Market Price Response to Battery Rebate?

Shopping around for quotes for a battery for the solar set-up. Getting back a quote of $17,500 in Brisbane for 5kW Fronius Primo GEN 24 Inverter and 13.8kWh BYD HVM Premium Battery installed over an existing set-up. Another of $17,900 for the same but with a 6kw Fronius Gen 24. (no solar panels, they are already in place on an older Fronius inverter) . So both about $12,500 after rebate.

My question is, are these prices comparable to the quote before the solar battery rebate was announced, or are they being marked up to absorb the rebate?

Would love to check recent quotes of others for a simpler set-up to keep an eye on how the retailers are responding to the rebate and ensure it's the consumers that are getting it, not the retailer.

Comments

  • +10

    $17,900
    6kw

    Is there any RoI with break-even at this cost? Can't we just get an EV with V2G and use it instead of a fixed battery?

    • -1

      Kw is the inverter, kwh is the battery capacity.

      • +3

        exactly a V2G car would be give or take 40kwh. Ofc unsure of the export possibility (ill guess 1-2kw). Would cost about 25-30k (but can be FBT'd for lower overall cost) and can actually be used as a car.
        Not to say you shouldn't get a battery, but for many of us (myself included), I'd rather the additional function of a car that can power my house overnight and then get charged during the daytime.

        • +11

          If it's powering the house overnight and charging during the day when do you drive it?

          • +2

            @brad1-8tsi: For those of us who largely WFH. This would be a good solution.

          • +5

            @brad1-8tsi: Here's a scenario: if I could use my EV with V2G/H. Charge overnight (midnight to 6am, ~42 kWh) @ 8c/kWh (AGL EV plan). Drive to-from work (60 km using ~10 kWh). Plug in when I get home using V2G/H and use the cars battery from ~6pm until midnight. Rinse and repeat…

          • @brad1-8tsi: Drive to work and charge it there.

        • +1

          Remember you need to buy a V2G bidirectional charger which currently costs 10k. Or you could just buy a Powerwall 2 installed for 10k.

          • +1

            @serpserpserp: RedEarth V2G charger expected to be 5k and released in a couple months

            • @Given: Wake me up when it arrives and is also at this price

    • -8

      Batteries were being discounted by more before the rebate was introduced

      As always any government intervention always pushes prices UP, UP and UP.

      Before rebates:
      Limited demand
      Competitive market amongst sellers
      Competitive pricing
      Generous Discounts being offered

      After rebates:
      Excess demand
      Highly Competitive market amongst buyers
      Prices increase due to limited supply and limited capacity to install
      Discounting disappears
      The impact if Increased price and absence of discounts far outweighs the $4,000 rebate

      Happens every time the government introduces a rebate or scheme to make anything more affordable

      • +1

        yer….. nah no they weren't

        the powerwall three is the same price now as it was prior to the battery rebate announcement

      • +2

        What a load of crap, as per usual.

        Is JV running seminars on how to spam ozb with opinions when you have no idea or facts to backup your statements?

        • -4

          Zero evidence dispute, sounds about left.

    • +2

      Can't we just get an EV with V2G and use it instead of a fixed battery?

      Don't forget to add the $8k or so for the V2G capable and approved charger. They'll come down in price, but that's about as cheap as they get a the moment I think.

      • We have an all-electric house (no EV), but when I calculate, there is less ROI even to get solar panels with rebate, especially as feed-in is now 0.04 cents :D

  • +3

    Which year will you break even?

    • based on these prices, year 20, which would be uneconomical

      • Doesn't that assume that electric prices won't rise?

    • +1

      you wont lol

  • +1

    My question is, are these prices comparable to the quote before the solar battery rebate was announced, or are they being marked up to absorb the rebate?

    If you were in the business of selling batteries and heard about the government spending spree on consumers buying your product, would you:

    • (a) leave your price unchanged? or
    • (b) bump your price up because it's 'free' extra money for you?

    Assuming battery sellers haven't been sniffing leaded petrol then I suspect (b) is the correct answer.

    • +1

      General principle is - "Increase in demand, that is sustainable and long-term, will result in lower prices, unless supply chain is constrained"

      Since there are so many variables in above statement, coin can flip either side. So difficult to be sure.

