The federal government has revealed a bold goal for energy costs by 2050 – one it says it will save Aussies thousands of dollars.
Energy Minister Angus Taylor says power bills could be a fraction of their current price under the federal government’s new net zero emissions plan for 2050.
Under the new plan, using solar energy to power your home could cost as little as $15 per megawatt hour according to Mr Taylor.
The average cost of electricity generation from solar currently sits at around $62 per megawatt hour, according to BloombergNEF research.
This is already much cheaper than gas, which clocks in at an average of $108 per megawatt hour.
But Mr Taylor said the government’s new net zero target would widen this price gap even further.
“We have added for this year an additional technology goal, which is ultra low cost solar below $15 per megawatt hour,” he said.
“This is a technology where Australia has played a leadership role for many years, (and) we can continue to into the future.
“By applying those technologies across various sectors, we can see how emissions will come down through choice through customers choosing those technologies”
Mr Taylor said Australians would be nearly $2000 better off on average in 2050 under the new net zero plan compared with taking no action on climate change.
The government claims it’s new net zero plan will also create 62,000 new regional mining and heavy industry jobs to ensure there are no adverse effects on regional Australia from the 2050 goal.
Mr Taylor also said the new plan would not come at any additional cost to taxpayers.
“There will be no taxes or legislated targets or mechanisms,” he said.
“We won’t be raising the price of electricity. Indeed, those new technologies put downward pressure on prices.”