Are Solar Batteries Worth It In 2023?

Are Solar Batteries Worth It In 2023

Back in 2010, Australia saw a surge in solar battery installations all around the country. Since then, about 3 million homes have enjoyed the perks of rooftop solar, including lower electricity bills than those with just a grid connection.   

To paint a clearer picture, it is estimated that in NSW, per kilowatt of energy generated by solar panels saves you about $400 annually. You have a standard 6.6kW solar system on your rooftop, and your savings for the said year will be about $2640, which is $660 in a quarter!    

There is a way in which you could get even more out of your solar panel system; what might that be? Adding a solar battery system is the answer.  

However, batteries for solar systems are by no means a small investment, so the question remains: are solar batteries worth it in 2023 as a homeowner? We will find out soon enough. But first, let’s get to know some basics about solar batteries. 

Types of Solar Batteries

Solar batteries, also called solar energy storage systems, play a crucial role in solar power setups by storing surplus energy generated during sunny periods for later use, such as during nights or overcast days.  

These batteries come in various types, each with distinct characteristics and advantages.  

Lead-acid batteries, including Flooded Lead-Acid (FLA) and Valve-Regulated Lead-Acid (VRLA) options, offer durability and cost-effectiveness, with VRLA batteries like Absorbent Glass Mat (AGM) and Gel batteries being maintenance-free.  

Lithium-ion batteries, such as Lithium Iron Phosphate (LiFePO4), Lithium Nickel Cobalt Manganese Oxide (NMC), and Lithium Nickel Cobalt Aluminium Oxide (NCA), provide high energy density, extended lifespan, and enhanced safety.  

Flow Batteries, represented by Vanadium Flow Batteries, offer a liquid electrolyte and are known for their extended cycle life and scalable capacity.  

Saltwater Batteries, specifically Sodium-Ion Batteries, are environmentally friendly and potentially cost-effective. Nickel-iron or Edison batteries are durable but have lower energy density. Hybrid Batteries combine different technologies for optimised performance.  

Choosing the correct solar battery involves cost, space, maintenance, and intended application, while ongoing advancements in battery technology may introduce newer options. 

Reasons Why You Should Get Solar Batteries

solar battery system

Solar battery prices are not low, but the payback period goes down with the price hike of energy in Australia every day, and due to the current economic environment, I can only see energy prices rise.  

According to the Australian Energy Market Operator (AEMO), the wholesale cost of power in the National Electricity Market (NEM) jumped by 141 per cent in the first three months of 2022 compared to the same quarter last year.  

That said, storing the surplus of energy generated by your solar panels sounds like a sound investment, doesn’t it?   

Here are some more reasons-    

End of Net Metering in Australia

Net metering is a system that allows you to send the excess power generated by your solar panels to the grid and get a portion of the exact amount back on demand.  

People were utilising the grid practically as a storage facility when the net metering system was still in place, but that luxury is no longer available.  

Net metering was available until April 2020 in the Northern Territory; however, the benefit is no longer at one’s disposal for solar systems constructed after that date.  

Essentially, with the end of net metering, you no longer have the freedom to get a one-to-one net metering service (a kW received per kW given).   

That doesn’t mean you don’t have other means to store the energy in the grid; you do; however, that is not as beneficial as net metering and not certainly as profitable as having your solar battery.   

Solar panels can generate a different amount of energy all day, as the sun doesn’t shine as bright from sunrise to sunset.  

The maximum amount of electricity generated by the solar panels is between 12 and 3 pm. An average Australian household only consumes a little electricity during that time since they are the majority at work.    

Studies have shown that, with the surge of electric prices off the grid, it needs to make more financial sense to store the excess energy in the grid; instead, having your solar battery and using it on demand will be much more profitable in 2023.   

Electricity Prices are Higher at Night

As a storage unit does require significant investment, you decided to export the surplus of electricity to the grid.  

But, keeping in mind that an average household requires more energy at night than in the day, you will be paying more to buy back that amount of electricity you exported at night.   

So, it’s evident that storing the surplus in a solar battery makes more sense than repurchasing it at a higher price point.   

Grid Outages

There are occasions in which people suffer from grid outages. It can be during a scheduled check-up of the grid, a devastating storm, or just about any other reason. It’s more common than you would think. In those cases, a solar battery can be your resolve.   

We are positive you would prefer to avoid coming home to a fridge full of rotten food. To have an uninterrupted supply of energy that you have all the control over, having a battery storage unit makes perfect sense.   

Yes, of course, you could opt for a backup generator, but they are noisy, and it defeats the purpose of having installed solar on your rooftop in the first place. It runs on diesel, a non-renewable energy source contributing to carbon emissions.    

