Energy Saving Guide
Battery storage owners guide
Now your home has batteries included here are the things you can do to make the most of it.
This guide breaks down how owners can enjoy maximum value from their battery storage. With tips on choosing the right energy plan, price arbitrage opportunities and joining VPPs to battery cycling strategies and more. See our Buyers guide to Battery storage for information about storage technologies, system costs and payback. Plus what to look for when you’re in the market to add energy storage.
Getting the best from battery storage
1. Finding the best electricity plans for battery
With a typical solar battery system, households will only be using a small amount of energy from the grid. As a result, any electricity bills will be much lower. But you still don’t want to pay more than you need to. Here’s what to look for when shopping for an electricity deal. Plus an opportunity to use your battery storage to buy low and sell high!
Compare thoroughly for your usage and exportElectricity retailers know that big solar feed-in tariffs get attention. However, the catch is these plans typically come with inflated usage charges to offset the high (and often loss-making) feed-in tariffs. The solution is to compare accurately using your unique usage and solar export. You’ll want to factor in the pricing, discounts, feed-in tariffs, restrictions and conditions. Then with the total cost of each deal for your situation, you can see the plan that stacks up best. WATTever’s comprehensive electricity comparison does this, including all publicly listed plans and retailers to support battery owners finding the cheapest deal for their situation. We even show plans only available to those with battery storage.
Switch to a Time of Use tariffSolar households will often be on a Time of Use tariff where the electricity price varies through the day. If not, this is a move that most battery homes should make. While peak rates for Time of Use plans are more expensive than a flat Anytime Tariff, the cost of electricity for off-peak or shoulder periods is lower. A sufficiently sized battery will shield a home from higher peak costs. That’s because solar powers daytime energy needs and any excess can be stored and used in the early evening when peak time of use rates apply (usually up to 8-9 pm on weekdays). Moving to a time of use tariff, also lets you buy lower-cost grid power if the battery capacity isn’t enough to cover you through the night. You can even fill the battery with cheaper off-peak electricity if there won’t be enough solar to fill the battery during the day. A Time Of Use tariff also provides more windows for time-shifting and accessing cheaper electricity. Either by running appliance from solar during daylight hours or later during off-peak hours when grid electricity is at its most affordable.
Time of Use tariffs give you access to cheaper grid power.
Solar battery arbitrageBy buying off-peak energy and saving it for use during peak times, households can avoid paying for the most expensive electricity. Or they can even ‘sell it back’ into the grid from the battery. We’ve coined the phrase ‘solar arbitrage’ to describe when the feed-in credit is higher than the cost of grid electricity. There are currently a few plans available where the feed-in tariff is higher than the off-peak rate. In this scenario, you’re better off financially to charge your battery from off-peak electricity overnight and export more solar during the day at the high feed-in tariff. These plans also make smaller systems viable and cycle larger batteries less as you only need sufficient battery to cover peak (and shoulder periods), i.e. up till 9 or 10 pm. What are the energy plans that work out best for solar arbitrage? Check my article for a complete list of current publicly-listed electricity plans where the feed-in tariff exceeds the cheapest cost to buy from the grid. The blog post also unpacks the solar arbitrage strategy, plus the positives and negatives. Eventually, as feed-in tariffs fall, this opportunity will disappear.
Make the most of your battery.
2. Joining a Virtual Power Plant (VPP)
The electricity grid is changing. With two and a half million solar homes, the excess power generated can be better managed to benefit everyone. A Virtual Power Plant (VPP) brings together hundreds or thousands of battery owners to create the effect of a massive battery. This way, excess daytime solar electricity can be stored and used later when needed. Like at periods of high demand or to avoid local network outages. Energy retailers pay participating households to access the energy they store, so it can be released from the VPP and sent into the grid.
Joining a VPP can provide incentives and payments for storage owners, helping to offset the cost of their system. Several retailers are running VPPs, offering consumers incentives to install new or connect existing batteries. There are now VPP programs available from Diamond Energy, Discover Energy, Energy Locals, Orirign Energy, Powershop, AGL, Simply Energy and EnergyAustralia.
Automated battery management services such as Reposit Power offer a VPP and reward battery owners for energy returned to the grid at times of need, through partner electricity retailers. These automated management services require compatible battery setups. If you have a specific VPP scheme in mind, you’ll want to check this out before buying your battery.
Help power the grid and be rewarded.
3. Energy-saving tips for battery owners
Below are some actions you can take to maximise your use of solar energy and your battery while avoiding having to buy electricity.