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GuidesEnergySolar Panels and Battery Storage in Australia: What to Know Before You Buy
Energy

Solar Panels and Battery Storage in Australia: What to Know Before You Buy

Feed-in tariffs, payback periods, battery sizing, and virtual power plant programs — practical guidance for Australian households considering solar.

9 min read
Updated 2026-07-08By James Okonkwo · Consumer finance research

Key takeaways

  • Self-consuming solar during the day saves more per kWh than most feed-in tariffs pay for export.
  • Battery storage makes sense when feed-in tariffs are low and import rates are high.
  • Get at least three quotes from Clean Energy Council-accredited installers.

Rooftop solar is one of Australia's most common household investments. Understanding feed-in tariffs, payback periods, and when battery storage adds value helps you make a decision that fits your usage — not just the sales pitch.

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1How rooftop solar pays back2Feed-in tariffs explained3When battery storage makes sense4Before you sign a contractQFAQs

How rooftop solar pays back

A typical 6.6 kW system costs roughly $5,000–$9,000 after federal STC rebates. Payback depends on how much you self-consume during the day versus export to the grid. Households home during daylight hours typically see faster payback than those who export most of their generation.

Feed-in tariffs explained

Feed-in rates vary by state and retailer — commonly 4–15 cents per kWh for export, while import rates are often 25–40 cents. Shopping for the highest feed-in only makes sense if you export substantially. For most households, reducing import matters more.

When battery storage makes sense

Batteries add $8,000–$15,000 but increase self-consumption of solar. They suit households with low feed-in tariffs, high import rates, or a need for backup power during outages. Virtual power plant (VPP) programs may offer bill credits for grid dispatch — read terms carefully.

  • Check state battery rebates (Victoria, SA, and others offer schemes)
  • Confirm backup capability if outage protection matters — standard inverters shut down in a blackout
  • Verify export limits with your network before sizing a system

Before you sign a contract

Check roof orientation and shading, get three accredited installer quotes, compare warranty terms (panels, inverter, workmanship), and verify STC rebates are applied transparently. After installation, compare retailers on both import and feed-in rates.

General information only — not personal financial advice. Consider your own circumstances and read the Product Disclosure Statement (PDS) before purchasing any policy. Moneyhero may earn referral fees from some providers when you switch through us; this does not change how results are ordered. How we compare

Frequently asked questions

Common questions about solar panels, battery storage, and feed-in tariffs in Australia.

  • Does rooftop solar affect my electricity retailer choice?

    Yes — not all retailers offer the same feed-in tariff rates, and some have specific solar plans. After installing solar, compare retailers on both the import tariff and the feed-in rate to find the best overall value for your export and import profile.

  • Can I add a battery to an existing solar system?

    In most cases yes, though the battery must be compatible with your current inverter, or a new hybrid inverter may be needed. Compatibility, connection requirements, and rebate eligibility (such as the Victorian Solar Homes battery rebate) vary — confirm with an accredited installer.

  • Is battery storage eligible for government rebates?

    Several state governments offer battery rebates or subsidised loans — notably Victoria's Solar Homes Program and South Australia's Home Battery Scheme. Federal STCs apply to solar panels but not batteries directly. Check your state government's energy website for current schemes.

  • What happens to solar and batteries during a power outage?

    Standard grid-connect solar inverters shut down during a grid outage for safety reasons — they cannot power your home even if the sun is shining. Some battery systems include a backup or islanding mode that keeps selected circuits running during an outage. Confirm backup capability with your installer before purchase.

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On this page

1How rooftop solar pays back2Feed-in tariffs explained3When battery storage makes sense4Before you sign a contractQFAQs

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