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Solar Batteries: Are They a Good Idea?

Thinking of a solar battery system with your solar installation? We are often asked about solar batteries, and if is a worthwhile investment. The four most common reasons for a solar battery are –

1. To maximise the power generated,
2. Achieve better energy security,
3. Reduce noise from your generator and,
4. T reduce the electricity bills. Do you find yourself in a similar position?
 
For some, installing solar batteries can be beneficial. Bu for the majority, it is not a worthwhile investment because benefits may not exceed the costs. We’ll discuss the three major considerations you should make before choosing to install a solar battery. These are,
1. High costs,
2. Poor payback period and,
3. Poor suitability for many Cairns and Townsville residents.
 

Figure 1 – Inverter and Solar Battery installed for a Commercial Property

High Costs

One of the major drawbacks of a solar system can be the cost of installation. A battery will substantially increase the total cost of the solar installation. Batteries can cost from $5,000 (or $400 per kilowatt hour) alone. This means it excludes installation costs and cost of additional parts for compatibility. But unlike the typical solar installation, a battery doesn’t produce returns. It only stores the electricity generated from your solar installation.
 
In total, the up-front costs of installing a battery can add another $10,000 to your price. This doubles the cost of your solar installation, if not more.
 
Fortunately, battery prices have decreased considerably in the past ten years. Furthermore, the trends suggest prices will decrease in the foreseeable future. Hence, while the value is poor at current prices, we expect it to become more attractive. When this occurs, we will keep you informed.
 
Apart from the upfront costs, solar batteries need to be maintained. Maintenance differs across battery types and is best performed by our accredited installers. This said, our clients have the responsibility to perform a visual check regularly. This is expected on a monthly basis. Another second reason why we don’t routinely advise a battery installation is because of the poor payback period.

Poor Payback Period

Payback period is the time it takes for you to earn back the money invested on a solar battery. For a solar battery, the payback period is influenced by several factors including the climate, weather, battery usage, electricity consumption, the tariffs, solar panels positioning, price for power and more. With the large number of factors influencing the payback period, it is a complicated task to estimate accurately. However as a battery system does not generate power, only helping store power already generated, buying a battery system will delay the payback period.

Mileage of batteries is dependent on your individual usage; poor or heavy usage may mean the battery does not last as long as expected. Higher temperatures also erode the life of the battery. The general range for a solar battery’s useful lifespan ranges between 5 and 15 years; half of the lifespan of the solar panel. This means that the battery will probably need to be replaced at least once to equal the lifespan of the PV panels. Unfortunately in most of these cases, the combination of variable battery mileage and manufacturer’s warranty may not extend beyond the payback period.

If you are considering a battery installation to go off-grid, it means that you will not be able to sell excess energy back to the grid. Furthermore, there are additional equipment needed such as an air conditioning unit for the enclosure. Finally, it can be difficult to produce enough energy in cloudy days, particularly in winter.  

There are a variety of factors that influence the payback period of solar batteries. Combined with the battery’s role in electricity storage instead of generation, the payback period of a solar battery is difficult to predict and is more protracted than a solar installation without a battery.

Solar battery occupies space and requires additional parts for compatibility

Figure 2 – A solar battery may not be suitable for everyone but it can help people needing a consistent source of electricity

Poor Suitability for Cairns and Townsville Residents

Depending on your tariff rates (the credit issued to you by the energy retailers for excess energy) and peak prices, you may feel like the electrical storage of a battery will benefit you. However, in most cases, the savings from most domestic uses  is not substantial enough. This does not include the small losses in electricity as it is transferred from the inverter to the battery. Anyway, to help you estimate savings, take advantage of our energy audit and we can give you an accurate estimate of the benefits of storing electricity.

This said, a solar battery will and have suited some of our customers. If you are considering a solar and battery installation, we can help you estimate the payback period to make an informed decision. If you can benefit from a solar battery hybrid system, you will move forward knowing that it is the right decision, otherwise, we can help you prepare for the moment when battery prices reduce and it becomes worthwhile for installation. Our battery ready design will prepare you for this moment. So, to get started fill out the form below.

by | Mar 31, 2019 | Solar Information | 0 comments