WA's Plan for Affordable Energy: What an 89% Price Risk Means for Your Business
On 27/10/2026 the WA Government released its Plan for Affordable Energy. The number that matters most for business owners sits in the modelling behind it: if government does not act, the electricity prices paid by industry could increase by 89 per cent by 2032.
That modelling was prepared by the Department of Energy and Economic Diversification and assured by Boston Consulting Group. It is a no-action scenario, not a forecast of your next bill. But it shows which way the risk points and how large it could be. At the same time, a federal change that took effect on 01/10/2026 now lets commercial solar systems up to 1 MW create small-scale technology certificates (STCs). Together, these two changes make this the right time for every commercial energy user in WA to check their numbers.
What the WA Government announced
A target of 75 per cent renewable energy generation on the South West Interconnected System (SWIS) by the 2030-31 financial year.
The Made in WA Energy Affordability Investment Program (MEAIP): low-interest loans for WA manufacturers to invest in solar, batteries, electrification and energy efficiency. Applications opened on 27/10/2026.
Retirement of State-owned coal-fired generation by 2030.
Ongoing support for household solar, batteries and electric vehicles, the domestic gas reservation policy and a future gas security strategy.
Transitional measures so consumers do not overpay for reserve capacity.
Who is most exposed: contestable businesses
In WA, a business that uses more than 50 megawatt hours (50,000 kWh) of electricity a year at a site is a contestable customer. As a rough guide, that is a business spending around $8,000 to $12,000 a year or more on electricity, depending on its tariff.
Contestable customers choose their retailer and negotiate their price. Sites using between 50 and 160 MWh a year can also choose Synergy's capped tariff (Energy Policy WA). Larger users sign negotiated contracts, so the price you lock in at renewal reflects the market at that time. Factories, cold stores, food processors, offices, shopping centres, schools, aged care, local government facilities and multi-tenant buildings all sit in this group.
What an 89% rise could look like
The table and chart below apply the 89 per cent figure to six usage levels, from a small contestable site to a large industrial user. They assume an all-in cost of 20 cents per kWh, ex GST, which sits in the middle of the $8,000 to $12,000 range above for a 50,000 kWh site. Large users often pay lower energy rates, so their dollar figures may be lower, but the percentage effect is the same.
Annual use | Annual cost today | After an 89% rise | Extra cost per year |
50,000 kWh | $10,000 | $18,900 | $8,900 |
100,000 kWh | $20,000 | $37,800 | $17,800 |
250,000 kWh | $50,000 | $94,500 | $44,500 |
500,000 kWh | $100,000 | $189,000 | $89,000 |
1,000,000 kWh | $200,000 | $378,000 | $178,000 |
5,000,000 kWh | $1,000,000 | $1,890,000 | $890,000 |
Illustrative only. AUD, ex GST. Not a forecast of any individual bill.
Why rising prices shorten solar and battery payback
Every kWh you generate and use on site is a kWh you do not buy. When the price of grid power rises, the value of every kWh your system produces rises with it. The system costs the same. It just pays for itself faster.
Payback at today's prices | Prices rise steadily to +89% by 2032 | At the full 2032 price |
5 years | 3.7 years | 2.6 years |
6 years | 4.3 years | 3.2 years |
8 years | 5.4 years | 4.2 years |
10 years | 6.5 years | 5.3 years |
In plain terms, a project that pays back in 8 years at today's prices would pay back in about 5.4 years if prices climb steadily to the modelled 2032 level, and in about 4.2 years at the full 2032 price. These are simple payback figures that assume savings move in line with the electricity price. They do not include STCs, panel degradation, finance costs or tariff structure changes. Real results depend on your load profile, demand charges, system size, export limits and funding. That is exactly what a feasibility study tests.
Projects that looked marginal a year ago may now stack up. Projects that already worked now carry less risk.
The federal piece: STCs now reach systems up to 1 MW
Under the federal Small-scale Renewable Energy Scheme, solar PV systems larger than 100 kW and up to 1 MW that are installed on or after 01/10/2026 can now create small-scale technology certificates (Clean Energy Regulator). Previously, systems above 100 kW could only create large-scale generation certificates (LGCs) over time.
Under the Regulator's transitional guidance, these mid-scale systems create their certificates up front at installation, with deeming that runs only to the end of 2030, when the scheme ends. The certificate value reduces the net cost of the system, and every year you wait means fewer certificates. Panels, inverters and batteries must be on the Clean Energy Council list, installation must meet Solar Accreditation Australia guidelines, and applications are expected to open in mid to late November 2026.
Put the two changes together. State modelling says the cost of doing nothing is rising. Federal certificates now reduce the cost of acting for the 100 kW to 1 MW systems that suit most commercial and industrial roofs. A lower upfront cost and a higher value for every kWh generated both shorten payback. The certificate value depends on system size, location and the STC market price, so we calculate it for your site rather than quote a rule of thumb. And because STCs end with the scheme in 2030, the certificate value is highest for systems installed now.
