Australian households increasingly install battery storage systems

Household battery storage systems in Australia are becoming more popular as cheaper solar tariffs make them more appealing. While around 4 million households have rooftop solar panels, only about 320,000 have battery storage. However, the number of installations surged last year, with a 47 percent increase. Kevin Wen, a Sydney homeowner, decided to install a battery after noticing a dramatic drop in payments for exporting excess solar energy back to the grid. Previously, he received up to 15 cents per kilowatt-hour but is now getting as little as 3 cents. This change pushed him to use more of his energy at home rather than send it back to the grid. In 2022, approximately 75,000 battery storage systems were installed in Australia. The CEO of Natural Solar, Chris Williams, said that many customers are now feeling the impact of lower solar feed-in tariffs. In some cases, homeowners might even be charged for sending their solar power back to the grid. Rising power bills are also driving interest in battery storage. Upcoming price increases of 2 to 9 percent have led to a significant rise in inquiries for battery installations. Households can save about $1,500 a year with solar panels and an additional $1,000 with battery storage. Despite potential savings, the high cost of batteries, around $10,000 each, remains a barrier for many homeowners. However, prices have been dropping, and the average payback period for a solar and battery system is now about 8.3 years. There are calls for more government support to help reduce the cost of battery systems. The Smart Energy Council is advocating for a national subsidy to make batteries more affordable. This would allow families to use solar energy stored in batteries during peak pricing hours. Experts believe that increasing the number of home batteries could save Australian households over $19 billion if 1 million systems are installed by 2030. Additionally, former RBA deputy governor Guy Debelle suggests that money should be directed toward battery subsidies instead of temporary rebates, highlighting the long-term benefits of solar energy. The government has stated it is looking for ways to lower household energy costs, including financing for energy upgrades like solar and batteries. There is a hope that increased subsidies and broader access to battery systems will encourage more people to take advantage of renewable energy options.