Sensitivity Analysis of economics of adding battery storage

Sensitivity analysis of adding battery storage to an existing solar system

Earlier analysis considered the economics for households with an existing solar system deciding to add a battery storage system. Using current battery system and electricity prices this analysis showed

The average household makes a loss of 7.7% p.a. by installing a battery storage system


Sensitivity System Cost

Sensitivity Analysis

The economics of adding battery storage depend on several key parameters

• Battery System Cost

• Cost of Electricity

• Size of the existing solar system

• Usable capacity of the battery storage system

Sensitivity Electricity Cost

 

In this analysis each key parameter is varied to reveal the effect on the Return on Investment the average household receives.

The analysis concludes battery prices need to fall to 25% of their current cost before the first households will receive a positive return on their investment in battery storage.

 


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Citation

Copyright of this article remains with Dr Martin Gill. All references to this article should include the author’s name and website www.drmartingill.com.au.

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The author is happy to receive comments or questions about this article. He can be contacted here