Home batteries

Why buy a home battery?

Here are the main reasons for installing a home battery.

The Environment

Rooftop solar has been the community’s frontline response to climate change – and it’s made a real difference. But now, the challenge has shifted.

We are generating more solar energy than ever, yet much of it goes unused. Why? Because the grid can’t store it, and we still rely on fossil fuels to power peak evening and early morning hours.

That’s where home batteries play a role. By storing your own energy, you can power your home day and night – cutting your reliance on fossil fuels and easing pressure on the grid. It’s a powerful step toward real energy independence and a cleaner future

Financial gain

Currently, the average break even time period is approximately 9 to 10 years. However, thanks to several emerging trends, the return on investment is improving:

  • Rebates are making home batteries more affordable than ever.
  • With export limits and negative feed-in tariffs becoming more common, storing your excess solar power in a battery helps you keep your energy, not give it away
  • Electricity tariffs, especially in peak times, are expected to rise sharply. A home battery can help you avoid peak rates and stay in control of your energy use and costs.

Blackout protection

Blackouts are becoming more frequent in the Bouddi area. The most recent major outage lasted 36 hours. With a home battery and backup system, you can avoid most of these problems and keep life running smoothly.

Photo Chris Ried Unsplash

How do they work?

Home batteries can be charged using excess solar power – the energy your solar panels produce after your immediate home needs are met.They can also be charged with electricity from the grid, usually purchased in the middle-of-the-day when rates are low. This electricity is stored in the battery as direct current (DC).

When your solar panels aren’t generating enough power (like at night or cloudy days), the battery sends stored energy back into home. An inverter converts the DC electricity into alternating current (AC), which powers your appliances just like electricity from the grid.

Basically all batteries consist of two terminals, an anode (negative) at one end and a cathode (positive) at the other end. In between them is the electrolyte and a separator. The electrolyte is the solution that allows electrically charged particles (ions) to pass between the two terminals. By releasing the chemicals required for the reaction, the electrolyte comes in contact with the anode and cathode, converting stored energy into usable electrical energy The separator prevents the electron flow from taking the shortest path.

Virtually all solar batteries use lithium. The three lithium-ion technologies are Nickle Manganese Cobalt, Lithium Titanate Oxide and Lithium-Iron Phosphate. The latter is the dominant technology and the most fire resistant.

Government rebates

The Federal Government Cheaper Home Batteries Program will come into effect on 1 July 2025. It will reduce the cost of purchasing and installing a new home battery by approximately 30%. The rebate is available through accredited installers and will be deducted from your bill, similar to the current NSW rebate for solar panels and batteries. This rebate is in addition to the existing NSW rebate.

Eligible batteries purchased between 6 April (when the scheme was announced) and 1 July will be retrospectively eligible as long as the installed battery is not turned on before 1 July 2025.

See our partner solar and battery installers.

The basic eligibility requirements and rules are:

  • Applies to virtual power plan (VPP) capable batteries – though there is no requirement to sign up to a VPP scheme
  • Batteries must have 5-50kWh capacity
  • Only one battery per household is eligible
  • Must be installed alongside new or existing solar panels – stand-alone batteries are not eligible for the rebate scheme
  • Owners of existing battery systems can install another system and be eligible.
  • Owners of multiple properties can install a system at each property as long as they all have solar panels
  • Systems must be Clean Energy Council approved and installers appropriately accredited
  • The scheme will be in addition to any existing State battery incentives.

The number of subsidies is not capped, but the subsidy rate will progressively decline until 2030 after which it will cease.

No. In addition to residential households, the rebate scheme also applies to small businesses and community facilities.

NSW also has a battery rebate worth approximately $120 to $160 per kWh and caps out at 28kWh. If you join a VPP, you are eligible to an additional rebate of $20 to $25 per kWh.

FIND A LOCAL BATTERY INSTALLER

We’ve listed some local solar and battery installers that have been used and recommended by local residents. Use our form to get a ‘no obligation’ quote. This will help you to receive a better service.

Best battery brands

The best battery for you depends on how much power you need, how much you want to spend, space restrictions, local climate factors and if there are any special deals or offers current.

There is now a long list of reputable, good quality home batteries on the Australian market. The main solar energy system review websites are constantly monitoring the home battery market. 

