First, the cost of producing energy has increased. Second, demand is starting to outstrip supply.Â
As a result, the price of electricity is increasing, which is why many households are not only switching to solar but also adding battery storage.
How higher energy costs could impact your electricity billÂ
According to the Australian Energy Market Operator (AEMO), the wholesale cost of electricity in the National Electricity Market (which supplies electricity to Australia’s eastern states) increased by a whopping 141% in the first three months of 2022 compared to the same quarter last year.
Retailers have little option but to pass cost increases on to consumers. From 1 July 2022, the default market offer (DMO) price for residential customers is likely to increase by between 1.7% and 8.2% above inflation in some states. This, in turn, could increase your energy bill by between 7.2% to 18.3%, depending on where you live and which energy retailer you use. Â
But take heart – there is a way to keep your energy costs down. By installing a residential solar energy system and/or adding battery storage, you can reduce your dependence on the grid and soften the blow of rising electricity costs.Â
How solar energy and battery storage can slash your energy bill
A high-performance solar power system can cost anywhere from $7,000 to $15,000, depending on the type and size of the system. That may seem like a lot of money, but it’s well worth the investment. With the savings it brings, the system typically pays for itself within three to five years. And with higher energy prices, you could see an even quicker return on investment.Â
Here’s how to get the most out of your solar-power system:
- Add battery storage. A grid-connected solar system will draw energy from the grid when solar power isn’t available, such as at night when most household energy consumption increases. By adding battery storage, the system will store unused energy in the batteries, ready for you to use at night. This could potentially bring your electricity bill down to $0.
- Don’t skimp on quality. Not all solar and storage systems are created equal. Cheaper systems usually don’t perform as well or last as long as higher-quality systems. For the best return on investment, you want a system with a premium inverter and panels that can perform well in low light.
- Sell any surplus energy back to the grid. If you have unused solar power, you can export it back to the grid and receive a credit against your electricity bill if your energy retailer is part of your state’s solar feed-in tariff (FiT) program.
- Install a smart switch. These units can effectively turn your house into a smart home by allowing specific appliances to run only when there’s surplus solar energy (think air conditioners, pool pumps, heat pump hot water, underfloor heating, garden water pumps and irrigation/stock watering pumps). When the sun disappears behind a cloud, the appliance ramps down; when the sun reappears, it kicks in again. If there hasn’t been enough sun for the appliance to achieve the desired result by the end of the day (eg. a heat pump reaching 60°C), the unit will be briefly powered by the grid at the end of the day. Â
Battery demand has soared
In recent months, as electricity prices have soared and people have become concerned about the reliability of the energy grid, The Energy Experts has experienced a huge increase in the number of households investing in battery storage technology.
Batteries can not only save you money over the long-run, they’ll also reduce your reliance on the grid, giving you more control over your power – especially in the event of a blackout.
With the right inverter technology, your battery can be replenished by your solar power system during the day – even during a blackout.With the cost of electricity expected to increase further, now is a good time to get solar +/- battery storage and save. Get a quote on a residential solar or home battery system or contact us on 1300 516 474 or email save@theenergyexperts.com.au.
