Fast read
A 5kWh battery can be a highly useful starting point for an Australian family, covering essential evening energy needs and providing backup during blackouts. While it may not eliminate your power bills entirely, it significantly boosts self-consumption of your solar energy, reducing reliance on the expensive grid. Its suitability depends on your specific energy usage, but with a new federal government rebate available from 1 July 2025, a 5kWh system is a more financially viable and popular entry into energy independence.
Is a 5kWh home storage battery useful for a family?
For many Australian families looking to get more out of their solar panels, the question of battery storage is no longer “if” but “what size?”. A 5kWh (kilowatt-hour) battery is often the first size that comes to mind. It represents a significant, yet manageable, first step into storing your own clean energy.
But is it genuinely useful for a family? The short answer is yes, absolutely. A 5kWh battery can be a powerful tool for reducing your electricity bills, increasing your energy independence, and providing valuable peace of mind. However, its effectiveness depends entirely on your family’s unique energy habits and goals.
What can a 5kWh battery actually power?
First, it’s helpful to understand what 5kWh of stored energy looks like in practical terms. A battery’s capacity is measured in kilowatt-hours, which is a unit of energy. A 5kWh battery can deliver 5,000 watt-hours of energy. This means it could power a 1,000-watt appliance for 5 hours, or a 200-watt appliance for 25 hours.
For a typical family, a fully charged 5kWh battery could comfortably power the following essential appliances through the evening peak hours:
- A large, modern refrigerator: (approx. 1-2 kWh per day) for an extended period.
- Multiple LED lights: (approx. 10 watts each) for over 50 hours.
- A large-screen TV: (approx. 100-150 watts) for an entire evening of entertainment.
- Internet modem and router: to keep you connected.
- Charging laptops and mobile phones: for the whole family.
Essentially, a 5kWh battery can store enough of your midday solar surplus to cover the crucial “after-dark” period when your solar panels are no longer generating but your family’s energy usage—for cooking, lighting, and entertainment—is at its highest.
The primary benefits for a family
For a family, installing a 5kWh battery unlocks several key advantages that go beyond just keeping the lights on.
The main financial driver is maximising your solar self-consumption. Instead of exporting your excess solar energy to the grid for a low feed-in tariff (often 5-8c/kWh), you store it for free and use it later, avoiding the need to buy expensive electricity from the grid (often 30-45c/kWh). This simple shift can dramatically reduce your quarterly power bills. Depending on your electricity tariff, feed-in tariff, and usage patterns, annual savings for a 5kWh system are estimated to be between $500 and $800.
A 5kWh battery also provides a valuable buffer against blackouts. While it may not power your entire house for days, it can keep essential circuits running—like the fridge, some lights, and communication devices—ensuring safety and minimising disruption during a grid outage.
Is 5kWh the right size for your family?
This is the most critical question. A 5kWh battery is an excellent starting point, but its suitability depends on your daily energy consumption. The average Australian household uses between 16 and 25 kWh per day. A 5kWh battery is designed to cover your evening peak usage, not your entire 24-hour consumption.
Consider your energy bills and daily usage patterns:
- Lower consumption: If your family is energy-conscious and uses less than 20kWh per day, a 5kWh battery is often a perfect fit.
- Higher consumption: For larger families, or those with high-draw appliances like ducted air conditioning or a pool pump, a 5kWh battery will still provide significant savings but may not cover the entire evening’s usage. In these cases, it might be seen as a starting point.
The good news is that many modern battery systems are modular. This means you can start with a certain capacity and add more battery modules later as your needs change, perhaps when you buy an electric vehicle. Brands like Huawei and others offer modular systems that can start with a 5kWh unit and be expanded. This scalability makes a 5kWh battery a future-proof investment.
Financial sense and government support
In 2025, the financial case for batteries is stronger than ever. The installed cost of a quality 5kWh battery system typically starts from around $6,000 to $8,000. However, a major development is the Australian Government’s Cheaper Home Batteries Program, which provides a significant discount.
The program officially commences on 1 July 2025 and is expected to provide a discount of around 30% on the upfront cost of an eligible battery. To be eligible, battery systems must be certified with a Certificate of Electrical Compliance on or after 1 July 2025. The rebate applies to new systems with a nominal capacity from 5kWh up to 100kWh, though the discount is calculated on the first 50kWh of usable capacity.
It’s important to check how this federal rebate interacts with state-based incentives. As of mid-2025:
- Western Australia: The federal rebate can be combined with the WA Residential Battery Scheme.
- New South Wales: The state’s upfront installation discount ends on 30 June 2025 and cannot be stacked with the federal program. However, a nearly doubled incentive for joining a Virtual Power Plant (VPP) will be available from 1 July 2025 and can be combined with the federal rebate.
- Victoria: The state’s interest-free battery loan program has closed to new applicants.
These rebates can significantly shorten the payback period for a battery, bringing it down into the 5 to 10-year range, with periods as low as 5 to 7 years possible under favourable conditions. Furthermore, you can often unlock additional value by joining a Virtual Power Plant (VPP), where you get paid for allowing your battery to help support the grid during times of high demand.
The final verdict
So, is a 5kWh battery useful for a family? Emphatically, yes. It is an ideal entry-level system that allows a family to take a significant step towards energy independence, slash their power bills, and gain crucial backup power.
While it may not be large enough to take a high-energy-use family completely off-grid, it perfectly serves its primary purpose: storing your valuable solar energy to power your home through the expensive evening peak. With a substantial federal government rebate now available and the option to expand your system in the future, a 5kWh battery is a smart, practical, and increasingly affordable investment for the modern Australian family.
If you’re considering a battery, the best next step is to get a clear picture of your own energy usage. From there, you can explore quotes from accredited installers who can help you find the perfect system for your home.
