Solar Batteries: Everything You Need To Know (Cost, Payback, Brands)

By Finn Peacock, Chartered Electrical Engineer, Fact Checked By Ronald Brakels

Last Updated: 5th Jul 2025

This no-nonsense guide will walk you through solar battery prices, paybacks and brands in Australia so you can decide whether a battery is worth it for you. Then, I’ll show you how to pick the right home battery and get it installed by a reputable sparky — ensuring you make a savvy investment rather than a costly mistake.

Solar Batteries Compared

Here’s a table of all the home batteries I know of on the Australian market. As you can see, there’s a lot of choice. The solar battery brands below are arranged according to how frequently they’re searched for on Google, with the most popular appearing first. Scroll left to right to see them all, then scroll past the table to learn more… 

See the glossary for an explanation of each row on the table.

Which Solar Battery Is Best?

Every year, I ask hundreds of Australian battery installers to vote on the best home batteries based on what they’d install on their own homes. For the best home batteries in 2025, Tesla and Sungrow tied for first place, marking a big shift — Tesla had dominated the top spot since 2021. Sigenergy made an impressive debut in second place, and BYD slipped to third after being the runner-up last year. However, it might be the last year for BYD, since Fronius will be releasing its Reserva battery soon.

You won’t go wrong if you get one of those installed by a good electrician, and you understand the payback. Other brands I can recommend are on the chart below.

Table Of Contents

1. How Much Does a Solar Battery Cost?
2. How Much Can a Battery Save Me?
3. Are Solar Batteries Worth It?
4. Am I Eligible for Any Battery Rebates?
5. Which Battery Systems Protect Against Blackouts?
6. Why Are Lithium-ion Batteries Best?
7. What Will A Battery Look Like On My Home?
8. Where Should I Install My Battery?
9. Does It Matter Where I Live?
10. Watch A Professional Battery Installation

How Much Does a Solar Battery Cost?

A decent-sized (10kWh) solar battery starts at about $7,000 before installation. The table above shows the hardware retail price¹ for most home batteries in Australia as of May 2025.

The prices include the Federal Battery Rebate.  This cuts the cost of installed batteries by around $330 per usable kWh and is available throughout Australia.

WA also has an additional state battery rebate that can be combined with the federal rebate for extra savings.

Besides rebates, the price tag hinges on two key elements:

• Energy storage capacity, measured in kilowatt-hours (kWh) — more energy storage, higher cost. Most households will want 10kWh or more.
• The brand reputation — because not all batteries are created equal.

On top of the hardware cost, the batteries must be installed professionally. DIY electrical work is not allowed in Australia.

What Does A Battery Cost To Install?

A simple installation normally adds at least $2,000 to a quote. A complicated battery installation (longer cable run, bollards for a garage, fireproof backing, etc.) can be $3,000 or more.

Cost Of An Installed Solar Battery:

With a WA battery rebate, these prices will be even lower.

Wondering if a battery is worth it? Check out the full battery cost analysis.

With a solar battery setting you back at thousands of dollars, the next question is — how quickly will those dollars return to your pocket?

How Much Can a Solar Battery Save Me?

Battery payback can vary from ‘no-brainer’ to ‘not bloody worth it’ depending on factors including:

• your solar array size,
• your electricity usage,
• your electricity tariff,
• what battery you buy and how it’s installed.

Be wary of aggressive sales tactics. Always do your research before making a decision. Don’t buy from door-knockers or unsolicited mailings.

If you already have solar and want to know if adding a battery is worth it financially, my ‘add-a-battery calculator‘ is your go-to. Using your smart meter data, it’ll work out how much spare solar you have for charging and how much energy you use overnight to give you an accurate battery payback period.  

But if you’d rather skip the number-crunching, I’ll walk you through some ballpark payback figures.

For example, if you have a $10,950 Tesla Powerwall 2, the savings below are typical².

