New Energy Solutions
The Rise of Hybrid Solar Systems: Why Australian Homes Love Energy Storage
Solar power is an amazing way to gain energy independence. The problem? Your panels will only generate electricity while the sun is shining. This is where your solar battery comes in, in order to maximise your savings and use solar around the clock.
Many Australians are moving towards this kind of energy management in order to save money and move away from their electricity retailer. Power companies are not very popular at the moment, from the continuously rising electricity prices and decreasing feed-in tariffs, many are now looking to go off-grid with their solar power. But wait! Before you spend an exuberant amount of money removing your home from the main grid this isn’t necessarily the answer.
Key Takeaways:
Solar Roof Tiles vs. Traditional Panels: While both solar roof tiles and traditional solar panels convert sunlight into electricity, solar tiles do double duty. Not only do they generate power, but they also serve as your roof, providing weather protection. This makes them a great option if you want a sleek, integrated design that blends seamlessly with your home.
Perfect for Challenging Roofs: If your roof’s design or positioning makes it tough to install traditional solar panels, solar roof tiles could be a game-changer. They offer a solution without the hassle of drilling holes or using heavy equipment, and they integrate directly into the roofing, which reduces the risk of damage during installation.
Higher Initial Cost and Complex Installation: One downside is that solar roof tiles come with a hefty price tag, partly because they're still a relatively new technology. Installation also requires a mix of experts, from roofers to electricians, making it a more complex and costly process compared to standard solar panel setups.
Efficiency and Longevity: Solar roof tiles generally have lower efficiency (10-23%) compared to traditional solar panels (18-25%). While this might improve over time as the technology evolves, it's something to consider if efficiency is a top priority for you. Additionally, since this is newer tech, finding repair services or getting parts may be more difficult in the future.
Types of Solar Systems
Before we dive into the ins and outs of a hybrid solar system let's quickly refresh a few of the main types of solar systems.
Grid-Tied Systems
Grid-tied or standard solar systems are the most simple of the solar system structures. Essentially your system will only consist of the panel array and the inverter (no battery) and will be tied to the main electricity network. This is still a great investment, you'll be able to use solar energy during the day to power heavy appliances and as such will see a reduction in your electricity bill. The initial cost of installing a grid-tied system has significantly decreased over the last decade, making them a great value, and affordable choice.
The limitations to this system type is of course, the times when solar energy is available. After dark or at times of low production you will still need to rely on grid power.
Hybrid Solar Systems
Hybrid Solar Systems aim to bring you the best of both worlds! They include a solar panel array, an inverter and of course, the solar battery. Enjoy the benefits of a grid-tied setup such as, Feed in Tariffs for excess electricity exported back into the grid and of course the added security of a grid connection should anything ever go wrong with the solar system itself.
A hybrid system will also allow you to make the best use of your solar possible. Enjoy clean energy after dark with your solar battery. Installing a storage solution alongside your solar allows you to gain energy independence, move away from big power companies and manage your own energy effectively.
Hybrid systems have become an increasingly popular choice amongst Australian households.
Off-Grid Solar Systems
There’s an increasing tension and mistrust between Australian homes and energy retailers, between the climbing power prices and general uncertainty in government rebates and subsidies. More and more people are looking to just separate themselves from the grid entirely. An off-grid system, although in theory it sounds like a great idea, can be a real burden over time. Your system will require an enormous number of components in order to capture, convert and store a sufficient amount of energy to run the home.
Additionally you’ll need a backup generator on hand and ensure that regular maintenance is carried out. That being said, if you live in a remote location without a reliable electricity grid, an off-grid system can be a real lifesaver.
Going Off-Grid
Going off-grid may seem like the next logical step to escape the unreliability of energy retailers but before you do it’s important to consider how beneficial this will actually be for you and your home.
Benefits of Going Off-Grid
Yes, by removing your home from the main electricity network you will become self-sufficient and can eliminate the need to pay your energy retailer entirely. You can manage your own energy and will no longer have to concern yourself with fluctuating rates like us ordinary grid connected individuals.
Drawbacks of Going Off-Grid
Going off-grid is easier said than done, this process is extremely costly. In order to effectively go off-grid you will need to install a large solar system and quite a few batteries to ensure a reliable source of power. And even then sometimes the reliability of the grid can be comforting and a real help should anything with your solar system ever go wrong.
Don't Write-Off Grid Power!
The electricity network or grid that we currently have is a reliable piece of existing infrastructure. It’s tried and tested and works for the vast majority of the time. The grid is a great way to ensure you always have a backup source of electricity in case something ever goes wrong and as an added bonus it can be a great way to share our energy. Going off-grid can be a very costly process compared with installing a standard grid tied solar system. But there is a way to get the best of both worlds - a hybrid solar system. Installing a hybrid solar system allows you to minimise the amount you pay to your power company and maximise your own personal savings, plus you'll still have the option for grid power should you ever need it.
