Should You Switch to Amber Energy to Sell Your Solar Power? A SolarInsights Deep Dive
Are you a solar power owner in Australia looking for ways to maximise your return on investment? You might have heard about Amber Energy, a retailer offering wholesale electricity pricing, and wondered if it's the right choice to boost your solar export earnings. It's a question many are asking, and the answer isn't always straightforward. This article will delve into the pros and cons of switching to Amber Energy to sell your solar power, helping you make an informed decision. If you're also thinking about storage solutions to go with your solar, make sure you check out our Complete Guide for a more in-depth look.
Understanding Amber's Wholesale Pricing Model
Unlike most energy retailers that offer fixed feed-in tariffs (FiTs) for your exported solar power, Amber Energy operates on a wholesale electricity pricing model. This means the price you pay for electricity and the price you receive for selling your solar back to the grid fluctuates every few minutes, reflecting the real-time supply and demand in the energy market.
This can be a double-edged sword. During periods of high demand, typically in the late afternoon or early evening when solar generation is low, wholesale prices can spike. If you're exporting solar power during these spikes, you could earn significantly more than the standard FiT. Conversely, during periods of high solar generation, particularly around midday, prices can plummet, even going negative. In those times, you may earn little or nothing for your solar exports.
The Role of Batteries in Maximising Returns
The key to effectively leveraging Amber's wholesale pricing model is having a battery storage system. A battery allows you to strategically store excess solar energy generated during low-price periods and then export it to the grid when prices are high. This arbitrage opportunity can significantly increase your solar earnings.
Imagine it's a hot summer day. Midday sees an abundance of solar energy flooding the grid, pushing prices down. Your battery charges using this cheap (or even free) solar power. Then, as everyone comes home from work and switches on their air conditioners, demand surges, and electricity prices skyrocket. That's when you can discharge your battery and sell stored solar power at a premium.
Factors Influencing Your Potential Earnings
Several factors will influence whether switching to Amber is financially beneficial:
- Solar System Size: A larger solar system will obviously generate more excess power to sell.
- Battery Capacity: A larger battery allows you to store more energy and capitalise on price fluctuations.
- Export Limit: Your inverter's export limit determines the maximum rate at which you can sell power back to the grid. A higher export limit can be advantageous during price spikes, allowing you to discharge your battery more quickly and earn more.
- Energy Consumption Habits: Your household's energy usage patterns will impact how much excess solar power you have available to export.
- Location and Weather: Australia's diverse climate means solar generation varies significantly across regions and seasons. Sunny locations will generally produce more solar power, while cloud cover will reduce output.
- Wholesale Price Volatility: The frequency and magnitude of price fluctuations will determine the potential for profit.
Amber's Software and Automation
Amber Energy's platform offers software that attempts to automate battery charging and discharging based on predicted price events. It will automatically charge your battery using solar or grid electricity when prices are low and export power when prices are high. You can also manually override the automation if you have specific reasons to do so. For example, you might anticipate a price spike and want to hold your battery charge for later.
The Risks and Considerations
While the potential rewards of using Amber are appealing, it's crucial to acknowledge the risks:
- Price Volatility: Wholesale electricity prices are unpredictable. There's no guarantee you'll always be able to buy low and sell high. You could even end up paying more for electricity during certain periods.
- Bill Shock: If you're not careful, you could be hit with unexpectedly high electricity bills if you import power during price spikes.
- Complexity: Managing your energy usage and battery effectively requires monitoring the wholesale market and understanding price trends.
- Hardware Dependence: The success of this strategy relies heavily on having the right equipment, including a suitable solar system, battery, and inverter.
Is Amber Energy Right for You?
Switching to Amber Energy to sell your solar power can be a lucrative option, especially if you have a battery storage system and are willing to actively manage your energy usage. However, it's not a guaranteed money-maker. It requires careful consideration of your individual circumstances, a willingness to embrace price volatility, and potentially some hands-on management.
Before making a decision, thoroughly research the wholesale electricity market, assess your energy needs, and consult with a solar energy professional to determine if Amber Energy aligns with your goals and risk tolerance. Consider it as a case-by-case scenario, and not a blanket strategy for everyone.
