Factors influencing solar battery cost: How to decide which solar battery is right for your home
Published on: 28 Oct 2024
Solar batteries are becoming an increasingly important part of modern solar power systems, offering homeowners the ability to store excess solar energy for later use. As energy storage technology advances, more people are recognising the value of adding a solar battery to their solar panel system, allowing for greater energy independence and long-term savings.
The primary benefits of solar battery storage include backup power during outages, reduced reliance on grid electricity, and lower energy bills by maximising the use of stored solar energy. Additionally, pairing solar batteries with Electric Vehicle (EV) battery storage can create a more efficient and sustainable energy solution, further reducing energy costs and reliance on fossil fuels.
Investing in solar battery storage requires a clear understanding of the upfront costs and potential long-term benefits. Factors such as battery capacity, installation complexity, and available government incentives can all play a role in determining whether a solar battery is the right choice for your home.
Be sure to check our NSW rebates page to see what programs and subsidies might apply to you and how they can lower the price of your solar battery installation.
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What is the financial benefit of buying solar batteries?
A solar battery can significantly lower the amount of electricity you need to purchase from the grid, providing long-term savings on your energy bills. By storing excess solar energy, you can use it later during peak usage times or when solar panels aren’t generating enough power, reducing your reliance on grid electricity.
Without a solar battery, a standard residential solar panel system typically covers 30%-50% of household energy needs. However, with the addition of a battery system, this coverage can rise to 80%, 90%, or even 100%, maximising your self-consumption of solar power and reducing your electricity costs.
It’s important to consider that charging your battery may reduce the revenue you receive from solar feed-in tariffs since the excess energy is stored rather than sold back to the grid. Even with this trade-off, using stored energy during peak times provides a financial benefit, as the cost of buying power from the grid is higher than the feed-in tariff rates.
What impacts the cost of Solar Batteries
What Battery Capacity You Choose
The capacity of a solar battery, measured in kilowatt-hours (kWh), directly impacts both its storage capacity and cost. Larger batteries store more solar energy, allowing you to make the most of your solar power system, but they do come at a higher upfront cost.
For instance, a 13.5 kWh Tesla Powerwall 2 costs approximately $15,500, which equals about $1,148 per kWh. If you choose two Tesla Powerwall 2 units, providing 27 kWh of storage, the total cost is $28,000, reducing the price to about $1,037 per kWh. This economy of scale happens because larger battery systems share fixed costs such as the battery controller, built-in inverter, and installation costs, making the price per kWh lower for larger batteries.
Choosing the right battery size depends on your energy needs and budget. While larger batteries have a higher upfront cost, they can store more solar energy, provide backup power during peak energy usage or a power outage, and ultimately offer greater savings on your electricity bills by maximising your solar system’s efficiency.
Where You Live
The cost of solar batteries can vary depending on your location, with regional areas often experiencing higher prices. This is largely due to increased transport costs for delivering the battery system to more remote areas, as well as higher installation costs.
In regional locations, finding a reputable installer may be more challenging, which can contribute to higher labor rates and longer installation times. These factors combine to raise the total cost of installing solar and battery systems compared to urban areas where installers and suppliers are more readily available.
Which Brand You Pick
Reputable and established brands typically come with higher solar battery prices due to their proven reliability and performance. Brands like Tesla and Sungrow are known for offering quality battery systems, but they tend to be more expensive than lesser-known brands.
While more affordable options from lesser-known brands may seem attractive, it’s essential to consider factors such as the warranty period and supplier reviews. A longer battery warranty and positive reviews can provide peace of mind, ensuring your solar battery system will perform well over time and offer better protection in case of issues.
How Complex the Installation Is
The installation process for solar batteries involves both labour and specialised equipment, which can influence the overall cost. More complex installations, may require more time and expertise, driving up installation costs.
What Incentives Are Available
Government incentives, subsidies, and rebates can significantly reduce the upfront cost of solar battery systems. These incentives vary by region and may change over time, directly influencing the final price that consumers pay for their solar and battery system.
Are Solar Batteries Worth It?
If you’re considering adding a solar battery to your system, it’s important to evaluate your specific needs and goals. Solar batteries can provide benefits like backup power during outages and potential savings on electricity bills, but whether they’re worth the investment depends on factors like your energy usage and local utility policies.
Do You Need Backup Power?
A solar battery is an excellent option if you live in an area with frequent power outages. It allows you to store excess solar energy and provide backup power when needed. Unlike gas generators, solar battery systems don’t require fuel and operate quietly, making them a convenient and reliable solution during a power outage.
Are You Looking to Save on Electricity Bills?
If your utility provider offers full-retail net metering, a solar battery may not lead to significant electricity savings. However, if your provider uses time-of-use billing, you could save money by using stored energy during peak energy usage times. Keep in mind that the actual savings depend on your rates, the size of your battery system, and how much energy your solar panels generate.
To determine if a solar battery system is right for your home, Schedule a consultation with Valour Services and get a free quote.
We sell and install solar batteries with lifetime warranty
We provide this guarantee for two reasons. Firstly, we want to give our clients peace of mind, knowing that their installation has been thoughtfully planned and carefully executed. Secondly, we want to show our clients that we believe in the training of our team and will stand behind their workmanship.
