Australians Embrace Battery Storage to Counter Declining Solar FITs

Cleatechnica reported that Australians are no longer able to count on revenue generated from excess solar energy feeding into the grid, thus they are turning to energy storage solutions to keep excess power for themselves.

The country’s feed-in tariff schemes have entered their first wave of drastic reductions as 63,000 households in South Australia is feeling the changes. By the end of 2016, over 275,000 households in South Australia, New South Wales and Victoria will see their FITs go down as much as 90%

Last September, South Australia’s feed-in tariffs went down from $0.16/kWh to a minimum payment of $0.068/kWh. Also by the next year, 67,000 homes in Victoria will see feed-in tariffs and net metering schemes falling from $0.25/kWh to $0.05/kWh.

The biggest price drop will hit 146,000 solar customers in New South Wales. By January 1, 2017, the current feed-in tariffs of $0.60/kWh and $0.20/kWh in New South Wales will go down to $0.55 and $0.072.

Darryn Van Hout, Australian Solar Quotes CEO, stated that the previous generous feed-in tariffs empowered many solar consumers to learn the basics of solar and PV technology. Lowering the tariffs on the other hand, will promote demand for energy storage systems. He said that it will definitely trigger consumers to look at this new technology.

Australian Solar Quotes reported that they have seen an upswing in demand for quotes for storage battery systems from buyers looking to save thousands of dollars on their electricity bills. Van Hout also added that many customers approaching ASQ have been solar customers coming off the New South Wales solar bonus scheme.

Although the feed-in tariffs policies are in broad decline, government support for energy storage systems is fast becoming popular around the world. Many states and countries are giving consumers rebates. California, Adelaide in Japan has made some steps to further promote energy storage.

Van Hout also added, by adding a battery to the existing solar system can significantly enhance solar self –sufficiency. With the right battery size, solar consumers can improve it from 20% up to 60% or about 70% self-sufficiency.

Click here to read the full story on Cleantechnica

Featured Image Credit: Takver