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Summary
As feed-in tariffs decrease across Australia, more homeowners, businesses, and government facilities are turning to solar battery storage to reduce reliance on the grid, cut energy costs, and improve resilience. This guide explains how solar battery systems work, available rebates, cost breakdowns, setup options, and key buying considerations for 2025, built for top-of-funnel researchers and serious solar buyers.
What is Solar Battery Storage and Why Does It Matter in Australia?
Solar battery storage is a kind of rechargeable battery that allows you to store extra energy. The energy produced by your solar panels during the day can be used at night or in the event of a power outage by using a solar battery storage system. As a result, it reduces the dependency on the grid and your electricity costs.
The shift towards solar battery storage is driven by several factors, including :
- Decreased feed-in tariffs
- Grid instability due to the lack of adequate energy storage systems
- Increased electricity demand and peak power shortages
The adoption of solar battery storage benefits various sectors, including
- Residential sectors : Homeowners can benefit from backup power during outages, lower their electricity costs, and become more energy independent
- Commercial sectors : Companies may minimize downtime during outages, optimize their energy usage, and lower peak demand prices
- Government sectors : Government organizations can profit from solar battery storage by lowering energy expenses, enhancing energy security, and encouraging sustainability
Commercial intent triggers for batteries for storing solar electricity are driven by factors such as:
- Scalability : Large-scale BESS projects are becoming increasingly prominent.
- Enterprise : Companies are willing to reduce energy costs, enhance sustainability while ensuring a reliable power supply
- Government rollout : The Australian Government is promoting BESS adoption through various policies
- Multi-region energy savings : BESS projects are being developed across Australia's various regions, including VIC, NSW, SA, and WA
Is your property ready for solar energy with battery storage? If yes, then let’s explore how it works.
How Does a Solar Battery System Work?
In layman's terms, sunlight is converted by solar panels into electrical power. It is then sent to your house or place of business via an inverter.
Talking about extra energy, the battery storage system for solar energy plays a crucial role. It stores excess energy in a battery for later use.
A solar battery system also offers various benefits, like blackout protection for keeping homes and businesses powered, nighttime usage, thereby reducing electricity bills, as well as grid independence by allowing you to store your own energy.
Can solar batteries keep the lights on during an outage? Well, yes, with hybrid inverters, this is possible.
Types of Solar and Battery Storage Setups
There are various types of solar and battery storage setups available, such as
AC-Coupled vs. DC-Coupled Systems – What's the Difference?
Here is a simple and quick comparison between retrofit vs new installs :
| Feature | AC-Coupled | DC-Coupled |
|---|---|---|
| Efficiency | Lower (87-90%) | Higher (96-97.5%) |
| Retrofit | Easy to retrofit into existing PV systems | More suited for new installations |
| System complexity | Requires two inverters | Requires one hybrid inverter |
| Flexibility | Works independently of the solar inverter | Requires a compatible hybrid inverter |
| Cost | Slightly higher cost due to separate inverters | Cheaper option for new solar and battery installations |
What is a Hybrid Inverter and Should You Get One?
A hybrid inverter is a combination of solar, battery storage, and grid energy. It offers seamless integration for optimizing energy usage and backup power to keep homes and businesses powered. Should you use a hybrid inverter for battery backup? If this is what you are wondering, then yes, if you want a reliable and efficient energy system.
Which Setup is Best for My Property Type?
Now that you know about inverters, wondering which is the right choice? Depending on your rollout timeline and budget allocated, our solar experts recommend:
- For residential setups, cost-effective hybrid setups that offer seamless integration and backup power are required. This includes Tesla Powerwall 3 or GoodWe Lynx Home U.
- For commercial setups, large-scale, enterprise-ready solutions that offer high-capacity storage, scalability, and managed service models. This includes Sungrow's modular battery systems or Sigenergy battery system.
2025 Battery Rebates, Incentives & Payback Explained
When it comes to batteries for storing solar electricity, the Australian Government has introduced a Cheaper Home Batteries Program. It offers a maximum rebate of 50 kWh of usable battery capacity. It pays rebates of up to $372 per kWh of usable battery capacity. This amounts to approximately $3,720 for a battery system with 10 kWh capacity.
In addition to the federal rebate, certain states provide the following incentives:
- Western Australia : Residential Battery Scheme offers rebates of $500/kWh (up to $5,000) for Synergy customers and $750/kWh (up to $7,500) for Horizon Power customers.
- South Australia : City of Adelaide Sustainability Incentives offer rebates up to $2,000 for VPP participation.
- New South Wales : Virtual Power Plant Incentive offers cash-back up to $1,500.
However, the payback period of the battery storage system for solar systems depends on different factors. This includes the size of the system, use patterns, and local incentives.
What Rebates Are Available in Australia for 2025?
What Rebates Are Available in Australia for 2025 are:
- State programs like Victoria’s Solar Homes Program, SA’s Home Battery Scheme, Western Australia's Cheaper Home Batteries Program, and more.