      As for battery seller, everyone has their motivation. Some will still seek higher margin and be OK with lower volume - expect them to eat away most of the rebate. Others will seek higher volume and be willing to let go some margin for higher profit - would offer more discount.

      So again, difficult to be sure. Time will tell.

      • +1

        The key is this:

        that is sustainable and long-term

        And battery sellers know every good middle-class welfare (a la Johnny Howard) payment scheme (other than FTB) comes to an end eventually. So they're going to milk it for everything they can and boost their prices. Time will tell if they increase their prices to absorb the full amount of the subsidy or only some fraction of it.

  • +7

    Does the $17k quote include all new solar panels? Because if not…. WOW!

    Think about investing $17k in a managed fund earning a long term 8% average. Or putting that money into your mortgage (if you have one). Guaranteed $1k+ return every year without lifting a finger.

    How much do you spend on power at night? I suggest most people have an infinite ROI at that price.

    • +2

      No on panels. I already have a 6.5kw set up on the roof utilising an older fronius inverter (I've updated the post to reflect this). I agree I find these prices somewhat expensive. With the rebate added,d it's still going to be 12.5k out of pocket, which will take about 20 years to break even, so very little benefit.

      • Yes, purely on a ROI viewpoint it's not a good purchase. I've met some people who buy batteries to never receive another bill, or to cut their emissions. All fine reasons. But if someone wants to just get the most bang per buck it's very poor value.

        Also consider that the batteries will degrade with age, and there's virtually no chance of them still functioning well in 20 years (unlike solar panels, which usually have an 80% output expectation at 20 years).

        • +1

          Additionally the opportunity cost on the money.

        • Batteries have 25 year lifecycle. Plus 10 year warranty. So at least they'll likely get some life out of it. Unless you are a big power user a battery should not be viewed as something you'll make money on

          • @serpserpserp: Don't forget the battery warranty is up to 10 years, or the number of discharge cycles. I've seen warranties that were 10 years or 3000 cycles at 80% depth of discharge, or 2000 cycles at 100% depth of discharge.

            The 25 year lifecycle is purely based on projections and models as no one has had a large battery working every day for 25 years to test.

      • -3

        will take about 20 years to break even

        Wow…. Invest the money now, and retire to the Bahamas in 20 years…

    • I've tried multiple and according to my calculation, I've never found it worth installing a home Solar System if you have other uses for your money.

  • +1

    I got a quote here in Vic last week for solar and battery. 10.34KW system with a 12.8kwh battery was $27210.24 before any of the government rebates. With the solar rebates it came down to $23000

    • +1

      What is the split between the solar and battery in that price??

      • They didn't give a breakdown but from what I can figure out the battery is about $12k

          • -1

            @Lucille Bluth: big difference battery brands. not all are equal. the cheap ones like alphaess will be half or less of the price of more premium batteries like sigenenergy or tesla PW

  • +1

    I wonder if there's a way to use the likes of an EV with vehicle-to-load in place of a home battery.

    Charge up during the day via solar panels, discharge into system as required or use for travel.

    • I'd be interested to see what affects it has on the EV's battery, and if it would void any warranties on the car.

      • +1

        with the price of an EV car compared to this though (BYD/MG, esp after FBT costs) and the fact their batteries are at the top of their field (BYD), I wouldn't care tbh.
        I'm sure the battery would last long enough to get its money's worth. I'd ofc set it to only charge-discharge between 20% and 80% for battery longevity.

        • The biggest problem with this approach though is if you take your car to work, your solar system can’t charge. I have noticed a few energy providers providing free or very cheap power during the night. Perhaps the delta may provide a ROI within the eight year warranty period but it would be unlikely. The biggest thing is power is so cheap relative to battery storage.

    • But when will you drive it? Another commenter suggests its perfect for people who WFH, oh so you're just buying a very expensive battery that you can drive occasionally?

  • NSW Esy sunhome 20kwh / 6kw hybrid inverter. $8.7k after state rebate in Oct last year. Already had a solar system on the roof. Currently advertising same system for about $9k

    ROI 4 - 4.5 years assuming power prices don't increase. Sooner if they do.

