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
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
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.
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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