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Battery or no Battery - Please help me decide!

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  • uk1
    uk1 Posts: 1,862 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 12 November 2022 at 8:49PM
    My payback time if I hadn't had the battery would have been 4.7 years at current rates. With battery (which I did get) it's 6 years.
    Isn't the point of a battery to reduce that number (vs. increase it)?
    True.  But it seems to me that this simple view might conceal  more than it reveals.  The battery doesn’t reduce the return on the array - it is simply a lower return on that part of your portfolio of solar investment and reduces the overall return on a larger investment.  That in itself isn’t necessarily a bad decision.   I have several fixed interest savings accounts in my investment portfolio and I don’t refuse to buy a new one because the return in the new one is less than the other investments in my portfolio.

    In my mind if I have £5k to invest for a 10% return and I can invest and another £5k for a 7% return and the cash is available and makes more investment sense than other options I have, then I can see why it makes perfect rational sense to invest in both and not refuse to do the second because of the better rate you got from the first which might not now be available.  You seem to be saying that because the second investment reduces my return on my portfolio, I shouldn’t do it which to me seems daft.  Also because prices per unit are only going to go up then the battery return is likely going to increase faster than it does today and buying now means you are getting the return earlier than if you simply wait for no better reason.   The solar array is in practice fixed, but you can throw cash at buying more battery as the electricity unit increases in price within the common sense of not buying more than you need.

    Your basic approach that investment should be rational I fully agree with but I don’t agree with your over simplistic philosophical approach which ignores the other factors I suggest.  Battery might not be as good as the PV array but it may still be better than not doing it compared with what else you might do with that cash. You should consider them as separate investments although you might buy both at the same time.  

    Simplistic arguments can be toxic but can be a danger to making sound and rational decisions. 
  • Screwdriva
    Screwdriva Posts: 1,528 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 13 November 2022 at 12:53AM
    uk1 said:
    Isn't the point of a battery to reduce that number (vs. increase it)?
    True.  But it seems to me that this simple view might conceal  more than it reveals.  The battery doesn’t reduce the return on the array - it is simply a lower return on that part of your portfolio of solar investment and reduces the overall return on a larger investment.  That in itself isn’t necessarily a bad decision.   I have several fixed interest savings accounts in my investment portfolio and I don’t refuse to buy a new one because the return in the new one is less than the other investments in my portfolio.

    In my mind if I have £5k to invest for a 10% return and I can invest and another £5k for a 7% return and the cash is available and makes more investment sense than other options I have, then I can see why it makes perfect rational sense to invest in both and not refuse to do the second because of the better rate you got from the first which might not now be available.  You seem to be saying that because the second investment reduces my return on my portfolio, I shouldn’t do it which to me seems daft.  Also because prices per unit are only going to go up then the battery return is likely going to increase faster than it does today and buying now means you are getting the return earlier than if you simply wait for no better reason.   The solar array is in practice fixed, but you can throw cash at buying more battery as the electricity unit increases in price within the common sense of not buying more than you need.

    Your basic approach that investment should be rational I fully agree with but I don’t agree with your over simplistic philosophical approach which ignores the other factors I suggest.  Battery might not be as good as the PV array but it may still be better than not doing it compared with what else you might do with that cash. You should consider them as separate investments although you might buy both at the same time.  

    Simplistic arguments can be toxic but can be a danger to making sound and rational decisions. 
    Ah but therein lies your flawed assumption. You assume that others have the £5K+ of liquidity readily available to spend on an entirely optional, and in many use cases, unnecessary piece of kit. In doing so, you ignore the opportunity cost inherent in such a purchase. As an example, spending £5K on insulation will likely save the average household more than a battery. (And that doesn't factor in the replacement the battery atleast once during the life of the system).

    As you rightly shared, simplistic arguments can be toxic but can be a danger to making sound and rational decisions.

    1. The most important imo, is how much electric energy do you use annually, if its under say 3500kwh, then I'd say there is no point, as the amount you can offset to the battery, bearing in mind you cant offset everything will not make it worthwhile. The caveat here being recent price increases to electricity may make it more borderline than straight no.
    Conversely if you use over 6000kwh, batteries will almost certainly save you money unless you undertake a task to deliberately not have them save you money just to make some point on the Internet.
    Entirely valid and should be factored into any calculation. The majority of PV households in the UK are < 4kW/ 3.68 systems. 
    -  10 x 400w LG + 6 x 550W SHARP BiFacial Panels + SE 3680 HD Wave Inverter + SE Optimizers. SE London.
    -  Triple aspect. (22% ENE/ 33% SSE/ 45% WSW)
    -  Viessmann 200-W on Advanced Weather Comp. (the most efficient gas boiler sold)

    Feel free to DM me if I can help with any energy saving!
  • uk1
    uk1 Posts: 1,862 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 13 November 2022 at 3:05AM
    uk1 said:
    Isn't the point of a battery to reduce that number (vs. increase it)?
    True.  But it seems to me that this simple view might conceal  more than it reveals.  The battery doesn’t reduce the return on the array - it is simply a lower return on that part of your portfolio of solar investment and reduces the overall return on a larger investment.  That in itself isn’t necessarily a bad decision.   I have several fixed interest savings accounts in my investment portfolio and I don’t refuse to buy a new one because the return in the new one is less than the other investments in my portfolio.

