Home battery storage is becoming one of the most talked-about home improvements in Australia. With electricity prices rising and solar feed-in tariffs falling, more homeowners are looking at batteries as a way to take control of their energy bills.
This guide covers everything you need to know: how batteries work, what they cost, which models are worth considering, and how to decide if the numbers stack up for your situation.
What is a home battery?
A home battery (also called a battery energy storage system, or BESS) stores electricity generated by your solar panels during the day so you can use it at night. Instead of exporting surplus solar energy to the grid for a few cents per kilowatt-hour, you store it and use it yourself — saving the difference between the feed-in tariff and the rate you'd otherwise pay to buy that power back.
Modern home batteries are lithium-ion based, typically mounted on a wall in your garage or utility room, and come with a built-in inverter or connect to your existing solar inverter.
How does the economics work?
The value of a battery depends on three numbers:
- Your self-consumption rate — how much of your solar generation you actually use
- The gap between your feed-in tariff and your import rate — a wider gap means a larger daily saving
- The battery's usable capacity — a larger battery can store more of your surplus solar
A typical Australian household with a 6.6 kW solar system and a 10 kWh battery might save $800–$1,400 per year depending on their location, tariff, and usage patterns.
What does a home battery cost?
Installed prices in Australia currently range from around $9,000 for a modest 5–7 kWh system to $20,000+ for larger 13–20 kWh systems. Costs have fallen significantly over the past five years and are expected to continue declining.
Several states offer rebates that can reduce the upfront cost by $2,000–$4,000. See our Battery Rebates guide for current offers.
Which battery should you choose?
The major brands available in Australia include Tesla Powerwall, GoodWe, Sungrow, Enphase, and BYD. All use lithium iron phosphate (LFP) or nickel manganese cobalt (NMC) chemistry. LFP is generally preferred for its safety profile and cycle life.
Our Battery Comparison page provides a side-by-side overview of the leading options.
Is a battery right for you?
The honest answer: it depends on your situation. Batteries make the most sense for households that:
- Have high electricity usage (10+ kWh/day)
- Have solar panels generating surplus power they're currently exporting
- Are on a high import tariff with a low feed-in tariff
- Want backup power capability
The best starting point is to run the numbers. Our free calculator models your specific situation and gives you a payback period, 25-year cashflow, and recommended battery size.