$3,500-$8,000
Typical battery cost
70-80%
Self-consumption with battery
10-15 years
Typical warranty
Why Add Battery Storage?
Use Solar at Night
Store daytime solar generation and use it in the evening when electricity is expensive.
Maximise Savings
Increase self-consumption from ~30% to 70-80%, reducing grid electricity purchases.
Backup Power
Keep essential appliances running during power cuts (with compatible systems).
Smart Tariff Arbitrage
Charge from the grid at cheap rates (e.g., Octopus Go) and use during peak times.
Battery Storage Costs 2025
| Capacity | Price Range | Suitable For | Cycle Life |
|---|---|---|---|
| 5kWh | $2,500 - $4,000 | Small household, basic backup | 4,000-6,000 cycles |
| 7-8kWh | $3,500 - $5,500 | Average 3-bed household | 6,000-10,000 cycles |
| 10-13kWh | $5,000 - $8,000 | Larger home, higher usage | 6,000-10,000 cycles |
| 15kWh+ | $7,000 - $12,000 | Large home, EV charging | 10,000+ cycles |
* Prices include installation. 0% VAT applies to batteries installed with solar panels.
Popular Battery Brands
Tesla Powerwall 2
13.5kWhKey features:
GivEnergy
5-13.5kWhKey features:
Enphase IQ
3.5-10.5kWhKey features:
Huawei LUNA2000
5-15kWhKey features:
Is Battery Storage Worth It?
Battery storage makes most sense if you're often out during the day when your solar panels generate electricity, or if you want to maximise your independence from the grid. However, the economics depend on several factors, including the upfront cost of your solar panel system.
When Batteries Make Sense
- You're out during the day and home in the evening
- You have a smart tariff with cheap overnight rates
- You want backup power during outages
- You're installing a new solar system (cheaper to add together)
- You have an electric vehicle to charge
When Batteries May Not Be Worth It
- You're home during the day and use electricity as it's generated
- Your budget is limited (prioritise more panels instead)
- Your existing system is small (<3kW)
Choosing the Right Battery Size
The ideal battery size depends on your daily electricity usage and solar generation:
Quick Sizing Guide
- 5kWh: Enough for 4-6 hours of typical evening usage (lights, TV, appliances)
- 8-10kWh: Can cover most evening/night usage for an average home
- 13kWh+: Suitable for larger homes or those with EVs
As a rule of thumb, your battery capacity (in kWh) should roughly match your daily excess solar generation or your evening/night electricity usage, whichever is lower.
AC vs DC Coupled Batteries
AC Coupled
- Can be added to any existing solar system
- Slightly lower efficiency (around 85-90%)
- More flexible installation location
- Good for retrofits
DC Coupled (Hybrid Systems)
- Higher efficiency (around 95-97%)
- Must be installed with solar or compatible inverter
- Lower cost when installed with new solar system
- Best for new installations
Smart Tariff Integration
Batteries become even more valuable with smart electricity tariffs. For example, Octopus Go offers electricity at around $0.07/kWh from 12:30am-4:30am. You can:
- Charge your battery from the grid during cheap overnight hours
- Use that stored electricity during expensive peak times (4pm-7pm)
- Top up with solar during the day
- Potentially save $300-500 extra per year
Installation Considerations
Location
Most batteries can be installed in a garage, utility room, or even outdoors (with appropriate enclosure). They need to be:
- Protected from extreme temperatures
- Well ventilated
- Accessible for maintenance
- Away from heat sources
Planning Permission
Domestic battery storage typically falls under permitted development, but there are limits on size and location. Your installer will advise on any planning requirements.
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