A new analysis by the Smart Energy Council of Federal Labor’s $2,000 rebate and current offerings by battery storage companies suggests than an average household could see their power bill reduced by 60-80%.
The Smart Energy Council is a peak industry body for the solar and energy storage industry.
Federal Labor Commitment
If elected, a Federal Labor Government will provide a $2,000 rebate for 100,000 battery installations in households with a gross annual income of less than $180,000.
Federal Labor has also committed to providing low-cost financing through the Clean Energy Finance Corporation and has set a target of 1 million household battery storage systems by 2025. This rebate is on top of existing rebates for solar PV.
Savings on Power Bills
The Smart Energy Council recognises that every energy user is different, and has found for larger energy users with bigger power bills, but bigger battery storage systems, the savings remain in the same range.
Suburban Family
Consider a suburban family, with two adults in their 30s and one pre-schooler, living in a free-standing house. They use electricity for hot water, lighting, appliances, cooking, dishwasher, TV, washing machine and computers.
They use 6,570 kWh of electricity per year, or an average of 18kWh per day, with a power bill of $2,336 a year.[1]
If they install an average sized 5 kilowatt solar panel system and a 6kWh solar battery, their power bill could be reduced by 60-80% to as little as $467 a year.
Before After
$2,336 a year ($584 per quarter) $467 a year ($117 per quarter)
Benefits of Solar Batteries
Apart from the 60-80% reduction in power bills, there are a range of other benefits for solar and solar batteries including:
· Taking control of your power bill and energy independence;
· Protecting from power black outs;
· Reducing greenhouse emissions;
· Increasing property values;
· Improving grid stability by allowing utilities to access your stored electricity; and
· Preparing for the inevitable uptake of electric vehicles.
Impact on Payback Periods
An upfront discount of $2,000 on the cost of a solar battery system would reduce the payback period for batteries. Leading brands in the industry offer 10 year warranties, bringing the payback period under the warranty period in all States and the ACT.
State/Territory | Current payback period[2] | Payback period with $2000 support |
South Australia | 5.3 years | 3.5 years |
New South Wales | 6 years | 5 years |
Western Australia | 6 years | 5 years |
Queensland | 6.5 years | 5 years |
Victoria | 7 years | 5.5 years |
ACT | 9 years | 7.5 years |
Tasmania | 10 years | 8 years |
There is no payback for buying fossil fuel electricity from the grid but there is a positive payback from your own home solar power station.
As stated by John Grimes, Chief Executive, Smart Energy Council
“Solar and batteries make sense for so many families. They slash power bills and deliver energy independence.
The Smart Energy Council’s analysis shows that Federal Labor’s commitment to reduce the cost of batteries by $2,000 means 100,000 families will be able to slash their power bills by up to 80 per cent. That is fantastic news.”
The Smart Energy Council strongly welcomes a national target of one million battery storage systems by 2025. With battery prices falling and electric vehicle battery manufacturing powering ahead, 1 million batteries by 2025 is ambitious but achievable.”
“The Smart Energy Council is absolutely committed to ensuring the Household Battery Program, if implemented, delivers quality products, quality installations, public safety and accredited training for installers.”
