Battery Guide 2025: Everything
Australians Need to Know
About Home Batteries

Table of Contents

Thinking About Adding a Battery?
Start Here.

From niche luxury to mainstream solution

Changing Perception

Not long ago, solar batteries were seen as a niche product great for going off-grid or supporting a “green lifestyle,” but too expensive or complicated for most homes. This battery guide breaks down why that’s changing quickly and what it means for Australian homeowners.

Rising bills, falling tariffs, smarter choices

Why Now?

As electricity prices continue to rise, solar feed-in tariffs decline, and new government rebates roll out, more Australians are looking seriously at home batteries. And with good reason: for the right home, a battery can deliver greater energy independence, better solar self-consumption, and even protection from blackouts.

Your simple battery guide to getting started

What to Expect

In this battery guide, we’ll explain in simple terms how home batteries work, what they cost, and how to know if one is right for your home. Whether you’re just starting out or already comparing quotes, this is the place to begin.

Home battery system mounted on wall next to inverter — featured in Australia's 2025 battery guide for homeowners
Elderly couple standing beside a home battery setup visual guide on what home batteries actually do in 2025.

Maximize Your Solar Power

What Does a Home Battery Actually Do?

If you already have solar panels, you’re likely familiar with how they work: they generate electricity during the day, which powers your home first, and any excess is exported back to the grid.
But here’s the catch: you usually get paid just a few cents per kWh for that exported power and then have to buy it back at night for three or four times the cost.
 
A home battery changes that.
 
It stores the extra solar energy your panels generate during the day, so you can use it later in the evening, overnight, or during a blackout (if your system is set up for backup).

More Power Less Cost

It’s not magic. It’s just storing your own power and using it more efficiently.

For many Australian households, that means lower bills, more energy independence, and better use of the solar they’ve already invested in. This battery guide explains exactly how a home battery can help you achieve that.

Use solar energy at night

Not just during the day store excess energy and power your home after sunset.

Reduce what you buy from the grid

Especially during peak evening rates, helping lower your electricity bills.

Keep your lights and appliances running

During blackouts (if your system is set up for backup), offering energy security.

Potentially earn income

By joining a Virtual Power Plant (VPP) and sharing stored energy with the grid.

Solar Alone Isn’t Always Enough

Do I Need a Battery If I Already Have Solar?

If you already have solar panels, you’re halfway there. But like many households, you might still be paying more for electricity than you’d expect especially in the evenings.

Here’s why: solar panels only generate electricity during the day. If your home uses less power than your panels produce, the extra gets exported to the grid. And while that used to earn you a decent return, feed-in tariffs have dropped significantly in recent years.

In most areas, you’re now paid around 5 to 10 cents per kilowatt-hour (kWh) for exported solar while paying 30 to 40 cents per kWh to buy power back at night.

That’s where a battery comes in.

A home battery stores excess solar energy for use later at night or during blackouts so you rely less on the grid and save more.

A battery may make sense if:

  • Your solar panels often export a lot of excess power
  • You use more electricity in the evenings (e.g. cooking, heating/cooling, EV charging)
  • You want to reduce your exposure to rising electricity prices
  • You’re interested in backup power during blackouts
  • You want to maximize your solar investment over time

What if you installed solar years ago?

You’re still eligible. The new federal rebate applies whether you’re adding a battery to an existing system or installing one from scratch as long as your battery is approved and installed by an accredited professional.

Bottom line:

If your solar is working well but your power bills are still higher than you’d like, a battery could help you use more of your own energy instead of sending it away and buying it back.

Key Terms You’ll Hear

Battery Basics

When you start looking into batteries, you’ll come across a few new terms. Some are technical, others are just unfamiliar but understanding the basics in this battery guide can help you make a more confident decision (and avoid confusion when comparing quotes). Here’s a plain-English breakdown of the most common terms you’ll see:
Term 📘What It Means 📝
kWh (kilowatt-hour)How much energy the battery can store. A 10 kWh battery can deliver 10 kWh of electricity.
Usable CapacityThe portion of total capacity you can actually use (some is reserved to protect the battery).
Depth of DischargeHow much of the battery’s capacity can be safely used before it recharges. Most modern batteries allow 90–100%.
Cycle LifeHow many full charge/discharge cycles the battery is expected to last. This affects lifespan.
Hybrid InverterA device that manages both solar and battery functions in one unit.
Backup PowerThe ability to keep appliances running during a blackout. Not all batteries offer this by default.
VPP (Virtual Power Plant)A program that lets your battery share energy with the grid in exchange for credits or payments. Participation is optional.

