Wholesale Energy Market Australia
We get contacted every day by people wanting to take their houses off the grid and tell the energy retailers to go jump.
The energy market is evolving, and in this article, I will show you how you can take advantage of it. Read to the end for my conclusion. This game is not for everyone.
There is always two sides side to a story; many underestimate what goes into keeping the lights on and the costs. Going off-grid is sometimes not the best decision and only for some. I always ask what is your intention?
I want to explain how the Australian wholesale energy market works in basics. There is much more to it; the prices change every 5 minutes. (we also have a one-minute market which I will not go into)
Every 5 minutes of the day, your energy retailer is charged a different price; their job is to smooth out the costs for you. So you get an energy bill with a few different rates on it. Many people are on a flat rate, and that is all changing soon. Some of you might already be on Time of Use. Peak -Off Peak and Shoulder.
The sooner we all have intelligent meters, the cheaper energy will be. The problem with solar is everyone is at the office working, and we have a load of excess energy in the middle of the day. This drives down the cost 's as the supply is high and the demand is low. I think about it like this. If O want to be at the beach, energy will be low cost, free or even you will get paid for it if you are on the wholesale market and don't have solar.
On a cold winter's morning, when you want to turn on the heater like everyone else, the prices will be higher, or that hot afternoon after a day at the beach and you want to use the air con like everyone else, it will be expensive. It's all supply and demand. This is the reason some people love solar and save a fortune is they work with nature / their solar system and use it when the sun is out and get the most out of it. And others think it's the biggest con as they had it installed, and it feed back to the grid all day, and they come home and use energy when it's expensive.
Now some new options on the market allow you to access the wholesale market and play the games your rattler plays to make the most out of the energy market.
Option 1 is local Volts. This is my favorite. I believe in choices and the ability to control what you want in your life. What I love about local volts is it gives you those choices, and they are of the same opinion. Local Volts is a peer-to-peer energy retailer which allows us to buy and sell our energy to each other, and when there are not enough of us to buy and sell, when can participate in the wholesale market.
Local Volts is ideal if you have a big solar system and a family or a business to sell your excess solar. For example, my mum has a small solar system, and I sell her my excess solar for $0 so she can use as much as she wants in a day, and she will use my excess solar. I also pay her bill, which she thinks is nice of me, and I am just using my excess power to get her free bill. I can also share my stored energy from my batteries. Pretty cool, hey!
Also, with local volts, the feed-in tariffs, on average, are higher—my feed-in, on average, is 13.5 cents per kWh, and remember, mine will be lower as some of my solar is sold for 0 cents to my mum 1st before anyone else on the market. That brings down my averages.
With the wholesale market it is best to look at the whole year. As prices will be high some nights, and there will be times your feedback to the grid, you get charged if you do not have someone else buying. Overall, for most people, it averages out to be better. And it comes down to if you can use more energy during the day and less at night, you will be better off.
You can check out some smarts I have at my house to take advantage or prices here.Option 2 in Amber Electric.
The difference between amber and local volts is Amber is more about making money from your home batteries. Amber has some fantastic technology and allows you to dump your battery back into the grid when the prices are high. Ambers pricing differs from local volts as it's not the wholesale market price as with their technology. They are access to other benefits and prices available to them in the peak demand periods. This brings a whole new level of complication to the prices in peak times. And their app and what they have built make it simple for you if you have excess battery storage and what to play money-making games.
From what I have seen in the amber Facebook groups, people can make great returns overnight.
My Conclusion on which one is the best. If you want to play the money-making game and have a battery compatible with Amber Go Amber at this point in time. And remember, it is a game, and with games, there are always the days you win some and the days you lose some. And Amber's customers seem to win more than they lose at the game, which is what we want.
Check out the Facebook group here.
If you want to get the most out of your excess solar and have your Batteries to ensure you are self-sufficient from sundown to sunup, then Local Volts is likely a better option to take advantage of the wholesale market rates.
If you have an EV Local Volts is possibly a better option. As your car is you battery and you will be better off finically when you compare electricity to the price of fuel. And With using Charge HQAs Much as I know, I would make more money with amber. And it is a very fun game to play, as watching what people achieve from amber is magnificent. I am about being more self-sufficient and using what I create and sharing that with my friends and family through the technology of local volts.
And if the wholesale market is not for you. Chose someone that not one of the big players who control the market.
If you would like to recommend another Energy retailer. Download our App. "the Off Grid Shop" and shoot me message there.
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Mike Haydon
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