Everything You Need to Know About Home Batteries in Australia

Home battery systems are quickly becoming a common sight across Australian homes and businesses. With electricity prices rising and solar panels on one in three Aussie rooftops, many people are looking to batteries as the next step in energy independence. In fact, by the end of 2024 over 320,000 Australian homes had a battery installed – with 75,000 new batteries added in 2024 alone, up 47% from the previous year.

This surge is set to accelerate even more thanks to a new federal government incentive offering a 30% rebate on home battery installations. Whether you’re a homeowner or a small business, this guide will explain how home batteries work, the benefits they provide, details of the new rebate, popular battery brands, the installation process, and how to calculate the return on investment.

A modern Australian home with solar panels and a battery energy storage system. Home batteries store excess solar power for later use, increasing energy self-sufficiency.

What Are Home Battery Systems and How Do They Work?

A home battery (also known as a solar battery or home energy storage system) is a rechargeable battery unit that stores energy for use at a later time. Most commonly in Australia, home batteries are paired with rooftop solar panels: during the day, any surplus solar energy can charge the battery, and in the evening the battery supplies power to the home.

In essence, a battery lets you “time-shift” your energy – storing daytime solar power to use during the peak evening hours when electricity from the grid is most expensive. This not only increases your consumption of your own clean energy, but also eases strain on the grid during peak times.

Home batteries typically use advanced lithium-ion technology (similar to an electric car battery) and come in various sizes (storage capacities). Common sizes range from around 5 kWh up to 15 kWh for typical household units, with larger multi-battery systems for bigger homes or businesses. To put that in perspective, analysis by the Smart Energy Council found that a 6–7 kWh battery can cover about 90% of an average Australian home’s evening energy needs. If you have a larger household or higher usage, you might choose a battery 10 kWh or bigger to cover more of your needs. Many battery systems are modular, meaning you can start with one unit and add more capacity later if needed.

How does it all work in practice? Your battery is connected to your solar power system (and sometimes to a special battery inverter). During sunny hours, your solar panels will power your home first; any excess solar power goes into charging the battery until it’s full. Later, when the sun goes down or your solar slows, the battery discharges stored energy to keep your lights and appliances running. If the battery empties, your home seamlessly draws from the grid as normal so you are never out of electricity.

The other interesting benefit of storing your own solar energy is price. Currently energy retailers only pay a home owner with solar around 3 cents per KwH (prices vary and depends on your plan and how long you have had your solar panels). If you can store this energy rather than sell it for 3 cents a Kwh, you avoid paying 20 – 40 cents per KwH at night time! That means you’ve saved yourself a lot of money with a battery but more on this later.

Some batteries also provide backup power during blackouts, keeping critical circuits (like your fridge, lights, or Wi-Fi) running – a useful feature if you experience outages (not all battery setups have this, so you can ask your installer about backup capability). Overall, a home battery maximises your use of solar, reduces grid consumption, and can provide greater energy independence.

Benefits of Home Batteries for Homes and Businesses

Installing a home battery can offer numerous benefits for both residential and small business users:

• Lower Electricity Bills: By storing solar energy (or off-peak grid power) and using it later, you buy much less electricity from the grid. This can significantly cut your bills. For example, a recent federal analysis found that a household with solar plus an ~8.5 kWh battery can reduce their annual energy bills by 75% to essentially 100%, saving about $1,300 to $2,250 per year on average. Even without completely eliminating a bill, many homes see their solar self-consumption jump up, meaning big savings over the battery’s lifetime.
• Better Use of Solar (Less Wastage): Without a battery, any solar energy you don’t use immediately gets sent to the grid for a small credit (feed-in tariff). With a battery, you can store that surplus instead of sending it away cheaply, and use it later to offset expensive peak power. This makes your solar investment more effective. (With solar alone, households typically offset ~40–60% of their usage; with a battery, that can rise to 80–100%.)
• Protection from Blackouts: Many battery systems can provide backup power to your home or business when the grid goes down. This means critical appliances or even your whole home can keep running for hours during a power outage. For small businesses – such as cafes, medical offices or shops – this backup capability can protect against lost revenue or spoilage during outages.
• Reduce Peak Demand and Possibly Earn Rewards: If you’re a business on a demand charge tariff (charges based on peak usage) or a time-of-use plan, a battery can shave off those peaks by discharging at high-demand times. This can lower demand charges and overall costs. Additionally, many batteries are enabled for Virtual Power Plants (VPPs) – programs where you join a network that lets your battery help support the grid at times of need, and in return you receive payments or credits. While joining a VPP is optional, having a VPP-capable battery (a requirement under the new rebate) could unlock extra earnings that improve your return on investment.
• Environmental Benefits: Using more of your own solar energy means drawing less power from the grid, which in Australia still often comes from fossil fuels at peak times. By maximising renewable usage and even exporting stored energy during peaks (if you join a VPP), home batteries help cut greenhouse gas emissions. Widespread adoption of batteries can also reduce the need for new power plants and network upgrades. In fact, experts note that if millions of homes have batteries, it can make a “really, really big help” in stabilising the grid and lowering power prices for everyone.

In short, a battery helps you save money, increase energy resilience, and contribute to a cleaner, more reliable grid. Now, with new government incentives, the financial case is stronger than ever.

The New Federal Battery Rebate in 2025

One of the biggest developments in the Australian energy space is the Cheaper Home Batteries Program – a new federal initiative to make home batteries more affordable. From 1 July 2025, the Australian federal government will provide an upfront subsidy worth approximately 30% off the cost of a home battery system. This program was included in the federal budget at a cost of $2.3 billion and is aimed at accelerating battery uptake to an additional 1 million batteries by 2030.

How does the rebate work? In practical terms, installers will apply the discount at the point of sale, reducing your out-of-pocket price for the battery. The government provides the rebate to the installer (via certificates or a similar mechanism) once the system is installed and validated. This means you don’t have to wait for a refund – you get the savings upfront. The rebate is uncapped (no fixed number of vouchers or first-come-first-served limit) – any eligible installation from July 2025 onwards can receive it.

Rebate amount: The subsidy is calculated based on battery size. For 2025, it’s set at a maximum of $372 per kWh of usable battery capacity (which after admin fees will likely equate to about $330 per kWh off the price). This amount will step down slightly each year until the end of 2030, when the program is scheduled to end. For example, a 10 kWh battery installation in 2025 would get roughly a $3,300 discount off the cost. If you installed a larger system (say 13.5 kWh, similar to a Tesla Powerwall), the rebate would scale up accordingly (up to a cap of 50 kWh). Systems must be at least 5 kWh to qualify, and the rebate tops out at 50 kWh (you can install bigger batteries, but 50 kWh is the maximum size that will be subsidised).

Who is eligible? The great news is the program is not means-tested – it’s open to all Australian households as well as small businesses and community organisations looking to install a battery. There are a few key criteria:

• You must either have an existing solar PV system or be installing a new one along with the battery. The battery needs to be connected to solar (this ensures the program supports renewable energy storage).
• One rebate per property. If you own multiple properties, each property with solar can get a battery subsidy (but you can’t get two rebates for one site).
• The battery model must be approved by the Clean Energy Council (CEC) and installed by a suitably accredited installer. This is for safety and quality assurance. (Luno Electrical meets these requirements as a CEC-accredited, Master Electrician company with a Tesla certification – more on that later.)
• The battery system must be capable of participating in a Virtual Power Plant (VPP). You don’t have to join a VPP, but the hardware should be technically capable of it. Most leading brands already have this capability via their energy management software.
• If you already have a battery, you can add another one (for example, to expand capacity) and still get the rebate on the new battery.
• Interestingly, even off-grid systems are eligible as long as the battery is VPP-capable (meaning even remote homes not connected to the grid can qualify).