    • +1

      It would be great to see your ROI calculations. For example how many times a day are you assuming the battery charges up (at 30c per kwh a fully charged 12Kwh battery holds $3.60 of electricity so at one charge per day, the maximum annual saving (assuming all days are sunny enough) is $1.3k)

      • 20kwh mate, that's more like nearly $2000 a year.

      • 20kwh battery. 41c/kwh peak rates. 13c/kw/day summer/winter demand charge. If I were to drain it every day then ROI would be 3 years, excluding the demand charge calculation, and sooner if rates go up.

        But I don't drain it every day, and it doesn't charge to 100% every day. I also pre-charge on off-peak rates if the forecast has poor solar production and/or low SoC to load-shift.

        Yesterday I used $0.18 of power, and exported $0.06 solar.

        • How do find the ESY sunhome. I've got a quote for a 25kwh system but haven't heard much about them. I would be linking with my solar edge inverter.

  • +1

    Inverter ~$2500
    Battery $11000
    Installation ~$2500
    All without subsidies , RECs, etc. The prices appear to vary quite a bit but I'd be more concerned about the installer than the final price. I wouldn't recommend the mob I used.

    I got 2xPW2 (27kWh) in Dec24. Sydney install. $20400 after NSW government subsidies (which I didn't get in full), RECs, etc. That price reduced more after joining a VPP.

    Current estimated payback for the whole system (batteries plus existing 5.4kW solar installed May 2023) is 13 years. Should come down when I start playing with some price arbitrage later this year.
    Advantages:
    I don't have to repeatedly tell my wife not to run the washing machine, dryer, etc at peak times.
    Whole of house power backup.
    Cons:
    massive initial outlay with opportunity cost of other investments

  • I think the 10 year breakeven would be about $10k for a PV & Battery system - 6.6kw.

    Anything over this and the ROI doesn't exist, only the warm fuzzies.

    • +1

      how you can make that statement without any assumptions is pretty bold

      • That was from the last time I ran the numbers 4 years ago

  • That's crazy! I got 3 x 11KwH batteries for $15k 18 months ago :/

    Admittedly, they are flow batteries for three-phase power off-grid, but off-grid is meant to be far more costly than on-grid prices!

    • Which flow battery did you get? I like the sound of them, but they're relatively unknown.

      • +1

        Went with Redflow ZBM3's (liquidation sale) ;)

        https://www.revetec.com/_ENERGY_STORAGE/RedFlow/Redflow-ZBM3-Datasheet-(Aug-2023).pdf

        I have been lucky not to experience any failures yet from daily use, but only time will tell !

        • +1

          Nice! I've been watching Redflow for years. Was devastated when I heard they were going under, because I wanted one of the ZBM3's and I was hoping they were going to be able to scale up and drop prices.

        • Wow, who’s gonna fix it if it breaks?

          • +1

            @WhyAmICommenting: Me, it aint that complicated ;)

            Pump, fluid, fluid exchange, reservoir - not that hard !

            Most failures so far seem to be pump related, so will just upgrade it to something commercial when it dies :D

            • @7ekn00: Pretty awesome, it’s a shame they couldn’t stem the failures. I actually had about 1k worth of RedFlow shares. Vaporised now haha.

  • +1

    Prices will go up so that only a fraction of the rebate is passed on.

  • +4

    This is an interesting government scheme, unless you live off grid or have a mate who works at the battery shop there is no return on investment from a battery. Although I guess if people are stupid enough to do it, it’s helping to solve the renewable availability problem. On second thought there are a lot of stupid people in the world so perhaps it’s not that bad after all.

    I can’t believe more people don’t use an electric storage hot water on a controlled load 2 plan. If the government was serious about being able to make better use of sustainable’s they would be encouraging, simplifying and subsidising people to switch to control load 2 for hot water. It would absorb a massive amount of solar energy during the day and allow people to use it at night. Without any of the fire risks, complexities or damage to environment that the battery system brings. Not to mention it it’s a very small fraction of the price of a battery (new hot water system). I’ve been doing it for three years and it’s a game changer. I’m almost tempted to post it on Ozb as a deal.

    • +3

      Nah, hot water is old school, the most you can save is about 10kwh a day for 300l tank. And price difference between off peak and controlled load is almost zero nowadays, in fact there are plans giving you 8c off peak and controlled load is even more expensive than that so it's a moot point to stay on controlled load, either 1 or 2.

