South Australia will see 8 per cent increase in electricity prices

South Australia's energy minister Michael O'Brien has told parliament that electricity prices will rise by around eight per cent for the state's consumers.

The reason for the jump is attributed to the government needing to cover the cost of thousands of solar panel installations.

SA's feed-in tariff has been met with overwhelming enthusiasm by households looking to save on their energy bill.

ABC is reporting that O'Brien initially expected around 9,000 to take advantage of the scheme, however the actual number is closer to 100,000.

The rate that consumers can be paid for excess power fed into the grid will change from 44 cents a kilowatt hour to 22 cents as of next week.

As a result of the drop in incentives, the state has seen a surge of consumers install systems in order to be signed to the higher pricing scheme prior to the deadline.

The eight per cent increase will be required to cover the cost of the scheme, as solar panel owners who make the cut-off will receive the higher rate though til 2028.

Consumers who don't believe they can afford the price rise may benefit by comparing electricity suppliers for a cheaper rate.

Posted by Charlie Moore