Are home batteries worth it?

A UQ expert guide to home batteries: how they work, what they can save you and what you need to know before investing.

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Image: Getty Images

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Are home batteries worth it?

A UQ expert guide to home batteries: how they work, what they can save you and what you need to know before investing.

A car parked in front of a wall with a yellow and white background. On the left side of the image, there is a car, and on the right side, there are two white switches and a yellow sun. The image is animated, giving it a dynamic feel.

Image: Getty Images

Image: Getty Images

Thinking about installing a home battery but not sure where to start? With major subsidies on offer, a booming EV market and rooftop solar popping up across our neighbourhoods, it's no surprise more and more people are asking the question. But what are the real pros and cons?

This practical explainer from 2 UQ experts – Professor Ruth Knibbe (Doctor of Philosophy, 2007) and Dr Qingbing Xia from the School of Mechanical and Mining Engineering – covers everything you need to know, from the factors to consider before making your investment to the UQ research pushing the boundaries of battery technology.

Key points:

  • Home batteries store solar energy for use when you need it most, helping households rely less on the grid and make better use of the electricity they generate themselves.
  • Savings vary depending on your energy habits, but the right size battery can cut electricity bills and potentially pay for itself over time – especially for households that use most of their power in the evenings.
  • Modern battery systems are generally safe and built to last, with built-in safety features and long warranties.
  • UQ researchers are are exploring next-generation batteries that could store even more energy, as well as new methods for battery recycling and resource recovery.

Professor Ruth Knibbe and Dr Qingbing Xia

Professor Ruth Knibbe and Dr Qingbing Xia

For those who are completely new to this world, what is a home battery and how does it work?

Think of a home battery as an electricity ‘bank’ for your house. During the day, your solar panels often generate more electricity than your household needs. Instead of sending that excess energy to the grid, a battery stores it for later.

In the evening, when the sun goes down and households typically use the most electricity for cooking, heating, cooling and entertainment, the battery provides the electricity.

Most home batteries today use lithium-ion technology, like the batteries found in electric vehicles and mobile phones.

If a household already has solar panels, how does adding a battery change things?

Without a battery, many households try to run energy-intensive appliances such as washing machines, dishwashers or pool pumps during the day to make the most of their solar generation.

A battery gives you more flexibility. Instead of needing to use the energy immediately, you can store excess solar electricity during the day and use it when it suits you, such as after sunset when electricity prices are often highest.

In simple terms, a battery allows you to use more of your own solar energy rather than buying electricity back from the grid later in the day.

One common misconception is that all home battery systems automatically provide backup power during a blackout. This capability depends on the battery and inverter configuration, so homeowners should check this with their installer.

An orange battery icon on a black background. It is a vector illustration of a battery, with a bright orange color that stands out against the dark background.

Image: Adobe Stock ansi (modified)

How do I pick the battery that best suits my home?

The right battery depends on both how much and when your household uses electricity and how big your solar system is.

A good starting point is a battery whose storage capacity (kWh) is around twice your solar system's power rating (kW). For example, a home with a 7 kW solar system might consider a 14–15 kWh battery.

If you have a smart meter, your retailer's app or online account will usually show how much electricity you use in the evening and overnight. That is roughly the amount a battery needs to cover.

It is important not to assume that bigger is always better.

Buying an oversized battery is a bit like buying a 10-seat car when only 2 people ever travel in it. You'll pay more upfront, and much of that extra capacity may never be used.

A reputable installer can analyse your electricity usage and recommend a battery size that strikes the right balance.

How much can homeowners realistically expect a battery to reduce their electricity bills?

The answer depends on several factors, including the size of your solar system, household electricity use, electricity prices, feed-in tariffs and any available rebates.

As an example – a Brisbane household with a 7 kW solar system might install a battery with around 15 kWh of usable storage. Depending on the battery brand and installation requirements, the cost could be approximately $10,000–$13,000 after the federal Cheaper Home Batteries Program discount.

The biggest factor is how and when your household uses electricity.

A household that is away during the day and uses most of its electricity in the evening can often make good use of a battery by storing excess solar energy that would otherwise be exported to the grid. In this scenario, annual savings of around $1,200–$1,500 may be achievable, meaning the battery could pay for itself in roughly 7–10 years.

By contrast, households that already use most of their solar energy during the day may have less excess energy available to store. In these cases, savings may be closer to $800–$1,000 per year, meaning it could take around 10–13 years to pay for itself.

