Solar Battery Buying Guide 2025 (Australia)
How to Buy a Battery in Australia: Your Essential Guide
Looking to slash your power bills and get backup power for your home? Home batteries can be a game-changer—but knowing **how to buy a battery in Australia** can be tricky. This guide will walk you through everything you need to know: what a home battery does, how it works, and how to find the perfect system for your home and budget.
What Is a Home Battery?
A home battery stores energy generated by your solar system (or the grid) and delivers it when you need it most—like at night or during power outages. It’s a key part of a smart energy system that can save you money and give you energy independence.
Is a Battery Right for You?
Solar batteries aren’t for everyone—but if any of these apply to you, a battery might be a smart move
- ✅ You use a lot of power at night
- ✅ You want backup power during blackouts
- ✅ You’re off-grid or in a fringe-of-grid area
- ✅ You want to reduce reliance on electricity retailers
- ✅ You want to invest and save money
Tip: You don’t need to have solar to install a battery — pairing them usually gives the best return on investment and allows you to generate all your own energy you use.
Why install a home battery in 2025?
Australia has the world’s highest penetration of rooftop solar, yet only a small fraction of households store their surplus generation. Several factors make 2025 a compelling time to invest in a battery:
- Rising electricity prices and shrinking feed‑in tariffs: Day‑time export rates have fallen below $0.05 per kWh in some states, so storing your solar energy for evening use offers better value.
- Federal “Cheaper Home Batteries” program: Introduced on 1 July 2025, this scheme adds extra Small‑scale Technology Certificates (STCs) for batteries between 5 kWh and 100 kWh. The rebate equates to roughly a 30 % discount and roughly $345 per usable kWh and can be combined with Virtual Power Plant (VPP) incentives.
- State incentives: NSW’s Peak Demand Reduction Scheme was replaced by a VPP‑based incentive worth about $550 for a 10 kWh battery and up to $1,500 for a 27 kWh system. WA’s residential battery rebate provides up to $3,800 and interest‑free loans for systems of at least 5 kWh.
- Blackout protection and energy security: Batteries can supply essential loads during grid outages.
- Participation in Virtual Power Plants: VPP programs pay households to export stored energy during peak demand.
Understanding battery technologies
Modern home batteries use different chemistries, each with advantages and trade‑offs:
- Lithium‑ion (Li‑ion): Dominates the market due to high energy density, fast charging and long lifespans.
- Lithium Iron Phosphate (LFP) offers excellent thermal stability and safety with some modules allowing 100 % depth‑of‑discharge (DoD). It has a long cycle life (2 000–5 000 cycles) and high round‑trip efficiency, but lower energy density results in heavier modules.
- Lithium Nickel Manganese Cobalt (NMC) has higher energy density and high power output but fewer cycles (~2 000) and can degrade faster at high temperatures.
- Lead‑acid: Traditional flooded or sealed AGM/gel batteries are inexpensive and widely recycled but have short lifespans (3–7 years), lower usable energy (≈50 % DoD) and lower efficiency. They are rarely recommended for modern grid‑connected homes.
- Emerging chemistries: Sodium‑ion and vanadium flow batteries promise long lifespans but currently have lower energy density or higher complexity.
Lithium‑ion systems typically come with 10‑year warranties and guarantee 70–80 % capacity retention or a set energy throughput by the end of the warranty.
How to choose the right battery – step‑by‑step
Following a structured process helps ensure your battery investment matches your needs and budget.
- Assess your energy usage. Review your electricity bills to see how many kilowatt‑hours you use in a 24‑hour period. Most homes consume more energy in the evening and early morning when solar panels aren’t producing. Your battery should be sized to cover this load.
- Check your solar output. If your PV system generates a lot of excess solar during the day, a larger battery can store more of it rather than exporting at low feed‑in rates.
- Clarify your goals. Decide whether you want to maximise bill savings, achieve partial energy independence, or gain blackout protection. Your goals influence the capacity and features needed.
