As energy costs rise and feed-in tariffs fall, solar batteries are becoming a smart upgrade for Australian homes. This definitive 2025 guide will help you understand solar battery storage—how it works, what it costs, how much it saves, and which options are best for you.
Whether you’re retrofitting a battery to an existing solar setup or installing a completely new solar and battery system, this guide has everything you need to make an informed choice.
How Do Solar Batteries Work?
Solar batteries when installed in your home store excess solar electricity for later use—usually at night, during peak electricity prices, or in blackouts.
Basic Home Solar & Battery System Operation:
- Your solar panels make electricity during the day
- Your home uses that electricity first
- Surplus energy charges the battery.
- The battery powers your home when solar isn’t available (like at night or during outages)
Why it matters: A solar battery increases solar self-consumption and lowers your reliance on the grid electricity.
Compare solar and battery quotes online now.
What Is a Solar Battery Storage System?
Home solar battery storage systems combine rooftop solar panels with a battery unit, allowing you to store solar energy for use when the sun isn’t shining or when you don’t want to use grid electricity.
Components:
- Solar panels
- Battery (e.g., Tesla Powerwall, BYD)
- Inverter (hybrid or separate)
- Monitoring system (e.g. App or Webportal)
Common Use Cases:
- Reduce evening electricity bills
- Maintain power during blackouts
- Optimise time-of-use tariffs
Is Solar Battery Storage Safe in 2025?
Safety is a common concern for homeowners considering a battery storage system. The good news? Solar batteries are extremely safe when installed correctly.
Modern home battery systems now feature:
- Safer lithium chemistries like LiFePO₄ (used in most new batteries)
- Advanced Battery Management Systems (BMS) to prevent overheating
- Compliance with strict AS/NZS 5139 installation standards
While there have been recalls in the past (notably some LG and SolaX models from 2017–2018), these incidents are rare. Over 200,000 home battery systems have been installed in Australia with only a small number of safety issues reported by the ACCC.
To reduce risk, always:
- Choose a reputable battery brand with Australian support
- Use a CEC-accredited installer
- Keep the area around your battery clean, dry, and ventilated
Need a deeper dive into fire risks, safety ratings, insurance, and emergency prep? Read our full Solar Battery Safety Guide for Homeowners.
Why Invest in Solar Battery Storage?
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A home solar battery gives you more control over your energy use, power bills, and backup protection.
- Save on electricity costs
Use stored solar energy during expensive peak periods (up to $0.70/kWh). - Stay powered during blackouts
Many battery systems provide backup power to keep your home running. - Use more of your solar energy
Reduce grid reliance and avoid low feed-in tariffs by storing your excess solar. - Optimise Time-of-Use electricity plans
Charge your battery with cheaper off-peak power, use it when rates are high. - Lower your carbon footprint
Maximise your clean energy usage and reduce emissions. - Earn with Virtual Power Plants (VPPs)
Join a VPP to get credits for sharing stored energy with the grid.
Solar Battery Brands in Australia (2025)
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This below table is just a place holder with the “simplified version” as an example:
| Brand | Battery Type | Capacity | Cost per kWh | Warranty | Country of Origin |
| Tesla | NMC | 13.5 kWh | $1,129 | 10 years | USA |
| Alpha ESS | LiFePO4 | 10.1 kWh | $1,025 | 10 years | China |
| Sigenergy | LiFePO4 | 16 kWh | $999 | 10 years | China |
| Enphase | LiFePO4 | 10 kWh | $1,497 | 15 years | USA |
| BYD | LiFePO4 | 13.8 kWh | $1,002 | 10 years | China |
How to Choose the Right Solar Battery Size
Battery size depends on your daily power usage and your desired level of energy independence or blackout protection. Here’s a general guide:
| Household Size | Daily Energy Use | Recommended Battery Size |
| 1–2 people | 10–15 kWh | 5–7 kWh |
| 3–4 people | 15–25 kWh | 8–13 kWh |
| 5+ people | 25+ kWh | 13–18+ kWh |
Visit our Battery Size Calculator to get a tailored recommendation based on your household usage and energy goals.
Solar Battery Costs in Australia (2025)
Solar battery prices have come down a lot in recent years, and in 2025, you can save even more thanks to government Federal & State rebates and incentives.
