Battery Storage allows households to control when they use electricity. This control enables them to utilise more of the electricity generated by their solar system and/or to reduce electricity use when the rate is high.
Battery Storage a large step closer
Only a small percentage of households receive a financial benefit from the installation of a 5kW solar system and 13.5kWh battery storage system. This situation is due to change rapidly. If current system price reductions continue then over 50% of households will benefit after installing the same system in only 3 to 6 years.
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 analysis compares the total cost of solar only against solar with battery storage. It finds the additional cost of battery storage is probably not justified.
Years to recover cost of battery storage
Battery storage systems are currently expensive and have a limited usable lifetime. When usable battery capacity is included in the financial returns is becomes clear households never recover the (current) cost of battery storage systems.
Economics of using battery storage on a time of use tariff without solar
Households on a time of use tariff can use battery storage systems to reduce the amount of electricity they purchase during peak periods. Using consumption data from 8000 households this article concludes on current prices households will make a financial loss.
Sensitivity Analysis of economics of adding battery storage
Analysis is performed to reveal the sensitivity of the Return on Investment households receive when choosing to invest in a battery storage system in addition to their existing solar system.
Economics of adding Battery Storage to an existing Solar System
Analysis of actual measurements from 300 Sydney households reveals none of the households recover the cost of installing a battery storage system to their existing solar system. In fact on average households will make an annual loss of 7.7% on the cost of the system.
Adding Battery Storage to Solar Systems
Adding Battery Storage to a Solar System allows households to control when they use the electricity generated by their solar system. This introduction considers the components of a battery storage system and the resulting energy flows.