The Middle Ground: Hybrid Solar Systems
Installing a hybrid solar system can help you to see the best of both worlds- guaranteed and reliable electricity from the grid and self managed clean energy for use at any time from your solar. There are more benefits to installing a solar battery than just this, blackout protection is another appealing element for many Australian homes. While yes it is nice to have the comfort of the grid as backup, in the event the grid is ever down it is nice to have the comfort of stored energy in your batteries as a backup as well.
A hybrid solar system is a much smaller and more achievable investment than an off-grid system. Not only do off-grid systems require a great deal of panels and battery storage (which can be rather costly), they will often also require a diesel generator as an added layer of backup power. Don’t get me wrong hybrid systems are still more expensive than a standard grid tied solar system, but depending on your personal situation and energy goals then this is likely a worthwhile investment.
How Does a Hybrid Solar System Work?
The process is much like the operation of a standard solar system except with one added layer. The panels will generate electricity for use in the home, the difference is in what happens to the excess power, instead of exporting this energy back into the grid (for feed-in tariffs that are ever decreasing) it is stored in solar batteries for use later. The battery then allows you to switch between solar power, stored power and grid power depending on electricity prices and the rate of generation. Additionally by installing a Smart Energy Manager like Heartbeat you can have all of this done for you, with Heartbeat able to take into account factors such as current prices, predicted weather events and all the devices and electrical circuits in your house, you can achieve smart energy management with little to no effort.
Another reason to install a solar storage solution is the added benefit of blackout protection. In the event the grid goes down your battery will have the ability to disconnect your solar system and home from the grid temporarily and seamlessly take over, continuing to power essential loads and keeping your home up and running.
Hybrid Solar System vs. Standard Grid Connected Solar System
If you’re still on the fence about installing a hybrid solar system that’s understandable, a solar battery can be a considerable investment. But that being said there are a few factors that can make this worthwhile.
Keep Your Home Up & Running While the Grid is Down
In the event of a power outage a standard grid connected solar system will shutdown. This is done to protect those who are conducting repairs on the network. With smart solar batteries installed your system will detect the outage and instead of shutting off will disconnect from the grid and begin using your own personal reserves to power essential circuits in your home. Essentially becoming your own mini power plant temporarily.
Escape Export Limits Set by Your Electricity Network
Depending on your location you may be a part of an electricity network that imposes limits on how much energy can be exported by solar households. This is done to protect the grid, ensuring that it can handle the inflow of electricity from solar systems. This can be a real pain for those looking to install solar power as it forces households to install a system size that does not adequately offset their electricity bills.
How to Avoid These Limitations:
When you install a hybrid solar system with a smart solar inverter that integrates with the battery, this is called a hybrid inverter. This inverter is then configured to have a maximum export rate way below what the system can actually produce at times of peak generation. For example if you install a 10kW solar system, you could configure your inverter to send 7kW to the inverter and the remaining 3kW to be exported back to the grid.
Reduce Your Electricity Bills
When solar power was still a relatively new technology, feed-in tariffs for electricity exported back were an enticing benefit for those looking to install. However in recent years these tariffs have seen a significant decline. These days, exporting excess solar power can often be an unfair deal, the rate you receive for your exported energy is far less than the rate you’re required to pay for grid power. This is where solar batteries come in, allowing you to put any excess power to better use than simply exporting it to a grid that doesn’t appreciate it the same as your home. That being said, batteries are a considerable investment with a lesser return on investment than a solar system. But don’t let that put you off entirely, a solar battery can do wonders for your electricity bill with many able to get their bills close to 0.
Already Have an Existing Solar System? Retrofitting Battery Storage
To actually see any benefits from installing a solar battery, you should have a larger solar system installed, the minimum system size recommended is 6.6kW, but with household consumption and growing prevalence of larger systems, this may not even be enough. Having enough solar capacity is important as it ensures that the solar system will generate enough electricity to fill the battery and power your home even in winter or on overcast days.
You may also want to consider oversizing the rated power of your panel array to the rated power of your solar inverter (although this does sound dangerous, it is actually very safe and is even a recommended practice for many installations). Your solar retailer will advise you as to whether this would be beneficial for your specific system and situation. Whether or not to oversize the inverter is based on several factors including your climate battery size and individual household consumption.
AC Coupling
AC coupling is the most common method of retrofit installation of a solar battery. This is the most simple process as it more or less leaves all the wiring and components of the existing solar system alone. Simply put, the solar battery will be connected to your home’s existing AC circuit.
How Much Does a Hybrid Solar System Cost?
This is where a lot of people get put off. It's no secret that a hybrid solar system, in comparison with a standard grid- tied solar system, is far more expensive. Adding a storage solution could potentially double the initial cost (depending on how many batteries you wish to install).
