Switch to solar and batteries: We asked a local installer just how much Mid North Coast households can save

For many, solar and renewable energy raises questions about upfront costs, the subsidies and discounts available, and who to even contact to get things moving. 

After receiving a few emails from readers, the Mid North Coaster decided to sit down with a local solar power expert from the region to ask your renewable energy questions.

This week we’re talking about the benefits of household batteries – why you want one, what they’ll save you, and how the government is supporting the move to renewable energy.

How a battery stores solar and saves money

Having a solar system will save you money. Combining solar panels and a battery will save you more.

Household batteries are used to store surplus solar power that is generated during the day, meaning batteries allow households to continue to use solar power during the evening or peak periods where electricity from the grid is more expensive.

Owner of South Kempsey Solar Andy Colburn put it simply: “The best way to maximise solar savings is by installing a battery.” 

“You get free power when the sun’s up, and with a battery, you can use solar power at night as well.  Once the sun goes down, if you don't have a battery, you'll start paying for power again.”

Without a battery, any excess power generated by solar panels will typically be sent to the grid.

Making money back using your battery

Colburn said installing a household battery will set you back about $10,000, however, it will continuously cut costs on electricity bills, eventually paying for itself and then saving you more money. 

In fact, having a battery as part of your solar system could even make you money.

By signing your battery up to a VVP (Virtual Power Plant) you can sell excess stored energy in your battery back to the grid for others to use when they need it.  

“If you have a battery, you can store power during times when the wholesale price is low and then sell it when the price is high,” Colburn told the Mid North Coaster.

“Some customers have been able to sell their stored power at a high rate during price spikes, covering their energy costs for weeks.”

The government is supporting Australians to sign up to a VPP by providing discounts to the cost of battery installation. The incentives vary depending on the size of the battery – larger batteries will receive a larger incentive. For example, incentives range between $120 and $190 for a 6.5 kWh battery and $250 to $400 when you sign up for a 13.5 kWh battery.

The same goes for batteries and solar panels where the discount is not a rebate or handout given to the individual, but is provided to the accredited supplier who will pass on to their customer. 

What else is being done to help people navigate the hurdle of set-up costs? 

A subsidy for NSW household-battery buyers of up to $2400 already exists, with major parties also spruiking promises to make batteries more affordable ahead of the federal election.

In October last year, the ABC reported the Albanese Labor government was considering a plan that would remove up-front costs for homes looking to install heat pumps and batteries.

Late last month, the Sydney Morning Herald reported Labor sources and a government minister had confirmed Labor’s plans to cut the cost of household batteries in order to help households cut their energy bills.

According to the SMH, the Coalition’s energy spokesman Ted O’Brien has hinted the Opposition has been considering a similar pledge, describing household batteries as a practical solution.

The Greens have pledged up to $10,000 in grants and $20,000 in low-interest loans for batteries as part of their push to switch from household gas to solar energy.

How to get the  government subsidy?

The Australian government has a Small Scale Renewable Energy Scheme as an incentive to move to renewable energy. When installing an eligible system a small-scale technology certificate – more commonly known as an STC – is created and redeemed, and normally the installer can do this for you and will sell the STCs on your behalf. You will see the value of the STCs included in your quote as a discount on the cost of a rooftop solar system.

Colburn, who has been installing solar systems for a decade, explained how it works.

“The government is not handing out money. When you get solar, you’re essentially creating a carbon credit to offset carbon emissions.”

He said it is a tedious process of proving the panels have been installed properly to the government, and the STCs application goes through two auditors before any rebate is released.

 However, for the customer, the discount is given up front and is shown on the final quote.

“We just take it straight off the bill and then we chase down the money,” Colburn said.

Find out more about household rebates, grants and schemes.

 Thumbnail image supplied: South Kempsey Solar