We’ve compared the electricity costs in a household in WA without solar, with solar, and with solar and battery storage
Find out if it’s worth considering investing in a rooftop PV system – and battery storage
For the purpose of this comparison, the average family is defined as two adults and two children living in a 3 bedroom, 2 bathroom home in Perth WA.
In October 2020, Western Australia introduced the new solar PV feed-in tariff scheme called DEBS. Under the new scheme, which applies to new solar systems (as all existing systems remain on the existing scheme), households receive $0.03 per kWh for electricity exported to the grid from 9 PM to 3 AM and $0.10 per kWh for electricity exported to the grid between 3 PM and 9 PM compared to the $0.71 per kWh that homeowners were receiving for exports at any time under the Renewable Energy Buyback Scheme (REBS).
These are some of the lowest feed-in rates in Australia. With these low rates, you may wonder if it is still worth considering investing in a rooftop PV system.
The short is, yes it still makes a lot of sense to invest in a rooftop solar system. However, investing in solar and battery storage together can maximise your long-term benefits.
The following graphs compare the cost of electricity in three different scenarios:
Navigate through the slides below to read the comparison and view the graphs.
Assuming an increase in market electricity rates of 2% per annum and constant usage, the household will spend $18,919.00 on electricity over 10 years.
The average price per kWh over the ten-year period is $0.315
**With a degradation rate of the output of 0.8% per annum for the following years after installation.
***Since most of the export happens before 3pm, the FiT is $0.03 per kWh
**** Taking into account the original investment of $6,360 for the solar system installation
The addition of solar power decreases the household electricity bill in a year by 54% from $1,726.00 to $802.00 due to electricity costs being offset by both self-generated electricity and the amount of electricity sold back to the grid for the applicable FiT***
When compared to the home without solar over the same 10 year period, total electricity costs are reduced from $18,919.00 to $9,133.00, and the average cost per kWh reduces from $0.315 to $0.25****
The amount of electricity purchased from the grid decreases significantly with the addition of battery storage, reducing the electricity bill to $297.00 per annum compared to $802.00 from solar alone.
By storing excess generated energy rather than exporting it, FiT income is reduced to $190.00 in the first year (down from $257.00 with solar only) but the household received $572.00 in savings due to increased self-consumption.
The Redback Smart Hybrid System reduces the total cost of electricity over the same 10 year period to $1,937 (Compared to $18,919 for no solar and $9,133 for rooftop solar only) and the blended average price of electricity per kWh reduces from the original price of $0.315 to $0.23 per kWh
Location-specific factors can also play an important role in establishing a home’s priorities. For example, value of back-up power can be seen higher in non-metropolitan or rural areas compared to inner-city suburbs.
What is clear, however, is that there are significant savings and long-term benefits associated with the installation of rooftop solar and battery storage.
Battery storage solutions are mature and often affordable. Finding the right-sized option for your home can help you get the best benefits for your money.
Quality and performance are just as important as good, local support from a qualified and certified installation partner.
At Redback Technologies, we pride ourselves in our quality battery solutions and are more than happy to put you in touch with one of our qualified partners in your area for a free consultation.