When and how to apply: The program officially starts July 1, 2025, but there is a proviso: batteries installed in the lead-up (after the April 2025 announcement) can still get the rebate as long as they are not turned on (commissioned) until July 1. This was designed so people keen to install do not delay purchases – you could have the battery physically installed in May or June and simply wait to activate it on July 1 to receive the discount. To actually get the rebate, the simplest path will be to go through a certified installer. Just like with the solar rebate, your installer will handle the documentation and apply the rebate as a discount on your invoice. Essentially, you won’t need to fill out complex government forms – just ensure you use an accredited installer participating in the program (the vast majority will). If combining with a state scheme (which is allowed), you should inform the installer so they can manage any extra paperwork or requirements for that.

Tip: Given the expected high demand, it’s wise to start getting quotes and securing an installation spot early. We expect a surge in battery orders, so reputable installers (like us!) may get booked out for months. If you’d like a free quote or just to talk about it contact us. A trusted company like Luno Electrical can help plan your battery installation to align with the rebate timeline and ensure everything is compliant.

Top Home Battery Brands and Models in Australia

Australia’s home battery market has matured, with many quality brands available. At Luno Electrical, we install all major battery brands, so the good news is you have plenty of choice to find the best fit. Here are some of the leading home battery options you’ll encounter:

• Tesla Powerwall: The Tesla Powerwall is often considered the benchmark for home batteries. With about 13.5 kWh usable capacity per unit, an integrated inverter, and a slick app, the Powerwall set the standard for plug-and-play batteries. It offers reliable performance, 10-year warranty, and can provide backup power. Tesla’s is a premium product and has been hugely popular in Australia – in installer surveys it consistently ranks at or near the top for preferred battery. Many homeowners love the Tesla Energy app for monitoring usage. (Fun fact: Tesla plans to release a Powerwall 3 with further improvements, which may become available here soon if not already.)
• Sungrow Battery: Sungrow is a well-known inverter manufacturer, and their SBR battery series has gained a lot of traction as a high-value, affordable option. These batteries are modular – you can stack modules to achieve capacities from around 9.6 kWh up to 25.6 kWh. They boast high efficiency (>95%), a 10-year warranty, and are designed to handle Australia’s climate. Sungrow batteries, paired with Sungrow hybrid inverters, offer a cost-effective alternative to pricier brands, which explains why Sungrow has surged in popularity (recently tying with Tesla for the top spot in one installer poll).
• BYD Battery-Box: BYD is a global battery powerhouse (also one of the world’s largest electric vehicle battery makers). The BYD Battery-Box system is known for its flexible modular design – it comes in both low-voltage and high-voltage variants and can scale from small residential sizes (~5 kWh) up to very large (even 50+ kWh) by stacking battery modules. The BYD batteries use lithium iron phosphate (LiFePO4) chemistry, valued for its safety and longevity. They work with many hybrid inverter brands (like Fronius, GoodWe, etc.). This is a great option if you want a tailor-made capacity or plan to expand your storage over time.
• Enphase IQ Batteries: Enphase is famous for microinverters, and they offer small modular batteries (like the Enphase IQ Battery 5P series). Each unit is only around 3.5 kWh usable, so you might install several in a cluster to meet your needs. The advantage is a plug-and-play, very scalable system – add more as needed – and a long 15-year warranty on some models. These AC-coupled units integrate seamlessly if you already have Enphase microinverters with your solar. They’re compact and can fit in tight spaces, ideal for those who want fine-grained expansion or have smaller energy needs to start.
• Sonnen: SonnenBatterie from Germany is a high-end solution with a focus on smart features and sustainability. Capacities typically range from 5 kWh up to ~15 kWh for home models. Sonnen units come with intelligent energy management software and are often used in community battery schemes and VPPs. They emphasise using recyclable materials and offer robust performance and safety. Sonnen was one of the early players in Australia and maintains a strong reputation for quality and customer support. If you’re eco-conscious and like the idea of an energy community, Sonnen allows participation in programs where you can share stored energy or join virtual power plant networks easily.

