As more Australian households embrace solar power, a new and efficient way to maximize solar energy usage is emerging—peer-to-peer (P2P) energy sharing. Recent research from the University of South Australia and Deakin University reveals that P2P energy trading can not only help reduce grid dependence but also increase financial returns for solar owners. This guide explores how P2P energy sharing works and why it matters for Australian homes with solar energy.
1. What is Peer to Peer Energy Sharing
Peer to peer energy sharing, often abbreviated as P2P energy sharing, allows homeowners with solar panels to sell their excess electricity directly to their neighbors instead of feeding it back into the grid. Think of it as a localised energy marketplace where prosumers (those who both produce and consume energy) can trade power at mutually agreed prices. This model supports more efficient energy distribution, reduces transmission losses, and offers both buyers and sellers better rates compared to traditional grid sales.
2. Key Benefits of P2P Energy Sharing
The benefits of P2P energy sharing are multifaceted. For sellers, it offers a higher rate for exported electricity—since the typical feed-in tariff in Victoria is only around 5 cents per kWh, while the retail rate is about 28 cents. By selling at a mid-range price, solar owners earn more while neighbors save on their bills. Additionally, P2P trading alleviates stress on the grid, enhances community energy resilience, and promotes renewable energy usage at the local level.
3. Differences between P2G, P2G + Home Battery Storage, P2P, P2P + Home Battery Storage
Understanding the different energy management models is essential for optimising solar energy use:
(1) P2G (Peer-to-Grid): Excess solar energy is sold to the grid at a feed-in tariff.
(2) P2G + Home Battery Storage: Solar energy first charges a home storage battery. Any remaining energy is then exported to the grid.
(3) P2P (Peer-to-Peer): Surplus energy is sold directly to neighbouring households.
(4) P2P + Home Battery Storage: Energy is used for self-consumption and to charge a home battery storage system. Any additional power is shared with nearby homes via P2P.
Each model offers different levels of self-consumption, ROI, and grid support.
4. Main Conclusions
Key findings from the research highlight the advantages of combining P2P energy sharing with home battery storage:
- >> Neighbors involved in P2P energy trading reduced their grid electricity consumption by over 30%.
- >> A household with a 10kWh home battery storage system could achieve up to $4,929 in returns over 20 years when engaged in P2P.
- >> The shortest payback period was 12 years with a 7.5kWh battery under a P2P model.
These results underscore the economic and environmental potential of P2P energy sharing in Australia.
5. A Comparison Between Energy Storage and Self-Use Rates
The study compared self-consumption rates under different setups:
- • Without storage or P2P, only 14.6% of solar energy was self-consumed, with the rest sold to the grid.
- • Adding a 5kWh home energy storage system increased self-use to 22%, but neighbours didn’t benefit.
- • With P2P and a 5kWh battery, self-consumption reached nearly 38%, though less energy was available for sharing.
- • A 7.5kWh battery offered the best balance between self-use and energy sharing, resulting in faster payback.
Clearly, the size of the storage system influences both individual savings and community benefits.
6. Why is Home Battery Storage "Competing for Electricity"
While home battery storage systems enhance energy independence, they can also “compete” for electricity. When a battery is fully charged, less energy is available for P2P sharing. This creates a trade-off: larger batteries maximise self-use and long-term savings but reduce the amount of energy shared within the community. Smaller batteries, like the 7.5kWh system, enable quicker returns and support local energy sharing, benefiting both the household and the community.
7. New Ideas for the Future of Energy
In the future, integrating P2P energy sharing with other technologies—such as heat pumps or thermal storage—could further enhance the use of surplus solar energy. For Australian home solar systems, P2P represents not only a money-saving opportunity, but also a transformative approach to energy distribution. With the right policies and market mechanisms in place, P2P energy sharing has the potential to strengthen grid stability, increase renewable adoption, and create a more resilient and collaborative energy future.
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Post time: Aug-29-2025