💡 Don’t worry about mastering every technical detail. The key is to work with a reputable installer who can explain what matters based on your needs — and ensure your system is safe, efficient, and eligible for rebates.

How Much Is the Rebate Worth?

How Much Do Batteries Cost in 2025?

Battery systems have become more affordable over time, but they’re still a major household purchase especially when installed properly by an accredited provider. This section of our battery guide helps explain what you can expect to pay in 2025.

As of 2025, total installed costs  including the battery, hybrid inverter (if required), and professional installation generally fall between $11,000 and $22,000, depending on system size and features.

Bottom line:

Installed costs have come down, and new rebates now cover a big chunk of the upfront price. For many homes, a battery is no longer out of reach especially when paired with the right installer and system design. Use this battery guide to better understand your options and costs.

💰 What About Rebates?

Starting 1 July 2025, the federal battery rebate will cover $372 per usable kilowatt-hour. After installer admin fees, most homeowners can expect a real rebate of $330–$350 per kWh.

That means for a 13.5 kWh system, you could see a rebate of around $4,455 – $4,725, significantly lowering the upfront cost.

⚠️ Key Cost Drivers:

  • Whether your solar system is battery-ready (or needs upgrades)
  • Inclusion of backup power functionality (some brands charge extra)
  • Roof and switchboard access or wiring complexity
Federal Rebate Battery Guide

Before Rebates

🔍 Typical Installed Price Ranges

System Size ⚙️ Estimated Installed Cost 💰 Best For 🏠
10 kWh $11,000 – $13,000 Small to medium households with solar
13.5 kWh $14,000 – $16,500 Families with higher energy usage
20 kWh $17,000 – $20,000 Homes with electric heating, EV charging
30+ kWh $22,000 – $26,000+ Large homes, all-electric setups, or partial off-grid

Install Now or Wait? Here’s What
to Know

The Good Stuff

  • You use more of your own solar
Instead of selling your extra solar to the grid for 5–10 cents, you store it and use it at night when power costs 30–40 cents. That adds up. A battery also helps you buy less from the grid by relying more on your own energy.
  • You’re protected in blackouts
Some systems keep the lights on if the power goes out. It’s not standard on all batteries but it’s an option.
  • Rebates are now on the table
From July 2025, you can save thousands on bigger systems. That’s a big shift from a few years ago.
  • It’s a future-ready upgrade
Whether you get an EV down the track, want to join a Virtual Power Plant, or just like the idea of more energy control batteries are part of the modern home. Use this battery guide to explore how future-ready systems can support your long-term goals.

The Trade-Offs

  • It’s still a big spend
Most systems cost $11,000–$22,000 installed (before rebates). Even with a subsidy, it’s a major purchase. Unlike solar panels, which have become more affordable over time, home batteries are still a premium investment.
  • The payback isn’t instant
You’ll save on bills, but depending on usage, it might take 7–10 years to break even.
  • Not all batteries provide backup
If blackout protection is important to you, ask your installer upfront. Some brands charge extra.
  • Prices might keep falling
Battery tech is evolving. Some people prefer to wait — though rebates will reduce over time.

So... is it worth it?

If you’ve got solar and export most of your energy, a battery could help you keep more of what you generate and buy less from the grid. But if your bills are already low or your daytime usage is high, it’s worth doing the math. For many households, it’s not just about savings it’s about control, backup, and future flexibility. This battery guide can help you decide if it’s the right move for your home.

Installer Benefits Overview

How to Choose the Right Battery for Your Home

There’s no one-size-fits-all answer when it comes to batteries. This battery guide is designed to help you identify the best battery for your home based on how much energy you use, when you use it, and what matters most to you savings, blackout protection, or future flexibility. Here’s what to consider before choosing a system. 

Size (kWh Capacity)

This is the big one. It tells you how much energy the battery can hold.

