Electricity price rises caused by solar power?

Every now and then, there is comment in the media about solar being responsible for power price rises: such as the article below.

What is important to keep in mind is the relative cost of various things. This article states the increase in power, which is 1c per kWh. (most people in NSW pay around 22 – 40c per kWh now). So, this is 2-5% due to the ‘blow out’ in solar costs. The carbon tax, when it comes in will add around 10% as well.

In comparison, the power companies are increasing prices by 16-18% per year due to their increased cost to fix ageing infrastructure – cables and poles. So don’t buy into the “solar is pushing up power bills” debate!

“Peak power body predicts power price hikes
BY: LAUREN WILSON From: The Australian December 29, 2011 12:00AM

HIGH uptake of Labor’s small-scale renewable energy scheme, particularly in solar installation credits, will drive up electricity prices by almost $10 per megawatt hour next year, the peak body for electricity and gas users predicts.”