Home batteries are a hot topic for energy-conscious consumers. Combined with solar panels, they let you store your free surplus electricity for use later at night or on low-sunlight days.
Installing a battery means using less grid power (goodbye expensive peak rates!), lower electricity bills and a healthier carbon footprint for your home, so it’s a win-win-win situation.
With the launch of the federal government’s Cheaper Home Batteries Program in 2025, interest in batteries has boomed. Commonly called the solar or home battery rebate, the incentive offers around 25–30% off the total cost of installing a battery, finally making them more affordable to more people (see our handy rebate guide here).
More than 500,000 batteries have been installed since the rebate launched in July 2025.
With a flood of rebate-related promotions now out in the market (and the potential risk of dodgy installers), it’s more vital than ever to understand battery costs, considerations, payback times and how much they can save you over time. This expert buying guide plugs into all that and more.
A home battery is like a huge rechargeable power bank for your property, run by smart software and accessed by an app.
Batteries can be charged either by your solar panel set-up or from the grid*. They can discharge power into your home as you need it, or back into the grid if you wish to export it for a feed-in tariff (i.e. a bill credit) or via a virtual power plant.
Batteries can be installed with new solar panels, or added to an existing panel set-up.
Just be wary that components need to be compatible and some older panel arrays might be too under-powered to generate enough to charge a battery, while also powering your home.
* Most often people use solar to power up their battery, as it’s free, but some electricity retailers and VPPs now offer plans with free day-time power from the grid, as part of the federal government’s new Solar Sharer initiative, so you can set your battery to power up during these free energy times.
.
Why we've partnered with SolarQuotes
We've partnered with SolarQuotes to help you find and buy the right solar, battery, heat pump and EV charger. While we make money if you use SolarQuotes to find an installer, this doesn't influence our ratings. 100% of the money we make goes directly back into our nonprofit mission.
Understanding batteries and inverters
There’s a lot of numbers that come with buying a battery, but two key ones you need to know are the battery’s capacity and the size of its inverter.
Battery capacity is pretty simple – it’s how much electricity it can hold, measured in kilowatt hours (or kWh for short). Most units installed these days range between 10kWh and 50kWh.
If you have a 20kWh battery and your home uses an average of 4 kilowatts (kW) of power, the battery can run it for roughly five hours (minus some minor transfer losses along the way).
Then there’s the inverter, which converts the battery’s direct-current (DC) power to alternating-current (AC) power so your home can use it. Measured in kW, the size of the inverter – also known as its power rate – specifies the maximum power the battery can absorb or discharge at any one time.
If that’s too confusing, think of a battery like a water tank and the inverter as the size of the hose – the hose controls how much water can go in or out of the tank at that moment.
Inverters can either be built into the battery or connected externally, depending on the brand.
So if your 20kWh battery comes with a 5kW inverter, this means you can only charge or discharge 5kW at a time.
However, if you need more power – say you’re running an oven (using 3kW) and a clothes dryer (4kW) simultaneously – your 5kW inverter won’t be able to keep up, so you’ll need to draw the remaining 2kW from the grid (which you pay for).
See our battery terms and specifications section below for a more in-depth explainer.
Battery terms and specifications
These are the key technical specifications for a home battery.
Capacity
How much energy the battery can store, measured in kilowatt hours (kWh). The nominal capacity is the total amount of energy the battery can hold, while the usable capacity is how much of that can actually be used, after the depth of discharge is factored in.
Depth of discharge (DoD)
Expressed as a percentage, this is the amount of energy that can be safely used without accelerating battery degradation. Most battery types need to hold some charge at all times to avoid damage.
Lithium batteries can be safely discharged to about 80–90% of their nominal capacity. Lead-acid batteries can typically be discharged to about 50–60%, while flow batteries can be discharged 100%.
Power
How much power (in kilowatts) the battery can deliver. The maximum/peak power is the most that the battery can deliver at any given moment, but this burst of power can usually only be sustained for short periods. Continuous power is the amount of power delivered while the battery has enough charge.
Efficiency
For every kWh of charge put in, the efficiency refers to how much the battery will actually store and put out again. There’s always some loss, but a lithium battery should usually be more than 90% efficient.
Total number of charge/discharge cycles
Also called the cycle life, this is how many cycles of charge and discharge the battery can perform before it reaches the end of its life. Different manufacturers might rate this in different ways. Lithium batteries can typically run for several thousand cycles.
Lifespan (years or cycles)
The expected life of the battery (and its warranty) can be rated in cycles (see above) or years (which is generally an estimate based on the expected typical usage of the battery). The lifespan should also state the expected level of capacity at the end of life. For lithium batteries, this will usually be about 60–80% of the original capacity.
