Battery storage uptake by households surges as grid costs soar | RenewEconomy

Battery storage uptake by households surges as grid costs soar

New data shows home battery storage installations set to treble in 2017, even without a price fall. Once the technology gets cheaper, says SunWiz, batteries will be as ‘common as the backyard pool.’


One Step Off The Grid


Battery storage system installations in Australia look set to confirm predictions they will treble in 2017, driven by a growing uptake of home battery systems.

New data shows more than 7000 were installed across the nation in the first six month of the year – surpassing the 6500 sales recorded for all of 2016 – and are headed for a total of more than 20,000 by the year’s end.

According to the SunWiz 2017 Mid-Year Battery Report, published on Wednesday, the market predicts the second half of 2017 to grow by 50 per cent on 2017-H1 figures, leading to total 2017 installations of 17,500. SunWiz, however, believes the figure could exceed 20,000.

Leading the charge to home batteries is New South Wales, which is home to 21 per cent of installations so far this year. Queensland comes a close second with 18 per cent, followed
by Victoria, at 12 per cent.

According to the report, the boom in home battery storage installations – most are being sold in combination with a rooftop solar system, it says, rather than to existing solar households – is being driven mainly by major power price hikes, as homes and small businesses seek to minimise the electricity they import from the grid, by maximising the consumption of their rooftop solar.


It is also happening despite the costs of battery storage barely shifting – according to the report, they have dropped by just around 5 per cent since January, primarily due to increased competition among wholesalers.

But as solar costs continues to fall, the payback time for customers buying PV and battery storage system is narrowing in most parts of the country due to much bigger savings on bloated power bills, the report said.


This is particularly the case in the major cities of Adelaide and Brisbane, says SunWiz founder and report author Warwick Johnston, where pay-back time for a small 5kWh battery can be as low as six years. And for the rest of Australia, households are looking at a pay-back period of within a decade.

“We are already seeing extraordinary growth in the Australian battery market despite little change in the price point, with a doubling of the market already appearing locked in this year on top of a 13-fold increase in 2016,” Johnston said in comments on Wednesday.

“Solar and battery installers say they are being inundated with inquiries, but many people are delaying purchase until the price point drops. Once we hit a tipping point in payback time, the sales of household batteries will skyrocket – becoming as common as the backyard swimming pool is today in the years ahead.”

The report – which also looks at the progress of larger-scale battery storage projects around the country – says that Australia remains a key market for battery players globally, thanks to to its world-leading uptake of roodtop solar, high electricity tariffs and low solar feed-in tariffs.

It notes, for example, that half of all battery systems sold globally by US-based company Enphase were sold in Australia, as of the end of June this year.

“Experience gained in Australia will therefore be leveraged when battery manufacturers expand their attention internationally,” the report says.

“Manufacturers are testing their product requirements, channel strategy, and service offerings in Australia. We expect this to be a dynamic space, with plenty of missteps.”

The report says that average size of installed battery systems is increasing – a trend that is likely being driven by consumer expectations, which SunWiz says are being set by popular market offerings like Tesla’s PowerWall 2, as well as the fact that larger batteries offer better $/kWh.

Despite this, the report adds, the economics of small batteries remain superior, in terms of return on investment –”not that payback is the key driver for early adopters,” the report notes.

“Affordability is also a consideration – particularly as consumers are hesitant to lock in $10k+ into a technology in its infancy,” it says.

On larger-scale projects, the report says that these are well spread across the country, and increasingly in line with the roll-out of solar farms, being built to meet the Renewable Energy Target.

“Australia’s battery market is still an overwhelmingly residential market. We expect more utility-scale volume to occur in H2 than commercial installations – for example Tesla has only publicised the installation of one commercial system so far,” the report says.

As you can see in the below chart, taken from the Australian Energy Storage Database, SunWiz notes that installation volume in 2017 has already matched that of 2016, and is set to dwarf it should the Kingfisher Project (a Lyon Group project proposed for near Roxby Downs in South Australia) be commissioned before year’s end.


“Though the AESDB shows Kingfisher stage 2 as 100MWh, Lyon’s website claims 20MWh minimum, operational in 2017,” the report says. “Add to this the 129,000kWh Tesla installation in SA and you can expect there to be over 156MWh of storage projects commissioned in 2017.”

This article was originally published on RenewEconomy’s sister site, One Step Off The Grid, which focuses on customer experience with distributed generation. To sign up to One Step’s free weekly newsletter, please click here.

Print Friendly, PDF & Email

  1. Peter F 3 years ago

    Just like backyard pools every happy customer sells another, so they don’t have to get cheaper for sales to increase. Every increase in the retail price of power just annoys customers even more so they will have anger and economics to justify their switch

  2. Ray Miller 3 years ago

    The greater the delays in implementing an effective long term zero emission strategy in line with the physics the more citizens are taking action for themselves. The greed, incompetence and corruption of energy industry is paying dividends for the renewable and energy security (battery) sector.
    One would have though making energy policy boring and making the energy sector efficient and low cost maybe be the order of the day, but alas showing companies a pot of money and they just fall over themselves and trample ethics in the process.

  3. juxx0r 3 years ago

    Can anyone tell my why 6.5kW of solar panels (good ones), 5kW of inverters and 10kWh of batteries is (installed) $20k in QLD, $30k in SA and $40k in WA?

    Can they not work google in WA?

    • neroden 3 years ago

      Transportation costs? Ever priced out the cost of transporting all of that from Sydney to Perth?

      I think places with more shipping get better rates.

      • juxx0r 3 years ago

        Not when solar is the same price and said battery is $6,915 including GST and delivery:

        • neroden 3 years ago

          Hmmm. If the parts cost the same…

          …then I guess you have a shortage of installers, so that the remaining ones can jack the price up.

          Obviously you should install the solar and batteries yourself and possibly open up your own installation business. 🙂

          Does that answer your question?

Comments are closed.

Get up to 3 quotes from pre-vetted solar (and battery) installers.