Is it worth it to install solar battery with solar system in 2022?

For years we have been hearing a buzz around that solar batteries are costly and now is not the right time to install them. So what are solar batteries? In short, the excess solar energy from the solar PV system is stored in batteries for use at night. To understand the working of solar panels with batteries we have put it into basic steps:

• Solar panels absorb the sun’s energy and convert it to Direct Current (DC) electricity. However, DC electricity is unable to power a home or workplace on its own.
• A Solar Inverter converts DC electricity generated by the solar modules to Alternating Current (AC) electricity, which is required by most appliances.
• AC electricity flows through the home or workplace, thus powering electronic devices.
• Excess electricity produced by the solar panels is supplied to the electric grid or batteries for future use.

Solar energy storage system has prompted a lot of debate in the solar market. It’s been promoted as the best alternative, and with one of the strongest markets for rooftop solar panels in the world, Australia has quickly become a target market for many solar battery retailers. 

Retail electricity rates are continuously rising, and solar energy is beginning to offer a more cost-effective alternative. Solar panels, on the other hand, generate the majority of their energy during the daytime, when most of the individuals aren’t there to utilize it. However, they gain benefit from the grid, by feeding back excess electricity generated into it and taking the power from the grid when needed. Thus many homeowners are considering the battery option. If you are considering battery options for your solar system, there are several questions you might come across and would want answers to. Let us answer it for you.

How much installing a solar battery costs?

You may end up spending somewhere between $200 to $1500 for installing a solar battery, depending on its chemistry. Usually Lithium ion batteries are used on the on grid solar system installed in the house. Let’s say if you got a 5kW solar system at your property, you would at least need a 4kW battery to connect with it to get the maximum output out of your solar system. On an average the battery with installation costs around $1000 to $1000 per kWh. So, you might need to spend approximately $5000-$7000 for a 4kW battery and a 5kW solar system shall cost you around $3000 -$4000. 

What about rebates on the batteries?

Government rebate programmes and power trading platforms like Reposit can help make storage systems more affordable for some homes. Presently, rebate or special loan schemes in various states and regions, in addition to the regular Small-scale Technology Certificate (STC) financial incentive for batteries, which applies across Australia:

VIC: Solar Homes Program

SA: Home Battery Scheme

NSW: Empowering Homes solar battery loan offer

ACT: Next Gen Battery Storage Program

NT: Home and Business Battery Scheme

How much money does installing a solar battery save?

Well, if we talk about saving on electricity bills after installing a solar battery, trust us, it is all worth the hype. Installing a solar battery does save you money. Approximately you can save $500 annually by connecting a battery to the solar system. Well hold on! Batteries are a huge financial investment. You might end up spending around $6000 for installing a solar battery. Definitely the savings made are a considerable amount, but the battery shall not even be able to pay for itself before the warranty period. 

What brand of batteries can I buy?

There are various brands of batteries available in the Australian solar market, however, which one should you install depends on the type of system installed at your property or the type of system you are going to install? If you have installed a typical conventional or string inverter, you might need a battery that offers AC coupling. And if you have a hybrid solar system, any battery can be easily connected to it. Recently an article published in PV magazine talks about the latest advancement brought to us by Sungrow inverters that ensures reliable electricity supply for Australian households.  Below we have mentioned some battery brands that are reliable and can be installed.

• Tesla Powerall
• LG Chem
• Sonen
• BYD

What other option do I have?

We agree installing solar batteries makes economic sense for most homeowners, however, we recommend and prefer to wait for the costs to drop down, and they shall drop further in the years to come. What can you do now? Prepare your solar power system for the battery upgrade. If the size of your solar panel system is limited, you may want to consider adding extra panels or upgrading your existing solar system so that it can charge a battery even on a cloudy day. Consider talking to your solar retailer to choose the best solar solution for your property considering present and future needs, if you haven’t installed solar already. 

Is it worth it to install solar battery in 2022?

The major reason why solar batteries still do not provide value for money is that their cost has stayed constant for the past 3-4 years. We estimate that within the coming 5 years, the battery prices might fall by 50%, which would make them highly economical to install. At Savvy Solar we have got various solar options with and without battery, suiting different property and budget needs. Speak to one of our team to learn more about your option.