Solarquotes.com.au  considers the following brands to be reputable and well supported:

  • Top End (most expensive): Enphase; Power Plus; Solaredge; Tesla.
  • Entry End (less expensive): BYD; Delta; Gen Z; Sigenergy; Sungrow; Pylontech.

Specifications for a wider range of home batteries are listed on their Solar Batteries Compared table. 

Solarchoice.net.au has published a home battery rating system based on customer reviews (minimum 10 reviews). The top rated options are:

Tesla 4.81; Sungrow 4.63;  Enphase 4.58; Goodwe 4.40; BYD 4.40; Solaredge 4.38.

The emerging brand, Sigenergy, received the maximum rating of 5.00 from the 7 customer reviews submitted. For more detailed information, see Solarchoice battery specifications and comparisons.

If you want a modular stacking battery system, that can to added to over time, your best options are BYD or Signenergy.

Size and capacity

Home batteries come in various capacities ranging between 5kWh and 50kWh. The size of the battery you require depends on the amount of peak period (evening) energy you use.

The Smart Energy Council crunched the numbers recently on household power usage and came up with this conclusion: the battery you need to lower bills is smaller, and therefore cheaper, than you might think. It found that to avoid using power during that evening peak, over 90 per cent of households could get by with a battery as small as 6kWh or 7kWh.

However, a family of four people uses an average of 16-20kWh every 24 hours and approximately 60% of that is consumed between sunset and sunrise. So, the minimum size battery to meet your needs is closer to 10kWh.

If you want to be less reliant on the grid, for blackout backup for example, then you may consider a larger battery. However, you would probably require at least 10kWh of solar panel capacity to fully charge it all year round.

How much do batteries cost?

Larger batteries do cost more overall, but they’re cheaper per kilowatt hour. That means the more capacity, the better value you get thanks to economies of scale.

A good quality mid-size battery (10kWh) costs approximately $10,500 after installation – before government rebates are taken into account. A straightforward installation cost will add approximately $1500 to the above price. A complicated installation could add up to $2,500. There is a cost for the additional inverter or hybrid inverter you will also require – this could be in the $1,000 to $3,000 range based on output capability and special features of the selected inverter.

The Federal Government rebate is based on the installed battery price and is approximately $330 per usable kWh (after fees/charges). The following table provides indicative costings of a straightforward installation.

Average Solar Battery System Costs (Fully Installed) May 2025
Battery Size Battery Only Price Battery Inverter/ Charger Approx Cost After Rebate
3 kWh $4140 $5100 $3960
8 kWh $9040 $10240 $7600
10 kWh $10460 $11680 $8380
13 kWh $13650 $15080 $10790
18 kWh $17820 $19260 $13320

How do home batteries save money?

According to Federal Government modelling, households with existing rooftop solar could save up to $1,100 extra off their power bill every year. Households that install new solar panel systems and a home battery at the same time will save up to $2,300 a year. This is about 90 per cent of a typical annual electricity bill. This return on investment can significantly increase if you intend to use your battery to sell electricity back to the grid.

Less power is drawn from the grid

When solar production drops off in the evening, just as people return home from work and school, the electricity grid has a sudden dramatic spike in demand. Households with a battery can charge it during the day with solar power, either from their own solar system or the grid, to use in the evening. This avoids drawing power from the grid at the expensive crunch times.

Virtual power plants (VPPs)

A virtual power plant (VPP) is a network of solar power and battery systems installed at homes or businesses. It is coordinated by a software system, run by VPP operator, that accesses the stored energy in home batteries to supply the grid during periods of peak demand.

Many electricity retailers have established VPP plans. The terms of these plans vary significantly. In general, you agree to receive a discount on a new home battery and/or regular monetary payment in exchange for allowing the retailer to draw power from your battery. Some plans may offer a feed-in tariff for the electricity drained from your battery.

No. Most VPP plans have a limited choice of battery models that can participate.

Possibly. Check if the VPP plan includes a minimum energy storage capacity for the homeowner and that the battery will not be completely drained.

It is not clear if fast discharging, by the VPP operator, has a significant deleterious effect. However, the more your battery is used, the shorter is its lifespan, i.e. all batteries have a limited number charge/discharge cycles.

