Are Solar Batteries Worth it in 2022?

is solar battery worth it in 2022

Are Solar Batteries Worth it in 2022?

To paint a clearer picture, it is estimated that in NSW, per kilowatt of energy generated by solar panels saves you about $400 per annum. Let’s suppose you have a standard 6.6kW solar system on your rooftop, 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; wondering what might that be? Adding a solar battery system is the answer. However, as we might all know, solar batteries are by no means a small investment, so the question remains, are solar batteries worth it in 2022 as a homeowner? Let’s find out.
solar battery

Reasons Why You Should Get Solar Batteries

There is no denying that solar batteries are pricey, but the payback period goes down with the price hike of energy in Australia every day and in my opinion, due to the current economic environment, I can only see energy prices to rise.
According to the Australian Energy Market Operator (AEMO), the wholesale cost of power in the National Electricity Market (NEM) jumped by a whopping 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 or the exact amount back on demand. People were utilizing 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 for per kW given).
solar panel battery
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 own solar battery.
Solar panels don’t have the ability to generate the same amount of energy all day long as the sun doesn’t shine just as bright from sunrise to sunset. The maximum amount of electricity generated by the solar panels is between 12 to 3 pm. An average Australian household does not consume a lot of 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 doesn’t make any financial sense to store the excess energy in the grid; rather, having your own solar battery and using it on demand is much more profitable in 2022.

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 exact amount of electricity you exported at night.
So, it’s obvious that storing the surplus in a solar battery makes more sense than buying it back at a higher price point.
solar battery charger

Grid Outages

There are occasions in which people suffer from grid outages. It can be during a scheduled check-up of the grid, or 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.

I am positive you would not like to come 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 source of energy that definitely contributes to carbon emissions.
solar battery cost

Solar Battery Price – Are Solar Batteries for You?

It’s tough to give you a figure for solar battery price because it depends on a lot of variables. For example, it will depend on your power needs, if you have any power-hungry appliances, the size of your household, geographic location etc. Depending on these variables, you can determine how big of a storage unit you would need; thus, the price of solar batteries will be estimated.
But to give you a rough idea, a kWh of residential solar battery storage price can hover over the $1000 mark. This includes the cost of installation and GST. Remember that the brand of the battery, along with all the other factors mentioned, does matter in the end, and prices vary depending on those factors.
To conclude, with the rising price of electricity nowadays, it makes complete financial sense to get solar batteries. The payback period of batteries has shortened in recent days, and with the end of net metering, solar batteries are worth it in 2022.

If you would like to sit down with one of our solar experts and get to see if solar batteries make sense for you, then get in touch with us today! It’s 

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All About Solar Batteries in Australia

Solar Batteries
It’s been forever since Australia is facing the critical issue of energy price hikes. In order to aid that wound, the government is also trying to compensate with several schemes, encouraging common people to switch to renewable energy sources. But there’s always a new level of reach to up our savings; getting solar batteries is one of them. They help you store energy from the grid or from your renewable sources so that you can enjoy higher savings at a lower price point & reduce your carbon footprint simultaneously.
Still, you have to consider how expensive these batteries are and calculate your ROI to see if they are worth the investment. In this article, I am going to address the adjacent factors to help you make an informed and sound decision.
solar batteries

Why Should You Get Batteries? Are Batteries Improving?

Before I answer why you should consider getting solar batteries, allow me to elaborate on how they have been improving over the past decade.

Yes, lithium ion batteries (the most common type used for solar energy storage) are improving, in terms of capacity, energy density, life-cycle, etc.. Also, increases in the amount of energy they can store have been on the rise of 5% per annum. That implies your present batteries have a capacity that is more than 1.5 times that of a decade ago. The new and improved batteries allow you to enjoy their benefits in a convenient space, and there has been significant improvement in thermal management that needs to get addressed.

Even better news for you because Australia is the world’s largest producer and exporter of lithium. Sure enough, there is reason for you to be hopeful; however, most of the raw material gets exported, but there are companies like sonnenBatterie who’re utilizing such blessings to make batteries a little more accessible to you.
Solar Batteries
With a significant rise of the energy prices, common people are opting for a renewable source of energy which is the smartest move to make here. But to take that up a notch, batteries are important. In comparison to the low feed-in-tariff, only allowed in certain states, it’s definitely beneficial to store the surplus at your disposal, generated by your solar panels.
Also, using the grid power to charge up your batteries to use at night when the unit price is high is a good option. But I completely understand if you are questioning getting solar batteries because of the high upfront cost, which makes you wonder if they are worth the investment.
Solar Batteries
Sourcing lithium, which is apparent that it is the main ingredient of lithium batteries, has not been a simple path. The cost at which this has to be sourced, especially a greener way of doing so, is not easy to manage, and scientists all around the globe have been looking for greener options.
So, to tell you the truth, there is no black and white answer to this question if you should consider getting solar batteries. Consider the above-mentioned factors and get to know your energy usage pattern in detail first. Then evaluate if getting an expensive solar battery is worth it or not.

