Making the Switch: From Solar Feed-in Tariffs to Battery Storage in Australia
For many Australian households, rooftop solar has been a game-changer. We've embraced the power of the sun, slashed our electricity bills, and contributed to a cleaner energy future. A key benefit for early adopters was the generous feed-in tariffs (FiTs) offered by energy retailers. These tariffs paid homeowners for the excess solar energy they exported back to the grid. However, in many states, these high feed-in tariffs are becoming a thing of the past. So, what's the next step for solar-savvy homeowners? The answer, for many, is battery storage.
Why Consider a Battery? The Changing Landscape of Solar Returns
The golden age of high feed-in tariffs is waning. As more and more Australians install solar panels, the grid becomes saturated with solar energy during peak sunlight hours. This increased supply drives down the wholesale electricity price, and consequently, the feed-in tariffs offered to consumers.
This means that exporting your excess solar energy might not be as lucrative as it once was. In some cases, you might be getting paid only a few cents per kilowatt-hour (kWh) for the energy you send back to the grid.
This is where battery storage comes in. Instead of selling your excess solar at a low price, you can store it in a battery for later use. This allows you to:
- Increase Self-Consumption: Use more of the solar energy you generate, reducing your reliance on the grid and avoiding peak-hour electricity prices.
- Reduce Energy Bills: Power your home at night or during cloudy days using stored solar energy, further minimizing your reliance on grid electricity.
- Gain Energy Independence: Become less vulnerable to fluctuating electricity prices and potential grid outages.
- Support the Grid: Some batteries can be programmed to discharge during peak demand periods, helping to stabilise the grid and potentially earning you extra income (depending on your energy retailer and location).
Is a Battery Right for You? Factors to Consider
Deciding whether to invest in a solar battery is a personal decision that depends on your individual circumstances. Here are some key factors to consider:
- Your Energy Consumption Patterns: Do you use most of your electricity during the day when your solar panels are generating, or at night? If you use a lot of power at night, a battery could be a great investment.
- Your Current Feed-in Tariff: What are you currently being paid for the excess solar energy you export to the grid? If your feed-in tariff is low, a battery may be more attractive.
- The Cost of a Battery System: Battery systems can be a significant investment, ranging from several thousand to tens of thousands of dollars depending on the size and type of battery.
- Government Incentives and Rebates: The Australian government, along with some state governments, offers incentives and rebates to help reduce the cost of battery storage. From July 1, 2025, the Australian Government is planning to offer a discount of around 30% on eligible small-scale battery systems connected to new or existing rooftop solar through the "Cheaper Home Batteries Program". This program will expand the existing Small-scale Renewable Energy Scheme.
- Battery Lifespan and Warranty: Batteries have a limited lifespan, typically around 10 years. Check the warranty offered by the manufacturer to ensure you are protected against premature failure.
- Your Roof Space and Orientation: Ensure your roof is suitable for solar panels. North-facing roofs generally receive the most sunlight in Australia.
Making the Transition: A Step-by-Step Guide
If you've decided that a solar battery is right for you, here's a step-by-step guide to help you make the transition:
- Assess Your Energy Needs: Analyse your energy consumption patterns to determine the appropriate size battery for your home. Your energy bills will provide valuable information about your usage.
- Research Battery Options: Explore the different types of batteries available, such as lithium-ion and lead-acid. Consider factors like capacity, lifespan, warranty, and cost.
- Get Multiple Quotes: Contact several reputable solar installers and obtain quotes for a battery system that meets your needs. Compare the prices, warranties, and installation services offered by each installer.
- Check for Government Incentives: Research any available government incentives or rebates in your state or territory. These incentives can significantly reduce the cost of your battery system.
- Choose a Qualified Installer: Select a licensed and experienced solar installer to install your battery system. Ensure the installer is accredited by the Clean Energy Council.
- Arrange Installation: Schedule the installation of your battery system with your chosen installer.
- Monitor Your System: Once your battery system is installed, monitor its performance to ensure it is working correctly and meeting your energy needs.
The Future is Bright (and Battery-Powered!)
As feed-in tariffs decline and electricity prices continue to rise, solar battery storage is becoming an increasingly attractive option for Australian homeowners. By storing your excess solar energy, you can reduce your reliance on the grid, lower your energy bills, and contribute to a more sustainable energy future. With government incentives on the horizon, now is a great time to explore the potential of solar battery storage for your home.
