Installing a home battery changes when your household buys electricity from the grid, when it stores electricity, and when it may export the electricity back. The patterns shift, the plan features that mattered before may not be the most relevant ones anymore. If you have recently installed a battery or are about to, it’s worth comparing your energy plan with your new setup in mind.
How does a battery change household energy use?
Before a battery, the solar household typically uses solar power during the day and buys grid electricity in the evening. The surplus solar that cannot be used in real time gets exported to the grid in exchange for a feed-in tariff credit.
The installation of a battery changes that as it stores solar energy generated during the day, so it can be used later at night, during cloudy periods, or any time the panels are generating. It focuses on reducing how much electricity the household needs to buy from the grid and how much it exports.
According to energy.gov.au, batteries can reduce bills by increasing self-consumption of solar energy, taking advantage of time-of-use tariffs, reducing peak demand, participating in a virtual power plant, and reducing solar generation.
A household that previously prioritised a high feed-in tariff may now get more value from a low peak usage rate or time of use structure.
Compare usage rates, not just feed-in tariffs
With a battery, exports typically fall because more solar is stored and self-consumed. It shifts the priority away from the feed-in tariff and towards the usage rate, which means the household pays per kilowatt-hour when it draws from the grid.
Even with a battery, most households still buy some grid electricity late at night when the battery is depleted, on overcast days, or during high-use periods that exceed what the battery can supply.
As per energy.gov.au notes, feed-in tariffs are lower than the rates paid to import electricity from the grid, which is why self-consuming solar is more financially valuable than exporting it.
When grid imports do occur, the rate paid matters. Comparing usage rates alongside feed-in tariffs gives a complete picture of what a plan will cost.
Understand Time-of-Use Tariffs
Not all electricity plans charge the same rate all day. As energy.gov.au explains, time of use tariffs charge different rates depending on the electricity consumption.
- Peak periods usually are weekday evenings, which carry the highest rates.
- Off-peak periods are typically overnight or on weekends, which carry lower rates and shoulder periods sit in between.
A battery can help households use stored solar power during peak periods rather than drawing expensive grid electricity. The value of that depends on the plan structure & household habits.
If the battery runs out before the peak period ends, or usage exceeds what the battery can supply, peak rate grid electricity will still appear on the bill.
Whether a time-of-use plan suits a battery household depends on how well storage capacity & usage patterns align with the plan’s pricing windows. It is worth comparing time-of-use options against flat rate plans before switching.
Check whether a virtual power plant is involved
A virtual power plant or VPP is a network of home batteries coordinated by an energy retailer or operator. The VPP operator can control when connected batteries charge and discharge, allowing them to act collectively as a single energy resource on the grid.
According to energy.gov.au, on-grid battery systems eligible under the Federal Cheaper Home Batteries Program need to have VPP capability, although participation remains optional. The requirement is that the battery is technically capable of connecting to a VPP, not that the household must join one or remain connected.
Some energy plans are linked to VPP programs. If you are considering one, the terms are worth understanding before signing up. Key things to check
- The financial benefit the household receives for participation
- Charging control operator for overcharging & discharging
- Backup reserves can be maintained or not
- Contract length
- Exit conditions
Review supply & demand charges
Even if a battery significantly reduces grid purchases, the daily supply charge still applies. The fixed daily fee charged for being connected to the network, regardless of usage, does not change with consumption. A plan with a lower supply charge may work out cheaper overall for a household that now uses very little electricity from the grid.
Some plans in the commercial settings that are occasionally applicable to households also include a demand charge.
The demand charge is based on the highest amount of power drawn from the grid at any single point in the billing period. A battery can reduce that peak draw, but it is worth checking whether a demand charge applies to any plan being considered.
Compare Energy plans based on how you use and store power
After a battery is installed, the household’s energy profile has changed. Comparing plans based on what worked before solar or before the battery may not give the most relevant result.
When comparing plans with a battery in place, the features that are worth reviewing are peak and off-peak rates which means what you pay when you draw from the grid and when.
- Feed-in tariff
What you earn for exporting energy, which is less than before, but is still part of the calculation.
- Supply charge
The fixed daily fee becomes more significant as grid consumption falls.
- Demand charge
In this charge, whether the plan includes one and whether the battery reduces the peak draw that triggers it.
- VPP terms
The participation conditions, payment structures, and exit terms if the plan is VPP-linked.
- Battery compatibility
See whether a specific meter is required or not for your household.
- Contract terms
Check lock-in periods, exit fees, or benefit period conditions. Also, check usage fit to determine whether the plan’s pricing structure matches the household’s usage and power storage.
Comparing plans side by side on these features rather than just the advertised rate can help identify whether a current plan still suits the setup. Econnex allows households to compare electricity plans from their panel of retailers, which can be useful and act as a starting point after a battery installation.
Final Takeaway
A home battery changes when a household buys electricity, stores it and exports. The energy plan that made sense before may not be the most suitable one now.
The better-looking plan on a comparison table is not always the best fit for a battery household. A high feed-in tariff matters less if exports have fallen. A low usage rate can still be undermined by a high supply charge.
A VPP-linked plan may offer additional income but comes with conditions worth reading before committing.
Reviewing an energy plan after a battery installation with the new usage pattern in mind is a step toward making sure the plan and battery are working together.
(DISCLAIMER: The information in this article does not necessarily reflect the views of The Global Hues. We make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information in this article.)
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