Are Renewables cheaper than Fossil Fuels?
Founder and CEO of Accurassi, Ross Sharman answers a commonly asked question: Are Renewables cheaper than Fossil Fuels?
By Fossil Fuels we mean Coal and Gas. By Renewables, we are talking about Solar and Wind generation.
The simple answer to this question now is a resounding yes!
For the month of June in the National Electricity Market (NEM), Solar was 30% cheaper than Coal and 43% cheaper than Gas.
Solar and Wind Turbine costs continue to fall year on year, so they will only get cheaper. In the meantime, Coal and Gas prices cannot get much lower.
So, despite having abundant Coal and Gas reserves in Australia, we're unlikely to see a new Coal Power Station built because the economics simply do not stack up.
Over the past 2 years the influx of more Renewables on the grid has meant that wholesale electricity prices have fallen back to levels 5 years ago.
So, the impact of cheaper Renewables are now directly lowering your electricity bills.