However, the total cost can still vary depending on your setup. If you’re adding a battery to an existing solar system, it might be cheaper than if you need to install a new inverter as well.
Here’s a more accurate look at solar battery installation costs we’re seeing right now across the Solar Choice installer network:
| Battery Size | Battery Only Price* | Battery + Inverter/Charger** |
| 3 kWh | $4,140 | $4,950 |
| 8 kWh | $9,040 | $10,240 |
| 13 kWh | $13,650 | $15,080 |
| 18 kWh | $17,820 | $19,260 |
*Includes installation for a battery-only setup using an existing hybrid inverter
**Includes cost of an additional inverter required for DC-coupled systems
For brand-level cost breakdowns, visit our Solar Battery Price Index for a more detailed look.
Is a Solar Battery Worth It in 2025?
We’ve been tracking if solar batteries are worth it since 2017. Thanks to recent federal and state rebates & incentives compounding with the continued falling costs, are solar batteries worth it in 2025? Thanks to rebates and cost drops, many households are finding they are for many homes.
Example Scenario:
- System Setup: 6.6kW solar system + 13.5kWh battery
- Installed Cost (Before Rebate): ~$14,175
- Federal Rebate (approx. $350/kWh usable): -$4,725
- Net Installed Cost (After Federal Rebate): ~$9,450
- Estimated Annual Savings: ~$1,300–$1,800 depending on tariff & usage
- Estimated Battery Payback Period: 5–7 years (for homes with >15kWh daily usage on Time-of-Use tariffs)
- NSW Residents: If eligible, you may be able to stack an additional $1,600–$2,800 rebate, reducing your upfront cost even further and potentially lowering your payback to under 5 years.
Try our Solar Battery Payback Calculator to estimate your return
Compare solar and battery quotes online now.
Types of Solar Battery Technology
| Battery Type | Safety | Lifespan | Cost | Example Brands | Best For |
| Lithium Iron Phosphate(LiFePO4) | High | 10–15 years | Medium | Alpha ESS, BYD | Long-term safety and stability |
| Lithium-ion (NMC) | Medium | 8–12 years | Medium | Tesla, Enphase | High density, space-saving installs |
| Lithium Titanate(LTO) | Very High | 15–20+ years | High | Zenaji | Commercial & high-cycle residential use |
| Zinc-Bromide | High | 10–15 years | High | Redflow | Deep discharge, off-grid or low-cycling households |
| Solid-State | Very High | TBD | TBD | Not yet mainstream | Next-gen safety and compact setups (emerging) |
Solid-state batteries offer high potential for safety and energy density but are not yet widely available in Australia. According to research by ARENA, solid-state battery technology is showing promise in improving safety and energy density
AC-Coupled vs DC-Coupled Solar Batteries
Learn more about battery-ready solar systems and how solar battery installation work.
| Feature | AC-Coupled | DC-Coupled |
| Best For | Existing systems | New solar installations |
| Inverter Setup | Built-in inverter | Requires hybrid inverter |
| Efficiency | Slightly lower | Slightly higher |
| Example | Tesla Powerwall | Sungrow Hybrid + Battery |
Learn more in our indepth guide to comparing AC vs DC-coupled solar system setups
Battery Rebates & Incentives in 2025
Federal Rebate
The federal rebate is part of the Small-scale Renewable Energy Scheme (SRES), overseen by the Clean Energy Regulator.
- ~$350 per kWh (up to 30% off)
- Applies to systems between 5kWh and 50kWh
See our Guide To Federal Battery Rebates In Australia
State Programs
| State | Incentive Type | Details |
| NSW | Rebate | $1,600–$2,800 upfront rebate via Empowering Homes and Peak Demand Reduction programs |
| VIC | Loan | Up to $8,800 interest-free loan through Solar Victoria |
| WA | Rebate + Loan | $7,500 rebate + $10,000 interest-free loan under the WA Home Battery Scheme (limited to select postcodes) |
| ACT | Interest-Free Loan | Up to $15,000 interest-free loan via the Sustainable Household Scheme |
| NT | Rebate | Up to $6,000 rebate for solar and battery systems through the Home and Business Battery Scheme |
Check your comprehensive guide to all Australian Solar & Battery Rebates
What Is a Virtual Power Plant (VPP)?