- Determine capacity and DoD. Look at usable capacity (not just nominal). A 10 kWh LiFePO₄ battery with 100 % DoD provides the full 10 kWh, whereas a lead‑acid battery might offer only 50 % usable energy. Consider your nightly consumption and choose a capacity that matches it.
- Consider power output and inverter needs. Continuous and peak output determine how many appliances you can run at once. Check whether the battery includes an integrated hybrid inverter or needs a separate unit. DC‑coupled systems (hybrid inverters) tend to be more efficient, while AC‑coupled batteries are simpler to retrofit.
- Evaluate efficiency and cycle life. Higher round‑trip efficiency (88–95 %) wastes less energy. Look for warranties covering 10 years or a specific energy throughput; LiFePO₄ batteries can last 8 000 cycles or more.
- Examine safety and compliance. Choose batteries with strong safety records (LiFePO₄ is thermally stable), ensure they meet Australian standards and are installed by Clean Energy Council‑accredited electricians. Check for recalls or safety incidents.
- Factor in cost and incentives. Battery prices range from $7 000–$12 000 for a 10 kWh system before rebates, plus $2 000–$3 000 for a hybrid inverter and $1 500–$3 500 for installation. After the federal rebate, a 10 kWh battery with hybrid inverter may cost $6 000–$8 500. Get multiple quotes and check eligibility for the Cheaper Home Batteries Program and state VPP incentives.
- Plan installation and location. Consider whether you need upgrades to your meter board, space for installation (indoor vs outdoor), ventilation and weather protection. Some high‑capacity systems require dedicated rooms.
- Future‑proof your system. If you plan to buy an electric vehicle or electrify more appliances, choose a modular battery that allows easy capacity expansion. Check whether the battery is compatible with VPPs or offers two‑way charging.
Comparing popular battery brands (2025)
- Tesla Powerwall 3: Offers ~13.5 kWh usable storage with 5 kW continuous output. It includes a hybrid inverter and has 89 % round‑trip efficiency. The unit is known for reliable backup power and a slick monitoring app; however, it is one of the more expensive options, typically $13 000–$15 000 installed.
- BYD Battery‑Box Premium: Modular system starting around 5 kWh and expandable. Uses lithium‑iron‑phosphate cells with a 10‑year warranty. It is mid‑range in cost and integrates well with quality inverters.
- Alpha‑ESS Smile series: All‑in‑one system that usually provides around 10 kWh of storage and an integrated inverter. Often promoted in government battery programs for its affordability while still delivering good self‑sufficiency.
- Sungrow SBR series: Stackable battery modules (9.6 kWh–25 kWh) using LiFePO₄ cells. When paired with a Sungrow hybrid inverter, it offers cost‑effective storage with decent power output (around 5 kW per stack).
- Other options: Enphase’s modular micro‑battery system, Sigenergy’s SigenStor (integrated battery and EV charger) and premium European brands like Sonnen provide alternatives with different price points and features.
Approximate cost per kWh
According to Installers Battery Price Index, residential batteries cost roughly $600 per kWh of usable capacity installed, depending on brand, size and location. The price per kWh decreases for larger systems because many installation costs are fixed. For example, a 10 kWh battery only installation averages about $600 per kWh after the federal rebate.
Case study: 6.6 kW solar + 10 kWh battery (Sydney)
Solar Choice modelled a typical household using 20 kWh per day. A 6.6 kW solar system paired with a 10 kWh battery covers about 66 % of the home’s energy needs. The battery is fully recharged on 98.5 % of days.
The combined system cost around $13 260, with $5 000 for solar panels and $8 260 for the battery (including federal rebates). Annual savings were approximately $2 393, split almost equally between solar and battery savings. The overall payback period was 6 years—4.4 years for the solar portion and 7.5 years for the battery. Solar Choice notes that with the new federal rebate, payback periods around 8 years are now possible and can improve further if households join VPP programs or qualify for additional state rebates.
