Aussie dad slashes $2,000 electricity bill to zero as $2.3 billion battery rebate kicks off
Anthony Barrett said he no longer receives electricity bills for his Stanmore terrace home, which he shares with his wife and son, and instead gets credits. The 58-year-old lighting designer told Yahoo Finance he has spent about $30,000 installing solar panels, inverters, batteries, switching to a heat pump and electrifying his gas kitchen over the years.
While he admits it was a 'crazy expense', he said he hopes he will offset the costs through savings on their electricity bills. The family previously spent between $2,000 and $2,800 on their energy bills, including gas and electricity.
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'We've had both batteries for about two years now and we're thousands ahead,' Barrett said.
'We're earning well over $1,000 a year.'
Barrett said installing solar batteries had made the biggest difference for them. He has two 10kwh batteries, which cost $21,000 altogether.
The family also switched to a wholesale electricity provider Amber Electric which allows customers to access wholesale prices directly rather than fixed rates. This means prices can be more volatile.Based on not paying any bills and their current earnings of $1,600 a year, Barrett has calculated it will take them seven years to pay off the batteries. The batteries are warranted for 10 years, but he expects they will last for 12 years based on current usage.
Barrett said he and his wife had made a 24-year plan for paying off their solar system and batteries, along with replacement batteries they expect they will buy.
'It's a long-term thing and it's a big upfront cost too. It's nothing to be sneezed at,' he said.
'Everyone's different. I can really only speak for myself and we looked at all the maths, we did a lot of research and so far on our little journey, it's coming up exactly as was promised.'
The federal government's Cheaper Home Batteries Program will be open for households, businesses and community organisations from July 1.
The $2.3 billion scheme, which was first announced during the election campaign, offers a 30 per cent discount on the cost of installing a battery and is designed to encourage the uptake of batteries.
Recent research by Brighte found half of Australians thought the upfront cost of investing in home energy upgrades was too high, with a third finding the process overwhelming.
The Smart Energy Council welcomed the scheme when it was announced and said it could help millions of people 'permanently reduce their energy bills'.
'Four million Australian homes have solar and this policy will help them store that energy for later when it will be at its cheapest,' Smart Energy Council chief executive John Grimes said.
'Australians can take control of their power bills and when and how they produce and use electricity. This literally gives power back to Australians.'
There are currently around 77 solar batteries on the Australian market, starting at around $4,000 for a 5kwh battery.
Smart Energy Council said a range of between 5 to 15kwh for home batteries was generally appropriate for households.
According to government modelling, households with existing rooftop solar could save up to $1,100 extra off their power bill each year by installing a battery, while those with new solar could save up to $2,300 a year.
It comes as states scrap their solar battery sweeteners, with NSW replacing its home battery rebate with a smaller incentive for households who connect to virtual power plans, Victoria ending its interest-free solar battery loan worth $8,800, and Queensland closing its $4,000 battery rebate at the end of last year.
Barrett said the energy bill savings he got from installing batteries were welcome, given other general living costs, including insurance, had been going up.
'Life in general is not cheap, it's not getting any cheaper, but the thing we don't worry about is our electricity bill and power bill,' he said.
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Can we work out why the company is trading at a discount to intrinsic value? For Service Stream, we've compiled three further items you should consider: Risks: As an example, we've found 1 warning sign for Service Stream that you need to consider before investing here. Future Earnings: How does SSM's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every Australian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