  • 10–13.5 kWh: Suits most average households with rooftop solar
  • 20 kWh+: For homes with high evening use, EV charging, or large families
  • 30–40 kWh: For all-electric homes, multi-phase systems, or partial off-grid
💡 Tip: Bigger isn’t always better. If you don’t use much power at night, you may not need a large system.

Brand and Warranty

Look for trusted brands with proven performance, safety credentials, and strong warranty support.

  • Choose batteries with at least a 10-year warranty or 6,000+ cycle life
  • Stick to reputable and well-established brands
  • Check reviews and after-sales service reputation — it matters

Backup Power

Not all batteries keep your lights on in a blackout. If this matters to you, make sure:

  • The battery is blackout-capable
  • Your installer includes the correct setup (e.g. backup box or gateway)
  • You understand what will be backed up. It’s usually not the whole house

AC vs. DC Coupled Batteries

When adding a battery, you'll hear "AC-coupled" and "DC-coupled" terms that describe how it connects to your home and solar panels. Here's a quick breakdown:

  • AC-coupled batteries connect on the home’s side of your solar system. Ideal for retrofitting, but may need setup changes.
  • DC-coupled batteries connect directly to the panels via a hybrid inverter. More efficient and common in new builds or full upgrades.
💡 A good installer can advise based on your existing system, inverter, and setup goals.

Smart Features and Monitoring

Most modern systems include app-based monitoring. Some also allow:

  • Integration with smart home devices
  • Alerts for charging/discharging
  • Control over how and when your battery shares energy (e.g. VPPs)

VPP-Ready?

Even if you don’t join a Virtual Power Plant (VPP) right away, it’s smart to choose a battery that’s compatible. VPPs let you share stored energy with the grid during peak demand in exchange for credits or payments.

Federal rebates now require VPP readiness, so choosing a compatible system means you’re future-proofed and can opt in when the timing’s right.

Summary

Ask yourself

  • How much energy do I use at night?
  • Do I want blackout protection?
  • Do I want the cheapest system or the most future-ready?
A good installer will help you match the right battery to your goals, not just your roof.

Should I Join a Virtual Power Plant (VPP)?

If you’ve been looking into batteries, you’ve probably come across the term Virtual Power Plant, or VPP. It sounds technical but it’s actually a simple idea. A VPP is a network of connected batteries that work together to help stabilise the electricity grid. When demand is high (like on hot summer nights), your battery may export energy back to the grid and in return, you’re paid or credited for what you share.

In Plain English:

  • You keep using your battery as usual
  • The VPP steps in at certain times to export extra power
  • You get paid (usually as credits or bill reductions)
  • You stay connected to the grid, just smarter

Why Some People Like VPPs

  • You earn extra money or credits from your battery
  • You help support the broader energy system
  • Some VPPs offer upfront incentives or higher feed-in rates
  • Participation is usually opt-in and non-lock-in

Things to Keep in Mind

  • Your battery may be discharged more often, which could slightly affect wear over time
  • Check the battery warranty frequent cycling in a VPP may affect long-term coverage.
  • Availability depends on your retailer or local energy market
  • Some VPPs control how much energy you export and when

Do I Have to Join One?

No. You don’t have to join a VPP to claim a rebate but your battery must be VPP-ready, meaning it has the technical ability to participate in future programs if you choose to.

Is It Worth It?

If your retailer offers a fair deal and your usage fits, a VPP can be a great way to increase your return. Just make sure to read the fine print and understand how your battery will be used. This battery guide can help you evaluate whether joining a VPP is the right choice for your home setup.

Common Myths About Batteries

Solar batteries are gaining traction but there’s still a lot of confusion out there. Let’s clear up a few of the most common misunderstandings in this battery guide:

Batteries only make sense if you go off-grid.

Not true.

Most Australians with batteries stay fully connected to the grid. The battery just helps them use more of their own solar and buy less from the energy market.

If I already have solar, I can’t get the new rebate.

False.

The federal rebate launching in July 2025 applies to both new and existing solar households as long as your battery and installer meet the requirements.

All batteries work in a blackout.

Not always.

Blackout protection isn’t standard. You’ll need the right battery, inverter, and wiring setup and you’ll usually need to ask for it.

A battery will wipe out my electricity bill.

Probably not.

