Noel Whittaker is the author of Wills, Death & Taxes Made Simple and numerous other books on personal finance. Email: [email protected]​

A major election promise by Labor was a $2.3 billion Cheaper Home Batteries Program to cut battery costs by about one-third. It is to be done by way of a rebate is based on a battery’s usable storage capacity and excludes installation costs.

It offers roughly $370 per kilowatt-hour (kWh), equating to about 30% off the battery’s base price. For example, a 13.5 kWh Tesla Powerwall 2, priced at around $11,900 (plus installation), would attract a rebate of nearly $5,000.

When COVID hit, cancelled trips left us with spare cash, so we installed a Tesla Powerwall. It’s been reliable — even sent a text before a cyclone saying it was charging from the grid in case of a blackout.

Sadly, the numbers don’t stack up.

The pros and cons of the Cheaper Home Batteries Program. Image Credit: Shutterstock

Consider a typical day in a household with solar and a battery. It starts with the battery at minimum and no solar power. At this point, all electricity comes from the grid. As the sun rises—if it does—solar begins to offset grid use. If conditions are good, solar output exceeds usage and the battery charges. But by afternoon, solar drops. When it can’t meet demand, the house draws from both the battery and the grid. Often, the battery ends the day nearly empty, especially in winter when the sun sets early.

To see how the numbers work, let’s pretend it’s been a perfect day.

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[Julie1946]

Crazy if you do this

 

[GrannyJA!]

Not much of this 'general information' is accurate over a large area of the country. It doesn't take into account the power you can put back into the grid, the different types of solar panels available, and the variations in climate. We've installed solar panels (a lot) with individual inverters, so if one fails for any reason, the rest continue to work, and battery back up/storage. We did this, not to break even, but simply to eliminate one of our bills when we fully retire. There are also community batteries coming up everywhere, where the expense can be shared.

 

[RFG]

This is an eye opener of an article. The rebate scheme leaves you blindly believing you will save thousands each year on electricity, plus the rebate incentive. Thank you for a truthful look at the real cost of installing batteries and the true cost of savings. It's a no brainer for me now I have read your article, just not viable.

 

[Macarj]

This is why I haven't bought a battery yet we have solar which cut our power cost to nearly half but I just can't justify the cost of a battery

 

[Toni Wrinkles]

like Macarj I also installed solar but as a pensioner there is no way I could afford a battery even with help from the government, unless I get a loan ....now this might sound good to some but while I am not struggling too much but have all my life first raising two sons despite nothing from their father's I worked and then being a sole parent raising my two daughters because of a gambling husband WE MADE IT thanks to my Parent in Laws and my Mum, so if I got a loan and couldn't repay it would fall to my kids and they have worked soo very hard to have what they have got I REFUSE to leave them a debt, my poor girls will be hit with their fathers debt of over 20grand ..........I wont do it and I don't own my own home, my name is on the title courtesy of a guilty conscience of my husband but I am an unpaid house maid while he lives his life as he feels like it, my Mum was a gambler too and put most of the money from the sale of her house thru the pokies too........I am not saying this for sympathy or anything except the fact I will fight tooth an nail to keep debt free so my kids won't be left with my debt and I am sure there are a lot of people like me.

 

[Old timer]

Sounds like a Labor hating writer.

 

[Gil]

I have been active in gaining quotes for this very same battery for the past few weeks.
This is what I have encountered online for the Tesla Powerwall 2.
My verbal quotes have been almost identical.
In Australia, across our network of over 150 solar installers, we expect the installed cost of a Tesla Powerwall 2 to cost $12,000 to $14,000. This price range includes the Gateway, delivery, installation and any other required electrical components.
Take away the $5,000 rebate and you now have $7,000 to $9,000.
So where does this $17,000 that Noel Whittaker is talking about come from?
He states that the Tesla Powerwall 2 is "around $11,900 (plus installation)", then fails to deduct the rebate of $5,000 before adding the installation cost and coming up with $17,000.
His first price of about $11,900 should INCLUDE installation, it did when I got my quotes.
It appears that Noel is very free in bandying around figures.
Based on my quotes, the payback period would be a long way short of his projected 16 years.
His 16 years @ $720 = $11,520, which is for unit price only and not ROI.

 

[Jest]

I WOULD WISH FOR MY FREEZER, FRIDGE AND HOT WATER FOR COFFEE, THANK YOU

 

[Jest]

Sounds like a Labor hating writer.

GOOD.

 

[Phantom55]

I have been active in gaining quotes for this very same battery for the past few weeks.
This is what I have encountered online for the Tesla Powerwall 2.
My verbal quotes have been almost identical.
In Australia, across our network of over 150 solar installers, we expect the installed cost of a Tesla Powerwall 2 to cost $12,000 to $14,000. This price range includes the Gateway, delivery, installation and any other required electrical components.
Take away the $5,000 rebate and you now have $7,000 to $9,000.
So where does this $17,000 that Noel Whittaker is talking about come from?
He states that the Tesla Powerwall 2 is "around $11,900 (plus installation)", then fails to deduct the rebate of $5,000 before adding the installation cost and coming up with $17,000.
His first price of about $11,900 should INCLUDE installation, it did when I got my quotes.
It appears that Noel is very free in bandying around figures.
Based on my quotes, the payback period would be a long way short of his projected 16 years.
His 16 years @ $720 = $11,520, which is for unit price only and not ROI.

has anyone calculated the PRICE of electricity in 16 yrs, I guess it will still be expensive, just go back 16 yrs to then elect.prices