The short answer is YES! Installing a home battery system can save you money. However, it is a significant financial investment. It’s important to consider your budget, how much energy your household consumes and understand when you’ll start seeing your return on your investment.
So here is everything you need to know before investing in a home battery system.
Things to consider
There are a range of factors to consider when deciding whether you would financially benefit from a home solar battery system. Some of these include:
Payback period: The ‘payback period’ is the time it takes for a battery to pay for itself with savings in your energy bills.
Battery size: Choosing an appropriately sized battery for your needs will achieve the best economic return. Depending on your requirements, the payback time is generally quicker for a small battery, when paired with a new solar system. The best way to choose the right size battery is to consult an expert.
Consumption and tariffs: If you have higher than average electricity consumption (more than $2,000 per year), are on a time-of-use tariff, and are planning on installing a new solar system, it could make financial sense to install a solar battery system.
Location: In a rural area where electricity is more expensive, a solar battery system could help reduce your energy bills. Sunnier inland locations tend to return your investment more quickly than coastal locations.
Solar export to the grid: If you have, or want to install a large solar system and the grid has limited how much excess solar you can export, a battery may be a good option. -
Future battery costs: Battery costs are expected to continue to decline over the next few years, which will reduce payback times.
Estimating your payback period
To estimate the payback period in years, simply divide the upfront system cost by the projected annual savings in your energy bills. If you have a warranty that is less than the payback period, the battery system may not pay for itself before the warranty expires. The NSW Home Solar Battery Guide lists some more detailed online calculators that might help you assess the payback once you have a quote.
Options and payback periods
New solar without battery: A new rooftop solar system, without a battery, usually has the shortest payback period.
New solar and new battery: Installing a new solar system with your new battery usually has the shortest payback period of the battery options mainly due to the new solar system.
Addition of battery to existing solar: An addition of a battery to existing solar, also called retrofitting, has a longer payback period than new solar and new battery, often exceeding the warranty period. While this option may not pay for itself, it still improves your energy self-sufficiency.
New battery without solar: Installation of a battery only, without having rooftop solar, currently it doesn’t make financial sense and has the longest payback period. It is also unlikely to recover the cost of the battery.
Next Step
If you decide you would like to proceed and get a home battery system installed, you will need to contract a certified clean energy installer. That's us! Our expert technicians can help guide your next steps and recommend and install the best solution for your energy consumption needs.
Call 1300 319 419 now and talk to our qualified team today!
Source:
NSW Treasury. For current information go to energysaver.nsw.gov.au- external site
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