Is the government ready for the pace of change in the energy market?Consumer demand for new energy technologies is moving fast. Faster than government initiatives allow.
Few other industries face the pace of change seen by in this market right now. Every part of the supply chain is impacted – generation, networks and retail. And all will need to adapt significantly to keep up with consumer demand and expectation.
Australian consumers demand renewables
The Faster Horses Inside Energy Report surveyed 3,364 Australians, with each state and territory represented in the sample. Clearly, Australians see renewable generation as the way of the future:
- 69% agree they want a higher proportion of electricity generated by renewables
- 66% want less reliance on fossil fuels
- 64% want more investment in other types of renewables such as tidal, salt, landfill and wave
Rooftop solar will continue to grow
Plus, demand for rooftop solar and other behind-the-metre technologies continues to grow. There are already 2.77 million households in Australia with rooftop solar, 27% of the market (Source: Australia PV Institute). And a further 42% are looking to purchase solar panels within the next year.
Rooftop solar is not available for renters. But, for other households not yet opted in, cost remains the primary barrier. Despite this, the ideal price point in the market is fast approaching, with cost for the technology having dropped substantially in recent years.
Battery storage and EV also attract interest
The same degree of interest exists for battery storage. Here, incidence is lower at 7% of the market. However, 41% are actively looking at options in this space. Cost is also the primary barrier here, but the ideal price point still has a way to go to reach mass market adoption.
Electric vehicles also attract considerable interest. Unfortunately, lack of infrastructure development to support EVs is an additional barrier to cost and means that a lower 31% of Australians are actively looking at EV as an option.
The motivation is reduction of electricity prices
We should also look at the motivation for interest in renewables and new energy technology. Yes, environmental benefits are important. But more important is the reduction of electricity costs in the home. 77% believe that more renewables on the system will drive prices lower. To add to this, 75% of Australians still find the price of electricity to be of concern.
When will government have an energy industry lightbulb moment?
It seems that government policy remains in a traditional era while consumers are demanding change and access to the technology that is fast becoming the norm around the world.
For more insights on the energy industry and for access to the Faster Horses Inside Energy Report, please contact us below:
Veronica Mayne: veronica@fasterhorses.consulting: 0412 601 797
Peter Fairbrother: peter@fasterhorses.consulting: 0402 958 615
James Wunsch: james@fasterhorses.consulting: 0422 433 231