You can see how payback depends heavily on the type of electricity tariff you have, so it’s worth explaining the two types of tariffs Australians are put on and how they affect battery payback so differently.

Recent changes to SAA guidelines now allow for more flexible solar setups, which could improve your battery payback. Check out our latest blog post on these updates for more information.

Flat Rate Tariffs & Solar Batteries

In simple terms, a flat rate tariff means you’re charged the same price for electricity, no matter what time of day it is — usually around $0.35 for each unit of electricity (or kWh).

With a solar battery, you can store solar energy during the day and use it at night. Each unit of stored solar energy you use saves you the cost of buying that unit from the grid. However, keep in mind that using your stored energy means you’re also missing out on the money you’d earn by sending that energy back to the grid — a.k.a. the feed-in tariff.

So, if you pay $0.35 for grid electricity and your FiT is $0.7, you save $0.28 per kWh of battery energy used at night.  Many people — and some dodgy sales folk — forget to subtract the foregone feed-in-tariff when calculating their savings.

Time-Of-Use-Tariffs & Solar Batteries

Time-of-use (ToU) tariffs have two or more rates, the most expensive being in the late afternoon and evening when electricity can be as high as $0.75 per kWh. Most of your battery savings will come from avoiding the peak price period.

Some ToU tariffs charge as little as $0.08 for daytime electricity, so you can top up your battery cheaply, even if there is not enough solar power available.

With some ToU tariffs, late-night rates can be around 20 cents cheaper than in the morning.  On these plans, you can top up your battery overnight to ride through the morning peak.

Some compellingly cheap time-of-use tariffs are only available to owners of specific brands. For example, Energy Locals’ Tesla Energy Plan is for Powerwall owners only.

Getting Clever: Playing The Wholesale Market

One electricity retailer (Amber) exposes you to wholesale electricity pricing that varies every fifteen minutes. The price can go over $18 per kWh — which is terrible if you need to use grid electricity — but great for selling back to the grid.

On the flip side, prices can go so low they go negative, which means you get penalised for exporting energy and paid to use energy (a great time to charge a battery). It’s a high-stakes game for serious players only. But if you want to play it, I know people who have made over $2,000 in one year using Amber tariffs.

Now you know how batteries save you money, we can answer the $10,000 question…

Are Solar Batteries Worth It?

On a flat tariff — not so much.

As you can see in the table above – a 14.5 year payback with a Powerwall on a flat tariff is typical. In my experience, that’s too long for most, although you can improve your payback by getting a rebate, joining a VPP, optimising your tariff or buying a cheaper battery (but don’t go too cheap).

But on a time-of-use tariff, it’s much better.

If you are on a time-of-use tariff and can get a 6-7 year payback, home energy storage starts to look like a good investment — especially if you value any of these bonus reasons for investing in a battery:

• Protection from blackouts
• Being green (by supporting a more renewable grid)
• Revenge (you hate energy companies)
• Love (you love owning the latest tech)

I’ve written a detailed answer to ‘Are Solar Batteries Worth It?‘, which considers where you live, what tariff you are on, and what local VPPs are available to you.

Am I Eligible for Battery Rebates?

Battery rebates make batteries cheaper, improving payback.

National Battery Rebates?

An Australia wide federal battery rebate lowers home battery costs by around $330 per kilowatt-hour (kWh) of usable capacity. 

State/Territory Rebates?

The federal battery rebate to be compatible with state and territory rebates. Currently, WA is the only state that offers a rebate.

• Western Australia’s Residential Battery Scheme is worth up to $130 per kWh for up to 10 kWh of storage capacity, or $380 in regional WA. You are required to join a VPP.

Subsidised Battery Loans

• ACT offers an interest-free $15,000.
• WA will offer interest-free loans of up to $10,000 as part of its Residential Battery Scheme.
  

Find out more about how these rebates and loans work on our in-depth Battery Rebates page.

