Avoid Summer Power Bill Shocks with Home Battery Storage | sonnen

While Australia’s energy prices were on a downward trend for the last four years, as any Australian who’s yet to achieve independence from the electrical grid will know only too well, the days of dropping energy prices are well and truly over. Just like the steep rise in fuel prices we’re experiencing, Australians are now also seeing a steep rise in electricity bills – households in some states have already seen a 25% increase or more. That’s placing additional pressure on top of the rampant inflation that’s pushing prices higher by the day. 

Bill shock – the sinking feeling that accompanies an unexpectedly large bill – is on the way for most Australian households with energy rates set to increase significantly. Energy experts predict prices will rise by as much as 50% over the next two years, with Queensland and New South Wales set to be hit the hardest.

Why electricity prices are rising

Price spikes in the energy spot market are bigger than normal, with a range of factors to blame for the energy price rise. This includes the current volatility in Eastern Europe which has led to widespread energy instability, rising global transportation costs and a global energy crisis, along with a variety of local and international inflationary pressures. Combined with the ongoing supply chain disruption (partly attributable to local plant outages) and our hotter summers – which mean bigger demand peaks as our reliance on air conditioning rises and the heat directly impeding the ability of power lines to carry the usual amount of electricity – we’re looking at hard times ahead for Australian households reliant on grid electricity. 

How to reduce electricity bill shock

There are several measures you can take to reduce electricity bill shock this summer, but unless you’re ready to invest in a solar PV and battery storage system (which we discuss in greater detail below), escalating grid power rates are something you’ll just need to accept. Here are three strategies that can reduce the impact of the price rises. 

One – Shop around for a better energy plan 

For households running on grid electricity, the best place to start is by shopping around for a better energy plan, with a fixed-rate plan that locks in price certainty for 12 months, the best option available to most. Generally, you can expect to pay a little more for your electricity in the short term, but with further changes to variable plans a certainty over the coming months, opting for a fixed-rate plan can offer peace of mind. You should also shop around for a better plan if you have solar, however, bear in mind that fixed plans come with lower solar FITs, which means you’ll receive even less for the solar you feed back into the grid. That’s yet another reason why more households are turning to home battery systems.  

Two – Try to use energy when it’s cheaper

Whether you’re using only grid electricity or solar and receiving a solar FiT, it’s advantageous to make changes to your household energy usage patterns to access cheaper electricity and avoid expensive peak-time power whenever possible. Load shifting, as this is known as, involves running as many appliances and applications as possible during cheaper off-peak periods, with the more you shift your energy loads, the more money you save on your bill. 

Three – Go solar with a home battery system

Many Australians have long viewed home battery systems as expensive and when grid electricity rates are low, it’s easy to see where they’re coming from. But with skyrocketing energy prices, serious declines in solar feed-in tariffs, and the available state and federal government rebates, the reasons for investing in a home battery get stronger by the day. 

How much can you save with home battery storage?

A typical Australian household with a solar PV system and a home battery storage system with at least 10 kilowatt hours of usable storage has the potential to save around $700 to $1,000 annually on their electricity bills. However, the total amount your household will ultimately save depends on several factors, most notably:

The size of the battery installed – The greater the usable storage capacity, the more energy you can store for use during low-generation periods. Be sure to consider this when determining the ideal size battery for your home, however, you’ll need to ensure your solar panels and layout can deliver the additional energy to store. 

The difference between the grid rate and the solar FiT – To calculate the amount you could potentially save with a home battery system, work out the difference between your grid electricity usage rate and your solar feed-in tariff. With electricity prices rising and feed-in tariffs falling, there’s increasing scope to save money with home battery storage.

The battery’s charge and discharge cycle – Depending on the design of the battery you have installed, the more times it’s charged and discharged, the more money potentially saved by investing in a home battery system. To make this a cost-effective option, you may find that you need to install a bigger solar panel system with additional charging capacity.

With rising energy costs, there’s no doubt that solar can save you more money. However, it’s the set up that you choose – whether solar PV panels and a solar FiT with an energy retailer or solar PV panels and a home battery system – that, ultimately, makes the greatest impact.  For many homeowners faced with rising energy costs that aren’t going to abate any time soon, it’s the solar panels and home battery system option that delivers the biggest payback. 

Home batteries are by far the most effective way of insulating against price shocks, and they also offer the highest level of energy independence – an important consideration for any household looking to lower their energy bills in an era of escalating electricity rates. There are many additional benefits to home battery storage, including financial benefits, such as: 

When we talk about achieving energy independence, most people will naturally think about the financial benefits that this has the potential to deliver. However, there are many additional benefits to achieving your independence from the national electricity grid, like: 

Avoid losing power during a blackout – By installing a home battery system, like the innovative sonnenBatterie Evo, which has backup power for a 5kW continuous and 7kW surge capacity, you can keep more lighting and appliances powered during a blackout.

Furthermore, there are a variety of social benefits that you’ll be a part of, which include:

Helping to stabilise the grid – Join the sonnenCommunity and help to stabilise the grid and build a stronger network for all Australians by providing access to your sonnenBatterie. 

Reducing your carbon footprint – Help build a clean energy future for all of us in Australia and across the globe by reducing your reliance on energy from fossil fuels. 

If you’re like the growing number of Australians who recognise the benefits of achieving energy independence with a home battery, here are 3 reasons why now’s the time to act: 

1. The energy cost hike is here and will become even more significant
2. If you haven’t received an electricity price increase notice you will soon
3. The sooner you act by investing in a home battery, the more you’ll save. 

Furthermore, the effects of increasingly extreme weather in summer and winter will result in more bill shocks, more often. To take control of your energy usage and avoid bill shocks that are set to become the norm, explore the innovative sonnen product range and contact a sonnen expert to find out how we can help your home become more energy independent.