Are Solar Batteries Worth It?

home battery storage

It makes sense for a large energy user to opt for solar batteries. They are worth the price, and here is why-   

Solar battery cost is significantly coming down as we speak. For instance, back in 2020, a 6kw solar battery cost about $10,000, which now is about $7,700  

It is the only way to go for those who live off the grid   

Without the benefit of Fit, having one’s storage system saves on power bills even more   

Complete control over your energy consumption   

Power backup for days in the event of a power outage, and with the addition of solar panels, you can forget the grid.     

Solar Battery Storage Price in Australia: How Much Do Solar Batteries Cost?

It’s tough to figure out solar battery prices because it depends on many variables. For example, it will depend on your power needs, whether you have any power-hungry appliances, household size, geographic location, etc.  

Depending on these variables, you can determine how much of a storage unit you require. Thus, That’s how the cost of solar batteries is estimated.   

But to give you a rough idea, the price of a kWh of residential solar battery storage can hover over the $1000 mark.  

These include the cost of installation and GST. Remember that the battery brand and all the other factors mentioned matter in the end, and prices vary depending on those factors.    

10kw Solar Battery Price

As of October 2023 in Sydney, NSW, the current cost of a 10kW solar battery paired with a 6.6kW solar panel system is $12,888. This price includes two 5.1 kWh modules integrated with a 6.6 kW solar system. The potential payback time for this system can be less than 4 years.  

The Tesla Powerwall, which has a storage capacity of 13.5 kWh, costs approximately $1,150 per kilowatt-hour.  

When considering the broader market, solar batteries without the solar component typically fall from $900 to $1,200 per kilowatt-hour. The specific pricing varies based on the brand and model. 

6kw Solar Battery Cost

The solar battery storage cost is how much you pay for each unit of electricity it can store, and it’s usually measured in dollars per kilowatt hour ($/kWh).  

Typically, these batteries cost between $900 and $2,000 per kilowatt-hour. If you want a solar setup with a 10.2-kilowatt-hour battery and a 6.64-kilowatt solar system, it might cost you around $12,888. 

If you just want the battery alone, without the solar system, a solar battery alone can cost $990 per kilowatt-hour. It includes a particular device called a hybrid inverter that connects the battery to the solar system. 

For a specific type of battery called the Tesla Powerwall, which has a 13.5 kilowatt-hour capacity and comes with its inverter, the price is $1200 per kilowatt-hour. 

Another type of battery, the Sungrow 9.6 kilowatt-hour solar battery, is priced at $1227 per kilowatt-hour. This cost includes a 5-kilowatt hybrid inverter. 

If you’re looking at a solar panel system with a 6-kilowatt capacity, and it includes a battery with a capacity of 16.6 kilowatt-hours, the total cost for installing this combined system can range from about $19,935 to an average of $25,235.  

The exact price depends on the type and quality of your chosen system. For more details, check out how much a 6kW solar battery costs in Australia. 

Solar battery ROI

The return on investment (ROI) for solar batteries in Australia is influenced by various factors, such as the system’s initial cost, local electricity rates, solar generation capacity, and available government incentives or rebates.  

Key considerations include the upfront expenses encompassing the battery, inverters, installation, and related components.  

The cost of grid electricity in your area is pivotal, with higher rates potentially leading to faster returns, as stored solar energy use during peak periods saves on electricity bills.  

Solar panel efficiency, battery performance, and lifespan also impact long-term returns. Government incentives, rebates, and electricity consumption patterns, especially during high-demand periods, contribute to overall ROI.  

Monitoring technological advancements is crucial for assessing the economic viability of solar battery systems over time.  

Seeking professional analysis and staying informed about industry trends and policy changes are advisable for making well-informed investment decisions in Australia.  

How To Choose Solar Batteries?

To choose solar batteries in Australia, consider your energy needs, capacity and performance, compatibility with your solar system, warranty, and cost. Assess the battery’s kilowatt-hours (kWh) storage capacity to match your daily usage.  

Look for reliable brands and models with proven performance and longer lifespans. Ensure compatibility with your existing solar system, and check for government incentives or rebates. Compare the cost per kilowatt-hour and warranty terms.  

Consider factors like installation requirements and whether the battery supports backup power. Seek professional advice to tailor your choice to specific needs and conditions.  

State Rebates for Solar Batteries

State rebates for solar batteries vary across Australia. States like South Australia, Victoria, and Queensland offer specific incentives and rebates for solar batteries.  

However, rebate programs and amounts can change, so it’s crucial to check the latest information from your state government or relevant authorities for the most up-to-date details on solar battery rebates.  

Solar Battery FAQs

What Size Solar Battery Do I Need to Power a House?