VPP Rebates

Local government subsidies aren’t the only way to get a cheaper battery. Some virtual power plants give you an upfront discount on a new battery:

The downside is you lose control of your battery, and it is is worked harder — which can shorten its lifespan.

Nerd Fact: A Virtual Power Plant (VPP) is a collection of internet-connected residential batteries controlled by an energy company. This army of batteries charge and discharge in unison to support the grid.

Pro-tip: My Virtual Power Plant comparison table details every VPP available in the country.

I’ve been talking a lot about costs and returns, but let’s not lose sight of another massive perk — resilience. In an age of wild weather and unpredictable blackouts, a solar battery can be your home’s safety net, keeping the lights on when the grid throws in the towel.

You’ll be surprised to learn that not all batteries come with backup, and not all backup is equal. Here’s what you need to know if blackout protection is important to you…

Pro-Tip: The New South Wales Government has an additional VPP incentive of $55 per kWh of battery storage up to 10 kWh. This VPP incentive is what remains of the NSW battery rebate that got scrapped.

Which Battery Systems Protect Against Blackouts?

Most solar batteries available in Australia promise to keep you powered up during a blackout. But not all are created equal. Here are the must-know features that could make or break your blackout resilience:

• Backup Current: Measures how many gadgets and appliances you can keep running simultaneously.
• Surge Current: Check if the battery can handle the initial power spike when you start up an appliance.
• Switchover Time: The momentary blackout you’ll experience when switching from grid to battery — this can range from milliseconds to a few minutes.
• Solar Charging Without the Grid: Some systems cut off your solar charging capabilities when the grid’s down — watch out for this.
• Failsafe Design: If the battery’s inverter goes kaput, will it mess with your regular grid supply?

An experienced installer is your best mate in navigating these intricacies. And remember, if you’re eyeing a budget battery, scrutinising these features is even more crucial.

Pro-tip: Some cheaper battery systems can interrupt the grid power to your essential circuits if the inverter hardware fails. Always install a $100 battery bypass switch to override it and keep the lights on if there’s a problem.

Whole Home Backup

Buying a battery system to back up an entire Australian home costs big dollars. I recommend saving thousands by choosing a handful of essential circuits and backing those up. For example:

• Fridge (no one likes spoiled food)
• Lights (for obvious reasons)
• A few sockets, including one for your internet router (stay connected)
• Small air conditioner (because our summers are no joke)

By zeroing in on these essentials, you’ll get the most bang for your buck and still keep things civilised when the grid goes down.

Why Are Lithium-ion Batteries Best?

Wondering why Lithium-ion is the go-to for solar batteries? Let’s delve into that next.

Almost all grid-connected solar batteries in Australia are lithium-ion because they:

✅ store more energy by weight and volume

✅ are higher power by weight and volume (can charge and discharge faster)

✅ are more efficient – typically only losing 10% of energy when charged and then discharged

✅ are maintenance-free

✅ last longer than older lead-acid battery technology

✅ don’t require excessive amounts of space, fitting easily into most homes

The biggest disadvantage of Lithium-ion batteries is:

❌ in the unlikely event they catch fire, they burn like hell

Types Of Lithium-ion Solar Battery

Unless you want to go mega niche, you can choose from 3 types of  solar batteries (all sub-types of lithium-ion):

• NMC
• LFP
• LTO

Insider-tip: The Powerwall 2 is an NMC battery, but the Tesla Powerwall 3 has LFP battery cells and an integrated 11.3kW solar inverter – making it a true all-in-one battery system (see below).

What Will A Solar Battery Look Like On My Home?