Other brands you might come across include Alpha-ESS, LG Energy Solution (RESU), Huawei, Solax, and new entrants like Sigenergy. Each has its own features in terms of capacity, compatibility with inverters, and price points. The good news is that Luno Electrical can install all these major brands – we are not tied to a single manufacturer. During your consultation, we will discuss which battery best suits your needs and budget. For example, some customers prioritise having the Tesla Powerwall for its proven track record and backup power, while others might opt for a more budget-friendly system like a Sungrow or BYD that can achieve similar outcomes at a lower price. Our aim is to help you choose a reliable battery with a solid warranty, from a trusted brand, that integrates well with your existing or new solar setup.

(Note: All CEC-approved battery brands in the Australian market meet strict safety standards. Always ensure the battery you choose is on the CEC approved list – which all the above are – especially if you want to be eligible for rebates.)

The Installation Process (What to Expect)

Installing a home battery is a straightforward process when done by experienced professionals. Luno Electrical has performed many battery installations across Melbourne and Victoria, and as a Master Electrician (CEC-accredited) and Tesla Certified Installer with 150+ five-star Google reviews, we follow a careful process to ensure safety and quality. Here’s what you can typically expect in a home or small business battery installation:

1. Initial Consultation and Site Assessment: First, one of our expert’s will evaluate your energy needs and existing electrical setup. We look at your current solar system (if you have one), your energy consumption patterns, and the space where a battery could be installed. This helps in recommending the right battery capacity and model. For instance, we determine if an indoor garage wall or an outdoor location is suitable (batteries are usually wall-mounted or floor-mounted in a weatherproof cabinet). We also ensure your switchboard and inverter are compatible or note if any upgrades are needed.
2. Quote and Rebate Guidance: Based on the assessment, you’ll receive a detailed quote. This will include the cost of the battery unit(s), any required inverter or control equipment, installation labour, and relevant certifications. The quote will factor in the federal rebate (and any state rebate if applicable) upfront, showing you the net cost after incentives. We handle the paperwork for the rebate, but will explain what documentation (e.g. proof of solar, etc.) might be needed. At this stage, we also schedule the installation date.
3. Installation Day: On the day of installation, our licensed electricians will arrive with the battery and necessary gear. A typical home battery install can be done in half a day to a full day. We start by mounting the battery unit securely (on a wall or ground rack). Then we wire it into your home’s electrical system and solar inverter. Safety is paramount – we follow all Australian standards for battery installs, including proper isolation devices, circuit protection, and ventilation clearances as required. If your system includes backup functionality, we set up a backup circuit/sub-board that the battery will supply during outages. For small business installations, we coordinate to minimize any downtime (often the work can be done without cutting power for long, except for brief moments to make final connections).
4. Commissioning and Testing: Once the hardware is in place, we program and commission the battery. This involves updating inverter firmware if needed, configuring the battery management system, and connecting the setup to your Wi-Fi for monitoring. We then test the system thoroughly – simulating charging and discharging – to ensure everything operates correctly. We also guide you through the monitoring app or portal (for example, showing how the Tesla app or Sonnen app works) so you can track your energy production, battery charge level, and usage in real time.
5. Aftercare and Support: After installation, you will receive all relevant documentation, including warranty info (most batteries come with around a 10-year warranty), compliance certificates, and user manuals. The installation will be certified as required (e.g. a Certificate of Electrical Safety in Victoria). Luno Electrical remains available for any support you need – we have a strong reputation for customer service (as evidenced by our 150+ 5-star reviews) and will help if you have questions about operation or if maintenance is ever required. Fortunately, batteries are generally low-maintenance; there are no moving parts, and software updates can often be done remotely. We’ll also remind you of any recommended checks. In some cases, the network distributor may want to inspect or approve the battery connection (particularly if you plan to export battery power to the grid); we assist in handling those approvals as well.