Are Batteries Made in Australia?

There are only a few companies which are currently manufacturing in Australia. Companies like Century Yuasa Batteries Pty Ltd, Sonnen Australia Pty Limited, Enersys Australia Pty Ltd, Exide Technologies, Robert Bosch (Australia) Pty Ltd are the key players in the Australian battery market. But Australia has so much more potential when it comes to this sector. There are strong barriers as well to be addressed, which are a lacking supply chain, negative environmental impact, high labor cost, etc.
Lithium is produced and exported in considerable quantities in Australia. It is the most significant component in the production of energy storage and electric car batteries. However, the majority of the lithium is shipped as spodumene concentrate, which must be processed further to use them at all. Several Australian mining corporations are collaborating with international businesses to commercialize lithium extraction and improve operations in Australia, with the goal of producing battery-grade lithium.
Solar Batteries

As the worldwide focus on ethically and sustainably produced minerals heats up, Australian firms are increasingly looking at how to recover resources for battery storage. A number of Australian organisations are moving forward with promising proposals ranging from recovering storage materials from tailings (basically mining waste) to developing scalable, efficient, and ecological recycling techniques, as well as low-emission lithium extraction.

Governments Initiatives to Make Battery Installation Easier for You

What if I told you there is an ongoing rebate on solar batteries to end all the debate at once about them being expensive? Yes, there is an ongoing rebate for the Victorians on solar battery installation upon meeting specific criteria. If you are a Victorian, then you can enjoy a $3500 solar home rebate on top of all the savings that you’ll be getting through your existing solar panels.
Solar Batteries
Lily D’Ambrosio, the Minister for Solar Homes, stated the government’s amendments mean consumers won’t have to wait until they have solar panels installed to get the battery incentive.
Over 4,000 Victorians have already taken advantage of the excellent opportunity. This government project is worth over $1.3 billion, revolutionizing the solar battery storage game for the foreseeable future of the Victorians. Nevertheless, I must give you a much-needed reminder that this rebate is not going to last forever.
Also, there is a strict benchmark set by the government that you have to reach before being eligible to enjoy this golden opportunity. Click HERE to know how you can be eligible for this rebate.
“This change will make it easier for more households to reap the benefits of combining a battery with solar PV as part of their home energy system.”

– Lily D’Ambrosio, Minister, Solar Homes.

Solar Batteries
Fret not, my fellow Welshmen; there are amazing opportunities for you too. The NSW government is not falling behind in serving their people because they also have introduced an interest-free loan facility of up to $14,000 for a PV and battery combo and up to $9000 for home battery installation with an existing PV system. In both cases, the interest-free loan is repayable in over a range of terms up to 8 & 9 years, respectively. To know if you are eligible to benefit from this scheme, follow this LINK.
Solar Batteries
On that note, a key point should be addressed that we should not be stuck in myopia. Not only installation benefits but also to help the Australian battery industry reach its true potential, the government has to encourage and support it in every shape and form.
To this date, Australia is focusing strongly on mining rather than manufacturing batteries due to lack of expertise, higher cost, lack of incentives, and proper supply chain infrastructure. Grid-scale battery deployment has received considerable backing from the Federal Government’s primary renewable finance entities, ARENA (Australian Renewable Energy Agency) and the CEFC (Clean Energy Finance Corporation). Lithium mining initiatives have also been sponsored by the CEFC. However, they have not made the midstream industry a priority.

By 2030 Battery Industry Could Add 34,700 jobs for Aussies

In these trying times, after the whole world has been severely hit by the pandemic, the battery industry can help save thousands of lives by creating more jobs. In a recent report, it was shown that the battery industry of Australia has the potential to add $1.3 billion to our GDP. This magnificent growth comes only from mining the raw materials, which are abundant in our lands. If we take advantage of our fortunate situation and start manufacturing, then $7.4 million in gross value can be successfully added to the economy.
Solar Batteries

What Does the Future Hold for Solar Batteries?

The future of solar batteries is shining bright, like a diamond, just like Rihanna once said! LOL. All jokes aside, there is a latent demand for it. Thus scientists are researching for a better and economical way to tackle the rising demand. Sure enough, we are heading towards a future where people will opt for renewable sources of energy more. And when the switch happens, we will be in a place where batteries will hopefully be accessible to the mass.

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