The Role of Home Batteries in Managing Solar Exports
SOLAR INSIGHTS

The Role of Home Batteries in Managing Solar Exports

By Brendan Bostock | 24 Dec 2025

Taming the Sun: How Home Batteries Can Optimise Your Solar Exports

Australia's love affair with rooftop solar is booming, but as more homes generate their own electricity, managing the flow of excess power back into the grid becomes increasingly important. This is where home batteries come in, offering a smart solution for both homeowners and the electricity network. Before we dive in, be sure to read our Complete Guide to get a deeper understanding of the grid challenges we're facing.

So, how exactly do home batteries help manage solar exports, and are they right for you? Let's break it down.

The Export Problem: Too Much, Too Soon?

When your solar panels produce more electricity than your household is using, that excess power is typically exported to the grid. You get paid a feed-in tariff for this, but there are a couple of potential issues. Firstly, the feed-in tariff might not be as generous as you'd like. Secondly, and more importantly, too much solar power flooding the grid at once can create instability and strain the network. In some cases, network operators might even limit or curtail solar exports, meaning your excess power is effectively wasted.

Home Batteries: Your Personal Power Reservoir

A home battery acts like a reservoir for your solar energy. Instead of immediately exporting excess power to the grid, it stores it for later use. This offers several key benefits:

  • Increased Self-Consumption: By using the stored energy from your battery to power your home in the evenings or during cloudy days, you reduce your reliance on grid electricity. This can significantly lower your electricity bills and increase your energy independence.

  • Optimised Exporting: A battery allows you to strategically export solar power at times when it benefits you most, or when it’s most beneficial for the grid. Future battery systems may coordinate with the grid as part of Virtual Power Plants (VPPs) to maximise value.

  • Backup Power: Many battery systems can provide backup power during a blackout. This ensures that essential appliances, like lights, refrigerators, or medical equipment, continue to function even when the grid goes down. Note that this functionality needs to be specifically configured and not all batteries offer it. Some solar inverters also offer a similar "islanding" functionality without a battery, allowing you to use solar power during outages – but only when the sun is shining.

Are Home Batteries Right for You?

The decision to invest in a home battery depends on several factors, including:

  • Your Energy Consumption Patterns: If you use a lot of electricity during peak hours (evenings) or have high energy demands generally, a battery can be a worthwhile investment.

  • The Size of Your Solar System: A larger solar system is more likely to produce excess energy that can be stored in a battery. If you have a smaller system, a battery might not be as effective.

  • Your Feed-In Tariff: The lower your feed-in tariff, the more attractive it becomes to store your solar energy in a battery for self-consumption.

  • Grid Reliability: If you live in an area with frequent power outages, a battery can provide valuable backup power.

  • Budget: Home batteries represent a significant upfront investment, costing several thousand dollars depending on their size and features.

Government Support: The Cheaper Home Batteries Program

The Australian government is actively encouraging the uptake of home batteries through initiatives like the Cheaper Home Batteries Program (commencing 1 July 2025). This program aims to reduce the upfront cost of installing a battery system for eligible households and businesses. The program will be funded through the Clean Energy Regulator’s clearing house, aiming to ensure costs are not passed onto consumers. Eligible systems will need to have Clean Energy Council accreditation.

Things to Consider Before You Buy

Before you rush out and buy a home battery, it's essential to do your research and get professional advice. Here are a few key considerations:

  • Battery Size: Choose a battery size that matches your energy consumption needs and the size of your solar system.
  • Battery Type: Lithium-ion batteries are the most common type of home battery, offering good performance and longevity.
  • Installation: Ensure that your battery is installed by a qualified and experienced installer. They can help you choose the right system for your needs and ensure that it's installed safely and correctly. Battery retailers, designers, and installers will be required to provide a written statement with key information.
  • Warranty: Check the warranty on the battery and the inverter to ensure that you're protected against defects.
  • Virtual Power Plant (VPP) Capability: Going forward, many on-grid battery systems will need to have virtual power plant (VPP) capability to enable energy sharing and grid stabilisation.

The Future is Battery-Powered

Home batteries are playing an increasingly important role in managing solar exports and creating a more resilient and sustainable energy system. As battery technology improves and costs continue to fall, they will become an even more attractive option for Australian households looking to maximise the benefits of solar power.

Brendan Bostock
Written by Brendan Bostock

Editor in Chief & Solar Enthusiast

Connect on LinkedIn