New Energy Solutions
Is Going Off-Grid Worth It For Australian Homes?
Over the last decade solar power has rapidly gained popularity, helping Australian homes to lower their bills and gain energy independence. With the addition of storage solutions that are powerful yet safe, off-grid power has now become a more achievable and accessible goal. This coupled with the unpredictability of our electricity prices, have left many now wondering why even be connected to the grid at all? Well unfortunately it’s not that simple, whether or not an off-grid system is feasible for you is dependent on your location and situation. It’s important to remember that, despite the headache, there are some clear benefits to being grid connected.
Key Takeaways:
High Costs of Going Off-Grid: Off-grid systems are much more expensive than grid-connected or hybrid setups, costing 2-4 times more due to the need for extra solar panels, larger battery storage, and a backup generator. You’ll also need specialized off-grid installers, which adds to the cost.
Weather and Reliability Challenges: Off-grid systems are highly dependent on weather for power generation, and extended periods of low solar output require running an expensive and environmentally harmful backup generator. This can make it financially and logistically challenging.
Higher Maintenance Requirements: Off-grid systems require much more monitoring and maintenance than grid-tied systems, including regular servicing of larger components like inverters and batteries, to ensure reliable power. Failure to maintain the system could leave you without electricity.
Economic and Environmental Trade-offs: Going off-grid doesn’t always make financial sense due to high initial and ongoing costs, and it may not significantly reduce your carbon footprint (especially with a petrol/diesel backup generator). For many, a hybrid system is a better, more affordable option that still allows energy independence with the backup of the grid.
Going Off-Grid in Australia
So you’re thinking about going off-grid! You may be struggling with finding a reliable electricity source due to your geographic location and proximity to the main network or you may have had enough of constantly climbing prices and uncertainty around rates. Whatever your reasoning is there is an energy solution for you, but that solution may not necessarily be an off-grid system.
Solar has come a long way in recent years and now the majority of solar retailers are able to offer their customers complete solutions from panels to storage and sometimes even including energy efficient air conditioning and water heating systems. With whole home installations so readily available people are becoming curious about off-grid systems, after all if you’re already generating and storing your own energy then disconnecting from the grid seems like a great idea, right? Well not necessarily, in order to have somewhat reliable power for your daily life you will need to install a lot more PV modules and batteries than you would for a hybrid system. Additionally with no grid as a backup for emergencies, you will also need to install a generator, making the cost of this project significant.
A good alternative to an off-grid solution is installing a hybrid solar system (solar and batteries, while still maintaining a grid connection). Many find this to be the best option for their situation as they can use their own energy around the clock and have the added security of a grid connection in case anything were to go wrong. Additionally by remaining grid connected, any excess energy not consumed or stored can still be exported back to the grid for a credit on your electricity bill.
1K5° offers a range of grid tied and hybrid solutions, installing solar and batteries and giving Australian homes energy independence.
Read this article on Hybrid Solar Systems for a more in depth look at the benefits and a wider comparison of solar solutions:
3 Big Problems with Going Off-Grid
1.
Your System Will Cost 2-4 Times More Off-Grid
Additional Energy Storage: solar batteries are typically the most expensive component of a solar installation, when you choose to go off-grid you’ll need to install a great deal of storage to meet the needs of your home throughout all seasons and weather conditions.
Backup Generator: you will also need to install a backup generator, usually petrol or diesel, to provide power to your home in long periods of low solar generation or in case something were to go wrong with the system itself.
Off-Grid Inverter: your average hybrid inverter, although in some cases it may do the job, is not ideal for these types of installations. It is recommended that an off-grid inverter be used in order to handle the electrical stress of an off-grid system. Unfortunately these inverters are more expensive and will contribute to a higher upfront cost as they have the capability of handling both the batteries and the backup generator.
Off-Grid Specialist: the components aren't the only expensive element in the off-grid equation. In order to install an off-grid system that will actually power your home and allow you to live a mostly normal life on your own electricity then you will need to employ not just a solar expert but an off-grid solar expert to design your system. Your specialist will create a system design that ensures you're not spending too much on batteries but also that you’re never left in the dark, so to speak, even in the low generation winter months.