A Virtual Power Plant (VPP) is a network of home solar batteries, solar panels, and other energy devices that work together to support the electricity grid—kind of like a team of mini power stations.
Instead of one big power plant generating energy, a VPP connects thousands of homes with solar and battery systems and uses smart software to:
- Share extra power with the grid when it’s needed
- Help prevent blackouts
- Let you earn money or credits for the energy you contribute
Compare Australian providers in our Top VPP Comparison Guide
Do Solar Batteries Provide Power In A Blackout?
Not all batteries are capable of providing power to your home during a power outage.
Often a gateway or an additional piece of hardware will be required for your battery to operate in ‘island mode’ and power your house when the grid goes down. It is important to specify this requirement to your installer to ensure they quote a solution with blackout protection included.
| Battery Brand | Blackout Protection | Additional Hardware Required? | Switchover Time |
| Tesla Powerwall 2 & 3 | Yes | Yes – requires the Tesla Backup Gateway 2 device | <1 second |
| Sigenergy SigenStor | Yes | Yes – requires the Sigen Energy Gateway (backup box) | <20 milliseconds (UPS-level) |
| BYD Battery-Box (e.g., Premium HVS/HVM) | Yes | Yes – needs an automatic transfer switch or backup controller | Approximately 40–90 seconds depending on inverter |
| Alpha ESS Smile Series | Yes | No extra hardware (built-in hybrid inverter and internal transfer). | ~20 milliseconds |
| Sungrow (e.g., SH5.0RS with SBR batteries) | Yes | No extra hardware (bypass switch included in inverter) | ~20 milliseconds |
Pro Tip: Ask your installer to connect the blackout protection to an ‘emergency circuit’ with only your critical appliances attached to increase the time your battery can provide power.
Time of Use Tariffs Provide More Battery Savings Than Flate Rate
One of the biggest factors in determining your battery payback is what kind of electricity tariff you’re on.
| Tariff Type | Description | Best Battery Strategy | Example Savings |
| Flat Rate | You pay the same price all day (e.g. $0.35/kWh) | Charge with solar and use at night | $500–$900/year |
| Time-of-Use | Rates vary (e.g. cheap midday, expensive 4–9pm) | Charge with solar + cheap off-peak, use at peak | $1,200–$2,400/year |
| Wholesale / Dynamic | Price updates every 30 mins (e.g. Amber Electric) | Sell power when prices are high | $2,000+/year (advanced users) |
Time of Use plans are ideal for solar batteries as you can configure you battery to coverage your energy usage when you are paying the highest (peak) rates. This means that any leftover energy you need to buy should be at lower off peak or shoulder rates.
Pro tip: Some VPPs (like Tesla Energy Plan) only accept certain tariff types. Always check this before installation.
Where Should You Install a Solar Battery in Your Home?
Short answer: You won’t choose the exact location, but you should understand the options.
Battery Location Basics (Compliant with AS/NZS 5139)
| Location Type | Allowed? | Notes |
| Garage | ✅ Yes | Common location. May need a bollard (for car impact protection) |
| Outdoor Wall | ✅ Yes | Must meet IP rating for weatherproofing (e.g., IP65) |
| Laundry | ⚠️ Only if fire-rated | Not on wall shared with a habitable room unless protected |
| Dining Room / Living Room | ❌ No | Against Australian Standards |
| Under Bedroom / Floor | ❌ No | Fire risk restrictions apply |
| Shed / External Cabinet | ✅ Yes | Ideal for large systems with ventilation |
Tips to Ask Your Installer:
- “Will this location meet AS/NZ5139 clearance requirements?”
- “Is extra fire shielding or bollard protection needed?”
- “Will the battery be exposed to direct sun or weather?”
Your installer must be CEC-accredited and follow local DNSP (grid provider) guidelines, especially if you already have rooftop solar. Be sure to use Solarchoice pre-vetted network of local installers near you.
Quick Checklist: Is a Solar Battery Right for You?
Compare solar and battery quotes online now.
How long do solar batteries last?
Can I add a battery to my current solar system?
Are solar batteries safe?
What’s the best solar battery brand in Australia?