      • -1

        The first part of what you said is partially correct however 10 kWh, is typically the size of a battery that people install. 380 L tank are very common and they will use 18 kW to heat them depends on how much you use but a family of four may easily be able to use around 15 kW a day. (Not all of the 18kWh is useable as u aren’t going to shower with luke warm water)

        The second part of what you said is interesting. In suburban Sydney I pay 13c per kilowatt hour for controlled load 2 and 31c for regular energy.
        I wasn’t aware offpeak still exists? Are you sure it does? I’ll have to look into it.
        Although the advantage of control load 2 over offpeak is it is turned on twice a day so if you really like your hot water you’ll end up with a lot more but if you think off peak is cheaper that sounds even better, however I haven’t seen it advertised as an option anywhere.

        • Use your neighbours address… If you have controlled loads, you may not be seeing plans with time-of-use as the quoting tools normally only show you the same tariff. I have peak, shoulder, off-peak and super-off-peak.

        • Problem with controlled load is inflexibility, you can't use it for anything else other than heating water for shower (technically yes but rarely implemented elsewhere). Plenty retailers now offer 8c at night on normal circuit and even free during lunchtime to charge ev so I don't see why can't you heat water during those time. You can always go with time of use tariff, almost all retailers offer it but the economic might not stack up depending on your peak usage patterns.

          • -1

            @lgacb08: Off peak hot water refers to a legacy technology which I believe controlled load replaced.
            TOU is something else and I can get that, the issue was the economics didn’t stack up because the peak cost was 40 or 50c/kwh.
            What sort of time of use tariffs do you get for the peak?

            Yeah if u had an EV may be beneficial although the argument against batteries still largely applies for EV’s, paying a significant premium to save a bit of money.

          • @lgacb08: Also you can use controlled load for anything that is hard wired including an EV charger which is hardwired (on the wall)

            • @Ozbfan: Aside from solar and battery, another option to look into for hot water is heat pump - up to 300% efficiency if you run it only during the warmer hours of the day and you may also be able to use a TOU or controlled load tariff. Even using a flat tariff like we do, you can get cheap hot water from a heat pump if you use a timer to avoid running it overnight when the heat pump is less efficient.

              • @Ponsonby: @Ponsonby thanks, yeah i have looked into it before, there were a couple free ones available with gov rebate but they had bad reviews. When we were building our house I almost got a Rheem heatpump but upon further review it has awful reviews at the time, I think since then they brought out a new model. I read there are a couple good brands but from memory they were over 5 or $7k. We only pay around 80c a day for hot water now with controlled load, so like batteries, I doubt there would be any ROI.

          • -1

            @lgacb08: I have the Ovo deal with free electricity between 11am-2pm and I have my hot water system configured to heat only during these times. I've never run out of hot water (up to 5 showers a day for the household). I also charge my EV and run the dishwasher during these times. Even with all that, I made money on my electricity all though summer (through solar FIT and referral credits).

    • Please share your system.. I'm looking into some form of a thermal store for a large house.

  • The calls from solar scammers for this has already started for me.

    So remember if you get a cold call promiting this it is a scammer.

  • -3

    Just got msg from my solar installer

    Dyness brand 10 KW battery with a hybrid inverter on your existing solar panel connection, $ 4500 for Sydney installation.

    These guys are genuine and work with them for almost 4 installations with family and friends.

    Contact them at Yelloenergygroup.com.au

    • +4

      Thanks for the OzAdvertising

    • Dyness? Never heard of them.

  • Powerwall 3 will probably cheaper given it has a built in inverter. In NSW I was quoted 17k before any discounts and rebates, with Federal and NSW rebate the cost should be close to 10k.

    • If you have solar already, Powerwall 2 is probably an ok option

    • +1

      lots of cheaper options with hybrid built in inverters if cost is a concern

  • I've gotten a quote for ~22kW solar, 15kw 3-phase inverter, and ~22kW LFP batteries for ~$25k. Before rebates (including the new battery rebate) it's quoted as ~$40k

    • +1

      Wow sometimes it might take 2 days to use 22kwh at my house. Your energy requirements must be insane.

