New Energy Solutions
Is Battery Storage Worth It? The Current Solar Battery Price in Australia
The solar industry has seen a massive influx of new innovative technologies over the last decade, in both the system components available and the manufacturing process. This has made clean energy an increasingly popular choice for those looking to avoid climbing electricity costs and increasing regulations imposed by our energy retailers. Solar batteries have helped many Australian homes to gain energy independence, that being said they can be a considerable investment so it's important to make an educated decision on whether energy storage is right for you.
Key Takeaways:
Costs and Pricing: Solar batteries in Australia range from $800 to $2000 per kWh, with the total cost depending on storage capacity, desired features, and installation fees. Smaller systems like Enphase start around $5,000, while larger systems like Tesla Powerwall can cost up to $18,000 fully installed. Installation quality is crucial to ensure longevity and performance.
Benefits Beyond Cost Savings: Solar battery storage offers more than just savings on electricity bills. Key benefits include blackout protection, the ability to sell excess solar power through Virtual Power Plants (VPPs), energy independence, and the potential to charge electric cars. These intangible advantages add value beyond just a simple return on investment.
Value Assessment: Deciding whether solar storage is worth the money depends on how much you are willing to spend for potential savings. For example, a 5kWh system can save around $547 per year. The payback period depends on system size and your electricity rates, with smaller systems having shorter payback periods.
System Sizing and Installation: Properly sizing a solar storage system is essential for maximizing savings and efficiency. Factors such as the size and performance of your solar panels, your energy needs, and the storage system’s compatibility with existing setups all influence the decision. Expert installation by reputable companies ensures optimal performance and a longer lifespan for your battery system.
Solar Battery Prices
The price of solar batteries in Australia ranges from $800 per kWh to $2000 kWh depending mainly on how much energy you want to store, where you live and any other features you need such as backup for when the grid is down.
Unlike solar power, battery storage offers a lot more than savings on your power bill. So when you consider ‘if battery storage is worth it’, you need to factor in:
Blackout protection
Virtual power plants (VPPs) – sell excess solar power at a rate much higher than standard feed-in tariffs
The ability to run your home on solar power 24 hours a day
Protection from future price rises for electricity
The ability to charge an electric car, which also helps you save money on petrol
Divesting your home from coal and gas
There are also several intangible benefits that our customers enjoy, such as the freedom that comes from being independent of the power grid.
We get a lot of messages from customers after long blackouts who are genuinely grateful and relieved that they could get on with life while their neighbours struggled to make do without power.
In the same way that a nice new kitchen may not have a specific ROI calculation, living in a home where you can generate, store and manage your electricity can be worth a lot more than the strict return on investment.
Of course, not having to pay a power bill isn’t such a bad thing either!
In terms of cost, the amount you pay for a battery will depend on how much excess solar power you have, how much energy you use, and what you’re trying to achieve. Lots of factors!
But as a starting point, the price of solar batteries starts at $5000 or around $105 a month over 5 years for a smaller Enphase system, while larger batteries such as Tesla Powerwall are around $18,000 fully installed.
When it comes to the price of solar batteries in your home, one also has to account for the installation cost. Installation costs will vary dramatically, and one wants to ensure that one pays for a reputable installer that won’t cut corners.
Solar batteries that we install such as Tesla Powerwall are compatible with any existing solar system. They are connected directly to your meter board where we install a system hub that connects your house to the cloud for advanced system monitoring and management. 1KOMMA5° Management Systems come with home automation capabilities built-in, and they are fully compatible with microgrids once they come online over the next few years.
Solar storage has taken off over the last 2 years to the point where we are now installing nearly all of our systems with either integrated battery storage or as a battery-ready solar system.
The price of storage depends mainly on how much capacity you want and any additional features such as backup for when the grid is down and home automation.
Many households are looking to capture excess solar power to use in the evening, which would often be well suited to a smaller battery such as Enphase, whilst other households are looking to run their home almost entirely on solar power with backup functionality. This will typically involve a larger battery such as the Tesla Powerwall.
The Current Price of Solar Batteries:
Is Solar Battery Storage Good Value for Money?
One of the most common questions we are getting at the moment is: “is solar storage worth the money?”
Our answer is to throw a question back at you: “how much would you be prepared to spend to save, say, $1000 per year? Your answer to this determines when you are ready to buy Energy Storage…
Let’s say you install 5kWh of Energy Storage with an estimated lifetime of 10 years (3,500 cycles).
