Hybrid solar systems: Cost, savings & payback

Since the introduction of the solar battery rebate in July 2025, 438,319 ¹ batteries have been installed; either added to an existing system or installed with solar panels as a new hybrid system.

Hybrid systems are now far more popular than solar panel systems. There are several benefits to a hybrid system:

• They save more on electricity bills
• You can use solar power at night
• Hybrid systems can provide power backup
• Take advantage of generous rebates
• Represent better value in changing energy times

As we reveal, the financial returns for household hybrid solar systems are getting better and better.

How a hybrid system works

Hybrid solar systems allow you to store solar power generated from solar panels, in a battery, for later use.

Here's a quick rundown of how hybrid systems work:

• Panels generate solar power on your rooftop
• Solar energy generated directly powers your working appliances
• Excess power generated from your panels is directed to charge your battery
• Once your battery fully charges, the excess power flows back to the grid
• When the sun isn’t shining, energy stored in your battery will power your appliances
• If your battery is empty and the sun isn’t shining, you purchase power from the grid

Instead of exporting excess energy back to the grid, a solar system with a battery stores the energy for later use. Financially, this can significantly increase your savings from solar.

Adding a battery to an existing solar panel system

It's possible to add a battery to an existing solar panel system to convert it to a hybrid system. But, if you're exploring solar for your home, you're better off installing a hybrid system from the get go.

It is possible to buy a battery ready system in preparation for the purchase of a battery in the short to medium-term.

However, battery ready systems are far less popular now that battery storage prices have decreased. With the solar battery rebate decreasing at half-yearly intervals, the best time to buy a battery is now, rather than waiting for prices to come down.

Different from an off-grid system

A hybrid panel and battery system is different from an off-grid system. A hybrid system is a grid-connect system where the grid ultimately serves as your back up power source. Hybrid systems are also much cheaper to install than off-grid systems.

Solar system with battery cost

Hybrid systems can come in any size solar panel and battery combination. Adding a battery to a system increases the purchase cost substantially. As a guide, a 6.6kW panel system with a 10kWh battery will typically cost anywhere between $13,000 - $17,500.

The table below shows the cost for different size systems with a battery:

How rebates apply to hybrid systems

Rebates apply separately to both the solar panels and battery components of a hybrid system. The solar panel rebate applies to panel system sizes all the way up to 100kW.

The national solar battery rebate is tiered according to the size of the battery. Popular 10 kWh and 13.5 kWh batteries fall in the sweet spot and receive the full rebate. Larger batteries receive a reduced subsidy (60%) for every kWh installed over 14 kWh. Once the capacity hits 28 kWh, the rebate reduces further to 15% of the full rebate.

Additional hybrid rebates by state

In addition, several states offer further rebates that reduce the cost of a hybrid system:

• NSW VPP battery rebate: worth up to $1,100
• WA solar battery rebate: additional $1,300 or $3,800 saving
• VIC $1,400 solar rebate: For solar panels only (means tested)

Hybrid system component prices:

The following table breaks down the cost of the different components in a hybrid system:

* Some solar batteries come with battery backup therefore saving this additional cost.

Get more accurate prices and savings results

Our solar calculator allows you to analyse the difference between hybrid systems and solar panels. It will also give you more definitive output, price, savings and payback figures as the results will be specific to your location and electricity consumption habits.

Hybrid system with solar backup

One appeal of panel and battery systems is the ability to use your solar system as a backup power source in the event the grid goes down. Not every panel and battery system is able to provide a backup power source automatically; a special configuration is needed to allow this functionality. The solar backup functionality adds to the cost of a hybrid system by anywhere between $1,500 – $3,500.

Some batteries, like the Powerwall 3 already come equipped with backup functionality built-in.

Payback and savings for hybrid systems

Lower battery prices have reduced the payback period for new panel and battery systems down to an average of 5.8 - 9.6 years. Figures vary by state and household circumstances.

The payback on a hybrid system is faster if:

• Your cost of electricity is high
• You use a lot of energy at night (or early morning)
• Your electricity consumption is high

Typically, solar panel systems payback faster than hybrid systems, but the gap is closing. It's worth noting that good solar panels will last 25 years while the battery should last beyond 10 years, but not likely more than 15.

The image below shows savings and payback results from our calculator for a 8kW system with a 13.5kWh battery in Sydney:

Our analysis concludes that solar systems with a battery provide better financial returns in locations with higher electricity rates.

Compare calculator results with a solar panel system

We highly recommend you use our calculator to weigh up returns for your property. You can use it to compare a solar panel system with a hybrid system.

Is a hybrid system worth it?

Until recently, the financial case for a hybrid system was marginal. For households with high electricity usage, the case was more plausible.

In 2026, the landscape and financial case for hybrid systems has changed significantly. Firstly, the federal battery rebate has lowered the upfront cost of battery storage considerably.

Secondly, prices for exporting excess solar have dropped sharply. Some states now offer free electricity during the middle hours of the day via the Solar Sharer scheme. A move that makes savings from batteries even more valuable - if the stored energy can be used during peak electricity demand times.

In summary, there's never been a better time to install a hybrid system.

Seek a quality installation

As is the case with any solar purchase, do not skimp on the quality of the hybrid system. Ensure you select good quality components and a reputable solar installer company to perform a quality installation.

Source:
¹ Solar installation statistics