When bidders crunch the number on a looming US$20 billion auction of Australian power assests in one of the world’s biggest privitisation of this year, they would do well to cast their eyes upward to the tops of apartment blocks and factories.
Business for fitters of rooftop solar panels in eastern Australia where the sale is to take place, is flourishing as more households and companies choose to generate their own power rather than rely entirely on electricity from the grid.
While solar remains a small part of the nations energy mix, accounting for about 2% of electricity output, the industries growth in recent years is casting a shadow over the impending auction of power assets in Australia’s most populous state, New South Wales.
Demand for solar power began stirring around eight years ago, when expensive upgrades to the grid jacked up electricity bills while roof-top panel prices were falling. The market has continued to grow despite easing in late 2010, when the government started slashing generous subsidies for people who sold power back to the grid.
“Whether it takes 12 months, 2 years or 5 years, I believe batter storage will become viable” said Matt Vella, managing director of MPV Solar & Solar Storage Co, Which turns over five million Australian Dollars (US$3.9 million) a year installing panels in sun-soaked Sydney suburbs.