Already Have Solar? Should You Add Battery Storage? 

Solar has been around for decades in Australia, with millions of homes benefitting from free electricity from the sun. As feed-in tariffs wane, and households look for other ways to save, it’s no wonder many are considering adding battery storage. Storing your solar energy for use at night and on cloudy days is certainly appealing, but does it make financial sense? With many new ways to generate value from your battery, including VPPs like Origin Loop, it could be the right time to invest in one. 

Benefits of residential battery storage 

Your home stands to benefit in many ways by adding battery storage to your solar system. Let’s look at 10 value-adding benefits of batteries: 

1. Energy independence: Reduces reliance on the grid by storing solar energy for later use. 
2. Lower energy bills: Allows use of stored energy during peak pricing periods, saving on electricity costs
3. Backup power: Can provide energy during blackouts, ensuring continuous power supply. 
4. Increased solar self-consumption: Maximises the use of solar power generated at home. 
5. Supports renewable energy: Reduces fossil fuel dependence by enhancing solar efficiency. 
6. Participation in VPPs: Earn rewards by sharing excess energy with the grid. 
7. Government incentives: Rebates and subsidies lower upfront costs.
8. Reduced carbon footprint: Minimises greenhouse gas emissions. 
9. Time-of-use optimisation: Stores energy when rates are low for use during expensive peak times. 
10. Enhanced property value: Homes with battery storage are seen as more energy-efficient and can be more attractive to buyers. 

All homes are limited with how many kW can be exported to the grid at any one time with solar (see kW vs kWh). This is generally 5 kW per phase and set by the DNSP in your area (the grid). If you had a 10 kW solar system, you would be capped at sending 5 kW to the grid. If your single-phase home used 1 kW but produced 10 kW, only 5 kW would be able to be exported. The 4 kW of unused electricity would be wasted. Batteries allow for the storage of this excess energy. 

Reducing battery payback timeframes 

Often the most prohibitive aspects of solar batteries are their initial cost and return on investment. Solar is renowned for its short payback period; usually 2 to 5 years. With lifespans for solar panels exceeding 25 years, and the inverter usually 10 years plus, it’s easy to see that solar can be a sound investment. Batteries, on the other hand, often have a warranty of 10 years with a substantial investment required to purchase and install. Looking for ways to reduce the payback period is paramount to seeing a return on investment. 

Here are 7 ways to reduce the payback period for residential battery storage: 

1. Maximising solar self-consumption: By using more solar energy generated during the day, homeowners can rely less on grid electricity, saving money on energy bills. 
2. Taking advantage of time-of-use tariffs: Charge the battery during off-peak periods when electricity prices are lower, and use it during peak periods to reduce energy costs. 
3. Government rebates and incentives: Utilising available rebates or subsidies for battery storage can lower upfront costs and reduce the payback period. 
4. Pairing with energy-efficient appliances: By reducing overall energy consumption, homeowners can maximise the energy stored in the battery for critical uses. 
5. Participation in Virtual Power Plants (VPPs): Some VPPs offer payments or credits for allowing your battery to supply energy back to the grid during high-demand periods. 
6. Smart energy management systems: These systems optimise when and how energy is stored or used, improving battery efficiency and reducing costs. 
7. Battery lifespan and warranty: Choosing a battery with a longer lifespan and warranty can ensure longer-term savings, as the system will remain productive without additional investment. 

Connect to Origin Loop VPP 

Origin Loop VPP allows homeowners with solar and compatible battery systems¹ to contribute excess energy to the grid during peak demand periods. By doing so, participants help stabilise the grid while earning financial rewards. Origin offers a sign-up bonus for homeowners with existing batteries, and no lock-in contracts are required. By joining, homeowners can contribute up to 200 kWh of energy per year at $1/kWh², and Origin ensures that around 20% of battery capacity at a minimum remains available for personal use. 

Benefits of solar battery storage with Origin Loop VPP 

One of Australia’s goals is to move to a clean energy future. Origin Loop VPP allows homeowners to actively participate in this. Here are just some of the benefits of joining: 

• Potential to earn credits for energy in addition to the Feed-In-Tariff   

• Helps reduce grid pressure during peak times 

• Around 20% battery charge retention for personal use 

• Helps reduce the household’s battery payback timeframe 

Check the eligibility of your battery/inverter and sign up for Origin Loop today. 

Conclusion 

Adding battery storage to your home presents many benefits and joining Origin’s Loop VPP is a fantastic way to help achieve a faster return on investment. Help to stabilise your community’s electrical grid and save extra while doing so with Origin Loop. Energy Matters sees it as a win for the environment and a win for your household!