Choosing a quality installer is as important as choosing a quality battery. Batteries store a lot of energy, so correct installation and safety mechanisms are critical. Always use a licensed electrician with specific battery installation accreditation (Clean Energy Council accreditation for battery storage). Luno’s installers carry this accreditation, and also vendor certifications like Tesla’s, which means we’re trained directly by the manufacturer on the best practices to install their equipment. This ensures your warranty remains valid and the system performs optimally. With a professional install, your battery system should seamlessly integrate with your home or business, delivering years of trouble-free savings.

Calculating the Return on Investment (ROI)

Investing in a home battery is not just about the up-front cost – it’s important to understand the return on investment (ROI), which comes in the form of electricity cost savings (and other benefits) over time. Here’s how you can approach calculating the ROI for a battery in Australia:

1. Estimate Your Usable Solar Surplus: Determine how much excess solar energy you typically export to the grid (or could store) each day, or how much grid energy you want to replace. A good place to find this out is your power bill. It should detail how much solar you have exported to the grid, and what you were paid. For example, if you find you have about 8 kWh of surplus solar on a sunny day that could charge a battery instead of being sent out, that 8 kWh is your daily battery input. (If you don’t have solar, consider how you might charge the battery on off-peak power to use in peak times.)
2. Determine Your Tariffs: Note your electricity import rate (what you pay per kWh from the grid) and your solar feed-in tariff (what you earn per kWh for exports). The value of using a battery is essentially the difference between these. For instance, if you pay 30 cents/kWh for grid power and get 5 cents/kWh for exports, each kWh you can store and use later instead of exporting is saving you 25 cents that you’d otherwise pay.
3. Calculate Daily and Annual Savings: Multiply the energy (from step 1) by the rate difference (from step 2). Using the above example, 8 kWh per day * $0.25 = $2.00 saved per day. Over a year, that’s roughly $730 saved. If you also avoid some fixed charges or gain other tariff benefits, include those. Businesses might also calculate reduced demand charges if applicable.
4. Factor in Battery Cost: Determine your net battery system cost after rebates. Say the battery costs $14,000 and you get ~$4,000 in rebate/state incentives, your cost is $10,000 out-of-pocket. Divide this by the annual savings to get a simple payback period. In our example, $10,000 / $730 ≈ 13.7 years to pay back. If your usage or rates lead to higher savings (many households will save more than the above example, especially with larger batteries or higher tariffs), the payback will be quicker. For instance, if you save $1,500/yr, a $10k system pays back in ~6.7 years.

Using real-world data: government analysis shows typical savings of $1,300–$2,250 per year for a solar + battery system. If your savings are on the higher end (e.g. a larger family home or a small business with high evening use might save ~$2k/year), and your battery system cost is around $10k, your payback could be as short as 5 years. Even on the lower end (around $1.3k saved/year), the payback on $10k is about 7.7 years. Considering batteries often come with 10-year warranties (and can last well beyond that), these payback periods are getting very attractive – especially compared to a few years ago when paybacks of 15+ years were common.

1. Consider Additional Value: ROI isn’t only about dollars vs. upfront cost. Think about the extra value you get: backup power security (preventing losses or inconvenience), protection against future electricity price hikes (a battery locks in a portion of your power at $0 cost from your solar), and even potential increase in property value. These factors can “sweeten” the return on a battery investment. For businesses, continuity during outages or the ability to avoid peak prices can have significant operational value that may not directly show up on an energy bill calculation.
2. Account for System Lifetime: A good battery will last 10-15 years or more. After the payback period, the continued savings are essentially a return. Even during the payback, if the effective ROI (savings as a percentage of cost) is, say, 10-15% per year, that’s quite robust compared to many other investments. Also remember the federal rebate will step down each year – installing sooner locks in the higher rebate, lowering your cost and improving ROI.