Your solar battery’s aesthetics will depend on whether it is:

• an all-in-one system
• a separate battery and inverter
• a Powerwall 2 (which is a mixture of the above)

All-In-One Battery Systems

An all-in-one solar battery system contains almost everything you need in one big box:

• battery
• battery inverter
• solar inverter
• backup switchover

In the marketing materials, you’ll see them with zero wires attached. Reality is not as neat:

Separate Battery & Inverter

A separate battery and battery inverter won’t look as tidy as a well-installed all-in-one, but a good installer can keep everything neat:

Tesla Powerwall 2

The Powerwall 2 is almost an all-in-one. The big white Tesla box contains the battery and battery inverter. But it also needs a smaller ‘gateway box’, and your solar panels need a separate solar inverter. A good installer can make it look neat, but not quite as neat as the marketers want you to believe:

Alright, so you’ve got a mental picture of your future solar battery. The next step? Figuring out where this beast can live in your home. Keep in mind, Australia’s got some of the toughest rules globally when it comes to placement.

Powerwall 3

The new Powerwall 3 is almost all-in-one. It has a built-in solar inverter, so you can plug up to 20 kW of solar panels into it. However, it still needs the same Gateway box as the Powerwall 2 to handle backup and monitoring. Powerwall 3 is a good choice if you are buying your battery and solar array at the same time.

Modular Batteries

Modular batteries are stackable or connectable units that you can add to over time as your energy needs grow. Unlike monolithic systems like the Powerwall 3, which come in one fixed size, modular batteries are designed to be lightweight, compact, and easier to install.

These batteries don’t just perform well — they look good too. Most resemble sleek building blocks that can stack vertically or connect horizontally, depending on the design. Popular modular battery brands include BYD or Sigenergy.

Where Should I Install My Solar Battery?

Australia has strict standards for how and where batteries are installed – specifically Australian Standard AS5139. You don’t need to understand the electrical details, that’s the sparky’s job – but you do need to know how it affects where you can put it.

For example, places you can’t put a battery include:

• 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

And you definitely can’t put one in your dining room, like some battery brochures would have you believe:

Does It Matter Where I Live?

Australia’s a big country, and where you live can factor into which battery is best for you…

Climate

The closer you live to Melbourne or Hobart, the lower your annual solar production, so you’ll need a larger solar system to reliably charge a battery all year.

At the other extreme, heat is the #1 thing that will shorten your battery’s life. So keep it cool if you live in a particularly sunburnt part of Australia, and check its ambient temperature range in the battery comparison table at the top of this page before buying.

Electricity Tariffs

‘Solar sponge’ electricity plans, which can boost battery payback, and allow you to charge cheaply from the grid on low solar days are currently only available in WA, SA and QLD.  But they’re likely to appear in other states soon.

Rebates/subsidies/VPPs

Certain government battery rebates, interest-free loans, or Virtual Power Plants are area-specific.

Grid Connection Rules Around Battery Inverters

Some local DNSPs (Distributed Network Service Providers), like Essential Energy, still make it hard to add a battery inverter if you already have a solar inverter. A good local installer will be all over these rules.

Watch A Professional Solar Battery Installation

Installing a solar battery isn’t just a matter of connecting a few wires and it usually takes two people one day. It’s a precise job that requires planning, compliance with Australian standards, and a licensed electrician. Whether you’re upgrading your current solar setup or going hybrid, the goal is to keep your home running smoothly — even during a grid outage.

The battery is mounted securely (on the wall or floor) and connected to an inverter — either your existing hybrid one or a new battery inverter. The key is seamless integration with your solar panels and grid for maximum safety and performance.

Want to see how it’s done? Watch the video below for a behind-the-scenes look at a professional installation, from setup to final handover.

Useful Battery Tools

Solar & Battery Calculator

My solar & battery calculator estimates the savings and payback of solar and batteries for your situation. Crucially, it separates out the solar and the battery savings, so you can decide if home energy storage is worth the extra dollars.

Add a Battery Calculator

If you already own a solar panel system but want to calculate the potential savings of adding a battery, you can use my “Add a battery” calculator.

Battery Reviews

Read expert solar battery reviews and browse customer reviews for most battery brands sold in Australia.

