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How Combining Solar Panels and Battery Storage Can Save You Money

Author:

Daniel Tonkin

In recent years, Australia has seen a significant shift towards sustainable energy solutions, with solar power leading the charge. Homeowners across the nation are harnessing the sun’s energy to power their homes, reduce their carbon footprint, and cut down on energy costs. However, the true potential of solar systems is most effectively unlocked when paired with battery storage.

Traditionally, solar panel systems have relied on the electricity grid to provide power during evening hours, but by adding battery storage to your solar panel system, you can unlock a whole new level of energy independence and financial savings.

Solar Panels and Battery Storage: The Basics

Let’s start by taking it back to the basics. Solar panels convert sunlight into electricity, which is then used to power your home’s electrical systems and appliances. Any excess electricity generated by the solar panels that isn’t used immediately is usually fed back into the grid, often for a feed-in tariff—you’re essentially selling your leftover electricity back to the electricity company.

Given that feed-in tariffs have been declining in Australia recently, sending excess electricity back to the grid has become much less financially rewarding, making battery storage a very attractive option. A battery storage system stores your excess solar energy instead of sending it back to the grid. This stored energy can then be used at night or during peak energy usage times, which are typically more expensive.

How Adding Battery Storage Can Save You Money

Combining solar panels and battery storage can have a significant financial impact, allowing you to reap the rewards of this cost-saving duo. The benefits of solar battery storage include:

Increased Energy Self-Consumption

With battery storage, you can maximise the use of the electricity generated by your solar panelling. By storing surplus solar energy during the day and using it during periods when the sun isn’t shining, you essentially increase your energy self-sufficiency, reducing the amount of expensive grid electricity you need to purchase.

Reduced Impact of Electricity Price Fluctuations

Electricity prices often fluctuate based on things like fuel costs and demand. By making use of your stored solar energy during these peak periods, you can protect yourself from price spikes in grid electricity. This buffer against fluctuation can lead to substantial cost savings and a more predictable electricity bill.

Maximising Feed-in Tariffs

Although declining, feed-in tariffs still exist, and homeowners with battery storage can choose the best times to sell their excess energy back to the grid. For example, if electricity prices surge during specific hours, you can sell your excess stored energy at a premium, rather than a fixed return.

More Earning Potential with VPPs

Virtual Power Plant (VPP) programs offered by companies like Amber allow you to participate in the energy market by strategically discharging your stored solar energy during peak demand periods. This is similar to the above, but with VPPs you can potentially earn significantly higher rates—even 10 times your standard feed-in tariff—for providing much-needed power back to the grid.

Increased Property Value

Adding solar panels and battery storage can significantly increase the value of your property (even if you’re a landlord). Because homes that are fitted with solar systems are increasingly in demand, the addition of energy storage is a strong selling point. This is not only a financial benefit in terms of energy savings but also a potential increase in property resale value.

Reducing Reliance on the Grid

Along with the financial benefits of combining solar panels and battery storage, energy independence is another appealing point for many. This kind of solar and battery system setup can provide the following advantages:

Reliability and Security

Battery storage provides a backup power supply during grid outages. If you live in an area that experiences frequent blackouts or inconsistent grid services, this can be crucial to ensuring that your home has a continuous power supply.

Support During Emergencies

In cases of natural disasters or other emergencies, having a solar and battery system can keep critical appliances running, such as refrigerators, lights, and medical equipment, adding an extra layer of security for your family.

Sustainability Impact

Opting for solar panel installation and additional batteries reduces your reliance on the grid, but also reduces the need for energy produced from fossil fuels. This not only helps lower your carbon footprint but also contributes to a broader societal shift towards renewable energy sources—something that’s beneficial for everyone!

Is Battery Storage Right for You?

While battery storage offers significant financial benefits, it’s important to consider your individual circumstances, including your energy consumption, your budget, and your energy goals.

The amount of battery storage you need will depend on your daily and seasonal energy usage. Battery storage does add an upfront cost to your solar panel system but the government rebates and incentives can significantly offset this initial spend.

Energy prices are predicted to keep rising, but by incorporating a battery system, you’re effectively shielding yourself from these increases and making future price hikes irrelevant. The return on investment based on current energy prices estimates a payback period of about 8-10 years, but with the forecasted energy price increases and a VPP plan, you could potentially reduce this to just 3-5 years by 2026.

If maximising your energy independence and minimising your reliance on the grid are top priorities, then battery storage is an excellent choice. And of course, the long-term savings on electricity bills can make battery storage attractive too.

Taking the Next Step

If you’re interested in exploring how solar panels and battery storage can benefit your home and your wallet, get in touch with us today. Our experienced team offers excellent service across a wide range of areas, including Sydney, Melbourne, Perth, and Brisbane.

Think Renewable’s innovative approach has not only helped our customers reduce their carbon footprint but has also made a significant impact on their energy bills. We’re here to empower Australians to save money while embracing sustainable energy sources.

We’ll assess your energy needs and work with you to install a solar and battery storage system that meets your budget and goals. You can rest assured that our trusted installers are SAA-accredited, fully-licensed electricians that have the finest attention to detail when working on your property.

Unlock the full potential of solar power and start saving money on your electricity bills with Think Renewable!

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