The alternative to traditional electricity retailers for those with solar + battery
Buck Retired Mechanical Engineer
In late 2022, I retired to Apollo Bay with my family. Upon arrival, I installed 10 kW of solar panels (21 x 475 W) and 11.6 kW of Triple Power batteries (2 x 5.8 kWh). The total cost, including installation for panels, inverters, and batteries, was initially $23,362, but with rebates, it reduced to $16,840.
Prior to this, my annual electricity bill averaged around $1,740. However, after the installation, my final bill showed a small credit. I estimate my annual savings to be approximately $2,000, resulting in a payback period of about 8 years (although more data is needed to confirm this).
In late 2023, I discovered Amber Electric, which allows users like me to participate in the wholesale market, bypassing traditional retailers. I switched to Amber in late November. On my first bill, the average usage price was 13.41 cents/kWh, significantly lower than my previous retailer’s rates of 47 cents during peak hours and 31 cents during off-peak hours. Additionally, the daily supply charge with Amber was only $0.62 per day, compared to $1.3486 per day with my previous retailer.
Another important factor to consider is solar exports. While my previous retailer paid 9.9 cents/kWh for solar exports, Amber’s pricing is variable and can even be negative (meaning I might be charged for exporting excess solar energy).
My December 2023 bill caught me off guard, as I was still paying rather than receiving a credit. In hindsight, joining in December was not ideal. During the holiday season, demand is low, and solar production is high due to summer. Renewable energy sources dominate the market. Between mid-morning and late afternoon, wholesale prices were negative, meaning that once my batteries were charged, it cost me to feed energy back into the grid. January showed a similar trend.
However, February was different. Industrial users returned to work, and a severe weather event in Victoria on February 13th caused HV towers to collapse, tripping all four Loy Yang A generation units and resulting in a short-term spike in wholesale prices ($18.04/kWh). Consequently, my February bill was more favorable.
Overall, the combined charge for usage, daily supply, and Amber’s fee amounted to $47.91, offset by credits of $214.76, resulting in an overall credit of $166.85.
In Summary
- I have no regrets about the solar panel and battery installation. However, in hindsight, I would consider adding more battery capacity. Since my next car might be an electric vehicle (EV), I could use the car batteries to complement my existing energy storage.
- It’s still early days with Amber Electric and the wholesale market. I plan to monitor my situation closely before deciding whether to return to a traditional retailer.
