Home battery set-ups compared
How the common ways of adding battery storage at home differ in cost drivers, fit and risk.
This table compares types of battery set-up and incentive arrangements, not brands or providers. Use it to decide which kind of quote to ask for, then compare actual quotes with the checklist and the installed cost estimator. No prices in this table are market data.
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| Option | How it works | Good for | Watch out for |
|---|---|---|---|
| AC-coupled battery added to existing solar | Battery has its own inverter and connects on the AC side; existing solar inverter stays | Homes with a working solar inverter that is not near end of life | Existing inverter must be VPP-capable if the battery connects to it; two inverters to maintain |
| Hybrid inverter replacing the old inverter | One inverter manages panels and battery on the DC side | Older solar systems whose inverter is due for replacement anyway | Panel string compatibility, extra cost of the inverter, export limits |
| New solar and battery package | Panels, hybrid inverter and battery installed in one job; both create STCs | Homes with no solar or a very small old system | Battery size should follow the new solar size; compare against solar-only payback |
| Essential-circuit backup | Battery keeps selected circuits (lights, fridge, internet) running in a blackout | Areas with occasional outages and modest backup needs | Not all batteries back up by default; changeover gear may be extra |
| Whole-home backup | Battery and gateway can supply the whole switchboard during an outage | Rural or storm-prone areas, medical equipment at home | Higher cost, inverter power limits large loads, ducted air-con may still trip |
| Battery joined to a VPP | An operator can charge or discharge your battery in exchange for credits or payments | Owners in NSW claiming the VPP incentive, WA scheme participants, people with spare capacity | Exit fees, minimum terms, discharge limits and warranty effects |
| Battery not joined to a VPP | Battery runs only to suit your own household (VPP-capable but not enrolled) | Owners wanting full control of stored energy and simple tariffs | Misses VPP incentives; NSW and WA incentives require enrolment |
| Large modular battery (above 28 kWh) | Stackable modules give high capacity for EVs or large homes | Very high evening loads, all-electric homes with EVs | Federal discount tapers to 15% above 28 kWh and stops at 50 kWh; oversizing lengthens payback |
Incentive rules are from the Clean Energy Regulator's solar batteries pages, the NSW Government VPP incentive page and the WA Residential Battery Scheme page, checked in October 2026. Rules change: confirm on cer.gov.au, energy.nsw.gov.au and wa.gov.au before you sign. Technical fit depends on your switchboard, phase supply and network export limits, which only an accredited installer can assess on site.