2.
You Will Run Out of Solar
Unfortunately we cannot always predict the weather perfectly and even when we can we certainly can’t control it. There will be times when the sun is hiding, your solar panels won’t be able to fill the batteries and the available solar electricity will not meet the energy consumption of the household. In these times you will need to run the backup generator to power your home. There are a few problems with this, the first is it’s expensive to continuously be using fossil fuels such as petrol or diesel to power your entire house, it’s also a hassle to have to top up the generator in order to receive electricity. And of course finally, if one of your motivations for wanting to go off-grid is to reduce your carbon footprint and live sustainably then a diesel generator isn’t the best way to achieve this.
3.
Off-Grid Systems are Much Higher Maintenance
Your standard grid tied or hybrid solar system is much more self-sufficient, these systems are usually pretty happy to sit on your roof and generate electricity with minimal intervention from you, essentially just generating savings in the background while you go about your day. This isn’t exactly the case for off-grid solar systems, a great deal more monitoring and maintenance is required. This is because these systems are usually much larger and have more components. Also, with an off-grid system, the stakes are higher, regular servicing is necessary as if anything were to go wrong your property would be left without power.
Why Going Off-Grid Doesn't Make Sense
Economically:
Although living completely off your own energy and paying electricity retailers and network distributors nothing may seem like the ultimate way to save money, this isn’t exactly the case. For many their best bet would be to install a hybrid solar system, offering much the same benefits but with the added ability to export excess energy back into the grid for a feed-in tariff (with a much lower setup cost). With the right setup and management many solar homes with hybrid systems have gotten their electricity bills to 0. If you lack a specific reason for wanting to go off-grid other than you just feel like it or are sick or your energy retailer and want to take action, then an off-grid system just won’t make financial sense. Between the added components, the generator, the initial setup cost and frequent maintenance, an off-grid system isn’t the smartest choice unless you really need it. Put it this way, to install an off-grid system with the same amount of success as you would see with a grid connected system the starting cost is around $40,000 and this figure doesn’t even take into account the fuel needed for the generator or the ongoing maintenance costs.
Environmentally:
In a grid tied system, the excess solar power that isn’t used in the home is exported back into the main electricity grid, providing other non-solar homes on the same network with clean electricity. By removing your home from the grid all excess solar energy that isn’t used or stored in the batteries simply goes to waste. Also if sustainability and the environment has played a role in this decision then it’s important to keep in mind that your backup power source is a fossil fuel generator, so is pulling backup power from the grid as opposed to your diesel/petrol powered generator really that different?
Reasons People Choose to Go Off-Grid
Despite off-grid solar systems not making the most financial sense in a lot of situations, a lot of people still choose to go down this route for various reasons, some more understandable than others.
1. No Reliable Source of Electricity Where You Live
The most valid and obvious reason people choose to install an off-grid solar system is a lack of electricity in their area. Whether this means that the source of electricity they do have is unreliable or just non-existent altogether, this is a great way of utilising off-grid power, where it's needed most. This is seen mostly in rural or remote locations and can provide those electrically isolated with the means to enjoy electricity through clean, self managed energy generation.
2. Cost of Off-Grid Solar vs. Cost of Grid Connection
There are times where although the electricity grid is an option and is available due to locational factors, installing an off-grid solar system may actually make more financial sense. Depending on how far away from the nearest grid connection you live then the off-grid route may actually be more feasible. For properties that are further away from the network the cost to be connected can be considerable. If your local electricity provider has quoted you a great deal for grid connection (more than the average starting cost of around $40,000 associated with an off-grid system) you may want to consider the self-sufficient renewables route instead.
3. You Experience Frequent Blackouts
Another reason to consider off-grid solar power is blackouts. If you live in an area where blackouts are frequent or tend to go on for long periods of time then you find yourself turning to personal energy generation. These blackouts can cause a disruption to both our daily and professional lives, so it’s understandable to want your own, self managed and reliable source of energy. That being said, in this situation a hybrid solar system may be a better option. Not only are hybrid systems more reliable and far cheaper than completely off-grid setups, but they also allow you to enjoy the reliability of the grid when solar generation is low and the reliability of solar storage when the grid is down, all while requiring less attention and effort from you in the long-run.