The size of the solar battery needed to power a house in Australia depends on various factors, including your energy consumption, the size of your solar panel system, and your specific energy needs.  

On average, a medium-sized household might require a solar battery with a capacity ranging from 5 kWh to 20 kWh.  

To determine the appropriate size, consider your daily electricity usage, the sunlight your location receives, and whether you want the battery to provide backup power during outages.  

It’s advisable to consult with a solar energy professional to assess your specific requirements and design a system that meets your energy goals.  

Is It Worth Getting A Battery for My Solar Panels?

Deciding whether to invest in home battery storage depends on various factors. Your energy consumption, goals, and dependence on the grid play crucial roles.  

A battery could be valuable if you experience frequent power outages or seek backup power. Explore your area’s government incentives, rebates, and electricity rates to assess the financial benefits.  

A good solar panel system may increase the potential advantages of integrating a battery. Consider the environmental impact, battery lifespan, and technological trends. To make an informed decision, consult with solar professionals like Solar Emporium.  

We can tailor advice to your specific needs and circumstances, keeping in mind that the evolving landscape of technology and market conditions may influence the long-term value of a solar battery investment. 

If you want to sit down with one of our solar experts and see if solar batteries make sense, contact us today! Reaching out for help is okay; we are here to serve YOU. 

Our Solar Experts are here to Help!

Solar & Battery Rebates In Australia| Financial Year 2023-2024 Update

Solar & Battery Rebates In Australia_ Financial Year 2023-2024 Update

In the last ten years, Australians have widely adopted solar energy, with approximately 30% of households in the country utilising rooftop solar panels 

It marks the highest global percentage of solar uptake. As of January 31, 2022, over 3 million rooftop solar panel systems have been installed across Australia.  

It was only possible because of solar and battery rebates in Australia. Check out the best solar rebate and incentive guide to know the detailed state-by-state government programs. Today, we’ll talk about the financial year 2023–2024 updates.  

These solar PV systems are designed as long-term investments, offering cost savings by providing free electricity during daylight hours once the initial cost is covered.  

Furthermore, installing solar PV systems contributes to environmentally friendly electricity generation, as sunlight is converted into electricity without generating greenhouse emissions.  

The success of solar PV systems in Australia is also attributed to supportive federal and state government programs encouraging solar installation and the incorporation of home storage batteries, such as the Tesla Powerwall 2.

Developments of Financial Year 2023-2024

As the conclusion of the fiscal year approaches, Australia readies itself for a series of significant modifications that commenced on July 1, 2023.  

These adjustments include energy expenses, solar energy incentives, aged care, minimum wage, and additional sectors. The specifics of these upcoming changes emphasise their importance and potential effects on individuals and the broader community.  

Cost of Living Rose

A surge in the cost of living is anticipated, marked by an expected increase in power bills. The Australian Energy Regulator (AER) has verified that energy prices in NSW, South Australia, and southeast Queensland rose from 19.6% to 23.9% starting July 1, 2023. Small business proprietors are also slated to experience an increase in the upcoming fiscal year, ranging from 14.7% to 28.9%, depending on their location. 

To address the financial strain caused by high energy bills, the Australian government has introduced a $500 relief payment for eligible households. The qualification criteria for this payment vary based on the state of residence, with each state having specific requirements. 

For more details on the commitment of $3 billion from the federal budget 2023 to support households and small businesses with energy bill relief payments, please visit our page.  

Solar Energy Rebates That are Affecting Homeowners and Renters

Solar and Battery Rebate in Australia

Solar energy incentives: Several states have implemented measures impacting homeowners and renters to promote the adoption of clean energy.  

Recognising the significance of transitioning to sustainable energy sources, the governments of New South Wales (NSW), the Australian Capital Territory (ACT), and Western Australia (WA) have introduced various changes to solar rebates, incentives, and subsidies. 

In NSW, the Solar for Low-Income Households Program seeks to enhance accessibility to solar energy for low-income households, thereby reducing power bills and promoting sustainable energy use in economically disadvantaged communities. 

Effective July 1, 2023, the ACT Sustainable Household Scheme has introduced new eligibility criteria. Stand-alone homes (non-unit titled properties) with an unimproved value (UV) of $750,000 or less in 2022 are eligible for all scheme products except solar.  

To qualify for solar under the scheme, the property’s UV 2022 must be $450,000 or less. Meanwhile, unit-titled properties are eligible for all program products if their unimproved value is $300,000 or less in 2022. 

For Western Australian solar households in Perth and the southwest, Synergy is the power provider, offering a solar feed-in tariff (FiT) under the Distributed Energy Buyback Scheme (DEBS).  