Did you know that, according to the Clean Energy Regulator, 3 out of 5 Australian households will have solar by 2026? This, as a result, highlights the expanding use of renewable energy sources.
What is the ROI & Payback Period?
ROI is how much value your solar battery storage system will provide over its normal 10 to 15-year lifespan. The average playback for residential is 4 to 7 years, while for commercial/government, with bulk systems, it is 2 to 5 years.
The payback period refers to the time it takes for the savings from your solar battery system to offset the upfront installation costs.
How much can you save in your first year? Is this what you are wondering? Well, families with the federal government's battery rebate can save between $800 and $2,300 annually. On the other hand, businesses or large families can save much more money by using electric vehicles.
Why CEC-Approved Products Matter
For homeowners and businesses investing in solar electric battery storage systems know that CEC-approved products are crucial. This is because the Australian government only supports approved vendors to meet safety, quality, and performance standards.
Looking for a preferred vendor? We at Fortune Solar partner only with accredited CEC-approved suppliers.
Solar Battery Costs & Financing Options in 2025
The cost of solar batteries in Australia ranges from $800 to $1,200 per kWh. An average 10kWh system may cost between $8,000 and $12,000. The various financing options include:
- Federal battery rebate up to $372 per kWh
- Victoria's interest-free loans up to $8,800
- New South Wales upfront rebate up to $1,600-$2,800
- Others
How Much Does a Solar Battery Cost in Australia?
The cost of a solar battery in Australia is:
- $4,000 – $15,000 for residential
- $15,000+ depending on scaling, integration, and technical team support for commercial/Govt
However, this can vary based on factors like capacity, type, battery brand, etc. For instance:
- Lithium-ion- $300 to $500 per kWh
- Lead-acid- $100 to $200 per kWh
Need a detailed quote request? Let’s help you plan your project scope of work (SOW). Some popular battery brands are Sungrow, Tesla, Sigenergy etc.
Can You Finance or Lease Solar Batteries?
Financing or leasing batteries for storing solar electricity in Australia is possible. The various options are:
- Green loans allow borrowing up to $30,000- $55,000 with 1 to 10 years of repayment terms
- 0% interest plans with borrowing limits up to $55,000 and 6 months to 10 years repayment terms
- Power purchase agreements enable you to purchase solar-generated electricity at a lower cost than grid power
Want your solar electric battery storage to run smoothly? Collaborate with certified installers who provide retainer services for long-term implementation and ongoing support.
Tips for Budget Planning & Procurement
Budget approved? Wondering if you will get to experience this? Well, yes with the right planning and careful vendor selection, this is absolutely possible
Most Asked Questions About Solar Battery Systems
Yes, you can add a battery to an existing solar system through AC-coupled systems
Yes, hybrid inverters or backup generators work during power outages, offering maximum reliability.
According to our expert engineers, we recommend systems with blackout capabilities if reliability is a top priority.
The size of the battery you need depends on your energy usage and goals. For residential use, it is 5kWh–13kWh, for commercial/Govt, it is 30kWh–200kWh+
Use our sizing calculator to get a free estimate for your property. Drop your name, email, and phone to get started
Solar battery storage systems require minimal maintenance. For instance:
- They can be remotely monitored and require little upkeep
- To guarantee peak performance, stay in touch with technical staff
- Check capacity planning and system audits
- Do routine checks and seek continuous support
Partnering With the Right Solar Expert in Australia
Why Choose a CEC-Certified Solar Partner?
Choosing a CEC-certified solar partner is crucial for quality and reliability. Our company is a Clean Energy Council-accredited preferred Vendor with 100+ completed solar battery rollouts.
What to Look For in a Long-Term Solar Collaboration
When looking for long-term solar collaboration, consider factors like technical expertise, vendor experience, ongoing managed service, vendor shortlist support, expanding projects, etc.
Ready to Request a Quote or Proposal?
Need some help? Request a callback from a local solar partner. Provide your name, email, and phone number for a tailored consultation with a dedicated expert.
Conclusion: Why Solar + Storage Is Australia’s Future
Australia's future lies in solar and storage, which will provide grid stability, reduced costs, and energy independence. Overall, purchasing a solar battery storage system is a wise choice as large-scale solar expansions continue to grow
Whether you're planning your first solar battery or preparing for a scalable rollout, we’re here to help. Request your free quote today
Bonus Section: Mini Glossary for Buyers
A feed-in tariff is a fee for the excess energy your solar system sends to the grid
What is a Hybrid Inverter.
AC coupling connects batteries to the solar system's AC side, whereas DC coupling connects batteries directly to the DC side
CEC or Clean Energy Council is Australia's leading clean energy organization, offering standards and accreditation.
In solar procurement, the Scope of Work (SOW) is a comprehensive document that outlines project requirements, deadlines, and deliverables.
