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Beginner Guide

Understanding Home Batteries

Learn how home batteries work, different types available, and whether a battery is right for your home.

schedule10 min readupdateUpdated January 2026

How Home Batteries Work

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Step 1:Excess Solar Charges Battery

During the day, when your solar panels produce more than you use, the excess energy charges your battery instead of being exported to the grid.

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Step 2:Battery Stores Energy

The battery stores this energy as chemical energy in lithium-ion cells. Modern batteries can store this energy for days if needed.

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Step 3:Evening Use

In the evening when the sun goes down, the battery automatically supplies power to your home instead of drawing from the grid.

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Step 4:Grid Backup

If the battery runs low, your home seamlessly switches to grid power. With backup capability, you can also run during blackouts.

Key Terms Explained

Capacity (kWh)

How much energy the battery can store. A 10kWh battery can store 10 kilowatt-hours of electricity.

Power (kW)

How fast the battery can charge or discharge. A 5kW battery can deliver 5 kilowatts at any moment.

Depth of Discharge (DoD)

How much of the battery capacity you can actually use. Most modern batteries allow 90-100% DoD.

Cycle

One full charge and discharge. Most batteries are rated for 6,000-10,000 cycles.

Round-trip Efficiency

How much energy you get back vs what you put in. Typically 85-95% for lithium batteries.

AC vs DC Coupled

How the battery connects to your system. AC-coupled is more flexible; DC-coupled is more efficient.

Battery Types

Lithium Iron Phosphate (LFP)

Pros

  • checkLongest lifespan (6,000+ cycles)
  • checkSafest chemistry
  • checkBetter in hot climates
  • checkNo thermal runaway risk

Cons

  • removeSlightly larger/heavier
  • removeLower energy density
Popular brands:
BYD, Tesla Powerwall 3, Sungrow
Best choice for most Australian homes

Nickel Manganese Cobalt (NMC)

Pros

  • checkHigher energy density
  • checkMore compact
  • checkGood performance

Cons

  • removeShorter lifespan (4,000-6,000 cycles)
  • removeMore sensitive to heat
  • removeHigher fire risk
Popular brands:
LG Chem, Some older Tesla models
Still good, but LFP is becoming standard

Do You Need a Battery?

High evening usage

If you use most power in the evening, a battery lets you use your own solar instead of buying from the grid.

Yes - Great fit

Good feed-in tariff (10c+ per kWh)

If your retailer pays well for exports, the financial case for batteries is weaker. Do the maths first.

Maybe not

Frequent blackouts

Batteries with backup capability keep your essential circuits running during outages.

Yes - Great fit

Time-of-use tariffs

Charge from solar/cheap rates, use during expensive peak periods. Can significantly boost savings.

Yes - Great fit

Environmental priority

Maximise self-consumption of your clean solar energy instead of relying on grid power.

Yes - Great fit

Tight budget

Solar alone has better ROI. Batteries are getting cheaper — you can always add one later.

Maybe wait

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