Solar batteries can be an excellent investment, offering homeowners a chance to make money while benefiting the environment. There are two primary ways you can profit from installing a solar battery system: by taking advantage of fluctuating electricity prices and by storing solar energy for later use. Let’s explore both methods.
1. Buy Cheap Electricity, Sell Expensive Electricity
One way to make money with a solar battery is by charging it during low-price electricity periods and using or selling the electricity when prices rise. Several energy retailers in Australia offer homeowners access to the wholesale electricity market, where prices fluctuate throughout the day.
How the Wholesale Electricity Market Works
Electricity prices change based on supply and demand. Sometimes, the price can even dip into negative territory, meaning you get paid to consume electricity. This happens when there’s too much electricity on the grid, such as when solar or wind power generation peaks. To balance the grid, the network operator lowers the price to encourage more consumption.
Under these conditions, homeowners with solar batteries have a unique advantage. You can charge your battery during these negative-price periods and get paid to store energy. This allows you to essentially get free electricity while helping balance the supply and demand of the grid.
High-Priced Electricity and Battery Use
On the flip side, the grid can experience high demand during peak hours, such as hot summer days. When this happens, the price of electricity can spike. If you have a battery, you can store electricity during low-price periods and use it when prices soar.
Managing your battery for this price fluctuation can be tricky, though. If your battery runs out and you need to import electricity, you’ll pay a much higher price. So, it’s important to have a management system that keeps your battery charged and ready to use when prices are high.
2. Store Solar Energy for Nighttime Use
The second way to profit from your solar battery is by storing solar energy instead of sending it back to the grid. Solar systems produce their peak output around midday, but during this time, electricity prices are often at their lowest.
Low Prices During Peak Solar Generation
Due to the abundance of solar energy feeding into the grid at midday, the wholesale price of electricity typically drops. This low price often means homeowners are paid only a 5 c/kWhfor the electricity they export. In some cases, network operators may even remotely switch off solar systems to prevent grid overload.
Instead of selling your solar power for a small amount, you can store it in your battery during the day. Then, you can use the stored energy in the evening when electricity prices are higher. This simple strategy helps you avoid paying high electricity rates when you return home after work.
The Financial Advantage of Battery Storage
Storing your solar energy for later use is a straightforward but powerful way to make money from your solar battery. By consuming your own stored energy, you bypass the need to buy electricity at peak rates, thus saving money. It also maximises the value of your solar system.
3. Managing Your Solar Battery for Maximum Profit
To profit from a solar battery, it’s important to manage it effectively. The goal is to charge the battery when electricity prices are low and use it when prices are high. This requires careful planning and, ideally, an energy management system that automates the process.
Without proper management, you risk running out of battery power during high-price periods, forcing you to buy expensive electricity. An energy management system can help optimise your battery’s use by automatically controlling its state of charge. This way, you can make sure your battery is always ready when you need it most.
Conclusion: Maximise Your Solar Battery Investment
In conclusion, installing a solar battery provides homeowners with two key opportunities to profit: taking advantage of electricity price fluctuations and storing solar energy for later use. Both methods can save you money and even generate extra income.
By charging your battery when electricity prices are low and using or selling the stored energy during peak periods, you can reduce your electricity costs and help balance the grid. Additionally, storing your solar energy instead of feeding it back into the grid allows you to avoid buying expensive electricity at night.
Although managing your solar battery requires some attention, the benefits far outweigh the effort. With the right tools and strategies, a solar battery can become a valuable asset that not only saves money but also contributes to a cleaner, more sustainable energy future.