The short answer
For many homes with solar that use a lot of power in the evening, yes, more so than ever. The federal battery rebate took about 30% off the price, and industry analyses now put typical payback at around 8 years for a well-matched system, down from over 10 years before the rebate.
With most batteries carrying a 10-year warranty, it is still a close call for some homes. A battery makes the most sense if you use a lot of power after dark, your solar regularly makes more than you use during the day, or you want backup in a blackout.
How a battery saves you money
A battery stores the spare solar power your panels make in the middle of the day, so you can use it in the evening instead of buying power from the grid.
The saving on every kWh you shift is the gap between what you pay to buy power (often 30 to 40 cents per kWh) and what you would have earned exporting it (often just a few cents). That gap is why batteries pay off: the bigger it is, the better.
kWh shifted per day × (buy price − feed-in rate) × 365 = yearly saving
For example, shifting 8 kWh a day with a 35c buy price and a 5c feed-in tariff saves about 8 × $0.30 × 365 = $876 a year. Divide the battery's price after the rebate by your yearly saving for a rough payback period.
What a battery costs in 2026
Industry price surveys for 2026, with the federal discount already off, put typical installed prices at about:
| Battery | Typical price |
|---|---|
| 10 kWh, battery only | about $8,450 |
| 15 kWh, battery only | about $11,300 |
| Per usable kWh, installed | roughly $550 to $1,000 |
Averages from 2026 industry price surveys, before any state incentives. Brand matters: premium batteries can cost noticeably more per kWh.
Using the example above, a 10 kWh battery at about $8,450 saving $876 a year pays for itself in a little under 10 years. Homes with higher evening use, higher power prices or VPP earnings do better. See how the battery rebate works for the discount on each size.
Who a battery suits, and who it does not
Likely worth it if you
- use a lot of power in the evening and overnight
- have solar that regularly exports a lot in the middle of the day
- get a low feed-in tariff
- are on a time-of-use plan with expensive evening rates
- want backup power during outages
- are happy to join a virtual power plant for extra credits
Maybe not yet if you
- are out most evenings, or use little power at night
- have a small solar system that you already use almost all of
- plan to sell or move within a few years
- can move most of your usage into the daytime instead
On a NSW, South East Queensland or South Australian Solar Sharer plan, you get at least three hours of free grid power in the middle of the day. That changes the maths, so we model it for you if you're on one or thinking about it.
Choosing the right size
- Match it to your evenings. Many homes find 10 to 15 kWh of usable capacity covers their evening and overnight use.
- Make sure your solar can fill it. A battery that rarely gets full won't pay for itself. If your system is small, adding panels may come first.
- Mind the rebate tiers. The federal discount pays the full rate only on the first 14 kWh, a lower rate up to 28 kWh and a small rate up to 50 kWh. Extra capacity costs more per kWh.
- Plan for later. Some batteries are modular, so you can start smaller and add capacity when your needs change, for example when you buy an electric car.
Will it keep the power on in a blackout?
Only if it is set up for backup. A standard solar system switches off in a blackout for safety, even when the sun is shining. Many batteries can keep selected circuits, or sometimes the whole home, running in an outage, but this needs the right battery and wiring, and backup is limited to the energy stored.
Questions to ask before you buy
- How much of the battery will I actually use? Ask for an estimate based on your bills, not a rule of thumb.
- What is the usable capacity and the warranty? Check the usable kWh, the warranty length and the capacity it guarantees at the end.
- Will my existing inverter work with it? You may need a hybrid inverter or a battery with its own inverter.
- Is backup included? Ask which circuits stay on in a blackout, if any.
- Which rebates and VPP offers apply? The federal discount should be on the quote, plus any state incentive you're eligible for.
Questions
Can I add a battery to my existing solar system?
Usually, yes. Depending on your inverter, we add a battery with its own inverter or replace your inverter with a hybrid one, and the federal discount still applies.
How long do home batteries last?
Most come with a 10-year warranty that guarantees they will still hold a set share of their original capacity at the end, often 60 to 70 per cent. Capacity fades slowly with use, like a phone battery.
Should I wait for battery prices to fall?
Prices may keep easing, but the federal discount also steps down every six months, starting with a drop of about 16% on 1 January 2027. Waiting doesn't always save money, so it is worth getting a quote and comparing.
Do I need to join a virtual power plant?
No. Batteries under the federal program must be able to join one, but joining is optional. Some VPPs pay credits, and in NSW joining one unlocks an extra state incentive.
General information only, based on 2026 industry price and payback analyses checked in October 2026. Savings depend on your usage, tariffs and system, so we work out your own numbers in your quote.