Comparing solar with battery storage to solar only

Households considering the installation of a solar system may be offered the option of adding battery storage.

The presented analysis considers if the extra cost of adding battery storage to the solar system is justified.


Comparing effect of adding solar and solar with battery storage on total cost of electricityTotal Annual Cost of Electricity

The total annual cost of electricity is calculated for 300 Sydney households using

• Current electricity tariffs

• Installed cost of current solar with battery systems

• Installed cost of solar systems only

On average the installation of a solar system increases the annual cost of electricity by $137.

On average the installation of a solar and battery storage system increases the annual cost of electricity by $660.


Comparing system costs to total savingsComparing System Cost to Total Savings

Comparing total savings from the installation of each system to the cost of the system reveals.

The average household recovers 73% the installed cost of the solar system.

Adding battery storage increases the system cost but

Total savings only recover 49% the installed cost of a solar system with battery storage.


Cost Difference Solar and Solar with Battery StorageComparing Cost Differences

Further insight is provided by comparing the cost per kWh of electricity. This reveals:

12% of households reduce electricity costs by installing a solar system.

No households reduce their electricity costs by adding battery storage to the solar system


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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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