Solar batteries have consistently decreased in price since they entered the market three decades ago, with advances and new innovations likely to see them becoming increasingly affordable. While the price will depend on the type and size of the battery you choose, the sooner you invest in a solar panel and battery system, the sooner you can reduce your energy bills and access the financial savings on offer.
How much do solar batteries cost?
Much of the solar battery cost depends significantly on its size – lithium-ion battery prices rise the greater the number of kWh. As a rough guide, the initial expense of a solar battery system can range from $4,500 to $18,000 and beyond.
This cost includes not only the solar panels and battery but also the cost of an inverter (although some solar batteries come with an in-built inverter) and installation. The price of solar batteries tends to rise with their kWh capacity. You need to get the right-sized battery to get the most out of your solar + battery system.
If you get an undersized solar battery – one that is too small for the amount of electricity you use – you’ll still be paying for a large portion of your power from the grid. On the other hand, if you get an oversized battery, you’ll have spent more than was necessary and won’t be filling the battery’s capacity.
Read our article What Size Solar Battery Do I Need? for help calculating the suitable battery capacity for your needs. This will be a major factor in how much solar panels and batteries will cost in your home.
At Plico, we do things a little differently. Plico members pay no big upfront costs and just one low weekly instalment. This includes the cost of installation, as well as support for the duration of your contract.
Are there hidden costs to solar batteries?
Hidden costs will depend on the provider you choose. For some, installation is often a forgotten cost in the process of buying and using a solar battery. Battery installation costs, on average, are around $1,200 – a significant amount of cash. At Plico, our weekly fee includes the costs of installation, so there are no hidden costs.
For more info on solar installers, see How to Choose the Best Solar Provider.
So, are solar batteries worth it?
The short answer is yes. As mentioned, a solar battery is the point of difference that allows you to create, store and use your energy on your terms. Without one, whenever the sun isn’t out, you’re paying large amounts of money to get your power off the grid.
As we’ve seen above, there are additional expenses to solar batteries that can make them a less attractive option. Yet solar panels, with their renewable, environmentally-friendly production and distribution, should be accessible for all. Without a battery, however, it’s easy to become disillusioned and forget why you made the switch in the first place. There needs to be another way to support those looking to make the conscientious switch to solar.
For more information, see Are Solar Batteries Worth It?
What type of solar battery should I choose?
Lithium-ion batteries have come to dominate the solar battery market, but there are other options. Lead-acid batteries, the longest-standing rechargeable batteries, were once the only choice for storing solar energy. However, with technological advancements, they’ve become somewhat obsolete due to their lower lifespan and longer charging times (among other reasons). This being said you’ll still see them regularly utilised in off-grid solar setups. Flow batteries and hydrogen fuel cells have also taken up a small percentage of the market.
Read our blog What Are the Different Types of Solar Batteries? to delve deeper into the pros and cons of selecting battery types.
How is solar energy stored and used in batteries?
Solar batteries play an integral part in the interconnected process of a solar + battery system. This is the typical process of a solar + battery system:
- Your solar panels absorb the sunlight and create direct current (DC) energy.
- This energy is sent to the inverter, which converts the DC energy into alternating current (AC) energy. This is because household appliances run on AC.
- Your switchboard directs the power where it’s needed.
- If you generate more power than you’re using, the excess will be sent to your solar battery. Because it’s sent directly, it stays as DC power.
- Your battery stores the electricity.
- When needed, the battery will push the stored power to the inverter, converting it to AC for household use.
- Your switchboard will distribute the electricity.
- When your battery is full, and you’re producing more energy than your household needs, the excess will be exported to the grid. (For which you’ll receive the feed-in tariff.)
- If you run out of stored power, you’ll pull your electricity from the grid.
Want to learn more? Read our article How Do Solar Batteries Work? for more information.
How much do solar panels cost?
The cost of solar panels varies greatly, based upon how many panels you need and how great the power output you’ll need to power your home. Higher quality panels will also cost more but will provide greater efficiency and solar energy generation. However, a ballpark figure would be around $900 – $1200 per kilowatt (kW) size. Typically, you’ll see the cost of solar batteries conveyed in kWh, but solar panel prices per kW or W.
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How many solar panels do I need to power my home?
If you’re looking at investing in a solar + battery system, there are a few different factors to bear in mind when calculating what size system you’ll need.
What do kilowatt (kW) and kilowatt hour (kWh) mean in solar energy systems?
Within the metrics of your solar + battery system, units will be described in two measurements: kilowatts (kW) and kilowatt-hour (kWh). Kilowatts are a thousand watts, and kilowatt-hours are the total kilowatts consumed over an hour. So if your television is rated at 1.25 kW of power consumption, and you’re in the mood for two hours of Stranger Things, a basic calculation would look something like this:
1.25 kW x 2 hours = 2.5 kWh.