Hybrid Inverter Comparison Table

Installing a hybrid inverter to control both your solar panels and your solar battery can save you money because you only need one expensive (~$2000) inverter. Here is a table comparing all hybrid inverters we know of available in Australia. If you choose one of these for your solar installation, adding batteries can be cheaper and easier in the future.

Battery 101 Guides

Understanding Batteries 101: This is a more in-depth guide aimed at technical understanding of home batteries, delving into how they work and comparing different technologies like lead-acid and lithium-ion. It also explains the difference between power and energy in the context of batteries and discusses integrating a battery with a solar system using AC or DC coupling.

Buying Batteries 101: If you are serious about buying a solar battery – you should read this guide (or watch the video) so you can go toe to toe with any salesperson and get the right battery system at the right price.

Owning Batteries 101: Once your solar battery is installed, here’s what you need to know for a decade or two of cheap, secure power.

FAQs

What Size Solar Battery Do I Need?

If you are on a single-rate tariff, you want enough capacity to get you from sunset to sunrise. If you are on a Time-Of-Use tariff,  you must get through the evening peak – typically 4 pm – 10 pm. You can usually see your hourly usage through your electricity retailer’s online portal.

Remember that most battery owners keep a 20% ‘reserve margin’ on top of that in case of a blackout. So a 10 kWh battery would have 2 kWh reserved for blackouts and 8 kWh for powering your home.

Some prefer to maximise the financial return from their batteries by not setting a reserve.  There will usually be some energy in the battery when a blackout occurs but runs the risk you’ll wind up sitting in the dark.

Smaller batteries cost more per kWh of usable storage.  This means you may be better off getting a larger one despite your low electricity usage.

Here’s an even more detailed answer: How many solar batteries do you need?

Should I Go Off-Grid?

If you have access to a grid connection, do not go off-grid. Grid-connected solar and battery systems start at around $6,000. Dependable off-grid systems for typical Australian homes start at around $60,000 and require regular checks, careful energy management and generator backup.

How Big Is A Solar Battery?

The size of home batteries depends on their energy capacity and their ‘specific energy’, which measures how much capacity they can squeeze into a given volume. If space is an issue, Tesla and Sungrow make space-efficient batteries, whereas the Enphase solution is bloody huge. More details on battery dimensions here.

How Long Do Batteries Last?

A study in the journal Energies says in moderate climates (20-32°C) with daily use, lithium batteries should last 14-16 years. In climates up to 40°C, expect 12-14 years. Warranties range from less than two years (if you read the small print on some cheap batteries) to 15 years for some NMC and LFP batteries and 20 years for more expensive LTO chemistry. More details on how long batteries last here.

Those who join the Tesla Energy Plan VPP and stick with it will have their Powerwall 2 warranty extended by 5 years.  This suggests Tesla expects their home batteries to last at least 15 years.

Which Solar Battery Is Best In Australia?

Every year, I survey our network of ~600 installers and ask them. In 2025, Tesla and Sungrow tied for the best battery, followed by Sigenergy and BYD.

Can Solar Batteries Be Recycled?

Yes. Home battery recycling is an emerging industry – because there are not many at the end of their life yet – but the technology exists to recycle over 90% of a home battery. When yours finally dies, contact your installer or the manufacturer for details.

Can Solar Batteries Catch Fire?

Yes. Although extremely unlikely, I’m not gonna lie. If a lithium-ion solar battery catches fire, it will burn ferociously and can release nasty gases, which may include phosphorus pentafluoride, phosphoryl fluoride and hydrofluoric acid vapours.  

You do not want to breathe these in – so evacuate the area and contact emergency services. Remain upwind and notify those downwind. No one should go near a smoking or burning home battery without full protective equipment, including Self Contained Breathing Apparatus (SCBA).

I’ve written a whole page on home battery safety if you are concerned.

