Talk about out of the frying pan and into the fire! While the Federal Budget announcement held many anticipated outcomes, plenty positive enough including a new commitment to renewables, how does this fare for businesses? We’ve brought together the top features of the budget, and how they may affect both home and energy bills in the coming year.
No relief in sight for energy costs
Blaming the war in Europe for runaway energy costs, Treasurer Jim Chalmers revealed a nail-biting 56% rise in the costs of household energy costs over the next two years - a jump of 20% to round out 2022 and a further 30% through 2023-24. The Treasurer said the spike in energy prices would force the government to “consider a broader suite of regulatory interventions than we might have otherwise.”
For small businesses, this may bring further crunch to a season of challenge, as retailers continue to freeze lock term contracts, making riding this period out more challenging.
An uptick in renewables – but how long till we see the benefits?
The first Labor budget has pledged $55 billion to a wide range of renewable projects, including those previously promised such as cuts to taxes on electric vehicles, improving community batteries and solar banks, and expanding the EV charging network infrastructure.
A $20 billion dollar plan will see over 10,000 kilometres of new transmission lines installed, a much needed upgrade to ageing networks across the states. Alongside a range of renewable projects, Rewiring the Nation aims to help “apply downwards pressure” on the cost of electricity, create construction roles and fast track growth in sectors providing clean, efficient energy to the grid.
Renewables continue to be a cheaper and reliable source of energy, with the most recent Energy Update outlining a wide range of state-led initiatives designed to bring more surety to the market, but how long it will take for these new federal projects to carry the weight of an ageing and volatile market remains to be seen.
What can businesses do?
Unfortunately government influence in the energy industry is extremely limited, as we can see with the budget outlook. Instead, we encourage business owners to put the power back in their own hands: Ensure you are working with a firm like Choice Energy who are here to optimise the grid energy you need to use in order to function, as well as identify the strategies and options available to you to reduce it.
Much has changed in the last 10 years within the commercial solar sector, including a rising interest in clean, self-dependent energy sources in the last two. Between government incentives, clean energy financing and the Instant Asset Tax Write Off, we encourage you to reach out for more information on how we can investigate your unique requirements, and advise accordingly, starting with this article on why now is a key time to consider it.
Call us on 1300 304 448 or contact us here to learn more.