Chapter 5

Grid Versus Distributed Solar: What Does Australia’s Experience Say About the Competitiveness of Distributed Energy?

Bruce Mountain*
Russell Harris***    Carbon and Energy Markets (CME), Melbourne, VIC, Australia**    Wollemi Consulting, Melbourne, VIC, Australia


The economics of installing solar photovoltaics (PV) is significantly affected by the customer’s offer for grid-supplied electricity. In the deregulated retail electricity market in Victoria, Australia, these offers vary widely. This analysis finds median payback periods for PV installation in Victoria of 12 years, using current PV costs and the median of all retail offers. But the payback period ranges between 6 and 19 years on different offers. Median payback periods ...

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