Australia’s electricity system needs fixed charges for network costs
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Australia has the highest levels of rooftop solar power (PV) in the world, thanks in part to generous government subsidies that have typically flowed to higher-income, home-owning households:

The wealthy are most likely to install solar and battery storage because they can afford the high upfront costs. This leaves poorer households and renters facing steep increases in their power bills as fixed network costs are spread across a shrinking pool of customers.
Various green energy schemes have been regressive wealth transfers, leaving those unable to afford upfront solar investments to bear the escalating costs of the grid.
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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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