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Homeowners with solar panels could save up to $1,100 more per year by adding a battery. If you're installing both solar and a battery together, annual bill savings could reach $2,300, potentially slashing electricity costs by up to 90%. These estimates come from the Department of Climate Change, Energy, the Environment, and Water and reflect the upcoming Cheaper Home Batteries Program launching on 1 July 2025, which will cut the installed cost of a home battery by around 30%.
Your actual savings will depend on your energy usage, battery size, and tariff type—but the bottom line is clear: a well-matched battery system can deliver real, long-term value.
How Much Can a Home Battery Save You Each Year in Australia?
If you’ve already invested in solar or are planning to, it’s only natural to ask: Is a home battery worth it—and how much can it really save me each year? With power prices rising and the appeal of energy independence growing, understanding the financial benefits of home energy storage is more relevant than ever.
Thankfully, the answer is encouraging—especially with new government incentives coming soon.
New federal battery rebate coming in 2025
The re-elected Labor Government will introduce the Cheaper Home Batteries Program on 1 July 2025—a $2.3 billion initiative designed to bring battery storage within reach for more Australians.
- Rebate value: Roughly 30% off the installed cost, equating to about $3,300–$3,720 off a typical 10kWh battery system.
- Eligibility: Applies to homes with existing or new solar, small businesses, and community facilities.
- Administered via the existing Small-scale Renewable Energy Scheme (SRES).
- Bonus: Batteries installed earlier may still qualify—if switched on after the program start date.
This is a big deal, as upfront cost has long been the biggest barrier to home battery adoption.
How much could I save annually with a battery?
According to government and independent modelling:
- If you already have solar: Adding a battery could save up to $1,100 per year on electricity bills.
- If you’re installing both solar and a battery: You could save up to $2,300 per year, with bill reductions up to 90% in ideal scenarios.
- Independent ranges: Most homes with a 13.5 kWh battery see $700–$1,500 in yearly savings.
- Mid-sized systems (around 10 kWh) generally save $1,400 or more for moderate energy users.
For added context, the Clean Energy Council reports that:
- Standard (non-orchestrated) batteries typically save $900–$1,000 annually.
- Orchestrated batteries—which can trade energy with the grid—may yield $1,150–$1,500 per year in savings.
These are general estimates. Real-world savings depend heavily on your energy habits and system design.
What factors affect your battery savings?
Your energy usage patterns
Homes that consume more power in the evening—after solar generation drops—stand to benefit most. Batteries let you store daytime solar to use later, avoiding expensive peak-time grid electricity.
Your electricity tariff
If you’re on a time-of-use tariff, where rates spike in the evening, a battery can shield you from those costs.
System size and compatibility
A battery works best when paired with a solar PV system that generates excess energy. Undersized solar arrays or oversized batteries may reduce economic returns.
Feed-in tariff rates
With solar feed-in tariffs falling in most states, it’s increasingly more profitable to store your solar than sell it back to the grid.
Participation in Virtual Power Plants (VPPs)
VPP-compatible batteries can earn you extra credits by letting your retailer tap into your stored energy to help balance the grid. Most new batteries under the 2025 rebate will need to be VPP-ready.
Stacked incentives
In some states, you can combine the federal rebate with additional local schemes. For example, NSW residents may benefit from the Peak Demand Reduction Scheme, boosting affordability even further.
Beyond the bill: extra benefits of home batteries
While annual savings are important, batteries offer other meaningful advantages:
- Energy independence: Use more of your solar and reduce reliance on the grid.
- Blackout protection: Many systems can provide backup power in an outage (note: this feature often costs extra).
- Environmental impact: Batteries help you maximise your use of clean, local solar energy —shrinking your carbon footprint.
- Grid support: Widespread battery use can reduce pressure on the grid and help stabilise prices over time.
Is a battery worth it for you?
With falling battery prices, generous rebates, and more volatile electricity costs, the financial case for batteries is stronger than ever. Where payback periods once stretched over a decade, a well-sized solar and battery system may now pay for itself in under 4 years, especially when combining federal and state rebates.
Still, batteries aren’t one-size-fits-all. Your home’s savings potential depends on your energy habits, roof size, budget, and goals (e.g., backup power vs. bill reduction). That’s why it’s crucial to get advice from Clean Energy Council-accredited installers who understand local conditions.
If you’re ready to explore your options, Your Energy Answers offers a free service to connect you with accredited professionals in your area for tailored advice and quotes.
