SOLAR BATTERIES – When and Which one?
Partners energy are up to date with the latest data on the new generation solar batteries and can provide advice on the feasibility for you. This article from the NSW Office of Environment and Heritage provides an insight into some of the issues you need to consider.
Batteries: a powerful revolution on the way for business?
There’s a buzz around battery storage — but can batteries deliver an attractive return on investment?
As the debate rages over whether businesses and households will actually save money from battery storage, sales are continuing to soar. The alien-cocoon aesthetic of Tesla’s sleek Powerwall has garnered the most attention from the media and brand-conscious consumers.
But it’s not just Tesla that’s targeting Australia. Panasonic, LG, Samsung, and Enphase are just some of the other global technology giants investing billions into the battery-storage revolution. Locally, companies such as Ecoult, Redflow and ZEN are in on the game, and CSIRO’s UltraBattery has taken lead-acid batteries to the next level.
This is great news for manufacturers, retailers, and other businesses attracted to the independence batteries promise to deliver, and the idea of gaining more control over their electricity bill.
The NSW Office of Heritage and Environment can give you the advice you need before making that decision
The appeal is most obvious for businesses operating solar plants or other renewable energy installations, and also for those in remote locations where the cost of gas or diesel makes it Australia’s most expensive energy market.
But another benefit of batteries is their ability to charge up on electricity from the grid when prices are at their lowest (during off-peak periods) and then drawing on that power – rather than buying it from the grid – during the most expensive peak times.
At first glance, this seems like an attractive proposition. So too is the ability to smooth energy supply where incentive programs and regulatory requirements have encouraged the use of renewables.
Add to this time-of-use arbitrage, protection against black-outs, and network investment return, and you can see why battery storage is getting many business managers excited.
Pesky realities
But as the initial enthusiasm cools, closer inspection reveals some hard truths. A householder who wants to go off the grid, for example, may expect to do this with a $3000 battery.
However, in reality, he or she will likely need a system worth over $10,000, with a possible payback period of over 20 years.
A 20-year payback period is a problem when the life of a battery is currently around 10 years. It’s these kinds of pesky realities that have seen several battery-storage companies exit the market in Australia after installation was much lower than expected.
There are other considerations for businesses thinking of joining the battery-storage revolution. Where will you locate your battery? Is the ambient temperature in your workspace conducive to the proper functioning of your battery?
There is no doubt that the future is bright for battery storage. Some reports say battery storage capacity is expected to grow 50-fold in less than a decade, and costs have fallen by 14 per cent on average every year between 2007 and 2014.
Meanwhile, regulatory barriers and traditional structures around fossil fuel power plants are being challenged, adding further to the lure of that shiny new Tesla unit.
How to decide?
The conundrum for many is do they rush out and join the revolution now, or wait until units are cheaper, storage capacity is stronger and payback time is shorter..
Over the coming months, the NSW Office of Environment and Heritage will be developing a training course, as well as a pre-feasibility tool and simple consumer guide, to help you navigate the ever-changing world of battery storage.
Go to www.environment.nsw.gov.au/business for information or to sign up for their newsletter
Or ring 1300 361 967 (ask for Energy Efficient Business
Tom Grosskopf is the NSW Office of Environment and Heritage’s Metropolitan Branch Director. He oversees a range of NSW sustainability initiatives for businesses, government, communities and households.