Are solar batteries worth the cost
Homeowners are seeking greater control over their energy consumption, which is creating a boom in solar and battery investments. 75,000 units sold across Australia in 2024 alone. However, many are still questioning whether a solar battery is worth the cost, as the average 10 kWh battery costs approximately $11,300.
The good news is that they are worth the investment. As solar batteries provide a solution to keeping appliances running during blackouts, reduce energy bills, generate clean energy and allow you to receive compensation from the grid, they can prove themselves a smart investment. Additionally, despite the upfront cost, the expansion of government rebates are making their installation increasingly worthwhile.
How much do solar batteries cost?
The table below is an estimate of how much you should expect a solar battery to cost. For a more accurate estimate, reach out to your local installer.
| Battery capacity | Cost | Battery cost per kilowatt-hour (kWh) |
|---|---|---|
| 1–5 kWh | $1,380 – $6,900 | ~$1,380 |
| 6–10 kWh | $6,780 – $11,300 | ~$1,130 |
| 11–15 kWh | $11,550 – $15,750 | ~$1,050 |
What affects the cost of solar battery?
Battery capacity
Measured in kilowatt hours (kWh), the larger the battery capacity, the more energy it can store and the higher the cost.
Battery type
Popular lithium-ion batteries offer strong performance levels, but they are relatively expensive. There are also the older lead-acid batteries, which, although cheaper, are not as powerful as their lithium-ion counterparts and will require replacing at a faster rate.
Federal and state rebates
Rebates assist in reducing the upfront costs of solar batteries. Nationally, the $2.3 billion Cheaper Home Batteries Program provides an upfront discount of around 30% to eligible Australians. The discount is based on the batteries’ usable capacity, which can reduce the cost for a standard 10 kWh battery by $3390. There are also subsidies available at a state level, which can be claimed in addition to national programs.
Benefits of solar battery
Adding a battery could be a worthwhile investment to households due to the following benefits:
Saving on energy bills
Adding a solar battery reduces reliance on buying electricity. For households using solar without a battery, many can cover about 30-50% of their consumption through solar. With a solar battery, however, this can jump to 90-100%.
Solar battery virtual power plant (VPP)
A VPP is a connected network of solar batteries, allowing any excess stored energy to be shared during peak demand. You’re supporting the grid by allowing operators to draw energy from your battery, with you receiving a payment in exchange that can be as high as $1 per kWh.
Environmental benefits
Adding a battery is a great way to reduce your carbon footprint. Because the majority of electricity from the grid is generated from carbon-intensive fossil fuels, batteries promote energy that’s clean and renewable.
Backup energy
When a power outage occurs, your home appliances can continue working with a solar battery. Even when your panels aren’t producing electricity, such as when it’s cloudy or nighttime, the stored energy from your batteries can keep your home going.
How solar batteries generate return on investment (ROI)
To demonstrate your potential returns, we’ve constructed a table below that presents the cumulative savings of a 10 kWh battery, compared with just owning solar panels.
| Setup | Total system cost | 10 year savings | 20 year savings |
|---|---|---|---|
| No battery | $6,600 | $10,955 | $22,352 |
| With 10 kWh battery | $17,900 | $16,612 | $36,198 |
These are examples of the ROI you can expect, based on an average set of assumptions. Australians in less-favourable conditions, with low sunlight, should expect a longer payback period. Based on these savings, you will have covered the cost of the total solar system in 10 years and nine months.
The role of inverter technology in battery performance
Getting the most out of your solar battery means also buying an equally high-performing inverter. Inverters are responsible for converting the direct current (DC) power from your battery to your home’s alternating current (AC). Without the right inverter and battery combination, there can be a lot of power lost in this conversion, so pairing your battery with a tailored inverter ensures a lower percentage of power is lost. Although these efficiency improvements can seem small, they quickly add up over time. Microinverters take this a step further by optimising each solar panel individually, ensuring that every panel performs at its best and contributing to maximum energy output.
To make the most of your new battery, ensure you’re buying from a company that has an inverter and battery combination that is designed explicitly for maximised efficiency. APsystems is a good example, as it is a solar battery supplier that was recently crowned the world’s number one most bankable solar inverter manufacturer, cementing its reputation as a provider of industry-leading technology. The company’s microinverters are designed to support the energy uptake and performance of their batteries, which has generated impressive and award-winning results.
Are solar batteries worth it?
Whether you ultimately believe that solar batteries are worth the cost depends on how much you value their benefits. They can provide a considerable ROI by reducing your grid dependency, with potential savings of more than $30,000 within 20 years. Payback periods are also improving all the time, with many Australians now able to cover costs in under 10 years, particularly as more generous rebates are introduced, and new industry-leading technology.
If you do decide that a battery makes sense for your home and energy use habits, it’s essential to choose a quality manufacturer of high-efficiency batteries with tuned and well-matched high efficiency inverters. Not all manufacturers are equal, so give yourself the time to undertake a full due diligence process and arrive at the battery that best fits your objectives and solar environment.