With reference to the letter from Charles Hemmings (Beware of the cost of renewables, CCN 416).
True there is a cost, but it depends on who is covering the cost – not necessarily the end electricity consumer.
When comparing cost, the consumer needs to be aware the electricity bill from their existing retailer is made up of several components including 59 per cent network cost; the actual electrons (electricity) is only about 25 per cent of your total bill.
Ideally the source of the renewable energy (PV panels) should be close to the demand (i.e. rooftop mounted), thus eliminating the network and electron cost (at least 84 per cent cost saving to the consumer).
There are now many government incentives to cover the cost of supply and installation – for new residential estates, gated communities and industrial parks.
There are emerging numerous companies that will provide the PV panels, battery storage and EV charging stations at zero cost to the landlords and tenants.
They seek investors (similar model to building a new coal-fired generator); the consumer has access to electricity at about 20 per cent of existing cost and the investor receives a dividend – a win/win outcome.
It should be legislated that all new residential estates and industrial parks should have renewables technology incorporated into the approval process.
The real issue is if you are the owner of a transmission line or distribution network, you face the risk of ending up with a stranded asset.
Email, Nov 18
Dennis Silvers, Gold Coast (formerly of Narara)