Cost Of Solar Batteries: Forecast & Predictions
The solar battery market is forever growing globally and is estimated to grow by $247million between 2019-2027.
In my opinion, that figure paves the way for the future of solar battery prices. Solar batteries are soaring in popularity with the ever-growing aim of a sustainable future independent of the energy grid.
As the demand of EV vehicles has increased significantly, they are both in competition for the raw materials needed for the manufacturing of a battery. This means the more that EV get popular, the more the price of these materials will increase.
You only have to look at Tesla powerwall increases over the past 5 years to see the upward trajectory of solar battery prices. If you would like to read through my full Tesla Powerwall review, please read here.
I’ve also got some comparisons between Tesla and Sonnen to find out which one is best for your home.
Let’s dive in and have a look at my forecast and predictions of the cost of solar batteries.
Table Of Contents
The Cost Of Solar Batteries Seem To Be Increasing
So, yes, the cost of solar batteries is increasing.
The cost of solar batteries is undoubtedly going up, as shown by historical figures. But would you believe that in 2017, you could get a Tesla Powerwall for under $10k?
This is because the demand is increasing significantly as homeowners move towards a sustainable and renewable lifestyle. I mean, you can’t blame them. It is a good thing, after all.
Look, the main point here is that 5 years ago you could get a Tesla for $10k but now it’s increased a lot. For those who waited for the price of a Powerwall to come down it actually ended up being an expensive mistake.
There is no evidence prices will drop (unlike solar panels) which have been steadily declining in cost in recent years. So, to put it simply, the longer you wait to get a solar battery, the more it will cost.
This is evident by the cost of solar battery history and price increases across the industry. So seriously, everyone is being serious when they tell homeowners to invest now.
Raw Material Demand Pushes The Cost Of Solar Batteries Up
It was recently announced in 2020 that over 31,000 solar batteries were installed across Australia. This shows how popular the demand for batteries is and therefore it means that the materials needed such as lithium-ion and cobalt may be in short supply.
The same applies for the shipping costs and as the global economy is starting to rise in costs it means that the price of batteries will bear this burden as well. Unfortunately, it’s totally out of everyone’s control.
The cost of raw materials, the shortage of semiconductor chips and the covid pandemic are some of the few factors that have contributed to the increase in the price of solar batteries. Combined with this, the increase in demand for energy independence causes prices to rise.
Either way, many homeowners are still willing to invest in a solar battery because they understand the value it can provide in savings but also energy independence for the future.
Some batteries like Sonnen have already moved to more sustainable materials to manufacture their batteries, which I talk about in my Sonnen review here.
The Global Solar Battery Market Is Expected To Grow 15.5% From 2020 to 2027, Generating a Whopping $360.4m
It is not only in Australia where the popularity of solar batteries has risen. Globally, the market size is projected to reach a whopping $360.4 million by 2027. That is 15.5%. Just think about the savings this will generate for homeowners.
Therefore it is clear that the demand for solar batteries is increasing not only in Australia but worldwide as well. With the surge of demand for cost-effective and eco-friendly solutions, it is driving the market growth. The push from Governments worldwide for a more sustainable future has heightened this further.
I predict that solar batteries are going to keep increasing in price as they go up in demand across the world. In turn, this will affect the Aussie market, so I would highly advise investing in solar batteries sooner rather than later.
Look, with this data it’s safe to say that if people didn’t see value in their solar battery, they simply wouldn’t buy one. It’s really that simple so this data kinda shows just how useful having a solar battery can be for homeowners.
Tesla has Increased The Cost Of Their Powerwall 3 Times In 2022
Tesla Powerwall is extremely high in value as they provide incredibly fast ROIs in the solar battery industry. The increase in price shows just how quality the Tesla Powerwall battery is.
However, despite the ever-growing price, people are still buying them in Australia. It is not hard to see why. They are one of the best solar batteries you can get on the market. It helps to recuse homeowners’ bills and start moving away from the grid.
