Rooftop Solar Households More Likely to Switch Electricity Providers for Better Tariffs
A growing number of Australians with rooftop solar systems are opting to change their electricity providers in pursuit of better feed-in tariffs—essentially the rates paid for excess solar energy returned to the grid.
A recent analysis by Australian market research firm Roy Morgan indicates that households equipped with solar panels are significantly more inclined to switch their electricity providers compared to the average household. Furthermore, this trend suggests that they are also considering making a change within the next year.
Insights from the Roy Morgan Analysis
This analysis reflects the behaviours and intentions of Australian households, though it does not include residents from Western Australia, where Synergy—a government-owned entity—enjoys a monopoly on electricity supply.
Building on the findings from their November report, which stated that 32 per cent of Australian homes now utilise some type of solar energy system, Roy Morgan’s recent study highlights a notable pattern regarding provider switching. This percentage encompasses various solar systems, including solar hot water, solar-heated swimming pools, and rooftop solar panels, with or without battery storage.
Switching Rates Among Solar Users
The analysis reveals that among respondents who acquired solar energy systems in the past year, the switching rate is four percentage points above that of all Australian households (excluding WA), and six percentage points higher for those utilizing both solar panels and battery systems.
Additionally, individuals with solar energy systems show a greater likelihood of changing providers in the upcoming year compared to the average Australian household outside of WA. Notably, households that switched to new providers after installing solar systems are increasingly choosing Alinta or EnergyAustralia, while AGL appears to be less favoured.
Intentions and Market Trends
The data also indicates that potential solar panel buyers considering installation within the next year are more inclined to switch their electricity provider, reflecting a trend that surpasses the national average.
According to Roy Morgan’s analysis, the interest in acquiring solar panels seems to be actively encouraging households to reassess their choice of electricity provider to maximise the benefits derived from their solar investments.
Michele Levine, CEO of Roy Morgan, noted that the uptake of solar energy systems is on the rise across Australia, largely driven by generous government support in the form of rebates and interest-free loans. Households with solar systems demonstrate a heightened willingness to switch providers.
However, Levine cautions that diminishing feed-in tariffs from various electricity providers may hinder this switching behaviour in the future. “Some energy retailers have already ceased compensating customers for the solar power they produce,” she explained.
The analysis highlights that amid challenging economic conditions, both falling feed-in tariffs and rising energy prices are influencing household decisions. This climate is leading households to evaluate their plans, striving to ensure maximum returns on their investments.
The latest data illustrates that one-third of those who switched providers in the last year, or are expected to switch within the next year, form a considerable segment comprising over 120,000 households that have recently installed roof solar panels.
