Solar Batteries for Homes and Businesses

Solar batteries are becoming increasingly popular in Australia, with over 4 million homes and businesses installing solar panels. These systems help households manage their electricity more efficiently, with a standard solar setup meeting 30-50% of a home’s power needs.

Adding a battery can increase this coverage to 80-90%, and some systems can even reach 100%. Most solar batteries have a minimum throughput of energy over their 10-year warranty period. This guide will help you understand how solar batteries work, their benefits, and how to choose the right one for your needs.

What Are Solar Batteries?

Solar batteries store excess energy from solar panels that would otherwise go back to the grid. The battery charges automatically with surplus energy, allowing you to use more of your solar power and reduce reliance on the grid.

The key difference to understand is between energy (measured in kilowatt-hours or kWh) and power (measured in kilowatts or kW). Energy shows how much electricity your battery stores, while power indicates how fast the battery delivers energy.

Unless designed and wired for backup, solar battery systems work by shutting down during power outages as a safety measure. However, some systems allow backup power to keep critical appliances running during outages, providing more reliability.

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Types of Solar Batteries

Choosing the right solar battery depends on the available technologies, each with unique advantages:

Lithium Iron Phosphate (LiFePO4): These are the most common solar batteries in Australia, known for their safety, long lifespan, and low maintenance. They last over 10,000 charge cycles and perform well in varying temperatures. While they may cost more upfront, their durability makes them a good long-term investment.

Lead-Acid: Previously the only option, lead-acid batteries are cheaper but have a much shorter lifespan (2-8 years). They also require regular maintenance and perform poorly in high temperatures.

Flow Batteries: These store energy in liquid form and are scalable, meaning you can increase power by adding more tanks. However, they have a lower energy density and higher initial costs.

Sodium-Ion: A newer, more sustainable option using salt-based materials. They are still developing but promise lower costs and better safety compared to lithium.

Key Technical Specifications

Understanding key specifications will help you choose the right battery for your needs:

Capacity and Power Rating: Battery capacity shows how much energy is stored (kWh), while power rating shows how quickly it can deliver that energy (kW). For example, a 13.5 kWh battery with a 5 kW power rating can run a 5 kW load for 2.7 hours.

Depth of Discharge (DoD): This refers to how much of the battery’s energy can be safely used. Lithium batteries can be discharged up to 80-90% without affecting performance, while lead-acid batteries should not be discharged below 50%.

Lifecycle: This is the number of charge-discharge cycles before the battery’s capacity starts to degrade. Lithium batteries can last between 4,000-8,000 cycles, while lead-acid batteries only last 1,000-3,000 cycles.

Efficiency and Operating Temperature: Lithium batteries are more efficient (85-98%) than lead-acid batteries (75-90%). Battery efficiency also drops in extreme temperatures.

Warranty: Most manufacturers guarantee 60-80% of the original capacity after 10 years. Be sure to check the “warranted throughput per kWh” to understand the battery’s expected energy output over its lifetime.

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Benefits for Homes

Solar batteries offer several advantages for homeowners:

Reduced Electricity Bills: By storing excess solar energy for use later, you can reduce your reliance on grid electricity and save on energy bills. A solar battery system can save between $700 and $1,000 a year.

Energy Independence: Solar batteries offer protection against rising electricity prices and grid fluctuations. They allow homeowners to become more self-sufficient.

Backup Power: Many solar battery systems provide power during blackouts, ensuring that essential appliances, such as refrigerators and lighting, continue to function.

Environmental Impact: By using more solar energy and reducing your reliance on fossil fuels, solar batteries contribute to a cleaner environment and help combat climate change.

Government Incentives: The new national Cheaper Home Batteries Program starting in July 2025 will provide financial incentives to help reduce the upfront costs of solar batteries.

Benefits for Businesses

Businesses also benefit from solar batteries, particularly with regard to:

Peak Demand Reduction: By using stored solar energy during peak periods, businesses can avoid high electricity rates. This "peak shaving" can significantly lower energy costs.

Cost Savings: Businesses save by using stored solar power during expensive time-of-use pricing periods. Larger commercial battery systems typically pay for themselves in about 8 years.

Business Continuity: Solar batteries offer backup power for critical systems, such as refrigeration, security systems, and essential equipment, ensuring operations continue during power outages.

Sustainability: Using solar energy helps businesses meet their sustainability goals and can enhance their reputation with customers and partners.

Lifespan and Maintenance

The lifespan of solar batteries is an important consideration for homeowners. Modern lithium-ion batteries typically last between 10-15 years. The main factors that affect battery life are the battery type, usage patterns, and environmental conditions. Lithium-ion batteries last longer than lead-acid batteries, which generally last only 3-5 years.

To maximise battery lifespan:

Regularly monitor charge levels and battery performance
Keep the battery at an optimal temperature (20-25°C)
Clean terminals and prevent corrosion
Schedule professional inspections every 2-3 years

Warranties typically guarantee that the battery will retain at least 70% of its original capacity after 10-12 years. Regular maintenance can help ensure the battery lasts as long as possible.

Market Trends and Future Developments

The market for solar batteries is growing rapidly. In 2023, 57,000 new home batteries were installed in Australia, and this number is expected to rise. Globally, the market value is forecast to grow from $280 billion in 2024 to $700 billion by 2034.

Technological advancements are improving the performance of solar batteries. Solid-state batteries, which use solid materials instead of liquid electrolytes, offer safer and more energy-dense options. New sodium-ion batteries, which use salt instead of lithium, are expected to lower costs and improve sustainability.

Benefit from Cleaner, Smarter Energy with Local Power

Solar batteries are no longer just a luxury; they are becoming essential for homeowners and businesses looking to reduce energy costs, increase self-sufficiency, and contribute to a cleaner environment. With government incentives and new technologies on the horizon, now is a great time to invest in solar battery storage for your property.

Get in touch with Local Power today to discuss the possibility of bringing the many benefits of solar power to your home or business.

Frequently Asked questions

What are the main disadvantages of using solar batteries?
While solar batteries offer numerous benefits, they do come with some drawbacks. The primary disadvantages include high initial costs, the need for dedicated installation space, increased system complexity, and additional maintenance requirements.

Can solar batteries provide power during blackouts?
Yes, properly configured solar battery systems can supply electricity during power outages. Some setups allow only the battery to provide power, while others maintain an 'islandable' configuration where solar panels continue charging the battery during daylight hours.

What key factors should I consider when purchasing a solar battery?
When selecting a solar battery, consider the following factors: battery capacity, peak power output, warranty terms, charge and discharge cycles, depth of discharge, efficiency ratings, smart features, remote monitoring capabilities, and the ability to power your home through the night.

What happens to excess solar energy when batteries are fully charged?
If your solar battery is at 100% capacity and your solar panels are still generating excess power, this surplus electricity is typically exported to the local electricity grid, helping to power nearby systems and potentially earning you credits from your energy provider.

How long do solar batteries typically last?
Most modern solar batteries, particularly lithium-ion types, have a lifespan of 10-15 years. However, this can vary based on factors such as battery chemistry, usage patterns, and environmental conditions. Proper maintenance and optimal operating conditions can help maximise battery longevity.