Back in 2017, when Tesla Powerwall solar batteries came to Australia, they cost less than they do now. With 9 price changes since its first launch, it is paving the way for the future of solar batteries. The natural increase in price is highly likely when you look at history.
The guys who installed the Tesla Powerwall back in 2017 will be laughing at the deal they got! So, I can emphasise enough how waiting to install a solar battery will only cost you more in the long run.
The Demand For Electric Vehicles Has Skyrocketed, Which May Indirectly Push The Cost Of Solar Batteries Up By Competing On the Same Raw Materials
Along with the demand for solar batteries increasing, so is the demand for electric vehicles.
Like anything eco-friendly and sustainable these days, it has surged in popularity, which is a fantastic thing to see. However, the rise of EVs has meant that raw materials used in both EVs and solar batteries are becoming hard to source.
So, electric vehicles use the same solar battery materials, such as lithium-ion and cobalt. There is now more and more demand for these materials, which will result in their costs increasing. Indirectly, this results in the cost of solar batteries soaring higher.
As we move into a more electric age, EV chargers are becoming bigger and bigger. This is great and shows a swift move to a sustainable future. However, with the drive for raw materials increasing, solar batteries are becoming more expensive and inaccessible to some.
Not Investing In a Solar Battery Now Could Cost You More Money
Now, I know I have said it a few times in this blog, but it is true.
Not investing in solar batteries now could cost you more money in the future. Just look at how much more affordable Powerwall used to be compared to now. You don’t want to look back in another year’s time and see the price dramatically increase again.
Not only will you miss out on savings from your solar battery, but the price is forecast to increase. You can start saving money on your energy bills now, as well as save on the price of the solar battery.
You would have lost out on your solar system and battery savings. Plus, you would have to pay more for your battery which is an expensive mistake.
You can optimise the savings from your solar system by storing any excess energy to use later. Any excess energy your battery generates creates more savings as you power your home for free. However, the longer you leave it, the more you end up spending on bills.
Honestly, the same applies for solar panels as well, which I go into much more detail about in my blog should I install solar now or wait. This breaks down how it could still be costing you money by waiting.
The bottom line is that the cost of batteries is increasing and therefore the most affordable time to buy is right now. It’s that simple.
Every Year The Solar Battery Rebate Drops In Value, Whilst The Cost Of Solar Batteries Increase
A problem with the increase in the cost of solar batteries is that it does not align with the dropping of the solar battery rebate. What this means is that every year the solar battery rebate drops while the price of solar batteries increases.
Therefore, if you are waiting for the cost of solar batteries to come down you might lose out more on the rebate value. This is because the solar battery rebate is dropping faster than the cost of solar batteries, and you will lose money to claim.
I mean, back 2 years ago the solar battery rebate was worth $4,174. The following July it was reduced to $3,500 and now it’s dropped again all the way to $2,950.
Yeah, that’s right. Simply waiting 2 years has cost everyone $1,224 in rebates… That’s a nice chunk you could’ve have claimed a while back on a lovely Tesla Powerwall or Sonnen battery.
This is not slowing down either! Every July is forecast to reduce more and more. It’s best to take advantage of that $2,950 whilst it’s there.
Conclusion:
There we have it, my forecast of the cost of solar batteries in the coming year.
Solar batteries are fantastic for helping Australian households become energy-independent. But, unfortunately, their price is more than likely going to increase. You only have to look at the history of the price increase over the past few years to see that.
On top of that, the increase in global demand and demand for raw materials pushes the price up even further. So it is easy to see why it is so popular, and I couldn’t recommend a better time to invest in a solar battery.
If not now, then when? Start saving now and grab yourself a good solar battery before the market grows beyond your budget point.
I hope my forecast has been helpful. What do you think? Leave a comment down below 😁
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Written By:
Luke Cove
Managing Director
Lightning Solar & Electrical
