The Rapidly Changing Dynamics of Household Energy Use
In 2025, 1 in 3 Australian houses has rooftop solar, accounting for more than 20 GW of solar generating capacity on the national grid. The success of our rooftop solar has seen the feed-in-tariff (FiT) received by households for sending their excess solar into the grid drastically reduced over the years to around 5c/kWh. This is due to the production and demand mismatch created by high solar production during the middle of the day when the demand for electricity in residential areas is the lowest, a phenomenon also known as the Solar Duck.
The easiest way to flatten the solar duck is to store the energy at source rather than flood the grid, and then use the stored energy in the evening to reduce peak demand. Whilst the NSW government has been aware of the benefits of peak demand reduction and its Peak Demand Reduction Scheme running has been running since 2022, the Australian Government’s “Cheaper Home Battery Program” promises to be the game changer for peak energy demand management across the country.
The shift in strategy required by households
Home batteries are fantastic energy management tools for households and businesses alike. However, it does require a mindset shift to make the most of your solar battery. It is important to remember that in the age of renewable energy a kWh of energy coming directly from your solar panels during a sunny day is not the same as a kWh of energy in the evening when it is drawn from the battery. Stored energy is a valuable commodity as there’s an investment required to buy the battery to store it in the first place. Using the cheaper energy to operate power-hungry appliances such as heaters, dishwashers, ovens, washing machines and dryers during the day will ensure that there is enough of the expensive energy left in the battery to power you through the night. This doesn’t mean that only people who can work from home can take advantage of the cheaper daytime energy. Most modern appliances are fitted with timers and with a bit of planning ahead of time, they can be run during the time energy is abundant and cheap. Alternatively, a larger battery will get through all your energy needs in the evening, but that flexibility requires a bigger upfront investment.
Solar Installers also need to update their playbook
Solar installers and technicians have played a critical role in the success of rooftop solar and will continue to be pivotal as the industry prepares for more grid connected batteries. However, the industry should update its playbooks to keep up with the changing dynamics of the electricity grid. There needs to be more focus on the size of the battery rather than the number of solar panels installed, to ensure maximum benefits and optimal return on investment for their customers. The flip side of the so-called oversupply or glut of cheap energy during the day means, there is an opportunity to buy cheap energy during the day if you have a battery. Sizing your panels to ensure there is enough over production on-site to fill the battery is sensible but not everyone has a big roof, and it should not be an essential input into the sizing guide for a solar + battery system. Likewise, households who have put off installing solar due to shading issues on their roof can now use their battery to soak up excess production from their neighbour’s roof when their own panels are under shade.
Choosing the right electricity retailer
As the ever-changing landscape of electricity retailers evolves, it is more important than ever to choose the right retailer and the right plan to match your electricity production and consumption pattern. Gone are the days of choosing a retailer simply from their fixed all-day rate or even their peak and off-peak rates. Electricity bills are getting more and more complex, and network charges often make up to 40% of the bill. There are daily connection fees, subscription fees, demand charges, and varying rates during the different season for example. To make things even more difficult, there is no standards on how electricity bills are presented to the customer. If you find all this overwhelming, get advice from an energy consultant but choosing the right plan is critical to keeping your bills as low as possible.
Conclusion: Changing the mindset for achieving Net Zero
The energy transition is not just a technological shift—it’s also a human one. The hegemony of fossil fuels has afforded us a lifestyle that is largely detached from the natural cycles and rhythms of our planet. The availability of cheap energy around the clock has given us the freedom to fall out of sync with day/night and seasonal weather patterns. Once renewable energy storage becomes ubiquitous, we can continue to enjoy those freedoms. However, during this transition period we are currently in, aligning our energy demands with the natural cycles as we once did would serve us well into the future. The pace of renewable energy adoption will only be as fast and sustainable as the consumers and the workforce behind it. By investing in educating consumers on how their everyday choices can help our transition and updating the skillsets of the renewable energy workforce we can accelerate our transition to Net-Zero.