TL;DR
- Solar batteries store excess solar energy generated during the day so it can be used later at night or during peak tariff periods.
- Battery value varies between households, depending on electricity usage patterns, evening demand, and feed-in tariffs.
- The average size of solar batteries is typically between 5kWh and 13kWh, though larger households or EV owners may need more capacity.
- The average price of a solar battery in Australia often starts around $10,000 for a typical 10kWh system, with costs increasing for larger capacities.
- Savings usually come from using more of your own solar energy, reducing reliance on grid electricity and lowering electricity bills over time.
Thinking of upgrading your solar system with a battery? Here's what you need to know
Solar batteries are becoming increasingly popular in Australia, particularly as more than 4.3 million homes across the country now have rooftop solar panels. With so many households already generating their own electricity, it’s only natural that many homeowners begin thinking about the next step: adding a solar battery.
When our customers tell us they are exploring battery storage options, we usually get asked: Are solar batteries worth it, and if so, what size battery should I install?
Electricity prices have continued to rise, while feed-in tariffs are declining, meaning the financial return from exporting excess solar energy back to the grid is far lower than it once was. Instead of sending unused solar power to the grid during the middle of the day, many households are now exploring ways to store that energy for later use.
But determining if a solar battery is worthwhile depends on more than just the upfront price. This article explores how solar batteries work, how they are sized, how much they typically cost, and how to decide if installing one makes sense for your home.
What does a solar battery do?
During daylight hours, solar panels often generate more electricity than a home can immediately use. Without a battery, that excess energy flows back into the electricity grid in exchange for a feed-in tariff.
A solar battery changes how that energy is used. Instead of exporting excess solar power, the battery stores it for later in the evening, when solar production stops and household electricity demand increases.
Most battery systems installed in Australian homes are grid-connected, meaning they work alongside the electricity network while storing solar energy for later use. Some systems also include backup capability, allowing selected appliances to continue operating during a blackout.
It’s worth noting that batteries don’t increase how much electricity your solar panels produce. Instead, they increase how much of that solar energy your home can use itself.
Are solar batteries worth it in Australia?
There is no straight answer to this question, but in many cases, if your existing solar system is already delivering benefits, adding a battery is worth considering. Battery value can vary from household to household, largely because electricity usage patterns differ so widely between homes. For some households, a solar battery system can deliver strong value, while for others, the financial return may take longer to justify.
Solar batteries are often worth it when:
- A large portion of household electricity is used in the evening
- Appliances such as air conditioning, pool pumps, or EV chargers run at night
- Feed-in tariffs are low, making exported solar power less valuable
- There is a desire for greater energy independence or backup during power outages
In these situations, storing excess solar energy during the day and using it later can reduce reliance on grid electricity and improve overall solar self-consumption.
Solar batteries may be less worthwhile when:
- Night-time electricity usage is very low
- Most solar energy is already used during the day
- The property may be sold in the near future
For many households, the decision involves more than simple financial calculations. Greater energy independence, reduced reliance on the grid, and the ability to store self-generated electricity can all influence whether a battery system feels worthwhile. In simple terms, the benefit of combining solar and battery systems often comes down to how much energy your home uses once the sun goes down.
What size solar battery do you need?
Many homeowners assume that installing the largest battery available will automatically lead to the biggest savings, but that isn’t necessarily the case. Battery storage capacity should be sized to match how your household actually uses electricity. Much like choosing a storage container, there’s little point paying for capacity that will rarely be used.
There are situations where opting for a larger battery can make sense. Growing families, homes with fluctuating energy bills, or households wanting extended backup power may choose additional capacity for future flexibility. In most cases, the goal is to select a battery that suits the way your home consumes energy day to day.
When deciding on the right battery size, we usually recommend looking at a few key factors:
- Night-time electricity usage, especially if your home runs air conditioning, pool pumps, or electric vehicle chargers in the evening
- The size of your solar system, since your panels need to generate enough excess energy during the day to charge the battery
- Household size and lifestyle habits, which influence how quickly stored electricity is used overnight
As a general guide, smaller households may consider battery capacity of around 5–7kWh, while medium-sized homes often install systems in the 8–13kWh range. Larger households, or those charging electric vehicles, may require 14kWh or more.
