Calculating Battery Storage Needs Based on Solar Production and Consumption
SOLAR INSIGHTS

Calculating Battery Storage Needs Based on Solar Production and Consumption

By Brendan Bostock | 21 Dec 2025

SolarInsights: Cracking the Code – Sizing Your Battery Storage for Maximum Savings

Thinking about adding a battery to your solar system? It's a smart move for many Australians looking to slash their energy bills and boost their energy independence. But before you jump in, it's crucial to understand how to calculate your battery storage needs based on your solar production and energy consumption. Getting the right size battery can be the difference between significant savings and a costly, underutilised investment. Check out our Complete Guide for more info.

Why Battery Sizing Matters

A battery system is only as good as its ability to store and discharge energy effectively. An undersized battery won't capture all your excess solar, leaving you still reliant on the grid. An oversized battery, on the other hand, will sit idle for extended periods, leading to a poor return on your investment.

The Key Factors: Production and Consumption

The core of battery sizing lies in understanding two key data points:

  1. Solar Production: How much energy does your solar panel system generate? This depends on the size of your system, its location (sunlight hours), and the angle and orientation of your panels.
  2. Energy Consumption: How much electricity does your household use daily? This varies depending on the number of occupants, appliances, lifestyle, and time of year.

Step-by-Step Guide to Calculating Your Needs

Let's break down the process into manageable steps:

1. Assess Your Daily Energy Consumption:

  • Review your energy bills: Look at your electricity bills from the past year to get an average daily consumption figure in kilowatt-hours (kWh). Pay attention to seasonal variations; summer typically sees higher consumption due to air conditioning.
  • Use an energy monitor: Install a smart meter or energy monitor to track your real-time electricity usage. This provides a more detailed understanding of your consumption patterns throughout the day and night.
  • Account for future needs: Consider any planned changes to your household's energy consumption, such as adding new appliances or electric vehicles.

2. Estimate Your Solar Energy Production:

  • Check your solar system specifications: Determine the size (in kilowatts, kW) of your solar panel system.
  • Consider location: Your location significantly impacts solar production. Resources are available online that can estimate average daily solar irradiation for your area. Your solar installer should also be able to provide estimates.
  • Calculate daily output: A general rule of thumb is that a 1kW solar system in Australia produces an average of 4 kWh of energy per day. However, this can vary depending on your location and panel orientation. For example, a 6.6kW system might produce around 26.4 kWh per day.

3. Determine Your Self-Consumption Rate:

  • Direct use is key: The more solar energy you use directly as it's produced ("self-consumption"), the less you need to buy from the grid.
  • Calculate the ratio: Divide the amount of solar energy you use directly by the total amount of solar energy produced. Aim for a self-consumption rate above 30% for optimal savings.
  • Shift your usage: Increase your self-consumption by running appliances like washing machines and dishwashers during daylight hours when your solar panels are generating electricity. Timers and smart home automation can help.

4. Calculate Battery Size:

  • Excess solar: Determine how much excess solar energy you typically have available to store after meeting your immediate energy needs. This is your solar generation minus your daytime consumption.
  • Overnight consumption: Calculate your energy consumption during the evening and overnight hours when your solar panels aren't producing.
  • Battery capacity: Your battery should be large enough to cover most of your overnight energy needs with the excess solar generated during the day.
  • Depth of Discharge (DoD): Note that batteries are typically not discharged to 100%. Check the DoD specification for your battery to ensure you purchase enough capacity.

Example Scenario:

Let's say your household uses 15 kWh of electricity per day, and your 6.6kW solar system generates 26.4 kWh. You directly use 6.4 kWh during the day (24% Self consumption). This leaves 20 kWh of excess solar. If your overnight consumption is 8 kWh, a battery with a usable capacity of around 8 kWh would be a good starting point.

Financial Considerations:

While energy independence is appealing, the primary goal for many is to save money. Larger batteries can be costly, and the payback period may be longer. Balancing your desire for energy independence with your budget is crucial.

The Importance of Professional Advice

Calculating your battery storage needs can be complex, and the ideal solution will be specific to your circumstances. Consult with a reputable solar installer for a professional assessment and tailored recommendations. They can factor in your specific energy consumption patterns, solar production potential, and budget to determine the optimal battery size for your home.

Government Incentives

Keep an eye out for government incentives, such as rebates and subsidies, that can help reduce the upfront cost of battery storage. These programs often have specific requirements regarding battery size and performance.

By carefully considering your energy consumption, solar production, and financial goals, you can make an informed decision about battery storage and unlock significant savings and greater energy independence.

Brendan Bostock
Written by Brendan Bostock

Editor in Chief & Solar Enthusiast

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