Should You Add a Battery to Your Existing Solar System? A Deep Dive for Aussie Homes
G’day solar enthusiasts! Here at SolarInsights, we’re constantly looking at ways to help you maximise the benefits of your rooftop solar system. One question we hear frequently is: "Is it worth adding a battery to my existing setup?" Let's break down the pros, cons, and everything you need to consider.
For years, rooftop solar has been a fantastic way for Australians to reduce their reliance on the grid and lower their electricity bills. But often, the energy you generate during the day isn't used immediately, and gets sold back to the grid at a lower feed-in tariff than you pay to buy electricity. This is where batteries come in.
What a Battery Can Do For You
In essence, a battery stores excess solar energy generated by your panels, allowing you to use it later, particularly during peak evening hours when electricity prices are higher, or even during a blackout. Here’s a closer look at the potential benefits:
- Increased Self-Consumption: By storing excess solar energy, you can significantly reduce your reliance on the grid, consuming more of the power you generate yourself. This translates to lower electricity bills and greater energy independence.
- Backup Power During Outages: This is a major draw for many. Most standard solar systems shut down during a power outage as a safety measure (called anti-islanding). A battery system, when configured correctly, can provide backup power to your home, keeping essential appliances running when the grid goes down. Note that some batteries can power your whole house, while others are designed to support only essential circuits like lights, fridges, or medical equipment.
- Grid Stabilisation & Potential Income: Many modern battery systems are "VPP-ready" or have Virtual Power Plant capability. This means your battery can be connected to a network that helps stabilise the electricity grid by sharing stored energy. Some VPP programs even offer financial incentives for participating.
The Cheaper Home Batteries Program
The Australian government is making batteries more accessible. As of July 1st, 2025, the Cheaper Home Batteries Program provides a discount on the cost of installing a small-scale battery system for households and businesses. This program is an expansion of the existing Small-scale Renewable Energy Scheme (SRES).
The government will fully fund the cost of the discount. To be eligible, battery systems need to be Clean Energy Council (CEC) accredited and listed on the CEC’s approved products list.
Important Considerations Before You Buy
Before you rush out and buy a battery, it's crucial to assess your individual needs and circumstances. Here's what to think about:
- Is Your Solar System Producing Enough Excess Energy? A battery is only useful if you have surplus solar power to store. If you have a small solar system and consistently use all the power it generates, a battery might not be the most cost-effective investment.
- Your Energy Consumption Patterns: Analyse your electricity usage. Do you use most of your power during the day, when your solar panels are generating? Or are you a heavy user in the evenings? If your peak consumption is in the evening, a battery is likely to be beneficial.
- Backup Power Needs: How critical is backup power for you? If you live in an area prone to frequent blackouts or rely on electricity for essential medical equipment, a battery becomes a more compelling option.
- Battery System Configuration: Understand the different ways a battery can be set up. Can it power your whole home or only selected circuits? Does it automatically switch over during a blackout, or do you need to manually switch it on?
- Virtual Power Plant (VPP) Compatibility: The Cheaper Home Batteries Program requires on-grid battery systems to be VPP-capable. This could provide additional benefits and potential income streams.
Cost vs. Benefit
The upfront cost of a battery system can be substantial. While government incentives like the Cheaper Home Batteries Program can help, it's essential to carefully weigh the cost against the potential savings on your electricity bill and other benefits like backup power. Remember to factor in the lifespan of the battery (typically 10 years) and potential replacement costs.
Getting Professional Advice
The best way to determine if adding a battery to your existing solar system is right for you is to consult with a reputable solar retailer or installer. They can assess your energy needs, evaluate your existing system, and recommend the most suitable battery solution for your situation. Under the Cheaper Home Batteries Program, battery retailers, designers and installers, will be required to provide written statements to you, providing key information about the battery and the installation.
They should be able to provide a detailed cost-benefit analysis, taking into account your individual circumstances and the available government incentives. Don't be afraid to ask questions and get multiple quotes before making a decision.
In Conclusion
Adding a battery to your solar system can be a smart move, increasing your energy independence, lowering your bills, and providing backup power. However, it's not a one-size-fits-all solution. Careful assessment, professional advice, and an understanding of your own energy needs are essential to making an informed decision. Good luck, and here's to a brighter, more sustainable future!
