With more than 4 million Australian residences now having rooftop solar panels, solar battery storage is the future of energy independence.
With increasing electricity prices and falling feed-in tariffs, home owners want to know: is it worth spending the return on investment (ROI) for solar batteries?
For South East Queensland residents, Bright Spark Group provides customised solar and battery packages that will achieve energy efficiency and long-term savings.
What Is Solar Battery ROI?
ROI, or Return on Investment, for solar batteries is the duration required for the cost savings being realised by the battery system to become equal to or greater than the actual cost of the system, including purchase cost, installation cost, and any recurring maintenance expenses.
For instance, if you spend $10,000 on a battery system that will pay for itself with $1,000 in annual savings on electricity, your ROI timeframe would be 10 years.
Most batteries available today come with a 10- to 15-year warranty, so how rapidly you realise your ROI will be key to determining the value of the system.
There are various factors that influence solar battery ROI:
Patterns of Energy Use: High-energy use areas with nighttime usage are most benefited, since stored solar power can soak up peak rates.
Solar Capacity: The higher the solar system, the more power it provides to store and utilise subsequently.
Electricity Rate: The higher the electricity rate, the greater amount saved by not having to purchase electricity from the grid.
Government Rebates: Government rebate programs such as Queensland’s Cheaper Home Batteries Program cut the initial cost by a great deal, optimising ROI.
Battery Efficiency and Lifespan: Increased efficiency and increased lifespan enhance overall cash return.
Is Solar Battery Storage Worth It?
It will be a comparison of your house’s energy use and your budget to see if battery storage is something you need to invest in. If your house uses a lot of power in the evening or you have a lot of power outages, a solar battery can save you money and offer backup during an outage.
Solar batteries also suit residents who want to get the most out of their solar investment. Rather than selling excess power back to the grid at reduced feed-in tariffs, householders can store and use it where and when they require it.
For example, where average feed-in tariffs are between 5 and 10 cents per kWh when residential electricity is 30 cents per kWh and more, self-consumption with battery storage is more lucrative.
More customers also prefer the environmental and social advantages of harnessing banked renewable energy over tapping fossil-fuel-based grids, so it will be well worth the outlay even if the ROI is postponed.
Benefits of Solar Battery Storage
Energy Autonomy: Battery systems offer energy independence with banked solar power for nighttime or blackout use.
Lower Your Electricity Bills: With your own stored energy, you can lower your electricity bills substantially.
Backup Power System: Batteries provide you with the comfort during power loss, ensuring essential appliances like refrigerators, lights, and medical equipment keep functioning.
Maximise Solar Use: A battery enables you to utilise more of your solar energy rather than exporting it for low payback.
Environmental advantages: Reduced grid electricity reliance minimises your carbon footprint and helps Australia meet its renewable energy targets.
Virtual Power Plants (VPPs) participation: Certain schemes provide residents with an incentive payment for exporting stored power to the grid.
These benefits are capable of bringing quality of life and long-term financial and environmental advantages.
For the majority of Queensland families, obtaining their solar battery systems from businesses such as Bright Spark Group enables them to be customised to provide maximum these results.
Solar Battery Storage Limitations
High Upfront Cost: Despite rebates, battery systems can have an extremely high initial cost, on average at $6,000 to $13,000.
Technology Degradation: The performance of a battery declines with time, particularly if not maintained or if used under extreme temperatures.
Maintenance Requirements: Although most systems are maintenance-free, they must be inspected and serviced occasionally to function properly.
Complex System Integration: Installation of a battery on an existing solar system could involve electrical enhancements or replacement of inverter units, which could increase the overall cost.
Not Always Worth It: In regions with low rates of electricity or for people who use minimal energy, the payoff might not be worthwhile.
Balancing these drawbacks is crucial. Solar batteries possess many benefits, but they are not a solution for every individual. Assessing needs and consulting professionals will establish if the investment is worth it.
Real-World Examples
Government-backed schemes like Queensland’s Cheaper Home Batteries Program provide a discount of up to 30% for approved battery installations. This saves up to $4,000, significantly improving ROI. The Guardian discovers that households that are part of the program have reported up to $2,300 per year in savings.
The SunSPOT solar calculator, designed by UNSW, is a useful tool that calculates how much a person can save with solar and battery storage, based on their own property and consumption. This opens up planning and makes it more transparent.
Dalrymple ESCRI battery in South Australia is another success. Commercial-sized, it demonstrates the benefit of battery technology in stabilising the grid and providing renewable energy.
Is a Battery Right for You?
To know whether a solar battery will suit your household, ask yourself the following:
- Do you consume most of your power at night? Batteries will suit households that use a lot of power at night.
- Do you have an adequate size of solar system to produce excess power? Excess power from the sun is needed to charge a battery efficiently.
- How long do you intend to remain in your present residence? Solar batteries take 7-12 years for payback. Long-term occupiers will benefit from complete value.
- Do you have blackouts in your area? Batteries include blackout tolerance.
- Do you have sustainability aspirations? Batteries cut grid dependency and greenhouse gases.
Finally, hiring a professional such as Bright Spark Group guarantees all factors are considered. Their Clean Energy Council-approved engineers assist in planning tailored systems that will suit your budget, energy consumption, and aspirations.
Bright Spark Group delivers tailored solar and battery solutions for homeowners across South East Queensland.
If you’re ready to explore the potential of solar batteries, contact Bright Spark Group today and take the next step towards smarter energy savings and sustainability.