For example: a 10kW system will usually cost around $8,000 whereas a 10kW solar system with a 12kW battery will usually cost around $18,500.
But if you’re someone who is really keen on an off-grid solar set-up but have some reservations around the huge cost of doing this or the lack of security without backup grid power, then a hybrid solar installation could be right up your alley.
Is a Hybrid Solar System Worth It?
For many Australian homes battery storage is 100% worth it, but this is very dependent on your specific home and situation. It’s also important to consider the significant investment that comes with this, the battery is unlikely to pay for itself before the warranty expires. But that being said, the battery won’t fail on the exact day the warranty expires so there is still more room for a return on your investment.
There are many benefits of solar battery storage, although each is different and can help you to achieve different goals. It is really down to the individual and their personal motivations in installing storage solutions.
FAQ
Frequently Asked Questions about Installing Solar Power
There are great government rebates/incentives still in place for eligible households. Basically, the larger the panel array, the more STCs your solar system generates as it is based on the expected output of the system over time.
When you buy a solar system, the purchase price is normally reduced by the value of the STCs created by your system. You simply fill out a form on the day of installation to confirm that the system has been installed, and that’s it. There is no additional paperwork that you need to do.
Small-scale Technology Certificates (STCs)
Small-scale Technology Certificates (STC’s) – previously known as Renewable Energy Certificates or RECS – are created when a Renewable Energy System such as a Solar PV system is installed.
The number of STC’s depends on the predicted amount of energy generated and hence the larger the system the greater the rebate. In essence, one STC is created for every megawatt-hour of production capacity of the system.
This is further multiplied by the number of years the system is likely to generate energy (for home solar systems, this is usually 15 years, although the life of the solar panels themselves is considerably more than that).
This incentive program is being phased out until 2030, so each year the number of certificates your system is eligible for reduces.
STC Price
The system for trading and pricing STCs for small systems is managed by the Small-scale Renewable Energy Scheme (SRES).
STCs are bought by Liable Parties (usually electricity retailers) and must be surrendered at the end of each quarter. As the number of STCs that are required to be surrendered is a fixed amount each year, but the number of STCs created is variable, the price paid for STCs also varies and is determined by supply and demand.
The Federal Government legislated in 2010 a fixed price for STCs by implementing a Clearing House system where STCs can be bought and sold for $40. However, there is no requirement for Liable Parties to purchase from the Clearing House, so they are likely to only do so if there is a shortage of STCs or the market price exceeds $40. There is currently a surplus of STCs in the market which means the market price of STC’s below $40
The Feed In Tariff is only something you need to worry about if you don’t have battery storage.
The price your chosen energy retailer pays for any excess electricity generated from your solar panels is recorded as a credit on your power bill.
In NSW, solar power is fed into your home as it is generated and your household will use it first before you draw power from the grid.
This means that for every kWh of solar power used in the home you are directly saving money you’d spend on your power bill. This reduction in your power bill is the main financial benefit of solar power.
Everything else will be bought up at an agreed rate by your electricity retailer.
At the moment, most feed-in tariffs are between 5 and 10 cents per kWh, with many being about 7 cents. They bounce up and down a lot, for example in previous years they have been up over 20 cents per kWh. Typically, they are always at least 5 cents per kWh.
Once you sign up for a 1KOMMA5° Installation, we immediately submit your grid application to the relevant energy distributor. For systems up to 5kWs, this is a formality. For larger systems it can take a few days or more. Once we receive approval, your installation will be managed by our installation coordinator, who will welcome you to 1KOMMA5° and book an installation date for you. This is generally booked within around two weeks and installation dates are available Monday to Friday, weather permitting.
We endeavour to have your system installed within 2-4 weeks unless you request us to hold for whatever reason. Due to our strict safety policy, we do not install solar systems when it rains. In the event of inclement weather, we will rebook your installation as soon as possible. We always work with your requests as we strongly recommend that someone be home on the day of installation.
Green Loans can be an affordable way to pay for your solar power system and is only available for approved products. As a Clean Energy Council Accredited installer, all our systems qualify.
Green Loans can be used to finance 1KOMMA5° systems from $1,000 to $30,000 over a 2-7 year term. Once you have received a referral from 1KOMMA5°, online approval usually occurs within 1-2 business days. Green Loans have a competitive fixed interest rate that is as low as 7.99% p.a.* | Comparison rate 9.21% p.a.^ Establishment fee of $299 added to the loan amount. $2.70 per week account keeping fee included in repayments.
To be eligible to apply you must:
Be over 18 years old and an Australian resident or citizen
Own or be purchasing a home
Be employed, self-employed, a self-funded retiree; or is receiving the Government Age Pension
Have an Australian driver’s license or Passport
Provide two most recent payslips or 90 days of bank statements
There are a number of good, competitive Green Loan providers – ask us about the options available.
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