Rooftop solar making it the fourth-biggest source of electricity overall. It accounts for more than a quarter of renewable energy production,second only to hydro.
Rooftop solar has been a significant driver in helping decarbonise the fossil fuel-heavy power grid,a leading source of the nation’s emissions.
Rooftop solar now generates more than 10 per cent of the nation’s electricity.Natalie Boog
It’s a huge success story,but at the same time it has posed challenges for those who manage the grid. When the sun is shining brightest,rooftop solar squeezes out large generators like coal-fired power stations and large-scale wind and solar farms – and ramping these down during the day can destabilise the frequency of the grid. Rooftop solar also pushes daytime wholesale power prices more regularly to $0,raising the risk of coal-fired power stations becoming unprofitable and closing before the grid is equipped to handle such a move.
These challenges can be overcome and there is much to like. Large-scale renewable projects are needed as well,but rooftop solar is a healthy complement. It comes with the enthusiastic consent of landowners,so there are fewer planning obstacles,making it one of the fast ways to decarbonise the grid.
There is a clear incentive to embrace solar for consumers who have been dealing with volatile and soaring electricity and gas prices for several years.
Solar industry analyst SunWiz estimates the payback time for a household solar panel array is 4.8 years on average,while for solar with battery it’s 8.4 years. That’s the length of time before the upfront cost of the installation is recouped by cheap or free power bills.
Storage batteries remain expensive – from $9000 to $15,000 depending on size – but are increasing in popularity because electricity bills are also high.
There is a role for government here. Solar panels have long benefited from subsidies and rebates at all levels of government. Many environmental and consumer groups have been calling for these incentives to extend to household batteries as well.
Solar panels deliver most of the environmental benefits by delivering renewable energy to the grid during the day. Batteries ensure that households get this advantage at night when more people are at home.
If governments directly helped households to buy batteries,it would be an effective cost-of-living measure. They would need to devise ways to ensure low-income households don’t get locked out,and provide a carrot – or a stick – to encourage landlords to get on board. Installing solar and batteries in social housing would be another great initiative.
Batteries also have a broader role to play in lowering emissions. If households reduce their reliance on the grid at night,then it could reduce demand at peak times and lower demand overall.
Subsidising batteries will also create a virtuous circle and encourage more rooftop solar. Many households where occupants are not home during the day are holding off on solar until they can afford a battery to go with it. Savvy consumers know the feed-in tariffs – the amount power companies pay households for the electricity they provide to the grid – are tracking ever lower,so actually consuming the electricity is the main game.
The federal government has a scheme to help households install battery-ready solar and upgrade insulation,windows and appliances,but it does not subsidise batteries directly. The NSW and federal governments also have a joint program to subsidise solar for apartment blocks.
The NSW government has been consulting on whether to subsidise household batteries as part of plans to reduce peak demand on the grid. A decision is expected imminently.
It’s time for batteries to have their moment in the sun.
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