Our Guide To The Home Battery Scheme
I’ll start this blog by answering the 3 most important questions, which everyone thinking about solar installation and solar energy in South Australia wants to know right now:
What is the SA Home Battery Scheme?
The South Australian government is giving 40,000 SA households a financial incentive to install a battery in their homes via the SA Home Battery Scheme.
1. How much money do I get?
The South Australian government will give non-concession holders $500 per kilowatt hour of usable battery storage, up to $5,000. So for example, if you purchase a 10kWh battery you’ll receive $5,000.
If you’re a concession holder it will be $600 per kilowatt hour of your battery up to $6,000. Therefore, if you purchase a 10kWh battery you’ll receive $6,000.
2. How much money will it cost me?
This depends on the quality, brand and size of battery you would like. But as a rough guide, I’ve seen quotes ranging anywhere from $6,500 to $15,000 for a 10kWh battery.
3. How much will it save me?
The sales companies will tell you “if you use that 10kWh battery twice per day and you’re paying 38c per kilowatt hour for electricity, you will save $7.60 per day, which is a saving of $2,774 per year”.
The truth is that you will be lucky to cycle your battery once per day, so that equates to a saving of $3.80 per day. However, that doesn’t take into account the fact that you lose your feed in tariff on those 10kWh. Say you’re getting paid a 12c feed in tariff, then that’s $1.20 per day you’re missing out on by having and charging a battery.
So really, in practice I think a 10kWh battery will save you around $2.60 per day, which is equivalent to a saving of $949 per year.
Please note : if you’re unfamiliar with what a feed in tariff is, please read my first blog on Solar Power For Beginners!
Now you’re probably thinking that I’m down playing the savings and trying to talk you out of getting involved in the scheme. I’m definitely not, in fact I think this scheme has been brilliantly put together by the state government!
Unlike the Home Insulation Scheme and the original Solar Rebate Scheme, where we saw 100s of fly by night companies trying to make a quick buck, there won’t be any cowboys involved in the SA Home Battery Scheme, and here’s why…
To participate in the scheme, it is a requirement that you must be a Clean Energy Council Approved Retailer. To become a CEC Approved Retailer, each company is put through a rigorous process, including documentation agreeing to:
A standard minimum warranty period of five years on your whole solar system.
Providing detailed information on the process between solar system installation and network connection.
Adhering to all existing industry legislation and regulations, including that sales representatives will act ethically and not engage in any dishonest or misleading tactics.
Plus many other quality and performance guarantees.
So in a nutshell, you have to be reputable solar company who has already been around for at least 12 months to be considered as an installer for the scheme. There are also incredibly high fees to be involved, so this should keep the cowboys out.
The other reason I like the SA Home Battery Scheme is it gives those in areas prone to black outs the opportunity to get a battery installed for a decent price.
Our stance on batteries is pretty simple, don’t spend more than $7,000 (out of pocket) on a 10kWh battery because even then your pay back is around 7 years, 7 years is just too long to be seeing a return on your investment with the current average lifespan of a battery only being 10 years. To me the figures just don’t add up.
Our advice is to get ready now for the battery revolution because it is coming, and the best way to be ready is to get as many panels on your roof possible, so you have enough power generating capacity to charge a battery once you’re ready to install one.
Also remember that every inverter on the market (even if your system is 6 years old) can be made battery ready, so it is still important to get a high quality inverter (either Fronius, Solar EDGE or ABB) installed.
Don’t worry about missing out on the scheme, there’s no rush to get your battery installed - as of the 40,000 batteries available only about 600 have been sold so far, so this scheme will be running for the next few years at least.
Goliath Solar are proud to be a CEC Approved Retailer and provider for the SA Home Battery Scheme, we think it’s a great incentive, we’d just like to see battery prices drop in the next 6 months. Ideally $4,000 out of pocket for the consumer would have us calling every one of our 1,500 clients saying the time is now for a battery! Until then, fill every inch of your roof with solar panels in preparation!
We understand that everybody wants a battery and is very keen to get a price on it. We want to sell everyone a battery, but we want to make sure we have a product that is going to give you a good return on investment and most importantly a quality, reliable battery that will stand the test of time.
To learn details specific to your property, please contact us.
Goliath Solar & Electrical are proud to be a provider in the South Australian home battery scheme. Stay in tune with our upcoming product announcements view our Home Battery Scheme offering.
David is the founder of Goliath Solar & Electrical. His 13 years experience working as an electrician have equipped him with top shelf solar and electrical knowledge which he brings to his current role overseeing the installation team.