer tools to very quickly work out your energy consumption patterns which then determines the optimum solar system size to cut your bill by 50%, 100%, and even 150% and 200%.

 

The Clean Energy Centre has one of the largest ranges of solar panels and inverters on the market, which ensures the best system can be designed to suit your specific needs. View information about Clean Energy Cnetre solar systems....

 

The Clean Energy Centre has performed thousands of solar power installations and specialise in complicated systems, such as East-West facing roofs, 30kW, 20kW, 10kW and 5kW installations. To view some of the many installations the Clean Energy Centre have completed, view our Installation Gallery....

 

How will a Solar Hot Water system protect you from the future cost of living increases?

The energy consumed within a hot water system comprises around 30% to 40% of your total bill (depending on which electricity tariff your hot water is on). Solar hot water systems can provide up to 90 per cent of your hot water for free using the sun’s energy. You will be effectively paying back your system with the saving you make on your bills.

 

The Clean Energy Centre is here to help slash your energy costs. Please feel free to have a chat with one of our clean energy consultants to see how we can help you .... contact us

 

 


More Clean Energy News and Industry Developments....

 

 

Origin Energy, Australia’s largest electricity utility, says the energy industry has underestimated the onset of disruptive technologies such as solar PV systems and battery storage. In comments...
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