Ambient temperature range
Batteries are sensitive to temperature and need to operate within a certain range. They can degrade or shut down in very hot or cold environments.
How much do home batteries cost?
Prices can vary significantly depending on brand and installer, but generally, the higher the capacity, the more you can expect to pay.
In the past, the average size of batteries being installed was around the 10kWh mark, but since the launch of the federal rebate, this has increased dramatically, with a system closer to 20kWh quickly becoming the new norm.
Here are typical battery costs (after the federal rebate) for common sizes, including basic installation. Prices are based on information from our friends at SolarQuotes.
10kWh storage: $7,000–$11,000 installed
15kWh storage: $11,000–$15,000 installed
20kWh storage: $14,000–$19,000 installed
30kWh storage: $18,000–$22,000 installed
Keep in mind, a more complicated installation will bump up costs considerably, given tricky architectural and technical factors can increase the time, work and components a job requires.
CHOICE tip: Always get at least three quotes from installers. Not only can prices vary dramatically, but installers can offer very different system configurations, brands and levels of service so it’s good to assess your options.
We wish we could give you a simple yes or no, but unfortunately, the answer’s complicated. That’s because it varies by household and depends on a myriad of individual factors including:
your current power consumption at home
future power needs (are you considering an EV or starting a family?)
where you live – this determines local electricity prices, weather (i.e. how much sun you get), additional rebates and energy retailers operating in your area
the solar panel and battery size you install
your chosen retail plan and its rates
what export feed-in tariffs you can get for exporting surplus battery power (through your retailer or VPP)
For a long time, home batteries didn’t make complete economic sense. They were relatively expensive and the payback time was often longer than the battery’s warranty period which is usually 10 years.
But now with the federal rebate promising a discount of around 25–30%, that equation is looking a lot more favourable, depending on the aforementioned factors.
Batteries can reduce your power bills considerably, but do come with a hefty upfront cost, even with the rebate.
Calculating your own battery maths can be mind-boggling, but thankfully our solar partners SolarQuotes have shared this helpful general guide comparing yearly electricity savings and simple payback periods (how long it takes your bill savings to pay off battery cost) by state and territory.
You’ll notice below that payback times vary a lot depending on where you live. That’s due to your state and territory’s electricity prices, feed-in tariffs and weather.
For example, Adelaide’s payback period is the shortest because they have high electricity prices, while Hobart’s is the longest, thanks to relatively cheap power.
Payback times on a battery costing $8500
Capital city
Annual Electricity Savings
Simple Payback Period
Adelaide
$1,350
6.3 years
Brisbane
$1,100
7.7 years
Canberra
$700
12.1 years
Darwin
$620
13.7 years
Hobart
$410
20.7 years
Melbourne
$610
13.9 years
Perth
$1,120
7.6 years
Sydney
$1,030
8.3 years
*Using only federal rebate & $8,500 installed cost. Based on estimated overnight electricity consumption of 7kWh.
SolarQuotes has a battery calculator to help you figure out the savings you might make from adding a storage battery to your existing solar panel system.
If you don’t have solar at all, and are wondering if you should buy a solar system with a battery included, the CHOICE Solar Estimator is a quick and easy way to look at the potential savings, with and without a battery.
Rebates and subsidies
Government rebate schemes can definitely make batteries more economically viable for some households. Here’s a list of the current ones available.
Federal battery rebate
The federal government’s Cheaper Home Batteries Program gives homeowners, small businesses, and community groups an upfront discount of around 25–30% on the purchase and installation costs of a home battery system that pairs with solar panels.
The rebate currently decreases every six months (see our comprehensive explainer here) and is currently set to end in 2030.
To be eligible for the rebate, the battery must:
Be installed on or after 1 July 2025
Have a nominal capacity of 5–100 kWh, with the rebate applied to the first 50kWh of usable capacity
Be installed alongside new or existing rooftop solar
Be on the Clean Energy Council (CEC) approved list
Be fitted by an installer accredited by Solar Accreditation Australia
For on-grid systems, be capable of joining a Virtual Power Plant (VPP), though actual participation is optional
State and territory rebates and incentives
In addition to the federal initiative, state and territory governments can also offer their own incentives. These can be combined for greater savings.
Terms and conditions apply so do your homework to ensure you’re eligible. Some schemes are revised from time to time, so it’s worth also checking the federal government energy website to see what’s available in your area.