Tips and best practices
- Compare multiple quotes from CEC‑accredited installers to find the best price and ensure installation quality.
- Plan for the future. If you anticipate buying an EV or electrifying appliances, choose a modular battery that can expand later.
- Monitor usage and performance. Modern batteries include apps for tracking state of charge, consumption and savings; use them to adjust your behaviour and maximise value.
- Stay informed about rebates. Federal STC values decline each year until 2030, so earlier adoption may secure higher incentives.
Choosing the Right Battery Size
Battery storage capacity is measured in kilowatt-hours (kWh). Here’s a rough idea of what you might need
| Household Type | Daily Usage (kWh) | Recommended Battery Size |
|---|---|---|
| 1–2 person household | 5–10 kWh | 5–7 kWh |
| 3–4 person household | 10–20 kWh | 10–13 kWh |
| Large family/home + EV | 20+ kWh | 13–20+ kWh |
Battery size also depends on your goals: bill savings vs backup vs full self-sufficiency.
Retrofit vs New Installation
Already have solar? You’ll likely need a battery inverter or hybrid inverter upgrade
Whats a Hybrid Inverter? See our battery basics
Installing from scratch? A hybrid system is often cheaper and neater
Whats a Hybrid Inverter? See our battery basics
Installing from scratch? A hybrid system is often cheaper and neater
Not all existing systems are battery-ready. We’ll help you check.
Battery Prices & Rebates
| Battery Size | Typical Cost (Installed) | With Rebate (Est.) |
| 5 kWh | $4,500–$6,000 | $3,500–$5,000 |
| 10 kWh | $7,000–$10,000 | $5,000–$8,000 |
| 13.5 kWh | $11,000–$15,000 | $8,000–$13,000 |
State & Federal-Based Incentives (2025)
NSW: Empowering Homes program (interest-free loans)
VIC: Solar Victoria battery rebate up to $2,950
SA: Home Battery Scheme (limited)
Federal: Now there are federal rebates starting 1st of July see our blog post on the new federal rebates
Rebate amounts and eligibility find out more here via our battery rebates page ask our isntallers about the latest information on rebates by submitting your post code here
Common Mistakes to Avoid
- 1. Buying a battery that’s too small or too large
- 2. Choosing a system with limited warranty support
- 3. Not future-proofing for EVs or upgrades
- 4. Forgetting to factor in inverter compatibility
Work with an experienced, accredited installer to avoid these issues.
What to Look for in a Quote
- 1. Is installation included?
- 2. What’s the full warranty length for both battery cells and inverter?
- 3. What happens during a blackout, how is my backup wired?
- 4. Are monitoring apps and smart controls included?
- 5. Is the installer CEC-accredited?
Get at least 2–3 quotes before you decide.
Ready to Compare Battery Quotes?
Skip the research and connect with Australia’s most trusted battery installers.
We’ll match you with up to 3 local, accredited professionals—fast, free, and obligation-free.
frequently asked questions
Most reputable brands offer 10‑year warranties. In real use, Li‑ion batteries are expected to retain 60–80 % of their original capacity after 10 years.
A typical 2–3 bedroom home using 10–15 kWh per day might need a 7–10 kWh battery, while larger homes or those with electric vehicles may require 10–15 kWh or more. Use your daily night‑time usage as a guide and avoid over‑sizing or under‑sizing.
With the 30 % federal rebate and decreasing prices, many households can achieve payback periods of 6–9 years. Batteries also provide non‑financial benefits like blackout protection and reduced carbon footprint.
Going off‑grid usually requires a large PV array and significant battery storage (often 20 kWh+) plus a backup generator. Most urban households opt for partial self‑sufficiency with grid backup to keep costs reasonable.
A VPP aggregates many home batteries and pays owners to export energy at peak times. NSW’s VPP incentive offers $550 for a 10 kWh battery. Check contract terms, export limits and compatibility before joining.
