If your solar panels produce more electricity than your home is using, you generally have two choices: send the excess power back to the grid and receive a feed-in tariff, or store some of it in a battery and use it later.
So, which option makes more sense?
The answer depends on your electricity plan, how much energy you use and when you use it.
Sending excess solar back to the grid
Without a battery, unused solar electricity is exported to the grid. Your electricity retailer then gives you a feed-in tariff, usually as a credit on your bill.
It’s simple and requires no additional battery investment.
The catch is that feed-in tariffs are generally much lower than the price you pay when buying electricity from the grid. This means using your solar energy yourself can often be more valuable than exporting it.
What does a battery change?
A battery lets you keep some of that excess solar energy for later.
For example, your panels may generate plenty of electricity during the afternoon when nobody is home. Instead of exporting all of it, a battery can store some energy and make it available in the evening when your household starts using more electricity.
This can increase your solar self-consumption and reduce the amount of electricity you need to purchase from the grid.
Which option is better?
There’s no single answer for every home.
A battery may be worth considering if you:
- Use a lot of electricity in the evening
- Have a relatively low feed-in tariff
- Want to use more of your own solar energy
- Have a time-of-use electricity plan
- Want battery backup during outages
- Are interested in a VPP.
If your household uses a lot of electricity during the day, however, you may already be getting good value from your solar without a battery.
Don’t forget your electricity plan
For homeowners in South Australia and NSW, your retailer and electricity plan can make a significant difference.
Don’t automatically choose the plan with the highest feed-in tariff. Your usage rates, daily supply charge and export rates all need to be considered together.
There’s also a newer option worth knowing about: the Solar Sharer Offer provides eligible households in NSW and SA with a three-hour daily period of free electricity, subject to the offer’s conditions.
For some homes, continuing to export excess solar may make sense. For others, storing that energy and using it later can provide greater value.
The best choice comes down to your solar generation, household usage, electricity tariff and battery cost — not simply the size of your solar system.
Solar Battery or Feed-In Tariff: Get Your Numbers
Choosing between a solar battery or feed-in tariff comes down to how much solar you export, when your household uses power and what your retailer pays for each kWh. Run your details through our solar and battery savings calculator to compare both options and see the rebate you may qualify for in SA or NSW. It also helps to understand what happens to your solar power after the sun goes down, because that is when a battery earns its keep. With falling feed-in rates, many homes now save more by storing their solar instead of selling it cheaply. Let the numbers guide your decision, not guesswork.
