Solar Choice has previously been publishing average solar PV system prices on a monthly basis since August 2012 in our Solar PV Price Index, which focused on household solar prices and which ultimately became the Residential Solar PV Price Index. In May of 2014, we added our Commercial Solar PV Price Index for larger system sizes, and late last year we launched our Home Battery Storage Price Index.
Although we have seen substantial changes to the database used to compile our index, average battery storage system prices have moved only slightly from June 2018. This seems to be an indication of the fixed hardware costs of battery storage systems (mainly the batteries themselves). Even as competition increases and more players come into the space offering battery products to households, it appears that big changes still need to happen ‘upstream’ in the manufacturing sector before consumers start seeing significantly lower battery prices.
That being said, battery storage system prices are already at the point where they make sense for households with a mix of motivations for getting a system installed. They make particularly good sense for households who install a battery bank alongside a brand new solar PV system (as per the ‘battery only’ pricing & analysis points in this article).
Important note: None of the prices & costs detailed below include the installation of a solar system. For current solar system prices, please visit our Current Solar System Prices page.
You can also instantly compare solar & battery quotes for your area by filling out the form on this page:
Average out-of-pocket battery installation prices – May 2019
The table below displays average, indicative battery installation prices from a range of installers around Australia, most of whom are active in the Solar Choice network. Prices include installation and GST.
Click to enlarge.
Not sure what battery size is right for your home? Check out our Quick Guide to Sizing Residential Solar & Battery Systems
IMPORTANT: Further info, assumptions & explanations (click to expand) ▼
Average, high & low battery installation prices – May 2019
There’s a lot of information in the table below. The footnotes explain what it all means.
Click to enlarge.
In this table we try to take a holistic approach to representing battery value. When comparing battery systems, people in the industry typically speak in terms of ‘dollars per kilowatt-hour’ ($/kWh) of storage capacity. This is an easy shortcut for discussing battery value (which is why we’ve included it), but doesn’t tell the full story as different batteries can tolerate different levels of use. For example, some batteries may only be charged/discharged (‘cycled’) once daily, while others can by cycled up to 2.7x per day (see: sonnen) without voiding the warranty.
To this end, we’ve also included figures on ‘energy throughput‘. The energy throughput metric gives you an idea of how much you’ll pay for each kWh of energy that you pass through the battery over its lifespan.
We’ve looked at two scenarios:
- If you cycle the battery as many times as its cycle life will allow per day (total cycle life), or
- If you cycle it only once per day (which is the more realistic scenario since most homes will charge their batteries only with the sun and not with the grid – c.f. tariff arbitrage).
As noted in the footnotes of the image above, these figures are highly indicative and are intended to serve as a means of comparison between battery products – they do not take into account battery degradation or efficiency.
The ‘Are we there yet?’ Meter(s)
Despite their growing popularity, the vast majority of the almost 2 million households with solar panels in Australia do not have batteries. As battery technology costs fall, battery storage will become more financially attractive and the number of battery installations will increase.
The ‘Are we there yet?’ Meter (the charts below) gauge the overall attractiveness of home battery storage in Australia – for both households considering a brand new solar-plus-storage system as well as those looking at a possible battery retrofit.
We look at the national ‘low end’ battery prices for moderately-sized (5kWh & 10kWh) battery systems (not a specific product, but more an amalgamation of various products that we’ve seen) and see how the estimated payback periods stack up against a theoretical ‘ideal’ payback period of 7 years; we see this 7 year mark as being a reasonable signifier of the battery market being where it needs to be to make sense for most households (the ‘there’ in ‘are we there yet?’).
IMPORTANT: More about battery prices & payback periods (click to expand) ▼
So is battery storage there yet?
1. Battery plus inverter – (Relevant for homes undertaking a full battery retrofit or a new solar & storage system with two inverters)
At $800-$900/kWh for systems on the ‘low’ end of the price spectrum, and with payback periods coming in at just under 10 years in the right combinations of circumstances, we’re close enough for lots of Australians to justify making an investment in a battery retrofit, but not yet in the territory of ‘mass appeal’.
Note that this month we updated the electricity price details we use in our modelling (see here), which has changed the results beyond just the battery price movements.
Also remember that this chart is meant to reflect the national situation as an amalgamated whole – your individual situation (including the state you live in, the amount you pay for electricity & the deal you get on a battery system) may be conducive to a shorter payback period, so we encourage you to look into it for yourself.
(You can get battery system pricing by requesting a Quote Comparison through our system. You can evaluate battery viability for your situation using our Solar & Battery Storage Sizing & Payback Estimator Tool.)
‘Full’ battery-plus-inverter system installation prices vs average payback periods across two battery size categories (5kWh and 10kWh). Note that the lowest price on a 5kWh battery size category offering is already below the $7,000 affordability threshold. Click to enlarge.
2. Batteries only – (Relevant for homes purchasing a brand new solar+storage system with hybrid/battery-ready inverter, or retrofitting batteries to a battery with a hybrid/battery-ready inverter)
Prices for ‘battery only’ installations did not change this month as significantly as they did for battery+inverter systems, but the situation remains the same as previous months: For anyone in the market for a brand new solar system, it may be worthwhile to tack on a small or medium-sized battery bank while you’re at it, judging by this month’s data. A 5kW solar system plus (roughly) 5kWh battery bank could cost as little as $10,000, depending on where you live and which products you go with. A system of this size at this price would enable most households to dramatically reduce their electricity bills, would deliver a reasonable return and would allow for a respectable degree of energy independence (possibly including some emergency blackout protection).
‘Battery only’ pricing vs payback periods across two battery size categories (5kWh and 10kWh). Note that payback periods are already below 10 years for two situations, while indicative installation prices are around or under the $7,000 mark for ‘low’ price 5kWh battery banks. Click to enlarge.
Battery storage price trends
The charts below track historic battery price trends since Solar Choice started publishing the Battery Storage Price Index.
About this data
Solar Choice’s Battery Storage Price Index is the companion to our Solar PV Price Index, which covers solar system installation prices around Australia. The aim of the Battery Storage Price Index is to assist shoppers in getting a grip on this relatively new market and assess whether batteries are worth their while.
Tables and charts included in this article were compiled using data from Solar Choice’s installer network database (as well as a couple of outside sources), which contains regularly-updated pricing and product details from over 100 solar & battery installation companies across Australia. Prices do not ordinarily incorporate meter installation fees or additional costs for difficult installations.
© 2019 Solar Choice Pty Ltd