As of July 1, 2023, DEBS rates for Synergy customers include peak rates of 10 cents per kilowatt-hour (kWh) for electricity exported between 3 pm and 9 pm and off-peak rates of 2.25 cents per kWh for electricity exported between 9 pm and 3 pm. 

Comparatively, in the 2021-2022 period, peak rates were set at 10 cents per kWh for electricity exported between 3 pm and 9 pm, while off-peak rates were 2.5 cents per kWh for electricity exported between 9 pm and 3 pm. 

Increase in the Minimum Wage

Commencing on July 1, 2023, the minimum wage in Australia is set to experience an elevation, impacting numerous workers across diverse industries.  

The Fair Work Commission determined the minimum wage rates. They declared a 2.5% raise, equivalent to $20.33 per week or approximately $1,057.80 annually for full-time employees. 

This escalation is intended to tackle wage stagnation concerns and support workers in maintaining a reasonable standard of living.  

It is essential to recognise that the extent of the minimum wage increase may vary based on different awards and employment sectors.  

Hence, referring to the Fair Work Commission website or seeking professional guidance for precise details is advisable.  

Government Incentive for Renewable Energy at the Federal Level

The Small-scale Renewable Energy Scheme (SRES) introduced by the federal government is a financial encouragement. They are set up to adopt small-scale renewable energy systems, like solar panel systems, small-scale wind systems, small-scale hydro systems, solar water heaters, and air source heat pumps.  

This initiative benefits Australia’s individuals and small businesses by generating Small-scale Technology Certificates (STCs) 

Established in 2011 to contribute to Australia’s Renewable Energy Target, the scheme has played a pivotal role in promoting the use of renewable energy. 

The success of Small-Scale Technology Certificates (STCs) in boosting the demand for solar installations among households and small businesses is noteworthy.  

Accessible to all Australians, STCs present a valuable incentive. They are applicable for solar panel installations up to 100 kW. 

Each STC holds a monetary value that can be credited to the installer or traded on the open market for a point-of-sale solar rebate. The maximum number of certificates per solar system is determined by the system’s location, installation date, and electricity consumption measured in megawatt hours (MWh).  

This includes electricity generated by a small-scale solar panel, wind, or hydro system over one or five years or a maximum deeming period and electricity displaced by a solar water heater or heat pump over a maximum deeming period. 

The Renewable Energy Target speeds up the creation of tradable STCs, providing a financial incentive for increased electricity production from renewable sources.  

These certificates are issued and distributed through the REC Registry, an online trading platform managed by the Clean Energy Regulator. 

STCs are calculated within the Small-scale Renewable Energy Scheme based on the solar system’s location, installation date, and the duration over which they are generated.  

The scheme is gradually being phased out, with the value of STCs decreasing annually on the 1st of January until 2030, when the scheme is set to conclude on December 31. 

For further details on calculating STCs and solar credits, visit our page.  

Governments at the state level

The picture is highly variable at the state level. There are numerous state government solar home rebates and incentives available to residents of Victoria, New South Wales, South Australia, the Northern Territory, Western Australia, or the ACT. If you live in Queensland or Tasmania, there currently need to be state government incentives for home solar batteries.  

Feed-in Tariff (FiT) for electricity retailers

Households in all Australian states are reimbursed by their electricity retailer for any excess solar power generated by their system and exported to the grid. A feed-in tariff is the amount shown as a credit on your electricity bill. The value of the feed-in tariff varies by state and by electricity retailer.  

Rebates, Incentives, and Programs for Energy Efficiency Products

The Victorian Energy Upgrades (VEU) initiative stands as a government-driven energy efficiency program designed to assist households and businesses in Victoria in saving money on their energy expenses and reducing greenhouse gas emissions.   

This program extends rebates or discounts on various energy-saving products and services, encompassing: 

  • Lighting 
  • Heating and cooling systems 
  • Water heating solutions 
  • Insulation 
  • Solar hot water installations 
  • In-home displays 
  • Window glazing 
  • Shower heads 
  • Televisions 
  • Clothes dryers 
  • Fridges and freezers 

To avail of discounted goods and services under the program, households and businesses must collaborate with an accredited provider authorised to install items covered by the Victorian Energy Upgrades.  

The program exclusively accepts accredited providers as participants. 

The rebate or discount amount granted to a household or business is contingent on the specific type of upgraded product and the star rating of the new product.  

For instance, a home could receive a rebate for installing a new 7-star energy-efficient refrigerator while upgrading from an inefficient electric or gas hot water system to a solar one. 

For additional information about the VEU program, you can explore the Victorian Energy Upgrades website. 

Contact Solar Emporium and grab all the exciting solar offers! Take a step towards a more energy-efficient home and receive free solar quotes now. 

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