    In my mind if I have £5k to invest for a 10% return and I can invest and another £5k for a 7% return and the cash is available and makes more investment sense than other options I have, then I can see why it makes perfect rational sense to invest in both and not refuse to do the second because of the better rate you got from the first which might not now be available.  You seem to be saying that because the second investment reduces my return on my portfolio, I shouldn’t do it which to me seems daft.  Also because prices per unit are only going to go up then the battery return is likely going to increase faster than it does today and buying now means you are getting the return earlier than if you simply wait for no better reason.   The solar array is in practice fixed, but you can throw cash at buying more battery as the electricity unit increases in price within the common sense of not buying more than you need.

    Your basic approach that investment should be rational I fully agree with but I don’t agree with your over simplistic philosophical approach which ignores the other factors I suggest.  Battery might not be as good as the PV array but it may still be better than not doing it compared with what else you might do with that cash. You should consider them as separate investments although you might buy both at the same time.  

    Simplistic arguments can be toxic but can be a danger to making sound and rational decisions. 
    Ah but therein lies your flawed assumption. You assume that others have the £5K+ of liquidity readily available to spend on an entirely optional, and in many use cases, unnecessary piece of kit. In doing so, you ignore the opportunity cost inherent in such a purchase. As an example, spending £5K on insulation will likely save the average household more than a battery. (And that doesn't factor in the replacement the battery atleast once during the life of the system).

    As you rightly shared, simplistic arguments can be toxic but can be a danger to making sound and rational decisions.


    You are clearly wrong on both counts. I made no such “flawed assumption”.

    1.  You were rubbishing the choice of having batteries for someone who presumably could resource the purchase of the batteries.  Why was it wrong to assume that someone contemplating purchasing a battery had the resources to buy it?!?

    2.  I was responding to your specific comment that adding a battery reduced the return on the total investment and not whether roof insulation is better.  Roof insulation should of course be a greater priority than investing in batteries. My point was a simple one and that was just because the return on the battery might be less attractive than the return on the PV array that in itself is not a good reason to not consider the investment on it’s own merits and that there is an alternative way of considering the investment than yours as extremely well illustrated in Solachaser’s post. 
  • Boffinboy24
    Boffinboy24 Posts: 65 Forumite
    Second Anniversary 10 Posts Name Dropper
    edited 13 November 2022 at 9:07AM
    Whilst there is disagreement on the thread, overall the point is that it is not simple to decide.

    Before spending the money you need to consider your own usage (higher usage “helps”), uncertainties around prices of the various tariffs that make up the likely savings (if important to you), other factors such as convenience of not having to time appliance use with solar, and the fun of tinkering. Battery size makes a difference too. A smaller battery fully utilised every day may be a better choice than a large one that isn’t. 

    When considering financials - especially if you don’t have cash going spare - you need to critically look at the opportunity cost, ie what if you put the 5k in a savings account (which reduces the relative cost benefit of the battery), pension, S&S ISA, something like Ripple etc. based on your own attitude to risk.

    For most people, I believe the risk adjusted benefit of the battery will be borderline at very best (especially as many arguments rely on certain tariffs and pricing assumptions that create uncertainty). That said, for my personal circumstances I have finally ordered one, and part of that is not because it makes the best “investment” case (only a bit better than cash savings over predicted lifecycle) but because of some of the other reasons. 

    I suspect few people have modelled their battery purchase to the degree a business would to inform the decision by looking at a Net Present Value, Return On Invested Capital, or whatever assessment you pick. That’s fine, as it’s not a business decision and most of us have other non financial interest in it (myself included). But if the OPs personal reason for wanting one is solely financial then you need to do a proper analysis of your own circumstances. 
  • ggmf said:
    Hmm, if your main aim is payback then at the moment everything screams no to a battery.


    Disagree, define ROI or 'payback'? As above my ROI on our 'whole' system is 5 years for electricity only, and this will reduce, when further increases in unit prices are applied. This then reduces again to approx. 4 years or less currently if I include savings due to reduction in gas usage and SEG payments are taken into account.

