Solar battery storage technology has generated a lot of discussion within the energy industry in recent years– and for good reason. Australia has one of the highest penetrations of rooftop solar panels in the world and householders are now looking for ways to further optimise their solar systems and reduce their reliance on grid electricity. But are solar batteries really worth it? Canstar Blue investigates.
It’s important to note that this advice is general in nature. Before making a purchase decision, it’s best to contact a licenced solar installer to discuss which option would best suit your home and circumstances.
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How do solar batteries work?
Solar batteries essentially work as a storage unit for excess solar power that’s been generated by photovoltaic (PV) panels. This works in a similar process to solar feed-in tariffs, wherein the energy generated by solar panels during daylight hours is first put to use in homes or businesses. However, instead of then sending any leftover solar energy back to the grid in exchange for a credit, any additional output is sent to a solar battery for use during evening hours when your solar panels are no longer generating energy.
Solar storage batteries can be installed with a solar panel system during the initial set-up or incorporated later.However, if you decide to add a solar battery later, you may be required to install an additional solar inverter to help support your battery. If you have a hybrid solar inverter, you’ll generally be able to incorporate a battery straight into your existing system.
The main reason for installing a solar battery is to increase the amount of solar energy your home uses. With a typical solar panel system set-up, energy can only be generated and used within daylight hours, or when direct sunlight is shining on the panels. A solar battery allows households and businesses to maximise their solar energy outside of these restrictions, further reducing their reliance on grid energy, which in turn can help reduce power bills and carbon emissions.
How much does a solar battery cost?
According to the experts at Solar Quotes, solar battery prices in Australia typically cost between $1,000 – $2,000 per kilowatt hours (kWh) of storage capacity. Using this formula, a 4kWh battery would cost $4,000 – $8,000. However, the final cost of installing a solar battery will depend on the brand of battery, installation fees, whether or not you need an inverter and any safety features, such as fire-resistant backing and shading for the battery, you may need to add to your home.
These prices assume you already have solar panels installed at your home. If you’re starting from scratch and need to install a solar system as well, you can find information about solar panel installation costs in our guide linked below.
Read more: How much does solar cost?
Many states and territories now offer solar rebates and discounts to eligible homes and small businesses looking to install batteries or solar storage units. These incentives can help to lower the initial install and purchase costs of the battery system. To see if your state or territory is offering any interest-free loans or rebates for solar storage it is best to visit your relevant government website.
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How long do solar batteries last?
Typically, a solar battery can last between five to 15 years before it needs replacing. A battery’s lifespan is measured in cycles, which is how many times the battery can be charged and drained. Most batteries assume one cycle per day. The more cycles a battery has, the longer its lifespan.
Solar plans and prices
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Ausgrid network in Sydney but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Citipower network in Melbourne but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Energex network in Brisbane but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on SA Power network in Adelaide but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Will I save money with a solar battery?
While solar batteries will help you cut costs on your electricity bill by reducing your reliance on the grid, they are still a significant financial investment.
A solar battery and installation can cost up to $16,000 in some cases, so it’s important to calculate your cost savings over time and understand how long it will take you to pay off your investment.
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How to get the most out of a solar battery
To maximise the potential savings of a solar battery, it’s important to ensure you have adjusted your energy usage habits to best suit the requirements of your battery and panel system. This might mean looking into a more flexible electricity tariff, such as a controlled load or time of use tariff.
Time of use and other flexible rate tariffs charge different rates at certain times, meaning electricity is usually the cheapest during normal working hours and very late at night. Electricity is more expensive during peak demand times – generally between 4pm and 8pm. Households and businesses on this type of tariff may be able to benefit from lower rates for most of the day, and use their stored solar power to cover peak-period energy usage, rather than relying on the grid and paying higher peak rates. Most solar storage units can be set to automatically kick in between these hours, while some systems are compatible with apps that let you monitor and control when or how your stored solar power is used.
As for a controlled load tariff, this can also speed-up your solar battery savings as household appliances connected to this tariff only require electricity for a few hours a day, usually late at night. Customers can even connect their solar battery to a controlled load and charge their battery overnight with grid electricity that’s at a cheaper rate. By morning, they can use their charged battery, rather than pay the full price for electricity.
However, this is not to say that customers on a single rate tariff won’t be able to get the same value out of a solar battery. While these kinds of energy consumers can’t tap into varying electricity rates to make the most of their solar battery, there are other ways they can attempt this. For one, they may choose instead to significantly minimise their reliance on the grid – forgoing the need for cheaper grid electricity prices entirely. Another way could be joining a Virtual Power Plant (VPP) network and earning credits for sharing their solar energy during peak demand times.
At the end of the day, making the most out of your solar battery will come down to taking advantage of the options available to your household or business.
Is solar battery storage worth it?
Ultimately, whether it is worth getting a solar battery installed will come down to your personal energy usage habits. While Aussie consumers could get a lot of value from incorporating an energy storage system into their home, it is safe to say the most rewards will be reaped by those who put as much into their system as they expect to get out of it.
Simply installing a solar battery without accommodating your usage habits to best suit the cycles of your system could leave you disappointed with the return on your (very expensive) investment. A solar battery works best for home energy usage when it’s combatting the typical constraints of the grid, such as higher demand in the evenings or more expensive power prices during peak times. If you’re unable or aren’t willing to best utilise your battery to overcome these energy challenges, then you may not see as many benefits to solar storage as someone who does.
Your reliance on grid energy may also play a part in deciding whether solar storage is the right option for you. If you are looking to take as much of your energy usage off-grid as possible, then solar storage is definitely a step in the right direction. Whether this be to save money on your bills or reduce your carbon emissions, a storage unit will be able to help you build a foundation for independent energy usage – granted you can afford the upfront cost of solar batteries.
Whether you’re ready to get a solar battery installed today or still tossing up your options, it’s always a good idea to get the opinion of a licensed professional first. A solar installer or solar storage specialist can help you look at options based on your household size, energy usage data and geographical location to see which product or system may be the right fit for you. A solar battery is no cheap buy so it’s best not to make a hasty purchase decision.
If you’re on the hunt for a solar installer, be sure to check out our annual Solar Energy Installer customer satisfaction ratings below. Here you’ll find the installers that Aussie solar consumers have rated top notch for service, price, products and more.
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