A new report has predicted that the economic recovery could be boosted by a change in how the nation’s electricity grid operates.
Key points:The Federal Government has introduced new laws to allow rooftop solar panels to be installed in the state’s buildingsThe report from the Institute of Public Affairs says this will have a big impact on the state economyThe state’s grid will need to change to accommodate rooftop solar installationsA new report from an Australian think tank predicts that Australia’s electricity system will be able to cope with a change of how the country’s grid operates as rooftop solar is installed on buildings.
The institute’s latest economic modelling found that the state could see a boost in economic activity as more households switch to rooftop solar.
“The new rules introduced by the Australian Energy Market Operator (AEMO) will enable rooftop solar to become a part of the national electricity mix, reducing Australia’s dependence on fossil fuels,” the report states.
“This is a huge win for the economy and it will help ensure the economy remains strong and sustainable in the long-term.”
The institute, which was established to examine the implications of climate change, says this change will have an impact on Australia’s economic performance.
“Solar energy is one of the cheapest and most effective ways to generate electricity in Australia,” it said.
“It’s not only a cleaner, more reliable source of electricity, but also one of Australia’s fastest growing renewable energy sources.”
Australia will benefit from the increased uptake of rooftop solar over the next few years.
“The new rule has been a long time coming, and the changes will come into effect in the coming months.
In a submission to the new rules, AEMO says the rules will be introduced in two phases.
Phase one will include rooftop solar being permitted on the roofs of all buildings in the next 12 months.
Phase two will include the installation of the rooftop solar systems on existing buildings in 12 months’ time.”
Rooftop solar is expected to become the most common type of installation, with a majority of Australian households currently having a rooftop solar system installed, and an additional 12 per cent of households likely to have a rooftop system installed by the end of 2020,” the submission states.
It says the rollout of the new rule will help to “increase the number of households with rooftop solar” by a further 5 per cent in the two-year timeframe.”
These new rules will help the electricity system transition to an energy system that is less reliant on fossil fuel generation, which will provide greater economic stability and a better outcome for households and businesses in the longer term,” the paper states.