Tasmania at an Energy Crossroads
As households deal with high energy costs, part of the solution is finding innovative and out of the box thinking, whilst investing in Tasmania’s energy future.
The Tasmanian Parliament’s Energy Matters Committee is investigating the future of our energy system. Meanwhile, at the federal level, Dutton’s opposition has released a slash and burn shadow-budget that casts doubt on many Tasmanian infrastructure projects. Now more than ever, Tasmania is at a crossroads when it comes to our energy future.
For example, Tasmanian drivers spend a staggering $1 billion on imported oil for private cars every year. This large outflow of money from the state is a considerable expense and a lost economic opportunity. One solution is investing in active and public transport, but with our low population density, complex lives and spread out cities, private car use is likely to persist.
By using electric vehicles (EVs) Tasmanians could save approximately $500 million per year, immediately giving every household additional spending or saving power. Even better, the $500 million spent to charge the EVs could stay in Tasmania to pay local workers, rather than heading offshore. But in order for this to work, Tasmanians need electricity to be affordable.
Carbon Zero Initiative recently completed a study that found Tasmania has a huge opportunity ahead in rooftop solar. We estimate that rooftop solar reduces household electricity bills by at least 50%, potentially saving Tasmanians an additional $250 million annually.
Meanwhile costs for rooftop solar, home batteries and electric vehicles have all plummeted over the last few years. Adding a home battery adds savings, as households can use their solar on site, even when the sun isn’t shining. This is an innovation in itself, but potentially an even better opportunity is to use an electric vehicle as the home battery. This way the EV saves households on fuel costs and allows Tasmanians to shift that cheap solar to the evenings, whilst saving the upfront cost of a second battery.
Despite dramatic price reductions, upfront install costs remain a barrier, particularly for low-income households. Tasmania can address this challenge and unlock these savings with targeted assistance, particularly for those in social and community housing who might otherwise miss out. There are currently solar and EV rebates available, each saving customers about $2,000. The state government also has a low interest loan scheme which can be used for solar.
In addition, the federal government has pledged $1.6 billion for home efficiency upgrades. According to the ‘Powering Progress’ report by Deloitte and the Australian Council of Social Services, installing rooftop solar and making home efficiency upgrades across Tasmania’s social and community housing and low income rental stock will create $300 million of economic value and 440 local jobs, leading to substantial savings for Tasmanians on their energy bills.
By working collaboratively with communities and industry, the government can deliver targeted investment that lowers energy bills across sectors and creates local well paying jobs. The answer, as tempting as it might be to some, is not to rip up the progress we have made and start from the beginning.
Jack Redpath is the Principal at Carbon Zero Initiative