How much does the average solar battery cost in Australia?
Solar battery prices in Australia can vary depending on the size of the system, the brand chosen, and how the battery integrates with your existing solar setup. As a rough guide, smaller battery installations — typically around 8kWh to 10kWh of storage — can sometimes fall in the $6,000 to $8,000 range once installation and federal battery rebates are considered.
In practice, many homeowners are installing larger systems. For example, a 10kWh battery system installed on its own generally starts from around $10,000, with larger systems increasing in cost as storage capacity grows. Many households now choose battery systems between 10kWh and 40kWh, depending on their electricity use and long-term energy plans.
Installation requirements can also influence the final price. Some homes may require additional work to meet installation and safety standards. If a house has timber or wood panelled walls, concrete mounting blocks may be installed to support the battery safely. Outdoor battery installations often require adequate shading to protect the system from direct sun, while batteries placed near driveways or parking areas may need protective metal bollards to prevent accidental impact.
Government incentives, including programs such as the Cheaper Home Batteries Program, may help reduce upfront costs for eligible households.
Solar battery cost vs savings: what’s the payback?
As mentioned earlier, most of the savings from a battery come from using more of the solar energy your panels generate during the day, rather than relying on the grid later. By storing excess solar power, households can use that energy in the evening rather than buying electricity at higher prices.
The average battery payback periods typically falls between 8 and 15 years, though this varies with energy usage, system size, and electricity pricing.
Some households also choose to connect their battery to a virtual power plant (VPP). In these programs, electricity retailers can draw small amounts of stored energy from many home batteries during periods of high demand, sometimes offering higher feed-in tariffs or credits in return.
It’s also worth recognising that many homeowners install batteries for reasons beyond simple financial return. Greater energy independence, protection during power outages, and the ability to rely more heavily on self-generated electricity often influence the decision just as much as the payback period. So what one household considers a worthwhile return can therefore depend on more than just the numbers.
Battery rebates and incentives in Australia
Government incentives can also influence the cost of installing a solar battery, though available programs vary by location and eligibility.
At the moment, Queensland does not offer a state-based battery rebate, although policies around energy storage continue to change. Our installer and designers will help you apply for any relevant solar-power-based incentives that operate in your area. That said, federal initiatives can assist households looking to install battery storage.
One example is the Cheaper Home Batteries Program, which offers a discount of around 30% on the upfront cost of installing eligible small-scale battery systems, typically ranging from 5kWh to 100kWh in capacity. The program applies to batteries connected to either new or existing solar systems and is funded through the federal government.
Choosing the right battery system
Battery capacity is only one part of the decision when selecting a system for your home. Several other technical factors can influence how well a battery performs over the long term.
Some of the things worth paying attention to include:
- Usable capacity, which reflects how much of the stored energy can actually be used
- Depth of discharge, which determines how much of the battery can be drawn down during each cycle
- Warranty length, since most systems are expected to operate for many years
- Backup capability, if maintaining power during outages is a priority
- Compatibility with your existing solar system, particularly when integrating with current solar inverters
These details can vary significantly between battery models, which is why professional system design is often recommended. A battery that works well for one household may not be the right fit for another, especially when existing solar systems, electricity usage patterns, and installation conditions differ.
Is a solar battery right for your home? Let’s find out
Choosing the right solar battery comes down to how your home actually uses electricity. The size of the system, your evening energy use, and your long-term plans will all influence what capacity makes sense.
While the average price and payback period are useful guides, the best battery setup depends on your household’s energy habits and goals. Speaking with an experienced installer can help you understand what size system fits your home and what kind of return you can realistically expect.
Thinking about installing a solar battery? Speak with the team at Sunrays Power to work out the right battery size and system for your home.