If all these calculations feel daunting, don’t worry – during our consultation, Luno Electrical can perform a detailed cost-benefit analysis for you. We use your actual usage data and current tariffs to project savings, and we’ll present the expected payback period for various battery options. In some cases, we might recommend a slightly smaller or larger battery to optimise the ROI (for example, there’s no point oversizing a battery if it won’t get fully used most days). We want to ensure your battery pays for itself and then some.

To illustrate with a quick example: suppose you own a small business (like a retail shop) that uses 40 kWh of energy a day, mostly in daylight hours, but you have solar panels producing 50 kWh/day. Without a battery, you might export 10+ kWh to the grid on many days for minimal credit and then draw some power in the evening when closing up. With a battery, you could store that excess 10 kWh. At say 30c/kWh tariff, that’s $3/day saved, or ~$1,095/year. If the battery cost $8,000 after rebate (perhaps a smaller ~10 kWh unit), the payback is ~7.3 years, plus you gain backup power assurance. Every situation will differ, but these examples show how to approach the math.

Home Battery Adoption and Future Outlook in Australia

Australia is leading the world in the residential storage revolution, much as it did with rooftop solar. As noted, hundreds of thousands of homes already have batteries, and one in three new solar installations now includes a battery. This trend is expected to accelerate as the federal rebate launches. The goal of reaching 1 million batteries by 2030 is ambitious but achievable with these incentives. For context, in 2024 alone Australians installed around 28,000–75,000 home batteries (different industry sources report figures in that range), and uptake was growing at ~30–50% year-on-year. So, we are on the cusp of a battery boom.

States like South Australia and Victoria have been early adopters (with their own state-level battery schemes in recent years), and now with a nationwide program, every state is set to benefit. Small businesses are increasingly looking to batteries as well, especially as they invest in solar to combat energy costs – the ability to run on solar after hours or shield against peak rates is a game-changer for many. We also see community institutions (schools, community centres) embracing batteries, sometimes with government grants, to become more self-sufficient and even serve as emergency power hubs.

The broader benefit of all these batteries will be felt by everyone. With more storage soaking up solar energy in midday and releasing it during the evening peak, the grid will operate more smoothly and wholesale power prices should stabilize or drop. Analyses has shown that even those without solar or batteries can see modest bill reductions as more renewable energy and storage comes online. In other words, home batteries are not just good for individual owners, but for Australia’s energy system as a whole – they reduce the need for peaking power plants and help integrate more renewables like solar and wind.

Finally, technology continues to improve. Battery costs have been on a downward trend (with some bumps due to global supply issues, but generally improving). As electric vehicles become widespread, there may even be opportunities for vehicle-to-home setups (using your EV’s battery as extra home storage). Companies like Tesla, Enphase, and others are innovating in both hardware and software (smarter energy management, longer life batteries, etc.). So investing in a battery today means joining a rapidly evolving energy future. Rest assured that today’s systems are advanced, and with programs like the rebate, they are more affordable than ever.

Conclusion:

Home batteries in Australia are coming of age. They allow you to capture the sunshine pouring onto your roof and use it whenever you need – day or night – slashing your power bills and carbon footprint. With the federal government’s new rebate commencing in 2025, there’s an unprecedented opportunity to make battery storage cost-effective for more households and businesses. From understanding how batteries work, to choosing a reputable installer, to selecting a top brand like Tesla, Sonnen, or BYD (among others), we hope this guide has equipped you with everything you need to know.

If you’re considering a home or small business battery, feel free to reach out to Luno Electrical for personalised advice. As a Melbourne-based Master Electrician with Tesla certification and over 150 five-star Google reviews, we take pride in delivering safe, quality installations and unbiased guidance on all battery brands. By joining the growing community of battery owners, you’ll be investing in your own energy resilience and a greener future for Australia. Now is a great time to take control of your energy – and let the savings and benefits roll in!