Cheaper solar batteries slash energy bills, spark concern among homeowners
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With energy prices soaring and the cost of living biting harder than ever, many Aussies are looking for ways to slash their power bills and future-proof their homes.
Solar panels have long been a popular choice, but now there’s a new kid on the block: solar batteries.
Thanks to the federal government’s Cheaper Home Batteries Program, from 1 July, eligible households can score a discount on the upfront cost of installing a small-scale battery system. Sounds like a win, right? Well, not everyone’s convinced.
Let’s take a closer look at what this new scheme means for you, why some solar panel owners are feeling a bit short-changed, and what you should consider before jumping on the battery bandwagon.
For many, the dream of solar was simple: install panels, generate your power, and sell the excess back to the grid for a tidy profit.
But as Lee Bolger from Great Western, Victoria, discovered, the reality can be a bit more complicated.
Lee invested in a hefty 12-kilowatt solar system for his eight-bedroom home, shelling out $12,680 after rebates.
With several borders using air-con and heating, he hoped to recoup his investment in about six years.
At the time, the feed-in tariff—the rate paid for excess electricity sent back to the grid—was a respectable 12 cents per kilowatt-hour (kWh).
Fast forward to today, and that rate has halved to just 6 cents, with some predictions it could drop as low as 0.04 cents in Victoria from July.
To put that in perspective, feed-in tariffs were as high as 60 cents per kWh fifteen years ago!
For Lee, this means his annual savings have dropped from $2,000 to about $1,000, nearly doubling the time it’ll take to pay off his panels.
No wonder he’s feeling a bit 'indifferent' about the whole thing.
With feed-in tariffs plummeting, storing your own solar energy in a battery—rather than selling it back to the grid—sounds like a smart move. But is it right for everyone?
Energy efficiency expert Adam Corrigan says it depends on your household’s needs.
The average NSW home uses about 20 kWh of electricity per day, and a 10-14 kWh battery can easily get most homes through the night.
But if you’re running power-hungry appliances like ducted air conditioning, that battery might only last a few hours.
The new federal rebate certainly makes batteries more affordable. Finder estimates a 10 kWh battery could now cost between $6,713 and $8,904 after the discount.
If you use most of your power in the evening and pay around 32 cents per kWh, you could save about $850 a year with a battery, though your actual savings will depend on your energy plan, usage patterns, and how much you export to the grid.
Don’t forget, some states and territories offer their own battery rebates, which can sweeten the deal even further.
Before you rush out to buy a shiny new battery, Corrigan recommends looking at other ways to cut your energy use and costs.
Start by analysing your power bills and shopping around for the best deal—many Aussies are surprised by how much they can save just by switching providers.
Next, focus on making your home more energy-efficient. Good insulation and draft-proofing can make a huge difference, especially in winter.
Heavy-lined curtains and box pelmets (those neat covers that sit above your curtains) are simple, cost-effective ways to keep the warmth in and the cold out.
Even a small gap in your roof insulation can halve its effectiveness, so it’s worth checking for any weak spots.
Solar batteries are about to get a lot more affordable, and for some households, they could be a game-changer.
But as Lee’s story shows, it’s not a one-size-fits-all solution. Before you invest, take a good look at your energy use, your home’s efficiency, and your long-term plans.
Have you installed solar panels or a battery? Are you considering taking advantage of the new rebate? Or are you feeling a bit sceptical, like Lee? We’d love to hear your experiences and tips—share your thoughts in the comments below.
Read more: Will this proposal cut your energy bills dramatically? See the government's plans for solar batteries
Solar panels have long been a popular choice, but now there’s a new kid on the block: solar batteries.
Thanks to the federal government’s Cheaper Home Batteries Program, from 1 July, eligible households can score a discount on the upfront cost of installing a small-scale battery system. Sounds like a win, right? Well, not everyone’s convinced.
For many, the dream of solar was simple: install panels, generate your power, and sell the excess back to the grid for a tidy profit.
But as Lee Bolger from Great Western, Victoria, discovered, the reality can be a bit more complicated.
From 1 July, a 30 per cent discount on eligible solar battery systems will be offered through the Cheaper Home Batteries Program. Credit: Facebook
Lee invested in a hefty 12-kilowatt solar system for his eight-bedroom home, shelling out $12,680 after rebates.
With several borders using air-con and heating, he hoped to recoup his investment in about six years.
At the time, the feed-in tariff—the rate paid for excess electricity sent back to the grid—was a respectable 12 cents per kilowatt-hour (kWh).
Fast forward to today, and that rate has halved to just 6 cents, with some predictions it could drop as low as 0.04 cents in Victoria from July.
To put that in perspective, feed-in tariffs were as high as 60 cents per kWh fifteen years ago!
For Lee, this means his annual savings have dropped from $2,000 to about $1,000, nearly doubling the time it’ll take to pay off his panels.
No wonder he’s feeling a bit 'indifferent' about the whole thing.
With feed-in tariffs plummeting, storing your own solar energy in a battery—rather than selling it back to the grid—sounds like a smart move. But is it right for everyone?
Energy efficiency expert Adam Corrigan says it depends on your household’s needs.
But if you’re running power-hungry appliances like ducted air conditioning, that battery might only last a few hours.
The new federal rebate certainly makes batteries more affordable. Finder estimates a 10 kWh battery could now cost between $6,713 and $8,904 after the discount.
If you use most of your power in the evening and pay around 32 cents per kWh, you could save about $850 a year with a battery, though your actual savings will depend on your energy plan, usage patterns, and how much you export to the grid.
Don’t forget, some states and territories offer their own battery rebates, which can sweeten the deal even further.
Before you rush out to buy a shiny new battery, Corrigan recommends looking at other ways to cut your energy use and costs.
Next, focus on making your home more energy-efficient. Good insulation and draft-proofing can make a huge difference, especially in winter.
Heavy-lined curtains and box pelmets (those neat covers that sit above your curtains) are simple, cost-effective ways to keep the warmth in and the cold out.
Even a small gap in your roof insulation can halve its effectiveness, so it’s worth checking for any weak spots.
Solar batteries are about to get a lot more affordable, and for some households, they could be a game-changer.
But as Lee’s story shows, it’s not a one-size-fits-all solution. Before you invest, take a good look at your energy use, your home’s efficiency, and your long-term plans.
Read more: Will this proposal cut your energy bills dramatically? See the government's plans for solar batteries
