LG Chem pushes Australian battery storage prices further down the curve
Thursday, 23 Jul 2015

The competition in the nascent battery storage market continues to intensify, with South Korean appliance manufacturers LG Chem launching a new 6.4kWh battery storage system that approaches the key $1,000/kWh mark.

Source: http://onestepoffthegrid.com.au/lg-chem-pushes-australian-battery-storage-prices-further-down-the-curve/
LG Chem pushes Australian battery storage prices further down the curve

The new battery storage system is being made available to consumers in the next few weeks, and follows the release into the Australian market of AU Optronics, promoted by AGL Energy, and rival offerings from Samsung,  Enphase, Panasonic and SMA.

But the LG Chem system is already bringing costs down at the top end of the market – matching the assumed pricing of the much vaunted Tesla Powerwall, with the advantage that it is actually in the market.

LG’s Chem Residential Energy Storage Unit (RESU) 6.4kWhr battery is similar in size, shape and capacity, to the Tesla offering, and is expected to last 15 to 20 years, or at least 6,000 cycles. It is being offered in Australia at $A6,898. The first supplies have arrived in Australia via wholesalers Solar Juice.

LG Chem, in its blurb to installers, says it expect the units to have a retail price of a bit more than $1000 per kW/h ex GST plus inverter solution. “The cost curve will come down over time,” it says.

The units can be upgraded to a total of 12.8kWh with 3.2kWh expansion units. LG Chem says these are expected to be slightly more than 50% of the RESU 6.4Ex price.

Jeff Wehl, from Brisbane-based Ecoelectric, says the technology will easily defy grid costs with a typical cost per kWhr of around 15 cents over 15 years.

He says that a combined package of 5kW of solar panels (Trina), a 6.4kWh LG Chem System, and the associated SMA inverter and home energy mamagement systems will be offered for around $24,000. That equates to electricity at 18c/kWh – well below grid costs (although not including the network connection).

It’s an offering that would suit large power consumers (say 25kWh a day). But the end result is they will use all the power the solar system produces and import as little as 1kWh a day.

“The big difference for Australia is that LG’s unit is available now and it’s certification for use with many inverters is known,” Wehl says of the competition with Tesla and other manufacturers.

“Tesla’s (offering) is sold out until at least mid-2016 and many questions remain about how it can be effectively integrated with grid and renewable energy sources.”

Wehl says the LG Chem RESU can be used as both a hybrid and or off-grid solution and allows for high output with extremely long life spans, which are backed by trusted warranties.

Markus Lambert, from LG Solar, says  another important development with the advent of cost effective battery storage market is the rising efficiency in solar modules.

Until recently, the standard module would have a capacity of 250 or 270 watts. This is now increase to 320 watts and 350 watts and will soon get to 400watts.

That means that while most Australian households had natural size limitations of around 5kW for their arrays, the potential was there to go far beyond that.

“There is value to the roof space.” That will be critical in  adding battery storage to account for much of the house’s electricity needs, and to ensure the solar system can meet the demands of a plug in electric vehicle.

“EVs only make sense if driven by renewables,” he says. “So people will look at solar and storage for electric cars. So the rooftop now has to provide for consumption in day, and at night, and for the electric car,

And while he says the battery storage market is still in its “early adopter” phase and the pricing is not ready for the mass market, ther is room for large reductions in price as volumes drive competition and efficiencies.

More Articles

Greens want to extend Renewable Energy Target

Greens want to extend Renewable Energy Target

25 Tuesday 2018
The Victorian Government promises half-price solar batteries if re-elected

The Victorian Government promises half-price solar batteries if re-elected

18 Tuesday 2018
Solar energy is set to replace gas and save Australian industry

Solar energy is set to replace gas and save Australian industry

04 Tuesday 2018
Printed solar cells may be the way of the future!

Printed solar cells may be the way of the future!

30 Thursday 2018
The anti-RET Morrison government threatens the solar installation rebate

The anti-RET Morrison government threatens the solar installation rebate

29 Wednesday 2018
Victorian energy scheme for half-price solar panels now active!

Victorian energy scheme for half-price solar panels now active!

23 Thursday 2018
Australian businesses turn to solar in a bid to cut on energy costs!

Australian businesses turn to solar in a bid to cut on energy costs!

16 Thursday 2018
Poll reveals Australians fear coal and wants renewable energy to cut electricity prices

Poll reveals Australians fear coal and wants renewable energy to cut electricity prices

09 Thursday 2018
AICA Energy Sydney Raffle Promo - 1.5kW Solar PV System - Terms and Conditions

AICA Energy Sydney Raffle Promo - 1.5kW Solar PV System - Terms and Conditions

03 Friday 2018
Energy Minister wants solar subsidies scrapped

Energy Minister wants solar subsidies scrapped

02 Thursday 2018
Australia says solar energy quality is more important than price!

Australia says solar energy quality is more important than price!

24 Tuesday 2018
How do solar panels actually work?

How do solar panels actually work?

24 Tuesday 2018
Renewable energy will replace old coal plants at the lowest cost!

Renewable energy will replace old coal plants at the lowest cost!

20 Friday 2018
One in five rooftop solar systems are deficient due to dodgy operators!

One in five rooftop solar systems are deficient due to dodgy operators!

26 Tuesday 2018
7 steps to reducing your energy bills

7 steps to reducing your energy bills

21 Thursday 2018
AICA Engineering awarded the Energy Efficiency Project of the Year Award for 2018

AICA Engineering awarded the Energy Efficiency Project of the Year Award for 2018

19 Tuesday 2018
Do you want to know how to better use your energy?

Do you want to know how to better use your energy?

08 Friday 2018
Solar energy may be the answer to solving Australia’s water shortage

Solar energy may be the answer to solving Australia’s water shortage

01 Friday 2018
WA homeowners are set to expect a 7% energy bill rise from July 1

WA homeowners are set to expect a 7% energy bill rise from July 1

30 Wednesday 2018
Almost half of Australian businesses have made the switch to solar

Almost half of Australian businesses have made the switch to solar

29 Tuesday 2018
As installation costs remain high why not invest in a more reliable solar system?

As installation costs remain high why not invest in a more reliable solar system?

22 Tuesday 2018
WA power plants are being shut off due to huge solar energy output

WA power plants are being shut off due to huge solar energy output

21 Monday 2018
Renters happy to pay more for properties with solar energy

Renters happy to pay more for properties with solar energy

16 Wednesday 2018
Australia could become the world’s first 100% renewable energy powered continent

Australia could become the world’s first 100% renewable energy powered continent

16 Wednesday 2018
Solar energy rebate changes could create big problems for old solar investors

Solar energy rebate changes could create big problems for old solar investors

11 Friday 2018

Request for Free Consultation