Selling electricity to the grid

Some electricity retailers, Amber is the prime example, facilitate your buying and selling energy to and from your home battery on the National Energy Market at real time wholesale rates.

With these schemes, you pay and earn based on current market electricity rates. You can profit by timing usage: charge your battery when daytime rates drop (due to abundant renewables), and sell excess power in the evening when prices spike.

Smart apps developed by retailers make it easier. You set your parameters and the app will buy and sell for you to obtain a reasonable return while not compromising your personal energy requirements.

Retailers usually charge a set fee for this service. For example, Amber charges $22 per month.

No, some particular models of popular brands may be ineligible and some eligible models may have to be coupled with particular inverters. Retailers will explain this during the application process.

Installation issues

There are strict standards for how and where batteries are installed (Aust Standard ASS5139). Your accredited installer should be fully aware of these requirements.

The main installation issue is the requirement for an inverter. Batteries charge and discharge DC electricity, but appliances in the home use alternating current (AC) electricity. So you need to convert the electrical current from your battery to AC.

There are two of ways of doing this:

  • Install an additional inverter, similar to your existing solar PV inverter (though some batteries come with an in-built inverter)
  • You can replace your existing solar PV inverter with a hybrid inverter that will serve both your solar PVs and your home battery.

Batteries function best in cool ambient air temperatures. So, batteries are best installed externally in cool, accessible locations out of direct sunlight. Garages may be suitable if they are well ventilated and bollards are installed around the battery to protect it from possible impacts.

There are a number of other very specific safety requirements regarding location. For example you can’t put a battery:

  • within 600mm of a window
  • under the floor of a habitable room
  • on a wall shared with a habitable room without a ‘non-combustible’ barrier such as fibro cement backing boards.

No, but you may incur additional cabling costs if your battery is installed a long way from our electricity meter.

This will depend on the age of your meter and whether you have a 3 -phase power circuit. Your installer will be able to advise you – but make sure this is included in your quotation

Using home batteries as a power backup

One of your main reasons for acquiring a home battery may be for use as an emergency backup electricity source during blackouts.

You must tell the battery vendor/installer that you want your battery to function as a backup as it involves additional installation requirements and components.

Yes. There are differing levels of power output and functionality. For example:

Level 1: Backup provided, but the battery has reduced capabilities and capacity to prolong its usage during a blackout.

Level 2: Backup with full functionality during a blackout. But your battery can’t charge from your solar system if the grid is down.

Level 3: Full functionality and you can charge from your solar panels when the grid is down. This option may not always be available depending on your home electricity circuitry.

Focus on backing up only your essential circuits. That way, during emergencies, you will prolong the amount of time your battery can be used as a backup. You won’t waste precious stored electricity on non-essential items.

FIND A LOCAL BATTERY INSTALLER

We’ve listed some local solar and battery installers that have been used and recommended by local residents. Use our form to get a ‘no obligation’ quote. This will help you to receive a better service.

Battery degradation and warranties

Home batteries, like all other batteries, slowly lose their capacity to store electricity over time. Typically, home batteries are reduced to approximately 70% of their original capacity after 10 years. Once capacity drops below 70%, subsequent decline will be more rapid.

Most home battery warranties are for 10 years. Prior to purchase, you should ensure you understand the terms of the warranty and its associated projected rate of degradation. 3% per year is a reasonable rate. Check reputable reviews of home batteries to ensure degradation rates and warranty terms of your chosen battery are reasonable. See the Solarquotes comparison table. 

There is a lot of variation. Some warranties simply state a set time period. Other warranties don’t allow the battery to be cycled more than once a day. This could be an issue if you are committed to a virtual power plant (VPP) agreement or want to trade on the wholesale electricity market.

The best warranties will cover labour costs involved with diagnosing and repairing batteries as well as possibly replacing them. Other warranties may not include all those cost items. Some warranties may simply provide for monetary compensation based on the age of the battery which may not be very much.

Warranties may include various issues that could void it, such as: a set ambient air temperature range for operation; and a mandatory requirement for continual internet connection.

World-wide research is advancing on battery recycling. Trial recycling plants have been established in the UK, USA and Spain. There is a way to go, but the aim is to create a commercially viable ‘closed loop battery supply chain’ and prevent expensive and toxic materials getting into the environment.