    • +4

      interestingly the bigger the battery capacity you get, you will get a proportionately bigger rebate as it's based on usable kwh whilst the cost curve flattens out with a bigger capacity battery

  • +1

    The sad part is that with govt rebates, these cowboys take it as an opportunity to raise their installation costs for no other reason than 'just because we can'

  • +2

    The Rule of Subsidies: The price of any service or product subsidised by the Guvmint will increase by the value of the subsidy.

    To the OP's point, two years we installed 10kWh LGChem + Goodwe inverter for <$11k. We were toying with the idea of adding another battery. Silly me thought the prices were coming down.

    • Didn’t they get recalled - the LG Chem?

  • I like the promotion of solar panels/batteries despite having already spent the money on ours recently but yeah would not be surprised if the market just jacks up the price, much like any other "helpful" intervention which people just greed up on (/cough house prices … whole other topic obviously).

    Anyway just to contribute a data point, late last year we paid about $16k I think it was, for ~9kW of panels + 15kWh battery + 5K inverter. The battery added about $8k to the quote from memory.
    Caveat Chinese-brand panels, batteries, etc.

    • Caveat Chinese-brand panels, batteries, etc.

      most solar panel brands and batteries are made in china and to say that made in china is a bad thing shows you are ignorant

      • say that made in china is a bad thing shows you are ignorant

        Jumping to that conclusion shows you are the one who has a problem…

        I'll put it differently then, basically it is a proper solar brand but not in the list of very common ones I see mentioned around here like Fronius or Solax. Those quotes were much higher for us.

  • Expect a ~6m spike. I paid approx $1k per kWh about a year ago. Sungrow

  • -2

    I had a quote 3 months ago from SAE solar for 10kw neovolt installed for $7500.

    https://saegroup.com.au/product/neovolt-10-kwh-battery-5kw-i…

    • That wasn't sharp, I enquired directly with Neovolt and they offered $5600 last month but I held off. Probably a bit cheaper now with extra $3000 throw in.

      • -1

        Should be closer to 3.5k for the rebate

      • What wasn't sharp?

    • That seems cheap - does it include gateway? Can you PM the contact

    • Where are you based?

  • I managed to get $12k when looking for my family after federal rebate for a 26kWh AlphaESS battery + 6.6kW panels + 5kW inverter. Already had an existing 5kW inverter on property.

  • Federal rebate ~ $372 per kWh, max 50kWh
    WA state rebate ~$500 per kWh, max 10kWh
    Total rebate ~$872 per kWh, max 10kWh

    https://solarbatterysupermarket.com.au/products/solax-t-bat-…
    For the SolaX T-BAT HS10.8 kWh ~ $8,479
    Total rebate = $872 x 10kWh = $8,720

    Basically you get battery for free? Just the install costs?
    Assuming you have VPP-enabled hybrid inverter + panels already…

  • I like to put my 2 cent about solar , battery and EV

    I have 6.6 kw solar panel and EV

    First mistake of many is considering worth to charge the car trough solar what actually is not, for a simple reason , with solar you get partial free energy and partial at higher cost , because solar has up and down , and often your ev charger will drain more then solar generated.

    So, in short have EV plan is much more worth then solar . Ev plan like powershop night rate tive tou 5 cent for solar export and from midnight till 4 am energy will cost 5 cent kw, so basically what you export during the day cover what you use after midnight . That’s basically make literally charge the car for free , also give you more freedom in energy use , from 9 am till 5-6 pm solar cover the energy use of the house , and from midnight till 4 am buy energy at 5 cent what basically is nothing.

    That give you freedom to charge the car in case you need during the day at free or almost free or charge during the night at 5 cent , means whatever need you have of the car you will always have value ale time to recharge.

    Now let’s talk about the battery . With this scenario have ev night rate is worth also for heatjing the house , have 5 stars split system have during the day in case someone at home , heaaring and cooling covered by the solar , and also from midnight till 4 am at only 5 cent .

    So basically need a battery what cover only from 6 pm till midnight and from 4 am till 8-9 am

    Need to be considered the battery will be worth to have free bills on average the time and not at your maximum usage of time , if you okan to have bill free 365 days a year , you will end up with overprice battery for half or even 3/4 of the year , the ROI will be much longer .

