In April last year, we got 7.8kW of solar with a Solar Edge inverter, including consumption monitoring. In November, we got a 9.3kWh LG Chem battery. From this experience, we have learned a lot from the benefits of solar and independently, batteries, and think there is a lot you should do prior to making the leap into batteries. Here are 5 steps I think households should take before getting a battery:
1 – Max out your solar
It is important to remember that batteries do not produce electricity, just store and shift it. On the other hand, solar produces electricity. The electricity can be used to power your household, and export to the grid. While many complain that feed-in-tariffs (10-15 c/kWh) are much less than what you pay for electricity (25-35 c/kWh), they still present a good return for your excess solar. Just on feed-in-tariffs alone, once can expect 8-12% ROI (annual savings/revenue divided by cost of solar installation).
We used to pay around $1,600 per year for electricity. With solar, we were earning around $110 per month in feed-in-tariffs, more than covering the cost of our remaining grid electricity usage, resulting in running at around $700 per year profit. With current high feed-in-tariffs, it is a good time to go big on your solar now to payback a good portion of your system in the next few years. I also wrote a post on 6 reasons to go big on solar.
Feed in tariff credits
This could even mean getting 10kW of solar or more.
2 – Consumption Monitoring
It is important to have a good idea of how much solar you are producing, how much electricity your house is using and when, and how much solar you are using directly (ie. self consumption). Prior to getting a battery, we had shifted loads like hot water heat pump, dish washer and washing machine into solar production times to maximise our solar production. This saw us being 65% solar supplied! And only using 2-4 kWh per day from the grid.
So we knew that getting a 9.3kWh battery was a bit overkill for what we needed. But at least we knew. Without consumption monitoring, we wouldn’t have been in tune with our electricity demand and solar production to become 65% solar supplied, and would not have known what size battery we needed or if we needed one at all.
3 – Hot Water
Like many shire households, we used to have a resistive element hot water tank for out hot water. It was on a controlled load, and produced hot water overnight. We found that it was using 8 kWh per day. This was around half of our daily electricity use!
We now have a hot water heat pump (more details here). This is efficient and uses 2 kWh per day on average. When we got solar, we moved our heat pump production for overnight, to come on at 11am each day. For watching our consumption monitoring, it is powered by solar for pretty much all of the year.
Photo: Heat pump (in blue) operating from 11am
Basically, we are using solar to make our hot water in the middle of the day, then using the hot water when needed. It is effectively an 8 kWh battery. A new hot water heat pump and tank costs between $2,500 and $4,500 installed, much cheaper than a Tesla Powerwall or LG.
Other than a heat pump, you could also use a timer to make your hot water come on during the day, or use a PV Diverter to power your hot water with solar (around $1,000).
(Sunny Shire has now launched a Hot Water Heat Pump bulk buy – Details here)
4 – LED Lighting
We use lights predominantly at night. If you get a battery, it is wasteful to use up the battery capacity using inefficient lighting. It may mean that you get a bigger (more expensive) battery, or you leave less battery capacity available for back up or other purposes. Efficient lighting like LEDs can use 80-90% less than older lighting technologies.
5 – Electrify and be efficient
It is now possible to meet all your household energy demands efficiently using electricity. This may mean a heat pump for hot water, electric induction stove tops and ovens and efficient reverse cycled air conditioning for heating in winter. This means no more gas bill, and in particular, now more gas connection fixed fees. This saving on gas bills can help your payback on a battery. And even more, you can reach 100% solar supplied!
Rather than investing in a huge or multiple batteries, see what efficiency improvements can be made around heating, cooking and other uses, and see through your consumption monitoring what best battery may suit.
78% Solar powered house for main appliances, no battery
If would like to find out more about how to go all electric efficiently, the My Efficient Electric Home Facebook Group is a great place to get info, hear from others and ask questions. You can also join the Sutherland Shire Solar Group for any solar and battery questions locally.
6 – Get an Electric Vehicle
Electric Vehicles (EV) like Tesla and Hyundai cost more money than Internal Combustion Engine (ICE) cars. So a key question for someone considering a home battery is: would the $10,000 to $14,000 cost of a home battery be better spent making the next car an EV rather than an ICE?
Home batteries are normally between 7 to 13 kWh. Whereas an EV may have 40kWh to 70kWh battery capacity. EVs are effectively a battery on wheels!
So should your home battery come with wheels? We think the money for a home battery is better spent on an EV. You can set it to charge to soak up your solar power during the day, and also eliminate / reduce your fuel bill. Plus, EVs are amazing technology and fun to drive. And just like buying a battery for your home, it puts you as part of support of this new technology and innovation.
Should you get a battery? Here are my thoughts
Update: This article has now been published in various industry publications, linked below