Ben Squires
Money & Banking

The Turnbull Government is going to pay you to turn your air conditioning off this summer

The Turnbull Government is going to pay you to keep your air conditioning off this summer, as part of a trail program to reduce electricity use in peak periods.

Thousands of Australian households will have access to incentives like rebates for reducing electricity consumption during periods of high demand, as the government looks to shore up electricity supply in the summer months.

South Australia, Victoria and NSW are expected to be hit hard by power shortages, as the closure of coal-fired power stations puts intense pressure on the network.

Consumers are being encouraged to do their part and sign up to the program. Households that are part of the program will receive text messages during peak periods where they will be asked to consider energy-friendly alternatives like turning down their air conditioning or using a barbecue to cook instead of an electric stovetop.

Providers are already onboard, with EnergyAustralia and AGL stating they will offer customers who are willing to reduce their consumption rebates or reward vouchers.

Aussie households will be incentivised to keep the AC off this summer. 

As part of the program, residential households will have to have smart meters installed which measures their usage, and businesses will have to install remote monitoring and control devices.  

The Turnbull Government, through the Australian Renewable Energy Agency (ARENA), is expected to provide $28.6 million for the trial which will commence in November 2017.

“Through this initiative, we’ve been able to build a virtual power plant the size of two of Tesla’s giant 100 MW batteries in a matter of months for a fraction of the cost of building a new power station,” ARENA chief executive Ivor Frischknecht said.

“Demand response will not only ease the strain on the electricity grid and prevent blackouts — these projects will also put money back into the pockets of Australian businesses and households, helping to reduce their energy costs and emissions.”

Environment and Energy Minister Josh Frydenberg said in a statement this kind of ‘demand response’ strategy had been a cost-effective way of managing energy demand and price spikes in developed countries like the US and New Zealand.

What are your thoughts? Would you be willing to reduce your consumption for the greater good? Or is this solution not really going to the heart of the problem?

Tags:
Finance, Money & Banking, Government, Turnbull, Power, Electricity, Summer, Air Conditioning