I’m On A Legacy 40c+ Feed-In Tariff. Should I Get A Battery?

NO! A battery will only lose money if your feed-in tariff exceeds your usage tariff — provided the solar system is a reasonable size.  If it’s only small, you can be better off with a large new solar system and a battery.

Do Insurers Cover Home Batteries?

Yes. They usually go on your home insurance, not your contents insurance, because they are hardwired into your home. Just call your insurers and let them know you’ve added a home battery.

I Have 3-Phase Power. Do I Need A 3-Phase Battery?

No. You can happily use a single-phase battery on one phase of a three-phase home, but there are some 3-phase battery details you should know.

What Is A ‘Battery-Ready’ Solar System?

A ‘battery-ready’ solar system is a grid-connected solar power system designed for easy future integration of batteries.

Is a 10 kWh battery enough to run a house?

It depends entirely on the size of your house, how you condition the spaces, how you heat water, and how many residents. The best way to know is measure your existing overnight consumption either with a solar consumption meter, monitoring like CatchPower or data from your utility smart meter.

Sizing a battery to cover your average demand from around 3pm to 9am is the normal approach, but you must also ensure there is enough solar yield to power the daytime loads and enough surplus to fill the battery.

It’s especially critical to consider winter. When heating loads are high and solar generation is low you’ll want a lot more panels on the roof.

A battery under 10kWh can suit households with low overnight electricity consumption or those who want the fastest payback period possible.  But for most households, I recommend over 10kWh hours because — so long as you have enough solar — it will minimise your grid electricity consumption and allow you to live  through most blackouts with ease.

Glossary

Battery Comparison Table Rows

Price: Our best retail price estimate includes GST. For the required hardware only.

Battery Type: Either LFP, NMC or LTO. See here for an explanation of the differences.

All-in-one-unit: See here for a pictorial explanation of the difference between an all-in-one, a separate battery and inverter and a Powerwall.

Nominal Storage: How many kWh a battery can store in theory. In practice, most won’t let you use all their energy capacity in order to prolong their lifespan.

Usable Storage Capacity: How many kWh you can store in a battery in practice.

Power (kW): The speed at which a battery can charge and discharge. Check yours doesn’t limit this in backup mode.

Round Trip Efficiency: When you put a kWh in, how much do you get back out? Typically 90%.

Ambient temperature range: What air temperature is the battery rated for? If it gets too cold or too hot, performance can take a hit, or the warranty can be reduced, or both.

Off-grid capable: Does the manufacturer warrant the battery for off-grid?

IP Rating: How well sealed from the elements is the battery? Can it go outside?

Compatible Hybrid Inverters: A hybrid inverter is required for some battery systems – these are compatible ones. A hybrid inverter can also manage your solar panels – potentially saving a couple of thousand bucks.

Warranty: the headline warranty – before caveats. Sometimes this is shortened depending on how hard you work the battery.

Battery capacity remaining at end of warranty:This is how much of the original capacity you can pull from the battery under warranty. For example, a 10kWh battery that warrants 70% capacity at the end of 10 years would give you 7kWh.

Warranty length (1 cycle per day): How long is the warranty if you fully discharge the battery every day? Those on a flat tariff rarely cycle theirs more than once per day.

Warranty length (1.5 cycles per day): If you fully discharge the battery 1.5 times every day, how long is the warranty? This is typical for time-of-use tariffs where you charge during the day to get through the evening peak, and then again at night to get through the morning peak.

Cost Per Warranted kWh: 1 Cycle Per Day: If the battery cycles once per day, this is how much each warranted kilowatt-hour of stored electricity will cost. It exposes good and bad warranties.

Modern Slavery/Forced Labour:  Does the manufacturer have policies addressing modern slavery/forced labour risks.

Home Battery Quotes

If you’re ready to buy a solar battery, I can help you get quotes for quality home energy storage systems from pre-vetted installers quickly and easily: