To Disconnect or Not to Disconnect

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To disconnect or not? The new Australian conundrum.

In Australia’s rapidly changing energy market, Australians are asking the question, do I disconnect and run on battery and solar? Do I stay on the grid and trade like Gary? My house and car charging needs are currently being met by two solar arrays on my roof. However, my energy retailer has decided to increase the connection fee and I have paid my first power bill ($AU 50) in 15 years. I like the security of being on the grid, but at some point might have to consider the alternative: do I disconnect? Can it be done? Easily? What are the repercussions?

My technological wiz friend Francisco Shi has built his own power station in his shed and recently put me in touch with Anthony, who could answer my questions. Everyone’s situation is a little different and one should approach this decision cautiously and with as much background knowledge as possible.

Anthony and I had a great chat on the phone this morning and he shared his story with me. Anthony has gone fully off grid. He lives in a suburb not far from here, in a regular house. He is an electronics engineer. Although a little nervous at first, he is now confident and even advising friends who want to follow his example. He was keen to tell me that he does not run a related business or do work that should be left to the experts.

Anthony’s solar-plus-battery setup creates enough power to run his house and charge his electric MG 4. The system comprises approximately 14 kW of solar in 4 strings, a GoodWe 29.9kW 3 phase inverter, and two Tesla Model 3 LFP 60kWh batteries. He also owns 3 small flats and used to live in one of them. When converting them to solar, it was easier to have all the power bills in his name, charge the tenants a little more for rent, and pay the electricity bills himself. He says in this time of increasing power bills, it reduces the stress on the tenants.

We got to comparing the situation stateside with that in Australia. Anthony visited the USA in April and was “blown away” by the cost of domestic solar installation and the resulting slow uptake. He heard of quotes from US$20,000–40,000. These systems being quoted were comparable to systems in Australia costing AUD$6,000–10,000 (after rebates of course). “Where does the cost come from,” he muses, “It remains a mystery.”

“Why are you buying a Chinese car?,” his friends asked when he purchased the 2024 MG 4. He says that “car people” don’t understand. He was curious, and encouraged by Francisco, he went to the MG dealership to check it out. He tells me he wasn’t planning to buy a car, but it drove so well, he drove it home. I shared with him my view that it drives like a “Tesla lite.” He thought that was apt.

Anthony got interested in second-life energy storage through collaboration with Francisco. His block of small flats had 3 power connections — so 3 daily usage charges without actually using that much electricity from the grid. He already had some solar, so he upgraded to a hybrid inverter and installed used BYD car batteries. At first, he traded energy with Amber (energy retailer). But, over time it became less lucrative as more home batteries were installed and sold power into the grid at peak times.

So, Anthony reconsidered. The battery was keeping up with most of the load from the three flats, so he upgraded the inverter. Having 3 phase power meant he was to get an inverter large enough for the project — 29.9kW — as well as giving a convenient single point to share 4 PV strings and 2 batteries between 3 tenancies. He added a Tesla battery from a written off Model 3. He dissembled the 3, sold off the bits he could, which meant that the battery cost him less than AU$2,000. All three flats are now running off solar and batteries. “Now can buy a battery from wreckers without having to dissemble. More and more are becoming available as there are more BEV cars on the road and unfortunately more accidents,” he tells me.

At present, car wreckers are not so worried about making money on the EV batteries, Anthony says. They see them as a burden and a safety risk. Disinformation has done its job well. Wreckers are slowly learning how to handle the batteries and how valuable they are. Anthony expects that the market price will settle at about AU$1,000–2,000 per battery. A pretty good deal when you compare it to the cost of a Tesla Powerwall at AU$13,000 for 13.5 kWh. A Tesla Model 3 battery is about 4 times that capacity. I am not including cost of installation.

When Anthony was ready, he decided to stress test his system. He turned off the main switches but left connection in place for two months with close monitoring. After two months, he realised that he didn’t need the grid connection. But how to disconnect? Was it possible? Was it expensive? Turns out it was easy (for now). He rang up the two different retailers he was dealing with (Amber and AGL) and requested disconnection. Within a few days, technicians came out and removed the metering link. He received his last bill. That must have felt good. Almost a year later, and so far, no repercussions, just a better use of his self-generated power than selling it back to the grid.

That doesn’t mean that there weren’t some misgivings: “At one stage I thought I had done the wrong thing. But as connection fees keep going up, I know it was the right thing to do.” He has some concerns for the future. Will people be able to disconnect in the future? As more people disconnect, the power companies need their investment protected. Will consumers be forced to pay if a line runs past the house like water utilities? What about renters and apartment dwellers? Will they be faced with ever increasing daily usage fees?

And the reactions of friends, families, and neighbours? “Well, it definitely raises some eyebrows.” Is this a trend in Australia and what effect will people leaving the grid have on the overall market? Change is happening fast, innovators and those who are energy independent will prosper, and sadly those who are captive to the system will not. For those who can reduce their dependence on the grid, the future looks bright and affordable.