Let us also assume you will use all of that 5kWh each and every day.
Lastly, let’s assume you are paying 30c per kWh for your power today.
Therefore, your 5kWh of storage would be expected to save $1.50 per day (30c x 5kWh) or $547.50 per year. The batteries themselves should last well in excess of 10 years – although the capacity will slowly diminish over time.
If you were happy to accept that you would get your money back in say 7 years, you would, therefore, expect to pay around $3800 for that 5kW of storage. If you needed to get your money back in 5 years, it would be around $2700, and $5,500 for 10 years, and so on.
The cost of batteries starts at around $5,000 for smaller units such as Enphase and larger batteries such as the Tesla Powerwall start at around $16,000 for a 13.5 kWh battery that can be cycled every day. Because battery systems need to be accurately sized up to match your requirements we encourage you to make an enquiry. A member of the 1KOMMA5° Team can go through your options and present you with a full quote for installation.
How to Size Up a Solar Energy Storage System?
In reality, we use rather complicated spreadsheets and analysis to work out the best size storage system for you and to make a fairly accurate estimate of your savings.
Naturally, we also take into account the size and performance of your current or future solar system which has a major impact on the value you get from your storage system.
Of course, the installation of batteries like most electronic equipment can impact the lifespan and effectiveness of the batteries. The last thing you want to be doing is buying a high-end battery, then have it break because the installers were a 2-person in a van operation that skimped on electrical hardware or messed up the installation.
Buying your batteries from a reputable installer can make a big difference to ensure the peace of mind that your batteries will operate for many years to come.
Reduce Your Power Bills with Solar Storage from Tesla
1KOMMA5°is leading Australia’s solar battery storage revolution in partnership with Tesla.
Order your Powerwall home battery today with just a 10% deposit and run your home on solar power during the evening.
Compatible with all existing solar systems
Manufactured to the highest safety standards from the global leader in residential battery storage
Includes Online Configuration, System Monitoring and Tech Support provided by 1KOMMA5° Online Support Team
Finance is available
Tesla Powerwall Available for Immediate Installation
Tesla Powerwall has completely revolutionised the way Australian households use, store and manage their power.
1KOMMA5° has led the charge with Tesla’s rollout of one of the most exciting products to hit the market, becoming the leading installer in NSW. This experience gives our customers the peace of mind that their installation is backed up with responsive technical support and customer service.
Compact, stackable and with a built-in inverter, Powerwall enables solar households to further reduce their power bill and maximise self-consumption of solar power. In fact, with a capacity of 13.5 kWh, a typical family home will be able to run all evening on stored solar power.
Tesla Powerwall comes with complete compatibility with any existing solar system, plus it can provide backup power for when the grid goes down.
So you're interested in solar battery storage? Great! It's a fantastic way to increase your home's energy independence and savings. But with so many options on the market, it can be tough to know where to start.
We developed an extensive guide to discuss everything you need to know about solar batteries. We cover everything from the different benefits to the factors to consider when choosing the right one for your home.
FAQ
Frequently Asked Questions about Installing Solar Power
Taking your home off-grid with a solar system can cost 2-4 times more than installing a standard grid tied solar system. The jump in price is due to the need for additional solar panels, large battery banks, a backup generator and a specialised off-grid inverter in order to handle the fluctuating energy demands associated with stand alone systems. The starting cost is usually around $40,000, this does not include ongoing maintenance costs and fuelling the generator.
Off-grid solar systems require far more regular maintenance that your standard grid tied or hybrid solar systems due to their larger size, added components and greater complexity of their setup. This includes servicing the batteries, checking inverter health and ensuring your backup generator runs efficiently. The stakes are also higher with an off-grid system, failure to perform these regular checks and servicing could leave you without power.
If you choose to take your home off the grid there will come a point where you will run out of solar power. Whether this be because of weather conditions or higher than usual household energy demand. This is why a backup generator is an integral part of an off-grid solar system. This generator is usually powered by petrol or deisel and will provide power to the home until solar production is back up again.
For the vats majority of people it is better to install a hybrid system, they offer the benefits of solar power generation and energy independence using storage solutions whilst still having the grid to fall back on. While it's awesome to generate, store and use your own energy around the clock, remaining grid tied allows you to export excess solar energy back to the grid for a feed in tariff when production is high and draw from the grid to power your home when production is low. Installing an off-grid system is only really feasible if you live in a remote area with limited grid access or the grid connection fee is extremely expensive (more expensive than the price of an off-grid system).
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