You should be able to find your appliance’s energy rating, conveyed in kWh, on an Energy Rating sticker or in the instruction manual.
What is your household's daily electricity consumption?
Knowing how much power you consume gives you an idea of how big of a solar + battery system you’ll need if you’re to meaningfully reduce your electricity bills. Fortunately, this isn’t too arduous – your electricity bill will display an ‘average daily use’ in kWh.
If your household’s daily electricity use is 16 kWh, and four solar panels produce 4 kWh of useable power, you’ll need 16 panels to power your home. It’s pertinent to remember that electricity is lost in the transfer of energy on the journey between your panels to the inverter to appliances to the battery and back to the appliances. Your inverter is also limited in how much energy it can deliver to your home at anytime.
For more information on running appliances with solar power, read this blog.
How much roof space do you need for solar panels?
The size of your roof may restrict the number of panels you can have, so bear it in mind when working out how many solar panels you’ll need on your home. Panels vary in size, but the industry standard size is around 1.7 m x 1 m. Different panels will have different efficiencies and outputs.
How does solar panel quality impact your energy output?
Quality matters when it comes to solar panels. The higher the quality, the greater the efficiency in converting sunlight into power. A solar + battery system is an investment, and you don’t want to cut corners – a reputable provider and installer are essential to getting the most out of a solar + battery system. Read our article on how to choose the best solar provider.
How does roof positioning affect solar panel efficiency?
Roof positioning plays a part in how much power your solar panels generate. It is a key reason why a Plico specialist will perform an obligation-free site visit – assessing what direction and angle are optimal.
In the southern hemisphere, for instance, the maximum amount of sunlight comes from the north. Therefore, solar panels are typically positioned to face this direction to capture as much sunlight as possible. However, other factors, such as the roof's pitch, shading from nearby structures or trees, and local weather patterns, can also influence the optimal positioning.
How long do solar panels last?
In Australia, solar panels have a lifespan of between 20 to 30 years, although multiple factors contribute to how long they last.
The biggest of these is the quality of your panels. The overwhelming consensus in the solar industry is that you get what you pay for. High-quality panels with an inclusive warranty will save you more in the long run than their cheaper counterparts.
Why are solar panels and batteries the future of Australian households?
Let’s start with the most topical reason: everyday life is getting increasingly expensive. The war in Ukraine has contributed to high fuel, gas and electricity costs; food prices and interest rates have spiked and could continue to rise. More than ever, Australians are feeling the financial pinch of running a household and having to reassess how they live. That’s why more people are turning to solar. The future of the Australian household is energy autonomy, made possible by clean renewable energy. A solar + battery system that generates and stores solar energy, which can charge an electric car (and save households a whole heap of money in the process).
The integral ingredient in this prophetic vision is a solar battery. Having the right-sized battery allows you to continue to power your home with affordable and clean energy through the evenings and on cloudy days. It also frees you from blackouts – you’ll still have usable power while homes using grid energy will be in the dark. Solar systems without a battery create solar energy when the sun’s out but force households to pull from the grid when there isn’t enough generated energy.
Solar batteries in 2025: An investment worth considering?
Solar batteries have never been more worth it! With feed-in tariffs now just 2.25 cents between 9 pm and 3 pm, it doesn’t make sense to get solar without a battery. The feed-in tariff is the few cents a homeowner receives for each kWh they push to the electrical grid. In the early days of solar, owners received more significant financial rewards for exporting energy to the grid. This money could be used to repurchase energy from the grid when it was evening or overcast, and the solar panels weren’t generating energy (yes, it does seem counterintuitive…). Now that the feed-in tariff is so low, it would mean that homeowners pay the upfront cost of solar and then still pay for a portion of their energy from the grid. A significant amount, mind you, as evenings are a peak power consumption time.
Batteries completely change the narrative. A solar battery lets you control where your energy comes from and how you use it. In sunny Australia, it’s not hard to see how many Aussies have saved big on their electricity bills by switching to a solar + battery system.
Becoming a Plico member makes solar + battery affordable.
Renewable energy is imperative for a better future for everyone. By switching to solar now, you’ll be ahead of the pack. We’re going to see massive overhauls in national infrastructure (which has the potential to drive up energy costs further). By investing in a solar + battery system, you can become more self-reliant and be responsible for providing for your own energy needs. But what happens if you don’t have the money for the hefty upfront price tag of a solar + battery system?
Plico believes that renewable energy should be attainable for everyone. That’s why we’ve disrupted the industry with no big upfront costs, one low weekly fee and 10 years of ongoing support. You can look at some of the Plico products here.
We’ve helped countless members reduce their electricity bills and gain greater energy independence. You can use our Solar Savings Calculator to estimate how much you could save or have a chat with one of the switched-on Plico team members on 1300 175 426.
Curiosity piqued, and want to learn more? Read our blog on how solar works in winter.
Have a question about solar + battery?
