Are Solar Batteries Worth the Investment in Australia in 2022?

There are only 110,000 households with energy storage in Australia, less than 5% of solar adopters. Battery systems allow families to reduce their dependence on traditional on-grid electricity. But battery systems are costly and have high pay-back periods.

The Benefits of Solar Batteries

Adding a battery to a residential solar system can double the amount of self-generated electricity consumption. For those cloudy days when your panels won’t generate solar power, batteries allow you to store electricity for several days worth your energy consumption. This will enable you to make the most of your solar energy usage, increased bill savings, and blackout protection.

By getting a battery with your solar panels, you can:

  • use more of the solar power you generate in your own home
  • boost your energy savings
  • increase your independence from the big energy companies
  • get security and control during blackouts (if you get a battery that comes with blackout protection – not all do)
  • boost your positive impact on the environment by using more clean solar power
  • get your battery at the most cost-effective time because combining the costs of the panels and battery will cut out extra installation costs and combine the two payback periods into one

The Cost Of Solar Batteries In Australia

When installing a battery, there are many variables to consider, such as components to adjust installation specifications. People in the industry typically speak about ‘dollars per kilowatt-hour ($/kWh) of storage capacity. Batteries can vary depending on usage.

Are Batteries Worth It Right Now?

That would depend on your circumstances. However, from an ROI standpoint, we would say no. Coupled with a relatively high up-front cost and typically with a 10-year warranty, so most likely would need to be replaced before it fully pays itself off.

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    There are a few scenarios where it would make sense to consider solar batteries as an investment. Here are some in detail below.

    When The Utility Company Charges Significantly More Than The Feed-In Tariff

    The ‘feed-in tariff’ is where you get the money paid back for exporting excess solar power to the grid. But in most cases, it’s more profitable for you to use that solar energy yourself. Depending on the price difference, the savings associated with storing and using that electricity yourself can very quickly add up.

    Numerous Subsidies And Rebates Are Available

    The financial case for batteries also improves when local rebates and incentives are offered. These can range from upfront rebates when purchasing batteries to demand response programs that reward you for taking a load off the power network.

    In South Australia, there is currently a home battery scheme. The subsidy is available to all South Australians and calculated on the kilowatt-hour capacity of the battery purchased. Furthermore, Energy Concession Holders are eligible for a higher subsidy, ensuring low-income households are supported to access the Scheme.

    Incentives can significantly improve the feasibility of using batteries by reducing the upfront cost or increasing savings in the long run. The outlook improves further with the combination of expensive electricity with battery incentives.

    Choosing A Battery With Extended Warranties Or Battery Replacement Plans

    Some solar batteries come with warranties well beyond the typical 10-year standard. Receiving a decent ROI is far more achievable in a 20-year timeframe, particularly with government incentives.


    Another thing to consider is future-proofing your system, securing your independence, and limiting your reliance on the grid. Electricity prices are deemed to rise, and the advent of new solar adopters puts strain and toll on the grid.

    If money isn’t an issue, there is no reason not to.

    Install as many panels as your roof can fit – the more you generate, the more you can cover the balance of your energy consumption needs. If you can afford to buy a $10k TV that offers $0 ROI or a $20k holiday, why not invest in your home and carbon impact? It comes down to your convictions and choices—what makes sense for you might not make sense for the next person.


    Solar batteries are viable for Australians with solar panels who want to minimize their power bills and be less reliant on the grid. However, solar battery prices in Australia are currently high. A solar battery might not be worth the investment for many Australians. However, when local electricity costs are very high, the savings potential improves the case for solar panels with batteries. Local incentives can also tip the scales in their favor. Finally, the benefits of battery storage aren’t purely financial. More Australians turn to energy storage to achieve energy independence and a low carbon footprint as we move towards a zero-carbon future.

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