Electricity Price Increase in South West WA 2024

Energy prices in WA increased once more in 2024 and they are predicted to rise again in 2025. The cost of energy generation in Western Australia continues to climb as the state’s population grows. Power companies will increase their prices in July following a decision by the State Government. Here’s our overview of the 2024 electricity price changes as well as some viable options to help reduce their impact on your energy bills.

How much will electricity prices rise in 2024?

Electricity prices in WA’s South West Interconnected System (SWIS) will increase by 2.50% in July [1]. This is because all power companies have increased their residential tariffs and raised some of their standard fees as well (e.g. demolition fee and meter reprogram fee). Small businesses in the South West have been among the most affected by power bill increases, with some seeing electricity costs increase between 15 to 30 per cent in the past year [2].

Why Do Electricity Prices Keep Going Up?

The State Government reviews and determines the regulated electricity tariffs. Every year, they assess changes in the cost of providing power and set retail tariffs.

The primary factor behind the price increase is the rise in wholesale prices. In Western Australia, a large part of electricity is generated from natural gas and coal, both of which are limited resources. As a result, their prices change according to supply and demand dynamics. When the supply of coal and gas cannot meet demand, their prices increase. The combination of shortages in international and national markets and growing energy demands has created the perfect storm for these price hikes.

History of Rate Increases

Using historical trends we can see there has been a consistent rise in energy prices. Just in the past 10 years, the price of one kilowatt hour (kWh) has increased by nearly 22.8%. These trends mean the price of electricity will likely continue to increase.

We can also expect the amount of money paid back for feeding solar energy into the grid through the Distributed Energy Buyback Scheme (DEBS) to decrease every year. Since 2020, Synergy’s DEBS rate has dropped by over 30%.

Synergy DEBS Rates

Would Solar Panels Reduce My Electricity Bill?

Installing solar panels will reduce the impact of rising electricity prices. Solar panels improve energy cost stability by reducing dependency on traditional energy sources and lowering overall energy costs. The amount you save by adopting solar depends on your personal energy usage habits.

The Western Australian Government made it a requirement for energy providers to offer a buyback scheme. The Distributed Energy Burback Scheme (DEBS) plays a pivotal role in lowering your electricity bills. Under this scheme, energy retailers offer a fixed rate for excess energy generated by your solar panels.

As of July 2024, the DEBS buyback rates are:

• Electricity exported between 3pm and 9pm will earn 10 cents per kilowatt hour (kWh)
• Electricity exported at all other times will earn 2 cents per kilowatt hour (kWh)

The addition of a solar battery can increase the energy savings of your solar PV system. Typically, solar panels generate electricity during the day and feed surplus energy back to the grid. Your energy provider may offer solar feed-in tariffs for excess energy produced by your solar system and exported to the grid.  By adding batteries into the system, this extra energy can instead be saved for later use, minimising your reliance on the grid. This is especially beneficial at night or in the event of a power outage. Therefore, solar batteries will further reduce the impact of future price increases on electricity bills. With rising electricity costs, batteries become more financially attractive, leading to a faster payback period and greater return on your investment (ROI).

Increasing the total amount of renewable energy used in WA also reduces our reliance on coal and gas for electricity production. This can reduce the infrastructure necessary for electricity generation which will prevent major price hikes in the future. Notably, areas with higher solar panel adoption rates, such as Western Australia, have been less affected by price increases than those with lower solar ownership rates, such as New South Wales [3].

If you’re thinking about installing solar panels, South West Solar Force is here to help. Contact us to learn more about household solar and the potential energy savings.

[1] Changes to your electricity prices, Synergy

[2] Electricity shock as small businesses ‘belted’ by Synergy price rise, Matt Mckenzie

[3] Electricity bills set to rise as Australian Energy Regulator sets new network transmission costs, Adam Langenberg