Solar With Battery vs Solar Without Battery — Which Is Better for Your Home?

One of the most common questions we hear at Smart Energy Market: should I get a battery with my solar panels, or just go solar first and add a battery later? The answer depends on your electricity usage, the feed-in tariff you receive, and whether you want backup power. Here's an honest, data-driven comparison.

Solar Without Battery: The Case For It

Solar panels alone still deliver excellent returns in Australia. A typical 6.6kW system costs $5,500–$8,000 installed (after STCs) and saves $1,200–$2,000 per year — giving a payback of 3–5 years. This is compelling on its own. Going solar-only first makes sense if: • You have budget constraints — solar alone delivers fast payback • You use most electricity during the day (self-consumption is maximised) • Your feed-in tariff is reasonable (10c/kWh or above) • You want to wait for battery prices to fall further before adding one • You plan to move within 5 years (harder to recover battery cost)

Solar With Battery: The Case For It

Adding a battery makes strongest financial sense when: • Your feed-in tariff is low (under 8c/kWh) — you're selling cheap and buying expensive • You use most power in the evening after solar stops generating • You're eligible for a state rebate or interest-free loan that reduces battery cost significantly • Blackout protection matters to you (battery provides backup power) • You're installing an EV and want to charge it from solar overnight • You want to future-proof against rising electricity prices With a state rebate, a combined solar + battery system can be economically compelling — particularly in SA, VIC, NSW, QLD and ACT.

The Numbers: Solar Only vs Solar + Battery

Scenario: average Australian household, 6.6kW solar system, 25 kWh daily usage, electricity tariff 32c/kWh, feed-in tariff 6c/kWh Solar only (6.6kW): Cost $6,500 | Annual savings $1,600 | Payback 4 years Solar + 10kWh battery: Cost $16,500 | Annual savings $2,400 | Payback 7 years Solar + 10kWh battery with $3,000 state rebate: Cost $13,500 | Annual savings $2,400 | Payback 5.6 years The battery adds cost and extends payback — but after payback, your savings are $800/year higher, every year, for the remaining 15+ year life of the system.

Our Recommendation

If you qualify for a state battery rebate or interest-free loan, installing solar and battery together at the same time is almost always the better financial decision — and saves on installation costs vs doing it in two separate visits. If you don't qualify for rebates and have budget constraints, go solar first. Solar delivers excellent returns on its own. Most modern solar systems are 'battery-ready', meaning adding a battery later is straightforward. Smart Energy Market will check your rebate eligibility and give you an honest comparison of both options for your specific situation — for free.