    Everybody's utilisation and requirements will be different, need to look at the while installation.
    Yes I ran my calcs again and got 6 years so as long as rates stay high then a battery makes sense but only if you can afford it as its still a big outlay.

    For it boils down to the fact I wanted a battery, if I had the choice again I'd buy one again.
    It wasn't a loss maker when I bought it and it's even less so now. 

    And I get to poor over stats and feel a big smug at not paying the energy company so much money.
    4.3kwp JA panels, Huawei 3.68kw Hybrid inverter, Huawei 10kw Lunar 2000 battery, Myenergi eddi, South facing array with a 15 degree roof pitch, winter shade.
  • To be fair on @Screwdriva, whilst I have often been infuriated by his anti-China view on components, I have started to come to the same conclusion. But maybe not for the same reason.

    Unlike him, I have seen little evidence that Chinese solar components are inferior in terms of quality and reliability or are even less well supported. However, the ethical considerations of our reliance on China are beginning to weigh on me a bit more. Although, I am reluctant to discuss it, despite "ethical" being in the board title.

    Anyway, my general sentiment is that, Solar as with life, is not black and white and there can be more than one right answer. To misquote Orwell  "Solar good, Solar and Battery better!" (Or maybe not).




  • uk1
    uk1 Posts: 1,862 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I have absolutely no issue with what anyone says and I share your agreement concerning caution with respect to trade with China.  Not on the quality issues per se but I’m particularly concerned about using anything from China that might give China unforeseen technical access to something we do and rely on eg phones, power, internet etc.  The frailty of some is that when they decide that they do not like what another poster has said then they cannot agree with anything they say. They will never progress or learn because they already know everything. 

    I am for reasons that no one else need trust, have an unusual level of trust that I place on instinct and intuition, and I find myself thinking that where we are today is not where we are more likely be heading and the way forward might be completely different from what we see today. We spend our time discussing and trying to understand choices we confront today but the trajectory might be different and we should consider them when deciding what path to take today. 

    It seems to me that with a finite level of UK electricity production that cannot be increased rapidly and a rapidly increasing demand of  24 hour electricity demand that varies considerably over 24 hours that the Octopus approach  of incentivising and encouraging  load to move away from high demand day hours (which could be sold at a premium unit rate) to low demand night hours (which could be reduce in price or even given for free if it releases daytime units that can be sold at extortionate daytime rates) is something that can be achieved extremely rapidly.  

    However solar kwh panel improvement seems slow compared to the increase in this demand - but battery although expensive and still not yet as reliable as it need be is readily available.  So I can see a situation where battery could be an increasing share of the overall investment because it is an attractive way to rapidly shift load from day to night to store extremely cheap power.  I can also see an argument where delaying installation of PV arrays until they are meatier in generating self-sufficiency  but battery taking up more of the load because you can do it quickly. 

    To head off any anger, I’m not saying this view is “right” it just seems to me to be the more likely trajectory of the different ones that we could choose from. :)
  •  Clearly, cost is a factor for many. Just because you can afford a suboptimal investment, as you highlighted, doesn't mean it makes sense for others. 

    This is the second time you've chimed in about PV/ battery returns (based on your ownership experience I presume).  Next time, do us both a favour and resist the urge to make it a third when you see my posts. 
      I think most people on here are posting from their own experience and are not being prescriptive, so I think you may be misreading some of the posts on here and drawing the wrong conclusion.

    There seems to be plenty on here with an accounting background and certainly better spreadsheet skills than I have but in any CB analysis there is still an element of value judgement and what weighting you put on various factors. Some people here clearly give a value to the element of autonomy or environmental considerations or peace of mind regarding future bills and other such aspects more difficult to quantify.

    For what it's worth batteries wouldn't make sense for me. It's a fairly safe assumption on here that the alternative of roof insulation (or whatever) has already been done, although it's no doubt worth mentioning occasionally that it's something that should be fairly high up on people's priorities.

    In my own case as a single low user batteries don't make sense much as I'd like to have one for some of the more emotionally based reasons mentioned above. It's seems even less rational when I have around 50kWh of battery parked on my drive. Perhaps I'll splash out on a V2L cable. Will there be a return? Possibly not, without a deal of faff, but how do you cost the benefit of a power source during a blackout? The cost of your freezer contents, for example?

    The best benefit for myself having a battery would be, without going into the full investment of a myenergi controller, to act as a buffer when I use the granny charger. The odd cloud wandering past the sun would no longer be an issue, and I could extend the amount of granny charging I do without risking paying intermittently full rate electricity. I'm not sure how to cost that though..


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