If you can’t beat ’em, join ’em: When energy retailers join the solar revolution  

Solar power is now such a tantalising investment even major electricity retailers are trying to get in on the act.

Origin Energy and AGL have earmarked millions of dollars to establish teams focused on the residential and commercial solar markets according to a report in Renew Economy. Solar leasing and power purchase agreements will be offered as they attempt to snatch a piece of Australia’s 4GW Solar pie.

But why would retailers change course to drastically? Offering solar solutions will address two major concerns for electricity retailers:

1) Capitalise on Australia’s growing solar revolution. If their customers choose to install solar power systems Origin and AGL might as well attempt to scoop up any potential profits.

2) Offer much needed relief for families and businesses struggling to control their electricity bills. This goes some way to addressing retailer “churn” where budget conscious customers mix and match retailers on an annual basis chasing discounted rates.

AGL are particularly interested in emerging battery storage options that allow customers to charge up batteries during the day from solar panels and draw power from them throughout the evening.

“We are at the point where we have got big changes going on (in energy markets),” said AGL Energy managing director Michael Fraser. “We see battery storage technology going ahead in leaps and bounds.”

Additionally, offering power purchase agreements where the retailer retains ownership of the system while the customer buys the power it produces at a discounted rate will ensures that customers are locked in for 10, 15 or even 20 years.

Energy prices have risen in 2015 causing a disruption to the energy market. Gas prices are predicted to double in the next two or three years, and electricity prices will certainly follow. After the repeal of the Carbon Tax retailers are now defenseless in the face of disgruntled consumers.

Only eighteen months ago Origin Energy was called out by pro-renewable groups for their opposition to the renewable energy target and attempts to blame renewable energy for the steady increase in the price of electricity. Their policy shifts even saw them dumped by Australian Ethical Investments, a group dedicated to concentrating superannuation and fund management toward companies that aimed to build a low-carbon economy.

At the time Lindsay Soutar from Solar Citizens claimed that Origin was playing a risky game of cat and mouse and warned that, “Origin needs to be careful as they risk consumers walking away as they learn what they are up to.”

With plenty of expert solar operations to choose from only time will tell if Ms Soutar’s prediction becomes a reality.