While cost savings are important, many homeowners also value the increased energy independence and protection from future electricity price rises that a battery can provide.

A yellow battery icon on a black background. It is a vector illustration of a battery, with the yellow color standing out against the dark background.

Image: Adobe Stock ansi (modified)

Are home batteries safe, and what protections are built into modern battery systems?

This is probably the most common question homeowners ask.

The good news is that billions of lithium-ion batteries are used around the world every day in phones, laptops, electric vehicles and home energy systems. The vast majority operate safely throughout their lifetime.

Modern home batteries have a built-in electronic 'brain', known as a battery management system, that continuously monitors temperature, voltage and charging behaviour. If the system detects a problem, it can automatically reduce power or shut down the battery as a safety precaution.

That said, not all products are equal. Homeowners should purchase batteries from reputable manufacturers and ensure they are installed by accredited professionals.

When it comes to battery safety, quality matters.

Are cheap batteries a false economy, or can a less expensive system be perfectly adequate?

A lower-priced battery is not always a bad battery. For example, many LFP lithium-ion batteries (despite the different name, these are still a type of lithium-ion battery) are less expensive than other types of lithium-ion batteries while still offering excellent performance and long lifetimes.

Consumers should be aware of poorly made batteries from suppliers with limited track records, weak warranties or unclear safety credentials.

Home batteries store large amounts of energy in a relatively compact space. While serious incidents are rare, poor manufacturing quality can increase safety risks.

The safest approach is to choose products from reputable manufacturers, ensure they are installed by accredited professionals and check warranties and certifications before making a purchase.

A green battery icon on a black background. It is a clipart of a battery, with a bright green color that stands out against the dark background.

Image: Adobe Stock ansi (modified)

How long will my investment last? What's the average lifespan of a home battery system?

Most home battery systems today come with warranties of around 10 years.

That doesn't necessarily mean the battery stops working after the warranty expires. Much like the battery in a mobile phone, home batteries gradually lose capacity over time rather than failing suddenly.

When comparing warranties, look beyond the number of years. Most guarantee a minimum remaining capacity, often around 60–70% after 10 years and some end early once the battery has delivered a set amount of energy. Heat also shortens battery life, so a shaded, well-ventilated location is best.

For most homeowners, a battery is likely to last at least a decade, with some systems remaining useful for much longer.

Are there new battery technologies on the horizon that could make home energy storage cheaper, safer or more sustainable?

Absolutely.

One of the biggest changes over the past decade has been the rapid growth of lithium iron phosphate (LFP) lithium-ion batteries. LFP batteries are generally cheaper, longer lasting and safer than some earlier types of lithium-ion batteries. This is one reason they are now widely used in home batteries and electric vehicles.

There is also growing interest in sodium-ion batteries. They are unlikely to outperform the best lithium-ion batteries, but sodium (one of the elements in table salt) is abundant and widely available, making sodium-ion technology an attractive option for lower-cost energy storage.

Researchers around the world are developing new types of batteries that could reduce costs, improve safety and lower reliance on critical raw materials.

At UQ, researchers are exploring next-generation batteries that use lithium or sodium metal in place of the graphite used today, and solid-state batteries that replace the liquid electrolyte with a non-flammable solid. These could store more energy and be safer than today's batteries.

In the future, this could help electric vehicles travel further and enable more renewable energy to be stored for use when the sun isn't shining and the wind isn't blowing.

Sustainability also means dealing with batteries at the end of their life. Used batteries still contain valuable metals such as lithium and UQ researchers are also developing greener ways to recover these metals for use in new batteries.

Watch this space!

A green battery icon on a black background. It is a vector illustration of a battery, with a bright green color that stands out against the dark background.

Image: Adobe Stock ansi (modified)

 

An orange battery icon on a black background. It is a vector illustration of a battery, with a bright orange color that stands out against the dark background.

Image: Adobe Stock ansi (modified)

Image: Adobe Stock ansi (modified)

A yellow battery icon on a black background. It is a vector illustration of a battery, with the yellow color standing out against the dark background.

Image: Adobe Stock ansi (modified)

Image: Adobe Stock ansi (modified)

A green battery icon on a black background. It is a clipart of a battery, with a bright green color that stands out against the dark background.

Image: Adobe Stock ansi (modified)

Image: Adobe Stock ansi (modified)

A green battery icon on a black background. It is a vector illustration of a battery, with a bright green color that stands out against the dark background.

Image: Adobe Stock ansi (modified)

Image: Adobe Stock ansi (modified)