Solar battery price, savings and payback

While the uptake of solar panels in Australia is really strong, the same cannot be said for solar batteries. A newer technology, battery storage has been viewed as expensive – especially when comparing the payback of a battery system against its expected life.

However, the Australian government's battery storage rebate has changed all of this. Substantially lower prices, now make a solar battery a far more appealing option for homeowners. Home battery installs have soared as a result.

In this article, we publish solar battery costs, explain the price variables and consider, in 2026, if home battery storage is now worth it.

Average price of solar batteries

The average solar battery prices we publish include the battery, installation, GST and the federal rebate. Buying a solar battery with panels is cheaper, because the hybrid inverter is included in the system. For existing solar panel owners, the solar battery price will increase if a hybrid inverter is needed.

The table below shows the average battery price and total system price (buying with solar panels), for different size solar batteries:

The larger the battery capacity, the lower the cost per kWh.

Cost of popular solar batteries

Not all batteries are equal, some have better functionality e.g. backup power and some brands are more desirable than others. The table below shows the cost to install popular solar battery brands with the rebate applied for both systems with new solar panels and existing:

Note: The Tesla Powerwall 3 comes with a built-in hybrid inverter so the cost of installing one if you already have solar is the same as buying it with new panels.

Tip: It’s better to buy a solar battery at the same time as your solar panels because you’re saving on price and install costs. For example, the price of a BYD battery is cheaper when installed with solar panels.

Federal battery rebate lowers costs significantly

The recently introduced federal government solar battery rebate significantly lowers the cost of installing a battery.

For popular 10 kWh and 13.5 kWh batteries, the savings are around 30% off pre-rebate prices. The table below shows average battery prices for popular battery sizes with the rebate applied:

State government incentive schemes

In addition to the federal rebate, there are several state-run incentive schemes. Tasmania and the Australian Capital Territory both offer interest-free loans for battery installations (subject to eligibility).

The NSW solar battery VPP rebate can provide an additional saving for connecting a battery to a Virtual Power Plant.

The WA solar battery rebate provides an additional saving off the install price of the battery. Synergy customers can save a further $130 per kWh while Horizon customers can save a further $380 per kWh. The WA rebate taps out at a maximum of 10 kWh of battery storage.

Why solar battery prices vary

It’s not just the rebates that impact the installation cost of a battery. There are many factors that will affect the price of a solar battery. These include, but are not limited to:

• The size of the battery
• Need for a hybrid inverter
• The brand of the battery
• Backup power functionality
• Type of battery
• Installation costs e.g. fireproof backing

The size of the battery affects the cost

A solar battery is measured in storage capacity (kWh). The bigger the battery, the more it costs. However, the greater the size, the less you will pay per kWh of battery storage.

It may be that the price determines the size of the battery or, you can figure out what size battery you need.

Hybrid inverter cost

If you buy a solar panel and battery system, it will come with a hybrid inverter and you won’t pay any additional costs.

If you already own solar panels, and your system is not battery ready (does not have a hybrid inverter), you will need to pay extra to get one. How much extra depends on the size of the inverter.

Some batteries, like the Tesla battery, come with a built-in hybrid inverter.

Backup power adds to the cost

The ability to keep the lights on during a blackout and have a backup power source, is one of the main benefits of buying a solar battery. However, this added functionality typically adds to the cost of the battery.

The cost varies depending on how many appliances you want to backup. As a guide, solar battery backup can add between $1,500 - $3,500 to the cost of a battery.

The type of battery impacts prices

Not all solar batteries are made from the same materials. Some batteries have Lithium Nickel Manganese (NMC) whereas others are Lithium Iron Phosphate (LiFePO4) or (LFP). LiFePO4 batteries are typically slightly cheaper, but prices vary depending on the manufacturer.

Installation costs

The cost of installing a battery can vary depending on the specifics of the installation. The location of the battery and, the inverter, may increase the need for:

• Extra cabling
• Safety bollards
• Fireproof backing
• Sun shield

Solar panel costs can vary further, with additions like: a new switchboard, meter upgrade, micro inverters etc., that all add to the purchase price.

Battery savings and payback

To explore what savings are possible with a solar battery, we have run some scenarios for different states assuming average electricity use of 15.3 kWh per day. To simplify calculations, we have based the figures off a 6.6kW system with a 10 kWh battery. These savings figures are for new panel and battery systems:

* The Victorian solar rebate has been applied to the VIC returns.

Throughout Australia, average payback times on solar panel and battery systems range from 5.8 years to 9.6 years. The economics are far more attractive in some states like South Australia, NSW, Queensland and Western Australia.

It’s important to run your own figures, because the savings and payback figures will change according to your location, electricity usage and electricity rates. Our solar panel and battery calculator can calculate the viability of battery storage for your home.

Payback for adding a battery to an existing system

If you’re adding a battery to an existing system, the payback is slightly longer. Unless you’re able to access a rebate, the payback period for adding a battery to an existing system sits between 7 – 12 years.

You can evaluate the viability of adding storage to an existing system using our battery calculator.

Additional savings and Virtual Power Plants (VPPs)

It's possible to increase savings from a home battery by connecting to a Virtual Power Plant (VPP). Whether it's in the form of a rebate, or a higher feed-in rate, VPPs can increase savings and potentially reduce payback times.

The downside is that you forgo control of your battery to a VPP operator. It's best to read the fine print of each VPP offer before joining.

Are solar batteries worth it?

When deciding if solar batteries are worth it, consider your prime objective for wanting storage. If it is for backup power, or to lower your carbon emissions, then in all likelihood the financials are justifiable.

If installing a solar battery is purely an economic decision, you must consider your savings potential, the estimated payback period and the solar battery lifespan. As a general guide, solar batteries last around 10 years.

The new rebate has improved the economic case for solar batteries significantly. In many instances, the payback period on the system is less than the lifespan of the battery. Bear in mind, the solar panels will last much longer than the battery.

Average payback periods are close to the 7-year mark in many Australian states, making the financial case for a battery strong. If you are a high electricity user, or pay high electricity rates, the economics are even more favourable.

For many Australians, installing a battery is now, financially and environmentally worthwhile.

Why solar batteries are more and more appealing

The financial case for solar batteries is improving all the time. The threat of a solar tax and declining feed-in tariffs, makes the financial outlook for solar batteries more appealing, in comparison to a solar panel system.

The proposed new three hours of free electricity offer will only further benefit battery owners.

Get a tailored battery price for your system

The average solar battery price for different storage sizes on this page provide a guide as to what you might expect to pay. If you’re ready to take the next step, we recommend getting a solar battery quote where we can arrange for up to three, fully qualified, expert installers to provide a detailed price for the supply and install of a solar battery.

A detailed quote will provide you with information on backup capability at your home and any added installation costs for the battery brand of your choice.