u/AskReddit125

If Australia shifted entirely to solar, that would pay off in 8 years. If electricity cost per kWh is fixed at 19c/kWh, after 8 years there are two pathways. Either electricity costs can be further reduced to pay for maintenance, or the annual revenue of 53.2 billion could be put in a sovereign wealth fund. For comparison, the oil and gas industry contributed only 18.7 billion in taxes during 2024–25. We haven’t even talked about the savings in terms of human health and wellbeing.

53.2 billion would be enough to cover Australias Budget deficit and have plenty enough left to put in a fund!

Mind you that the oil and gas sector is subsidized by 16.3 billion! So net profit for the government is only 2.7 billion, which is insane. In contrast, the solar industry would bring in 53.2 billion annually at 19c/kWh. Solar can last up to 30 years before needing replacement. Yes, gas and coal power plants have a lifespan of 30–40 years, but they require a huge amount of maintenance and actual fuel to operate, a commodity that can change in price at any time if any minor conflict occurs. Solar just sits there and collects energy.

https://envirojustice.org.au/press-release/australians-pay-a-deadly-2-4-billion-health-bill-for-coal-fired-power/

https://australiainstitute.org.au/report/fossil-fuel-subsidies-in-australia-2026/

So the average cost of electricity in Australia sits at 33c/kWh and is subsidized with the “Australian Government Energy Bill Relief.” In my calculations, I’ve used 19c/kWh just for fun. This means that every Australian will roughly halve their electricity bill overnight, and it would be more consistent throughout the year. Supply charges would also go down, since solar production has the ability to be more spread out than electricity production from gas and coal, which is very concentrated. Therefore, it would spread the load more evenly across the grid and potentially lower infrastructure and supply charges on your monthly bill.

Conclusion:

The ideal scenario would be to partially transition to renewables. For example, when a coal or gas power plant becomes too old, instead of being replaced with a similar source, it could be replaced with renewable energy. This would help reduce the staggering 40% of electricity production coming from coal! Coal is a very inefficient way to produce energy, which is why your car runs on petrol and not coal:/

Simplified calculation:

Annual electricty generation in 2024= 280TWh = 280 000 000 000kWh

Yearly PV energy Production = Annual energy production from 1kWh of installed solar only = 1521kWh

Installed solar capacity needed = 280 000 000 000kWh / 1521kWh = 184 089 414kw

Installed cost of solar and battery Storage (very conservative) = 2327$/kW

Total cost = 2327$/kW * 184 089 414kw = $428 376 066 378

Annual revenue = 280 000 000 000kWh * 19c/kWh = $53 200 000 000

Return on Investment = $428 376 066 378 / $53 200 000 000 = 8 years

Sources:

280TWh of annual electricity generation in 2024:

https://www.energy.gov.au/energy-data/australian-energy-statistics/electricity-generation

Yearly PV energy Production(Melbourne, Sydney, Roma, Broken Hill, Georgetown =1288 ,1364, 1599, 1610, 1744)(avg = 1521kWh):

(Use crystalline silicon 2025 and Optimize slope and azimuth)

https://re.jrc.ec.europa.eu/pvg_tools/en/

Installed cost of solar and apropately sized battery storage(2327$/kW)(This figure is VERY conservative):

https://atb.nrel.gov/electricity/2024/utility-scale_pv-plus-battery

Avreage cost of an kWh is 33c/kWh:

https://www.finder.com.au/energy/electricity/average-cost-of-electricity

https://www.researchgate.net/figure/Existing-transmission-lines-and-power-stations-in-Australia-Geoscience-Australia-and_fig1_321319574