Who we are
Element47 is a Perth-based energy infrastructure company with offices in Bassendean. We design, deliver and operate solar PV, battery storage, embedded networks, microgrids, power purchase agreements (PPAs), EV charging and hot water as a service, and we run energy procurement, sourcing and negotiating electricity contracts for commercial buildings, industry, schools, strata and developers.
We work where energy engineering, metering data and commercial models meet. That means we can tell you what to install, whether it pays, how it connects to the network, and how it is run, metered and billed after commissioning.
How we help: from assessment to operation
Stage | What we do | What you get |
1. Assess | Review 12 to 24 months of bills and interval data (with your consent), your contract and tariff structure, and an on-site energy audit. | A clear picture of where your money goes and how exposed you are. |
2. Energy procurement | Benchmark your current contract, run a retailer request for quote and compare negotiated offers against Synergy's capped tariff where you are eligible, timed to your contract end date. | A better contract now, while the longer-term projects are planned. |
3. Feasibility | Size solar and battery to your load. Compare STCs, CAPEX, finance and PPA options. Model payback under different price paths. | A decision-ready business case. |
4. Infrastructure | Check switchboards, metering, cabling, network capacity, export limits and Western Power connection requirements. | No surprises at approval or installation. |
5. Energy plan | A staged roadmap to electrify gas and diesel loads: boilers and gas hot water to heat pumps, and fleet vehicles to EVs with the charging to support them. | Today's system sized for tomorrow's load. |
6. Deliver and operate | Design, delivery with licensed electrical partners, commissioning, metering, monitoring and, for multi-tenant sites, billing. | A system that keeps performing, with the data to prove it. |
Electrification: plan it before you buy it
Higher grid prices and cheaper on-site generation change the maths on gas and diesel too. Many businesses are now asking when, not whether, to electrify.
Boilers and gas hot water to heat pumps
Heat pumps move heat rather than make it, so they typically deliver several units of heat for every unit of electricity they use. Paired with on-site solar and storage, much of that electricity can come from your own roof. The catch is load. A heat pump adds electrical demand, which can trigger switchboard, cabling or network upgrades. We assess that first, so the upgrade is designed once.
Fleets and transport
Moving vans, utes or trucks to electric shifts fuel spend onto your electricity bill. Done well, much of that charging can come from your own solar and battery. Done badly, it can push up your peak demand charges. A fleet transition plan looks at duty cycles, charging windows, charger types and site capacity, and stages the rollout so the infrastructure is built once.
Sequence matters
If you plan to electrify in the next three to five years, your solar, battery, switchboard and network connection should be sized for that future load now. Retrofitting later costs more.
Our experience
Embedded networks and microgrids for apartment and build-to-rent developments, including Tuohy Gardens in Midland: 51 apartments with 130 kW of rooftop solar, 414 kWh of battery storage, utility metering and a communal heat pump hot water system. At the opening we switched the whole building from the grid to its own battery and back without interruption.
Energy management system commissioning and metering services for WA schools.
Commercial solar PPAs where load, grid and generation are metered separately, so every kWh is accounted for and billing is accurate.
Western Power embedded generation applications and approvals for complex multi-building sites, including strata and retirement villages.
An in-house metering and billing platform for multi-tenant sites.
Manufacturers: the MEAIP loan program
If you are a WA manufacturer that operates in, or supplies, clean energy, critical minerals, defence and space, food and beverage, or health and medical life sciences manufacturing, the MEAIP offers loans from $300,000 to $15 million at 3 per cent interest, over up to 7 years, with no repayments in the first 12 months. The loan covers up to 80 per cent of eligible project costs, so you fund at least 20 per cent.
Eligible Stream 1 activities named in the program guidelines include solar PV, inverters and batteries; electrification of manufacturing equipment; energy management systems, metering and controls; HVAC, insulation and refrigeration upgrades; and electrical infrastructure, network connection works and approvals. Fleet and road-registered vehicles and their EV charging are excluded.
Applications must show the project is technically credible, with evidence such as modelling, metering data, engineering advice and feasibility studies. That is the work we do. Applications close at 5pm AWST on 23/02/2027. Check your eligibility against the guidelines and confirm with the Department before you rely on it.
What to do now
Find your last 12 months of electricity bills and your contract end date.
Give us consent to request your interval data from your retailer.
Book a feasibility conversation. We will tell you where you stand, what the numbers look like and whether it is worth going further.
Or call 1300 794 201, or email info@element47.com.au.
Sources
WA Government media statement, Plan for Affordable Energy to support WA jobs and businesses, 27/10/2026.
Energy Policy WA, Business and Government Electricity Pricing, updated 14/07/2026.
Department of Energy and Economic Diversification, MEAIP program details and Guidelines and FAQ, 27/10/2026.
Clean Energy Regulator, Small-scale technology certificates, updated 18/09/2026, and Transitional guidance for mid-scale solar PV systems.
All cost and payback figures in this article are illustrative, in AUD and exclude GST. They are not a quote, a forecast of your bill, or financial, legal or tax advice. Program rules can change; check the current guidelines before you act.
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