The Victorian government has announced a raft of solar power-related subsidies including paying half the cost of an 11kW battery, up to the value of $4838, for households with incomes less than $180,000.
But, as Paul Higgins highlights in the below article from The Age, does it make economic sense?
Firstly, homeowners have to pay at least $4838 themselves.
The government claims households will save $650 a year.
Paul crunches the numbers to find out that it will take 24 years to pay back his $4838 ‘investment’ based on his 9.86kW system and current usage profile.
The lesson? If you have a solar system and the government is trying to encourage you to spend $4838 on the promise of a 7-year payback, be sure to crunch the numbers carefully, or risk losing money.
Why I can’t make any economic sense out of the battery subsidy plan
15 September 2018 | The Age | Paul Higgins
It looks like the state is subsidising people to lose money, with the Victorian government announcing a battery subsidy program for people on less than $180,000 household income.
The government is saying, “A household installing an average 11 kilowatt battery could save around $650 a year on their electricity bills, boosting the savings they are already making with solar panels.”
Let’s assume that you can buy an 11kW battery system for $9676 (although it is likely to be more than that fully installed). You will be subsidised 50 per cent of the cost, leaving your out-of-pocket cost at $4838.