A couple of weeks ago, after the election, we wrote about the Cheaper Home Batteries Program, which takes effect on July 1.
While the installation of home batteries has been on the increase for a while – approximately 57,000 were installed in 2023 and around 75,000 last year – we expect there will be a further boost in the number of homes (and small businesses) adding battery storage to their rooftop solar systems in the second half of this year.
But the big question is this: should you grab one now or wait? If you wait, the technology might improve, but then again, the government subsidies are looking pretty attractive …and they might not last long.
What would “better” batteries look like?
The most obvious way a battery could be considered an improvement on a previous version is an increase in lifespan – in other words, lasting longer, so the initial outlay becomes an investment over a longer period.
Given that even first-generation batteries, like the first Tesla Powerwall, which came onto the market around 2015, are expected to last between 15 and 20 years, most homeowners will have to replace their rooftop solar panels before their batteries degrade to the point where replacement is necessary.
Newer batteries are already touted as having longer lifespans, either simply lasting longer regardless of use, or having the capacity for a greater number of charge-discharge cycles.
The second most obvious way home batteries could be “improved” is by becoming cheaper to buy. This is already happening, as manufacturing has become more cost-effective.
The combination of initial cost reduction and an increase in lifespan is enough to grade current batteries as “better’ than earlier versions, and it’s fair to anticipate that this sort of improvement will continue incrementally, making the equation even more attractive for homeowners.
Other ways batteries could be improved include being better at storing energy for longer and becoming more efficient in terms of integration with solar arrays, the household, and the grid.
What about different storage technologies?
Several technologies are being developed that might have advantages over existing lithium-ion batteries. You might have heard of solid-state batteries, flow batteries, sodium-ion batteries, lithium-iron-phosphate (LFP) batteries, or iron-air batteries.
The current investment into researching and developing these alternative battery types, however, is more focused on commercial-scale storage, as opposed to individual, lower-capacity household batteries.
Of course, at some point, any advances at the commercial grid scale generally flow through to household use, even if the upside at the smaller scale isn’t significant.
Another option being talked about is repurposing batteries from electric vehicles that have degraded past the required level of efficiency for the EV.
Alternate battery technologies explained
Here’s a quick overview of some of the different battery types being developed.
Solid-State Batteries:
Solid-state batteries replace the liquid electrolyte in traditional lithium-ion batteries with a solid, ceramic-based material. They offer increased energy density, enhanced safety (less risk of fire or explosion), and extended battery life.
This technology is likely to have applications for long-duration grid storage and in providing lighter, more powerful batteries for electric vehicles.
Sodium-Ion Batteries:
These batteries use sodium instead of lithium, which is more abundant and potentially cheaper, so this type of battery would come at a lower cost and offer potentially higher energy density compared to traditional lithium-ion batteries.
They could become a major alternative to lithium-ion batteries for renewable energy storage and electric vehicles.
Lithium-Iron Phosphate (LFP) Batteries:
This is a type of lithium battery with a different cathode material (iron phosphate). LFP batteries tick three boxes: they’re cheaper than lithium-ion batteries, offer enhanced safety, and have a longer lifespan, so it’s no surprise that they’re already gaining popularity for electric vehicles and grid storage applications.
Flow batteries:
Flow batteries store energy in liquid electrolytes that circulate through a system of tanks and electrochemical cells. They differ from conventional batteries by separating the storage of energy from the power generation process.
While they are easily scalable, have a long lifespan, offer rapid charging, and can be made with low-flammability and environmentally friendly materials, they do take up more space and come with a higher upfront cost.
Iron-air batteries:
There’s a good reason these are referred to as rusty batteries: they use the commonly available elements iron and air and the natural rusting process to create energy. Whereas a lithium-ion battery discharges electric power for about four hours, an iron-air battery can discharge power for up to 100 hours. However, if adopted, this technology is more likely to be implemented on a grid scale than in homes.
Lithium-ion batteries still have plenty to give
Lithium-ion batteries have been the long-standing industry standard for powering portable electronics and electric vehicles (EVs), as well as for larger Battery Energy Storage Systems, for several quite clear reasons.
The technology is cheap, performs efficiently, has a deep discharge cycle life, and provides excellent power density, all of which combine to make it ideal for commercial batteries.
Meanwhile, researchers continue to look for ways to make this established battery storage technology perform better and be more sustainable.
Advancements in high-capacity nickel-rich cathode materials for lithium-ion batteries are boosting the capacity and longevity of battery storage systems. Any improvements in longevity have major sustainability benefits as the materials used to make the batteries will be required less frequently.
The next development is likely to be making lithium-ion battery systems more environmentally sustainable. To that end, chemists at MIT recently developed a new battery using organic cathode materials, instead of the critical metals, such as cobalt or nickel, that are currently used.
The upside of home battery storage is clear
So, is it worth waiting for a while to see if something better comes along? Probably not. Yes, home batteries will keep getting a bit cheaper and possibly gradually be made to last longer, but it’s unlikely that a major step change is coming anytime soon.
Meanwhile, the opportunity to take advantage of government incentives and marry that together with a wonderful energy plan makes for a fantastic combination. Mind you, as an energy retailer, we’ve seen subsidies come and go. Generally, the most generous subsidies don’t last forever. As more people access them, they tend to become less generous.
The advantages of being able to store the energy you’ve collected through your rooftop solar panels, either for your own later use or to be fed back to the grid when demand is high and you can get paid for it, are there to be seen right now.
GloBird Energy incentivises home battery owners to use more power during the day, when there’s generally more than enough electricity being generated by solar (and wind), and less during the evening peak.
Our ZEROHERO energy plan has been designed to help you get the best return on the investment in your home battery by using as much energy as you can in the middle of the day and freeing up your excess to go into the grid after the sun goes down and demand goes up.
In fact, if you don’t draw any power from the grid during that high-demand evening peak, that ZERO usage will earn you $1 a day. And if you can go further and sell excess energy at that evening peak, you get a bonus feed-in rate too.
Read more about how GloBird has created the best deal for solar battery owners.
*If you’re interested in the Cheaper Home Batteries Program, it might be worth keeping an eye on the Department of Climate Change, Energy, the Environment and Water (DCCEEW) website in case they provide further details.