    The best would be a battery wait cover most of time your usage and if sometimes you going over , is not the end of the world buy few kw sometime .

    Basically considering my situation , with home with 5 stars split system , with hot water heat pump , induction cooker , EV and 6.6 kw solar , considering solar have very good production for 7-8 months a year and considering buy energy at 5 cent overnight , and considering dishwasher , dryer machine , washmachine , EV can all be planned when to use , and considering during summer the evening / night is when the AC is less required so basically small amount of energy used between end of solar and midnight especially when the house is already cool dosent need anymore . Basically just for common use like tv , light , cooking , 5 kw battery will be more then enough to cover the gap between solar and midnight for more then 9 months a year

    In the winter is opposite, the worst for energy consume is when is cold , so have 5 cent energy during the night means literally heat the house for peanuts , basically need a battery what cover the gap between solar and midnight, let’s say maybe say buy some days 5-10 kw energy at 0.30$ most key to cover the heating.

    Basically the fastest ROI in my case would be 5kw battery , because would be the average energy i could literally use in full all year .

    I got quote at moment 4200$ installed
    Considering save to buy 5kw everyday at 0.30$, is 1.5$ a day save and around 550$ a year so basically 8 year time to recover my money .
    If the battery can be recharged during the night rate at 5 cent and use that energy to cover morning consumption before sun go up , let’s say could even save up to 3$ a day.

    Considering an average scenario,I don’t think I will get my money back in not less than 6 years. So, even with interest free loan and even is only 80$ a month payment wha they in partially offset by the saving , still doesn’t make any sense to me waste time , deal with something what could even underperform or something get wrong , take space in the garage .

    I could consider probably for 5 kw battery installed at 2500$ otherwise better wait for bidirectional charger.

    Firstly , the bidirectional charger will drop the price quite quickly as soon hit mass production.

    The problem with battery still require material and cost of production, and logistic also cost much more then a simple charger. A charger the big of the cost is the development, but the cost of production is very minimal , so , in near future will be cheaper and cheaper …as soon will be few brands to compete , and sold in many thousand around aree world c the price can even drop to less then 2000$

    By the way I prefer to wait till bidirectional charger will cost up to 5000$
    And get benefit to charge my car quickly at 5 cent overnight and considering I use on average only 10 kw a day to drive can literally have house entire bills covered by the ev battery and also export during peak time 6-8 pm at 15 cent and make also profit

    In that case the saving / profit could arrive even at over 5$ a day, basically if charger bought with finance , the ROI will be from day 1 , the saving profit will cover the cost of repayment since the first day .

    • The 5c overnight won't be there forever, the way Australian market going will be very little energy reserves going into the night and price arbitration will occur during your sleep too so investing in a small battery is not a wise choice. Once those coal power stations got shut down baseload will become a non existence concept and we will have to rely on a combination of energy source to make it through the night. The free midday period however guaranteed.

      • If you worry about coal stop … still around 10 years there .

        If can still saving like this for 10 years is already a win. In 10 years time battery will be more advanced and cheaper.

        At moment for me doesn’t make any sense, 6 years just to take my money back when energy overnight at 5 cents will be there still for many years

  • +1

    The ROI on batteries and solar is what kills it for me. I like the idea but it just doesn't make sense for me. Always blows my mind when people say things like 'it is saving me thousands per year', how much electricity are you guys using?

    • Some of us cook, heat, charge our cars etc all with electricity.

      Our usage varies from 20-40kWh everyday because of this.

      If you live in an apartment with centralised heating/cooling with common hot water, buy take away food and infrequently wash clothes for 1 person your usage might be under 7kWh everyday.

      But there are 5 in our freestanding home and soon to be 6.

  • Got a quote for 16kw battery + inverter $9.2k installed via LMS Renewable with a Sigenergy system, anyone used that brand before?
    Looks like break even point is 6.4 years at current energy prices and 5.8 years when prices go up 9%, I feel it will shorten up again when prices go up (Last bill I checked, was at 27c/kw now 37c/kw). Prices will go up further next year I bet.

    Have 6.6kw solar system and regularly feed back into the grid 16kw over the past year.

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