A battery can help reduce your bills, but how much you save depends on your usage, feed-in tariffs, and whether you join a VPP. It’s not instant payback it’s about long-term benefits.

It’s better to wait prices will keep dropping.

Not necessarily.

Battery prices have fallen, but new rebates are also being reduced each year. The best time is when pricing, incentives, and your household’s needs all line up.
 

How to Get Started with a Battery

If you’re thinking about installing a battery or just want to understand your options, this battery guide walks you through how to get started step by step.

1. Review Your Energy Usage

Look at your electricity bills and ask:

  • How much power do you use?
  • When do you use the most? (day vs. evening)
  • How much solar do you export?

This will help you size your battery and decide if it’s worth it.

2. Check Your Current Solar Setup

Already have solar? Then check:

  • Is your inverter battery-ready?
  • Is your system still under warranty?
  • Will your current setup need upgrades or changes?
Your installer can help answer these questions but it’s good to ask early.

3. Speak to a Trusted Installer

Choose an installer who:

  • Is accredited under Solar Accreditation Australia (SAA)
  • Explains rebates and options clearly
  • Offers multiple battery brands, not just one
  • Can help you decide if blackout protection or VPP is worth it

4. Get Quotes That Include the Rebate

From July 2025, the federal battery rebate will be applied at the point of sale meaning the quote you receive should already include the discount.
If it doesn’t, ask for a revised version.

5. Compare, Don’t Rush

Even with rebates in place, it’s worth comparing:

  • System sizes
  • Brands and warranties
  • Backup options and VPP support

A little extra research now can save you thousands and get you a battery that truly suits your home.

We Have Great Answers

Ask Us Anything

It depends on your energy use, but many homes install batteries between 10 and 13.5 kWh. Larger homes or those with electric vehicles may need 20 kWh or more. Your installer can help size a system based on your solar exports and night-time usage.
Yes there are two main ways to do it:
  • AC-coupled batteries work alongside your existing inverter and are common in retrofits.
  • DC-coupled batteries (with a hybrid inverter) are more efficient, but may require changes to your current setup.
Your installer can recommend the right approach based on your system’s age, type, and layout.
Not necessarily.
A battery can reduce how much energy you buy from the grid especially at night. But you’ll still pay the daily supply charge and any power used once the battery is empty. It’s realistic to aim for a smaller bill, not a zero bill.
Yes. The federal rebate starting 1 July 2025 is available for both new installations and for adding a battery to an existing solar system as long as you meet the eligibility requirements.
Only if your system is configured for it. Blackout protection is optional and requires the right battery, inverter, and often a backup circuit. Ask your installer if that’s important to you.
Most come with a 10-year warranty and are rated for around 6,000+ cycles. That typically translates to 10–15 years of everyday use, depending on how the battery is cycled and maintained.

Battery technology is improving, but rebates are set to reduce each year. If your home already exports a lot of solar or you’re concerned about energy prices it may make sense to act sooner and take advantage of the higher subsidy now.

A full approved product list and national installer accreditation register will be released before the rebate starts on 1 July 2025.

When you get quotes through our platform, we only connect you with eligible installers using compliant batteries, so you’re always covered.

Final Thoughts & Next Steps

Home batteries are no longer just a niche product. With new federal rebates, falling battery prices, and rising electricity costs, more Australians are starting to see batteries as a smart, future-ready upgrade not just an environmental choice. But that doesn’t mean they’re right for everyone.
Whether a battery makes sense for your home depends on:
  • How much solar you already export
  • When you use most of your electricity
  • Whether you value savings, energy independence, or blackout protection
For many households, a home battery helps reduce reliance on the grid, improve self-sufficiency, and unlock more value from their existing solar. If you’re exploring options, this battery guide can help you understand costs, benefits, and eligibility so you can make a confident, informed decision. And with thousands in rebates now available, the financial barrier has never been lower.

What You Can Do Next

Learn more about the rebate:

If you’re considering a battery, understanding the 2025 Federal Battery Rebate is essential.

Federal Rebate Guide

Compare battery options:

From trusted brands to emerging players, our battery guide covers a range of systems to suit different budgets and energy needs helping you make an informed decision.

Compare Top Batteries

Get a quote from a local expert:

A good installer will help you decide if a battery suits your home and walk you through pricing, rebates, and backup options.

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