LG Chem: solar and battery storage beating grid power in most Australian states

South Korean battery storage maker LG Chem has claimed that solar and battery storage is already beating grid power in most Australian states.

According to Jamie Allen, the marketing head in Australia for LG Chem, a 5kW rooftop solar system and a 10kWh battery storage device (such as LG Chem’s own 9.8kWh offering) can be purchased and installed for around $15,000.

Based on the assumed output of around 22kWh a day from the solar array, that makes the cost per kWh of solar power at around 22c/kWh over 10 years.

The 10 year time frame is used because that is the warranty period for most battery storage and it is the “combo” package that is being promoted. And without storage, then much of the output would have to be exported, with tariffs in NSW as low as 6c/kWh or non-existent for some.

What does this tell us? Allen says it is that storage is crucial to maximize the value of that solar output. Every kWh that can be consumed on site will beat the cost of production.

Of course, this is not the only benefit. Allen notes that the solar system will likely last at least another decade, possibly two, and the cost of battery storage to replace the current system will also be cheaper, while grid costs are likely to rise.

And, on top of that, the solar and storage system offers other benefits: back-up power for when local or wider blackouts occur, and increasing property values, not to mention the environmental and climate benefits.

So far, LG Chem has found the NSW and Queensland markets to be the strongest for battery storage, with consumers in regional areas, particularly interested because of the potential of batteries as a back up.

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Image Source Via: KoreaBizwire.com

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Giles Parkinson

Giles Parkinson regularly contributes unique content to Solar Choice News. Giles is the founder and editor of clean energy industry news service RenewEconomy. He is a journalist of 30 years experience, a former Business Editor and Deputy Editor of the Financial Review, a columnist for The Bulletin magazine and The Australian, and the founding editor of Climate Spectator.
Giles Parkinson