Is it worth buying solar batteries with the NSW Rebate?

Why Now is the Best Time to Invest in Solar and Battery Systems

Investing in solar and battery systems is becoming increasingly appealing to Australian homeowners, thanks to shorter payback periods, government rebates, and falling battery prices. These factors are making it easier for homeowners to reduce energy costs and achieve greater energy independence.

Typical payback period

The payback period for solar and battery systems in Australia has improved, now averaging just over nine years as of September 2023. This is due to the reduced upfront costs of installation, driven by lower prices for solar modules and batteries. With solar and battery systems becoming more affordable, many homeowners can expect to recoup their investment through savings on electricity bills within this time frame.

Government rebates and financing options

Australian homeowners can take advantage of several government programs to lower solar batteries’ cost and the overall expense of solar and battery systems:

Small-scale Renewable Energy Scheme (SRES)

This national program helps reduce the upfront cost of solar panel systems by offering Small-scale Technology Certificates (STCs). These certificates act as a subsidy, lowering the installation cost for solar systems.

State and territory schemes

Many states, such as New South Wales, offer additional rebates for solar battery installations. Starting in November 2024, NSW homeowners will receive between $1,600 and $2,400 off the cost of adding a battery to an existing solar system. To learn more visit our dedicated page for NSW Rebates Page.

Loans

Some states also offer interest-free or low-interest loans to help homeowners finance solar and battery systems, easing the financial burden of the upfront investment.

Declining battery prices

Solar battery prices in Australia have been steadily decreasing. As of October 2024, the cost of popular solar batteries ranges from $9,000 to $17,000 for installed systems.

Examples include:

• Tesla Powerwall 2 (13.5 kWh) at around $15,500
• BYD Battery (13.8 kWh) at approximately $12,200
• Sungrow Battery (12.8 kWh) at about $11,400

Over the past decade, the price of lithium-ion batteries has fallen by over 40%, and further price reductions are expected as technology advances. This makes now an ideal time to invest in a solar and battery system, taking advantage of both government incentives and declining battery prices.

Is a Solar Battery Right for You?

Investing in a solar battery is an excellent option for Australian homeowners looking to reduce their reliance on the grid and improve energy independence. By storing excess energy produced by solar panels, solar batteries allow you to use your own power during the evening or peak times when electricity prices are higher. This can significantly reduce your energy bills and increase your use of renewable energy, making it a smart and sustainable choice.

Solar batteries also offer protection against power outages. In regions where blackouts are more common due to weather or grid issues, having a battery ensures that essential appliances and devices keep running when the grid goes down. This backup power provides peace of mind, particularly during emergencies or unexpected outages.

For those who own Electric Vehicles (EVs), a solar battery system can be even more beneficial. A battery allows you to store extra solar power during the day and use it to charge your EV, helping to cut fuel costs. By integrating solar and battery systems, homeowners can achieve greater energy independence and enjoy long-term savings. Reach out to us today to learn how a tailored solar battery solution can work for your home.

What are the Benefits of Solar Batteries?

Connecting a solar battery to your solar panel system offers several advantages, from saving on electricity bills to reducing your carbon footprint. Here’s how adding solar battery storage can enhance your home’s energy efficiency and sustainability:

Saving on Energy Bills by Reducing Grid Power Consumption

One of the key benefits of a solar battery system is the reduction in the amount of power you need to purchase from the grid. Without a battery, most solar panel systems cover around 30%-50% of household energy consumption. With the addition of a solar battery, this can increase to 80%, 90%, or even 100%, allowing you to rely less on grid power.

When you store excess solar energy, you may lose out on the feed-in tariff you would receive by exporting power back to the grid. However, the savings come from using stored energy during peak hours, where electricity costs are much higher than the feed-in tariff rates. Solar battery prices have become more affordable, making this an increasingly cost-effective option for homeowners.

Backup Power During Blackouts

Solar battery systems can also provide backup power during blackouts. With energy market fluctuations and power outages becoming more common, having a solar battery ensures your home remains powered during disruptions. Most solar batteries typically provide backup power, although some models may require additional hardware. Solar and battery systems help reduce your reliance on the grid, offering peace of mind during outages.

Reducing Your Carbon Footprint

While solar panels alone help reduce your carbon footprint, adding a battery storage system further reduces your reliance on carbon-intensive grid power. Storing excess solar energy allows you to use renewable energy throughout the day and night, minimising your household’s dependence on fossil fuels. By integrating solar and battery storage, you can maximise your energy independence and contribute to a cleaner, more sustainable future.

External Factors Influencing Solar Battery Costs

When investing in a solar battery system, several external factors can influence the overall solar battery cost and battery price. Understanding these factors will help homeowners make well-informed decisions and maximise the value of their energy solutions. These factors can include government rebates, material costs, and market demand, all of which can impact the final price you pay for a solar battery system.

Government Rebates and Incentives

Australia offers multiple government programs to support solar and battery installations, helping homeowners reduce upfront costs:

Small-scale Renewable Energy Scheme (SRES)

This program provides financial incentives in the form of Small-scale Technology Certificates (STCs). Homeowners can trade these certificates to receive discounts on the cost of installing solar and battery systems.

State and territory incentives

States like Queensland and Victoria offer additional rebates and grants. For example, Victoria’s Solar Homes program provides interest-free loans of up to $8,800 for solar battery storage systems. These incentives significantly reduce the cost of installation.

Interest-free loans

Some states offer interest-free loans for energy-efficient home upgrades. These loans help homeowners reduce the initial outlay for solar batteries, making it easier to invest in solar power systems.

Taking advantage of these incentives can greatly reduce the price of a solar battery system and shorten the payback period, sometimes lowering it to just 5 to 9 years. 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.

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.

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