You're Sick of Climbing Energy Prices
We completely acknowledge and understand the unpredictability of prices in the energy market at the moment and the climbing cost of electricity that is leaving many Australians fed up. This frustration can lead people to consider off-grid solar installations to get away from the pressures of the electricity grid. And while no grid, no bills may sound great in theory, it’s not quite as simple as that. While theoretically yes, you will no longer be paying a power bill, there are other bills and general costs that will need to be paid.
The generator will require regular maintenance and of course the cost of fuelling the generator plays a part.
Off-grid systems require more regular maintenance and servicing than grid tied solar systems do. This will need to be carried out by a licensed electrician, ideally an off-grid solar specialist.
Due to the heavier workload and the need to maintain efficiency, reliability and safety, the components of an off-grid solar system, especially the inverters and batteries will need to be replaced eventually. This can put you out of pocket a considerable amount, sometimes even close to what you initially paid. With an off-grid setup, being the primary source of power for your home, maintaining efficiency is paramount. This means your system components will need to be replaced sooner than those in grid tied systems in order to stay ahead of natural degradation and address any issues before they become problems.
If you consider the additional costs associated with going off-grid it may not seem as smart as other options, especially if you consider the fact that by installing a hybrid system you have the potential to get your electricity bills into the negatives through the use of feed-in tariffs and by adjusting your energy usage to align with the electricity prices (for example, use grid power when prices are low and stores solar energy when prices are high).
You Don't Want to Pay a Grid Connection Fee
Another reason we see people looking for off-grid systems is the grid connection fee imposed upon them by their network provider. With Australians already paying so much for electricity it’s no surprise that many are becoming fed up with the costs associated with receiving power. Although in this case, avoiding paying a grid connection fee hardly seems to make an off-grid system worthwhile, both financially and in terms of the effort required to install and maintain such a system. The fee is around $1 per day, even when this adds up it still doesn’t come close to the cost associated with setting up off-grid solar power, not to mention the cost to maintain this.
Due to the high initial cost of an off-grid solar system going down this road does not make financial sense in a lot of situations. In short, unless your reasoning falls under point 1 or 2 then you’re better off going with a hybrid system, so you can enjoy clean, self managed power around the clock whilst knowing you have the reliability of grid power to fall back on.
If Going Off-Grid Does Make Sense for You, What are the Next Steps?
The setup for an off-grid system is much like a standard or hybrid system although there are some added components and things to consider to ensure the system’s efficiency and longevity.
1.
A Battery Inverter
solar batteries produce DC voltage, the battery inverter is responsible for converting this into AC power that can be used in your home. The inverter used must be up to the task of handling an off-grid system as it will be responsible for housing all of the power electronics that constantly balance the supply and demand within the system, a necessary component when there is no connection to the main electricity network.
2.
A Number of Batteries (Battery Bank)
you’re not always going to be able to use all of the solar power your PV array produces (especially in an off-grid system where the system size is often oversized). All the solar energy that is not immediately used to power appliances around the home will be transferred into the batteries for use after dark or at times of low solar production. Once the batteries become full the performance of the panels will be reduced to prevent any damage to the battery modules.
3.
A Backup Generator
throughout the lifetime of the system there will be times when solar generation will be too low to meet the energy needs of the household and the batteries will become empty, you will need to use a backup generator to compensate for this until the sun comes out again.
Important Points to Consider When Going Off-Grid
If an off-grid system is the right option for you and it makes sense financially then that’s great! We’ve spoken a lot on the downsides of off-grid solar but it can be a great help to many as long as they really need it. Where off-grid systems become a waste of money is for those who lack a situational or locational need and install these stand-alone systems purely because they feel like it or for more minor reasons such as backouts which could easily be addressed with a hybrid solar system. If you're one of those households who could benefit significantly from off-grid solar then here are a few things to look out for when you install:
Choose an Experienced Off-Grid Solar Installer/Retailer
Choosing a trusted and reputable company to install your system is widely regarded as one of the most important elements of installing solar. For an off-grid installation this is vital. Before you make a decision make sure to have a look at some of their previous installations, the lifespan and performance of these previous systems can give you a better idea of what to expect. Another place you can start is by looking at online reviews and the company’s longevity in the industry.