A virtual power plant (VPP) is a network of residential battery systems installed on homes and businesses, centrally controlled by a computer system run by the VPP company.
By joining a VPP program, you agree to share control of your home battery. To maximise revenue, the company charges it during the day (when electricity is cheapest) through solar or top-ups from the grid and then, when wholesale electricity prices rise during peak times (like at night), they sell it to the grid for a higher price.
In return, you get a financial benefit, which might be bill credits, higher feed-in tariff rates or a cut of profits on electricity sold (depending on your VPP plan).
We explore VPPs, pros and cons, and potential earnings more fully in our guide here.
For most grid-connected systems, having a battery doesn’t necessarily protect you in the event of a blackout. You may still lose all power to your home, despite having solar panels producing power and a charged battery ready and waiting.
This is because grid-connected systems have what’s known as “anti-islanding protection”. During a blackout, the grid and any engineers working on the lines must be protected from “islands” of electricity generation (such as your solar panels) pumping power unexpectedly into the lines.
You may still lose all power to your home, despite having solar panels producing power and a charged battery ready and waiting
For most solar PV systems, the simplest way to provide anti-islanding protection is to shut down entirely. So, when it senses a grid blackout, your solar PV system shuts down and you have no household power at all.
More sophisticated inverters can provide anti-islanding protection during a blackout, but still keep the solar panels and battery operating so that the house has some power. But expect to pay a fair bit more for such a system, as the hardware is more expensive and you may need more solar and battery capacity than you think to run the house for a few hours during a blackout.
It’s best to prioritise only critical household circuits to operate in that situation, such as the fridge and lighting (and that might require extra wiring work). Otherwise, a battery is likely to drain very quickly if it also has to run things such as a pool pump or underfloor heating, which can draw a lot of power.
In principle, home batteries should be able to last 10 years or more under normal usage and if they’re not subjected to extreme temperatures.
Most models carry a ten-year warranty with a few rare exceptions offering longer.
Currently, there isn’t enough market data to show whether modern solar typically last that long in real-world home installations – recent generations of batteries have only been around for a few years.
Still, consumer reviews on a variety of websites suggest that most households with storage batteries are happy with them so far, especially those who purchased theirs from the major brands.
Some customers report problems with battery failure or with customer support from the supplier, but in most cases it appears that the batteries are performing as expected. Time will definitely tell.
Chris Barnes is a Senior Project Officer. He manages the product reviews that are done outside of CHOICE with external labs or data sources. This includes solar panels, electric heaters, air purifiers and detergents.
Chris also manages our testing services through our commercial arm, Test Research, and he is CHOICE's NATA authorised representative for our lab's formal accreditations.
Chris is involved with the standards committee for air conditioners. And he works with government and industry in areas such as product safety and regulation.
In over 20 years at CHOICE, Chris has managed lab teams for a wide range of products, including children's products, kitchen appliances, laundry appliances, garden power tools and more. Chris has a Science degree from the University of Sydney. LinkedIn
Chris Barnes is a Senior Project Officer. He manages the product reviews that are done outside of CHOICE with external labs or data sources. This includes solar panels, electric heaters, air purifiers and detergents.
Chris also manages our testing services through our commercial arm, Test Research, and he is CHOICE's NATA authorised representative for our lab's formal accreditations.
Chris is involved with the standards committee for air conditioners. And he works with government and industry in areas such as product safety and regulation.
In over 20 years at CHOICE, Chris has managed lab teams for a wide range of products, including children's products, kitchen appliances, laundry appliances, garden power tools and more. Chris has a Science degree from the University of Sydney. LinkedIn
Jason is a Content Editor and journalist at CHOICE. He writes about a diverse range of subjects, from solar to robot vacuums to why Easter eggs are a rip-off. He's previously written for Sydney Morning Herald, Rolling Stone and many other publications.
Jason is a Content Editor and journalist at CHOICE. He writes about a diverse range of subjects, from solar to robot vacuums to why Easter eggs are a rip-off. He's previously written for Sydney Morning Herald, Rolling Stone and many other publications.
For more than 60 years, CHOICE has been fighting the good fight for Australian consumers.
In the past year alone we've uncovered systemic issues with sunscreens, investigated shonky supermarket pricing, fought for stronger scam protections and helped make complex energy pricing fairer and clearer.
CHOICE is here to provide unbiased advice and independent testing in our world-class labs. We buy the products we test, just like you do, and our expert reviews are influence free. We’re here to help you choose smarter. Hopefully you’ll also save some money along the way.
Thanks to CHOICE, you’ll never be alone when a business treats you unfairly. You can support our work by joining or donating to our cause.
