Balcony solar could become legal in Australia after energy ministers met and agreed to explore its viability for local households.
The United Kingdom recently legalised plug-in solar systems, and New Zealand plans to do the same in the coming year. Germany is a current world leader, with estimates showing 1 in 10 households have a plug-in system installed.
Unfortunately, it’s currently illegal to plug in a balcony solar system in Australia, though technically the systems can be sold. There is a small group of Australian retailers selling kits that are marketed with a caveat to check local laws before connecting.
Repealing the ban would lift the gate barring solar for millions of Australians who rent or live in apartments. Plug-in solar doesn’t need a roof or an electrician, and the system can move with you.
How does balcony solar work?
Unlike rooftop solar systems that are most popular with owner-occupiers, balcony solar doesn’t require professional installation.
The systems typically incorporate one or two panels that connect to a microinverter and plug directly into a standard power point. A typical system generates around 800 watts.
When they’re plugged into the wall, the solar panels push generated electricity back through your homes wiring. That way, they power your appliances directly rather than drawing energy from the grid.
That means if you run your appliances like washing machines and dishwashers when the sun’s out, the panels automatically offset some of the power draw from the grid, lowering your costs.
Batteries are increasingly bundled with plug-in kits, meaning surplus energy generated through the day can be stored for use after dark. Some estimates say a battery can double the savings compared to a panel alone.
Balcony solar limitations
Plug-in solar systems are great, but they’re not a silver bullet. The systems don’t come close to the capacity a rooftop system provides; 800 watts can offset a fridge and a couple of appliances, but not a whole-home energy load.
Another consideration is aspect. In Australia, a north-facing balcony tends to produce much more power than south-facing ones, and if you’re boxed in by other buildings, power generation may drop further.
Panels typically hang vertically or diagonally off a railing, which reduces efficiency compared to rooftop panels. A vertical mounting setup on a north-facing balcony reduces generation by about 25 to 35 percent.
Regulatory considerations
The current problems Australia has to consider have already been addressed by other countries that have approved the technology.
There will need to be a technical standard that covers how plug-in systems should disconnect during a blackout. This is called “anti-islanding”, and it protects workers who need to fix the grid, as well as the hardware itself.
Additionally, the systems will have to fall under a new class of low-power exporters that determines the maximum wattage allowed. It remains to be seen whether exported power would attract a feed-in tariff, and whether balcony solar is eligible for rebate programs.
What does balcony solar cost?
Although they’re not legal to switch on yet, Aussie retailers already sell kits. Current pricing may provide a clue as to how these systems will be priced when they’re formally allowed.
One Sydney-based retailer provides a complete kit at 800 watts with four flexible panels, a microinverter, and an Aussie plug listed for $2299 with a current discount to $1839.20.
That’s a bit high. Broader market pricing puts 600-800 watt kits at between $700-1500 with mounting hardware.
Germany’s mature market is quite a bit cheaper. IKEA sells three systems: a dual-panel setup with 800 watt microinverter for €449, a dual-panel setup with battery storage starting at €1229 and up to €2379 for larger four-panel setups.
Once the category is legalised in Australia and more brands compete in the market, prices are likely to fall.
What are the savings like?
German figures based on an analysis of over 2700 users place the median payback at 4.5 years. Well-oriented systems with good sun coverage break even in 4.2 years, while very poorly oriented ones break even in 8.3 years.
Battery-equipped systems take a bit longer to pay off their total cost, with most sources citing between 6 and 8 years due to the extra upfront cost.
Industry advocate Solar Citizens suggests an Aussie panel-only setup could save $300 to $400 a year, with battery-equipped systems potentially doubling that.
Our take
Rooftop solar has been Australia’s go-to energy bill buster for over 10 years, but so far it’s only a viable option if you own the roof. Landlords have no incentive to provide tenants with rooftop solar, and renters have little reason to propose it when they can’t move with it.
However, renters and apartment dwellers make up around a third of the country. They’ve been shafted while homeowners banked STC rebates and benefited from reduced energy bills.
Balcony solar is an important step to closing the energy gap: it doesn’t need expensive installation costs or roof modification, and it can move with you when your lease ends.
This is a step Australia should have taken years ago, and it’s good to finally see progress on it.
For more about home solar, check out our guide.
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