A home battery fully installed for $2,880 sounds like a real bargain. But what do you get for that price?
A couple of weeks ago, we received a letter at home. A real letter; printed on paper, in an envelope and all. After pushing the spiders in the mailbox out of the way, I could see it was personally addressed to me. Well, it would have been if my name was “Information for – <SUBURB> Solar Resident”. Close enough.
It kicked off with “Dear Energy Account Holder”. I’m astounded the sender knew my middle names too.
Anyhow, the letter was telling me about a great deal the company had on a “latest technology” solar battery that featured dual safeguards to prevent overheating and unlimited access to intelligent control software. And I could get it fully installed by an accredited installer from just $2,880. To stress how good this deal is, the letter said basic solar batteries, without intelligent control or the latest safety features, can cost $10,000 or more.
The main body of the letter didn’t state how much useable capacity it offered, or any other solid details. But thanks to my new glasses, I could read the small print at the bottom that stated the price was for standard metropolitan installations only and the battery was an Alpha (ESS) Storion-SMILE-B3.
The fine print also stated “your eligibility and suitability for the advertised product will be assessed based on individual circumstances”.
The (Brief) Phone Call
A visit to the company’s website didn’t provide further information about this particular offer. I would have to *talk* to someone. So I called them. A polite fellow asked for my first name and state, which I provided. I said I had received a letter and just wanted to know how much useable capacity the battery in the $2,880 deal offered.
At this point, I was expecting him to try and elicit more personal details and launch into a spiel, dodging the question initially. To his credit, there was no hesitation in his reply – 2.9 kWh, but he quickly added they had other larger batteries available. I said I’d get back to him if I was interested and again to his credit, he didn’t switch into hard sell mode to try and keep me on the line.
About The Alpha ESS Storion-SMILE-B3
The SMILE-B3 has been around for quite a few years. It’s an all-in-one system that offers a power output of 3kW. While the system I was offered had 2.9kWh capacity (actually 2.8kW useable), it is modular and can be expanded to 17.2kWh (16.5 kWh useable). This unit does not have backup capabilities (some Alpha ESS models do), so in a blackout I wouldn’t have power supply from the battery to our home.
The SMILE-B3 has a 5-year product warranty and 10-year performance warranty.
Alpha ESS battery systems are generally among the cheapest in Australia. But according to SolarQuotes founder Finn Peacock:
“If price is your only criteria when buying a battery system, then they are an option. But in my opinion, a low, low price should never be your only criteria when buying a home battery.”
You can check out reviews of Alpha ESS home batteries here.
So, this particular battery offer provides little in the way of capacity, not a lot of output power and no blackout protection. Given the energy consumption profile of our household (which consists of just 2 people), I’m sure if I had hung around for the whole spiel that a larger battery with blackout capabilities would have been recommended.
Dropping in the mention that a basic solar battery can cost $10,000 or more in the letter was a little whiffy in my opinion, as it might suggest to the recipient this battery is comparable. This was also addressed in the small print, which stated: “Basic battery price is in reference to the general consumer perception of installing a battery system”.
I think the general consumer would be expecting more for $10k than what this system offers. For example, Sigenergy’s all-in-one Sigenstor 8kWh battery (7.8kWh useable) with 5kW power output, off-grid capabilities and other bells and buzzers retails for around $7,600 before installation. Even after a straightforward installation is factored in, that should be under $10,000.
Is This Bait And Switch Or Bait Advertising?
Bait-and-switch is where a company advertises goods at a very low price with the aim of substituting them with an inferior product, or pushing a customer towards a more expensive product. There is no intention of supplying a product at the price advertised, so bait and switch is fraudulent; plain and simple. In this case, I’m assuming if I was found to be “eligible” and “suitable” the product would be supplied.
Bait advertising is also the practice of promoting prices on products that are not available, or available only in very limited quantities. But according to the Australian Competition and Consumer Commission (ACCC), it is not misleading if the business is upfront and clear about the product being in short supply, or on sale for a limited time.
In this case, it was a limited-time offer, good for 19 days from the date of the letter; and again there is the “eligibility” and “suitability” out, which could be claimed is in the potential customer’s interest (and it is).
Basic Home Battery Understanding Crucial
This isn’t the first time we’ve spotted or been asked about these sorts of snail mail offers. The same companies have been sending them for years with a few tweaks here and there, and probably continue because the approach works.
Before outlaying thousands, even for what seems like a super-duper special, it’s important to understand if what you’re considering buying is really what you need or want – and is actually a good price. Don’t assume a salesperson will have your best interests at heart.
SolarQuotes’ home battery guide will tell you everything you need to know and what to ask before you get on the phone …or sign on the dotted line.
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