Millions of households could soon see their power bills drop for the first time in years — here's why

Australian citizens and residents just got some good news, as officials have announced that millions of households should see their power bills drop in the coming year.

According to the Australian Energy Regulator, most households can expect price cuts of 0.4%-7.1%, while most small businesses can expect cuts between 0.3% and 9.7%, the Guardian reported.

"We've got reductions today for the first time in quite a while," energy minister Chris Bowen said. "That is an encouraging sign for Australian consumers."

After electricity costs rose in the last two years, the reductions are expected in part due to Australia increasing its share of renewable energy, such as wind, solar, and hydro.

Renewables generated one-third of all electricity in Australia during the first quarter of this year. Solar energy was up 13.5% from the same period last year, while wind was up 6.5%. These numbers "indicate that Australia's build-out of utility-scale clean energy generation capacity is having a deep impact on the country's generation mix," Reuters reported.

Until the end of 2020, renewable energy accounted for less than 20% of Australia's utility-generated electricity supply. However, in the last few years, renewable development has been sharply on the rise. 

Meanwhile, coal burning — the country's main source of energy — has been steadily falling, from more than 70% in 2020 to around 55% today. This was largely a result of societal and policy pressure to move away from dirty, polluting forms of energy.

Now, not only is the energy powering Australian homes less environmentally harmful, but it is also saving Australians money. If that trend continues, it can only mean good things. 

🗣️ Where does the majority of your home's electricity come from?

🔘 Statewide power company ⚡

🔘 Smaller local provider 🔌

🔘 Community solar 😎

🔘 Off-grid source 🔋

🗳️ Click your choice to see results and speak your mind

Last year, there was a brief moment when nearly 100% of eastern Australia's power demand was met by renewables. In a country with so much sun and open space, it is not at all difficult to imagine solar and wind energy continuing to claim a bigger and bigger share.

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