South Australian residents face challenges like rising electricity prices and vulnerability to blackouts. Installing solar panels and battery storage systems offers benefits beyond mere cost savings. This blog provides an analysis of what you could gain by investing in solar and battery technology.
South Australia’s rising electricity costs
South Australia has some of the highest electricity prices in the country. The state now has the most expensive electricity bills nationwide. Russia’s 2022 invasion of Ukraine sparked a global energy crisis. Energy costs have continued to rise to almost double what they were.
Energy providers continue to pass these escalating wholesale costs to consumers. As a result the financial burden on South Australian households continues to grow. Bill stress is now all too common and places an increased burden on household budgets.
Installing solar panels with battery storage can help hedge against these price increases. By generating your own electricity, you can reduce your dependence on grid power. It not only saves you money. It provides long-term protection against future price volatility. Meaning unpredictable electricity prices and large energy bills are easier to avoid.
Decreasing value of solar feed-in-tariffs
In the early days of solar, generous feed-in tariffs encouraged early adoption. Offering owners premium feed-in-tariff rates for electricity exported to the grid. But, these rates are being phased out by mid 2028.
For many solar owners, these premium feed-in tariffs are no longer as profitable as they once were. If you have a smaller system it’s likely that you are not exporting enough to see a significant benefit. As these systems age and their efficiency decreases, the returns diminish even further. Additionally, network operators are starting to enforce solar export limitations. Meaning excess solar generation goes to waste. You can’t send it to the grid for a profit. And if you don’t have a battery, you can’t store it for later use.
Installing a solar battery lets you store that excess solar energy rather than it going to waste. The equation is now about maximising self-consumption, not maximising solar exports.
Protection against South Australia’s frequent blackouts
South Australia has experienced several significant power outages in recent years. Highlighting the vulnerability of the state’s electricity infrastructure. Most notable was the statewide blackout in September 2016. Affecting 850,000 South Australians. It was the result of storm damage to the grid, with the knock-on effect of scuppering the entire network.
Further widespread blackouts occurred in December 2016. This time 155,000 properties lost power for up to 12 hours. Again the result of severe storms that damaged over 300 power lines. Some households remained without power for up to 80 hours.
The Adelaide region again experienced significant disruption in February 2017. Over 90,000 households lost power for 45 minutes, this time as a result of a major heatwave.
Having a battery with blackout protection^ provides backup power during these grid failures. Helping to keep critical appliances running and maintaining comfort and safety. For residents that also use their home as business premises this could be even more valuable. Helping to prevent significant downtime and financial losses during extended outages.
Adapting to changing energy usage patterns
Modern lifestyle changes and climate change are also responsible for increased electricity consumption. The Bureau of Meteorology has recorded increasing average temperatures across South Australia. These rising summer temperatures means more frequent and longer air conditioning usage.
Growing families also consume more electricity. Going from a family of two, to three, or even four, means more electricity demand.
Adding more appliances and electronic devices into the home could also be to blame. Long gone are the days of one TV per household. Many of us now have a TV in every room. Mobile devices charging 24/7. Not to mention dishwashers and dryers running daily. All fattening up our electricity bill.
The transition to all-electric homes—eliminating gas —increases electricity consumption as well. Modern, energy-efficient appliances offer improvements in performance. But the energy they save is offset by the simple fact that we now have more home appliances than at any time in history.
Solar panels and battery systems can accommodate these changing usage patterns. A correctly sized system can save you money despite increased consumption. The key is to design it so that it covers current and potential future needs. Modern systems also offer the flexibility to upgrade your system down the track. This means your system can evolve as your life evolves.
Preparing for Electric Vehicle integration
The transition to electric vehicles represents a significant additional electricity demand for households.
Solar generates additional electricity needed for EV charging. Allowing you to “fuel” your vehicle for free rather than with expensive grid energy. While not a complete charging solution. Solar allows you to top up your EV for your daily commute so you have to use grid charging less frequently.
Looking ahead, vehicle-to-grid (V2G) and vehicle-to-home (V2H) technologies are rapidly developing as well. These tech advancements enable electric vehicles to function as mobile battery storage systems. Your EV in effect becomes another home battery so you have more storage at your disposal. This is not some far off future. In fact, several manufacturers have announced V2G compatibility in upcoming EV models.
By installing solar now, you’re establishing the foundation for this future integrated energy ecosystem. Homeowners who already have solar will be well positioned to reap the benefits.
Financial incentives through REPS and Virtual Power Plants
The SA Retailer Energy Productivity Scheme (REPS) offers substantial rebates** to install a solar battery. This significantly improves the economic case for energy storage. This incentive reduces payback periods for battery systems.
The ShineHub VPP is one of South Australia’s largest networks of connected home battery systems. This network enables 1000’s participants to help provide grid stability services. Plus generate a passive income from their energy when it is used during VPP events* when the local grid is under stress.
Battery owners can receive payments when energy is discharged to help support the grid. These passive VPP payments – combined with bills savings, and VPP incentives – can help reduce battery payback periods. All while still maintaining backup power during outages and blackouts during weather or grid events.
Environmental impact and carbon footprint reduction
Added to financial benefits, installing solar panels helps to reduce carbon emissions. While this may not be on top of the list for most people, it is a nice feel-good added value benefit to solar system owners. The average SA 6.6kW solar system can help prevent up to 10 tonnes of CO₂ emissions every year. This is equivalent to taking two cars off the road or planting over 150 trees.
South Australia is leading from the front and has made remarkable progress in renewable energy adoption. Frequently achieving periods where 100% of electricity demand is met by renewable sources. However, during peak demand periods, or when renewable generation is low the grid still relies on gas generation. By installing solar battery systems, households contribute to reducing these emissions. Keeping peaking gas power plants from being switched on can also help prevent spikes in energy prices.
The collective impact of residential solar adoption has significant direct and indirect implications. Air quality, public health, personal and community economic benefits. Plus climate change mitigation.
Conclusion
The case for installing solar panels and battery storage in South Australia has never been stronger. Rising electricity prices. Decreasing feed-in tariffs. Frequent grid outages. Changing electricity consumption patterns. Electric vehicle adoption. Financial government incentives – all create compelling reasons to adopt the solar lifestyle.
For South Australian residents, going solar offers a pathway to increased energy independence. Not to mention financial savings, and environmental stewardship. Households can also take advantage of emerging technologies and future energy market developments. This means that a solar system installed today provides both short-term bill savings and long-term value.
*ShineHub VPP is for approved customers with a compliant battery only. Contact ShineHub to confirm your eligibility. ShineHub Terms and conditions apply. Must sign up for the ShineHub VPP. ShineHub VPP terms and conditions apply.
**Terms & conditions apply for MAC Trade Services Rebate, and ShineHub is not responsible for eligibility criteria, application accuracy, approval decisions, liabilities, program changes, or any associated losses or inconveniences.
^Blackout protection is for certain circuits of the home only.
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