Solar Battery Prices and Payback Times

Solar battery payback times have never looked better, with some of SolarBright’s specials seeing payback periods under 3 years. This guide covers current battery prices, new rebates from the Federal government and how they’re making solar storage more affordable than ever.

As electricity prices continue to rise, more households across Australia are taking a closer look at battery storage. The question being asked more often is: Are solar batteries finally worth it in 2025?

Thanks to improved technology and new government rebates, the answer for many is yes. Payback periods are shorter, upfront costs are lower, and the long-term benefits are growing clearer by the year.

Let’s break down solar battery prices, rebate programs, expected savings, and who’s likely to benefit most.

Solar Battery Prices in 2025

Battery costs are usually measured in dollars per kilowatt-hour (kWh) of storage. The larger the battery, the higher the total price—but the cost per kWh often drops with size.

Here’s what installed prices currently look like in NSW (before rebates):

These are installed prices, excluding rebates. Final costs can shift based on installer, home layout, electrical setup, and whether it’s a new solar install or retrofit.

New Federal Rebate: Battery for Cheaper Homes (From July 2025)

Starting 1st July 2025, the federal government will offer additional support through the Battery for Cheaper Homes rebate.

• Coverage: Available to owner-occupied homes nationwide
• Rebate size: Up to $372 per kWh (e.g. save $3,720 for systems on a 10kWh battery)
• Eligibility: Applies to both new installs and battery add-ons
• Stackable?: May be combined with other incentives, pending final approval

Check out our Federal Solar Rebate Calculator to learn how much you can save.

Solar Battery Payback in 2025: An Example

A typical solar and battery package includes solar panels, solar battery storage and inverter depending upon whether your battery have built-in inverter or not.

Let’s look at a real-world example using today’s pricing and available rebates.

Solar & Battery Package Overview

Solar System Includes:

• 6.6kW Solar Panel System
• 9.6kWh Sungrow Battery
• Full Supply & Installation: $15,200

Estimated Rebates & Incentives:

• Federal Battery Rebate: $3,500
• SolarBright Bundling Discount: $1,500
• Total Savings: $5,000
• Out-of-Pocket Cost: $10,200

Power Generation & Annual Savings

• Estimated Solar Generation: ~9,438kWh per year
• Assumed Electricity Rate: $0.38/kWh
• Self-Consumption (90%)
  • 8,494kWh used directly
  • Annual Savings: $3,227.80
• Export to Grid (10%)
  • 944kWh exported @ $0.05/kWh
  • Feed-in Tariff Credit: $47.20
• Total Estimated Annual Savings: ~$3,275

Financial Summary

• Estimated Payback Period: ~3.1 years
• Estimated ROI (Year 1): ~32.1%
  (Based on $3,275 return on $10,200 investment)

What Could You Save Over Time?

Savings don’t stop after payback. Here’s what they might look like long-term:

• 10-year savings: ~$24,000
• 15-year projection (assuming battery longevity): ~$40,000

And these numbers don’t even factor in future energy price hikes. If prices keep rising, your total savings could be even higher.

Who Gains the Most from a Solar Battery?

Certain home types stand out when it comes to strong returns:

• Families at home in the mornings & evenings: Batteries can reduce peak electricity use when rates are highest
• Work-from-home setups: More daytime usage equals more solar self-consumption using solar during day and battery at night
• Homes in blackout-prone areas: A battery offers backup power
• People with older solar panels: Adding a battery can boost value
• Households aiming to cut grid reliance: Batteries make energy independence possible

If you’re exporting surplus solar for a few cents per kWh, storing and using that power later is becoming the smarter choice.

What Impacts the Final Cost?

Several factors affect the total cost of a solar battery system:

• Battery size: More storage increases cost. You want a battery sized to match your usage—not necessarily the biggest.
• Brand and warranty: Higher-end brands often include longer warranties and smart energy features, but at a higher price.
• Inverter type: Some batteries (like Tesla Powerwall) come with an inverter built-in. Others need a separate hybrid inverter, which can add $2,000 or more.
• Installation conditions: Difficult access, old switchboards, or complex wiring setups may increase installation labour.
• Energy plan: Time-of-use or solar sponge tariffs from your retailer can affect savings, depending on when you use stored energy.

Will Solar Battery Prices Keep Falling?

From 2021 to 2024, battery prices dropped steadily thanks to falling lithium costs and better manufacturing. But in 2025, there’s some uncertainty.

While lithium prices dipped in recent years, demand is surging again—largely driven by the electric vehicle industry. Some analysts warn that supply chain pressures could push battery costs up by 2026 or 2027.

Rebate programs may also phase out in the next few years. So while it’s tempting to wait, delaying could mean missing out on current incentives—and a year or more of energy savings.

Are Solar Batteries Worth It in 2025?

In many cases, yes.

With federal rebates, battery prices are the lowest they’ve been in years. Combine that with high electricity rates and improved self-consumption, and the payback math is finally stacking up in favour of batteries for many NSW homes.

If you’re building a new solar system or thinking about upgrading an older one, bundling in a battery might make more sense in 2025 than ever before.

Summary: Why Now Might Be the Right Time

Here’s a quick recap of why batteries are a smart move for many households this year:

• Battery prices have dropped to their most competitive levels in years
• Federal rebate could knock up to $3,700 off your system
• Payback periods are often under 4 years for suitable homes
• Long-term savings can exceed $19,000 over a decade
• Energy independence offers peace of mind, especially during grid outages

Let SolarBright help you start energy independence journey

Choosing the right battery setup depends on your home, energy habits, and solar configuration.

SolarBright is multi-award winning solar installer based in Sydney, NSW.

Our team can help you with:

• Comparing various solar battery options.
• Understanding existing solar battery rebates, and
• Finding the best system that fits your needs.

Call Us for expert advice or request free consultancy – with no sales pressure.