According to a report by the ABC, electricity bills are predicted to rise by an additional $78 from the middle of 2017. Part of the blame is being thrown towards the Australian government’s focus on the renewable energy target and the closure of Victoria’s Hazelwood coal-fired power station.

The positive aspect of this is that Australia is moving closer towards their renewable energy target, however it is coming at a cost to the Australian citizens. Ultimately, someone needs to pay for the additional costs and middle to low-income Australian households are the ones that don’t want to feel the pinch.

We have illustrated the cost increase in our previous blog post, which shows the drastic increase in expenses.

Australians need to seek out cost-effective solutions to minimize the impact that energy price increases will have on their household. It’s been clear to see over the past few years how Australians have adopted more energy-saving habits, such as switching off lights and investing in energy-efficient equipment. However, the biggest savings will come from adopting energy-efficient lighting in their household.

Now is the best time for Australians to upgrade to LED light bulbs. Many homeowners can take advantage of the government schemes on offer to upgrade their lighting with no or little upfront costs. Once the lights are installed, the household’s overall energy consumption can be minimised by as much as 60% annually. Currently, there are subsidies on offer in New South Wales, South Australia and Victoria.

Businesses should consider this as well.

Lighting will account for at least 15% of a business’s overhead expense. Price increases will squeeze the business’s profits and can make the operation much more difficult to run over the long-term. It is in business’s best interests to also leverage LED lighting technology to minimise their business’s overheads. There are several case studies on the LEDified site where the installation of LED lights has increased the business’s positive cashflow.

Is it really worth the investment?

For some people, trying to justify $5,000 or more to replace their light bulbs now in order to save an extra $78 a year might not seem worthwhile. But what if the cost was greatly reduced to say $1,000 annually. It would pay off for itself over a five year period. Plus you would have better peace of mind knowing that the energy consumption that you are using within your property is actually helping and not hindering the environment.

What should you do next?

Get in touch with one of the LEDified specialists to learn about any options that you can take advantage of