If you're looking to install a hybrid system (which essentially offers much the same benefits, along with the added security of a grid connection), then a trusted installer like 1K5° is also vital to the process.
Ensure You Provide Your Chosen Retailer with All of the Necessary Information
The designing phase of an off-grid system is extremely important, even more so than traditional setups. This process must be carried out accurately and thoroughly to ensure you're not wasting money on capacity you don’t need but at the same time have enough solar generation year round (especially in winter) to cover the desired loads of the household. It’s a good idea to provide your installer with an ‘anticipated load profile’ including a list of all appliances and their power ratings as well as your corresponding usage patterns. Your solar specialist will design a system for you, optimising performance to meet your specific energy consumption on a daily basis.
Keeping the Upfront Expenses Low
When you install an off-grid solar system you’re essentially setting yourself up to power your home for the next 10 years or so, that being said this is obviously a considerable investment. The initial price is directly proportional to the size system you wish to install, or in other words the amount of energy usage you need to cover throughout the day. To reduce the level of consumption you may want to consider getting rid of power hungry appliances that you no longer need or use regularly and for those that you do, you could swap them out for energy efficient appliances. You can also try to alter your behaviour in order to use less power from day to day.
Make Sure You're Installing the Right Inverter
For the majority of grid tied/hybrid solar systems a hybrid inverter will be installed. To see the maximum benefits from your off-grid system you’ll need to install an off-grid solar inverter. Hybrid inverters have low surge ratings, meaning they may not be equipped to handle sudden influxes of energy demand commonly seen in an off-grid installation. An added benefit of an off-grid inverter is some include an auto generator start function allowing for a seamless swap to backup power.
Oversize Your Solar Array
If the energy demands for your household mostly fall under daytime usage then oversizing your solar array can be a great way of ensuring you’re receiving maximum benefit. This can help in keeping costs down, by oversizing the array you can minimise the storage capacity required generating more energy during the peak sunlight hours throughout the day.
Live According to The Weather
One thing about an off-grid solar system that you should be prepared for is your reliance on the weather. Your daily habits and energy usage will need to be aligned with the production of the system. Ensuring the way your home is run and the appliances installed are energy efficient can help you to make the most of however much power is available at any given time, even on low solar production ways. Using your appliances seasonally can also be of great help, for example using wood fired and gas cooking solutions in winter when solar generation is lower and saving the electric cooktop for summer.
Ensure Your Battery Can Handle the Climate:
The most popular choice of residential energy storage currently is the lithium-ion batteries due to their lower cost and greater usable capacity in comparison with their predecessors. Those who are looking to install off-grid solar systems more often than not live in remote locations sometimes with harsh climates. It's important to read the specifications for your chosen battery to ensure it can handle the climate. For example lithium-ion batteries will experience a reduced charge rate in temperatures below 5°C.
Summary
With the efficiency and reliability of solar power and storage rapidly improving, along with the unpredictability of our energy prices, it’s no wonder more and more people are becoming curious about off-grid solar. While yes, in theory this is possible for a lot of people, in reality it is time consuming, very costly, lacks reliability (compared with a hybrid system) and will change the way you live daily life. That being said, off-grid solar power can be an amazing avenue for those who really need it in order to receive dependable electricity. In short, where a grid tied or hybrid system will cater to and can adapt more easily to your needs and daily habits (due to the added backing from the grid), with an off-grid system you will need to adapt and cater to the needs of your system (in terms of the weather, peak hours of production and seasonal appliance usage).
If a hybrid solar and battery storage system is something that interests you and you're looking to experience energy independence and take your power back from the energy retailers then give the team a call. We’re one of the largest installers of solar batteries in Australia, so if you have any questions or even just want a quick introductory chat around solar and storage to help you get your bearings we’d be more than happy to help.
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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