ALP’s sweeping storage plan
New analysis by the Smart Energy Council reveals that Federal Labor’s $2,000 solar batteries rebate along with current offerings by battery storage companies can slash family power bills by 60 to 80 per cent.
In a statement widely circulated to industry and to media, the Smart Energy Council said, if elected, 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.
The rebate is on top of existing rebates for solar PV.
Smart Energy Council chief executive John Grimes said “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 Council strongly welcomes a national target of one million battery storage systems by 2025 and says with battery prices falling and electric vehicle battery manufacturing powering ahead, 1 million batteries by 2025 is ambitious but achievable.
“We are absolutely committed to ensuring the Household Battery Program, if implemented, delivers quality products, quality installations, public safety and accredited training for installers,” John Grimes said.
Recognising that all energy users are different, the Council has found that those who consume more energy and clock up bigger power bills would need larger battery storage systems, however the overall costs savings remain in the same range.
A suburban family, with two adults in their 30s and one pre-schooler, living in a free-standing house uses 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.
If they install an average sized 5 kilowatt solar panel system and a 6kWh solar battery, their power bill could be reduced by 60 to 80 per cent to as little as $467 a year.
$2,336 a year ($584 per quarter) $467 a year ($117 per quarter)
Apart from the 60 to 80 per cent reduction in power bills, there is 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.
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.
Current payback period
Payback period with $2000 support
New South Wales
There is no payback for buying fossil fuel electricity from the grid but there is a positive payback from a home solar power station.