By 2025, more and more Australians are choosing solar or battery solutions, often pairing the two to maximise financial savings, energy independence and environmental benefits. With electricity prices rising and feed-in tariffs falling, storing excess solar power is becoming a smarter choice - but is your system set up to take full advantage?
Although there may be some price fluctuations, solar panel prices are expected to stay steady or even decline in 2025. In addition, battery prices are predicted to drop by an estimated 30–40% from 2022 levels due to the recent introduction of government rebates and incentives throughout Australia as well as declining raw material costs. (Australian Government, 2025)
Comparing Solar and Battery Benefits
Though they require a significant upfront investment, solar panels are highly effective in achieving long-term savings on electricity bills. They also increase property value, and lower carbon emissions caused by energy generation. Before deciding to install solar for your home or business, you’ll need a professional to evaluate your electricity consumption, roof orientation, and available feed-in tariffs. In addition, when combined with a battery, there are additional benefits like energy independence, protection from blackouts, and savings generated by storing your solar energy for evening use.
For solar owners, battery storage is becoming a more appealing investment. Utilising stored solar energy has become more valuable as export fees rise and feed-in tariffs decrease. Many homes now find batteries to be a cost-effective option since payback durations have decreased from around 19 years to a predicted 7.5 years by 2025, which is well within the average 10-year guarantee. (AMEC, 2024)
Costs and Incentives in 2025
Australia's solar panel system prices in 2025 depend on system size, quality, and installation complexity. Small residential systems typically start from around $3,000, with larger setups costing more. Commercial systems can begin at approximately $25,000, with $0 upfront options including Power Purchase Agreements, a popular procurement method. While premium components may cost more upfront, they offer better efficiency, longer warranties, and stronger long-term performance. Adding commercial battery storage (which generally starts from $20,000 with subsidies) can further increase energy independence by boosting self-consumption.
Recent data from transmission system operators indicates that in April 2025, the market value of solar energy fell sharply to just 3.041 cents per kWh (AceTech, 2025). Compared to earlier in the year, when the value peaked in February at 11.1 cents and in March at 5.02 cents, this is a significant decline. A significant disparity between solar and regular power costs, not seen since August 2022, was highlighted by the April spot market price of 7.794 cents per kWh.
The new government battery refund and STCs are two examples of incentives that drastically lower costs and increase total return on investment. When installing qualifying battery systems, the federal Cheaper Home Batteries Program offers a 30% cost reduction. It is accessible to homes, businesses, and public buildings. The program, which was funded with $2.3 billion in the 2024–2025 federal budget, is expected to assist in the installation of one million batteries in Australian households by 2030.
Feed-in Tariffs vs Self-consumption
The solar value proposition has changed in 2025 from exporting excess energy to the grid to optimising self-consumption due to declining feed-in tariffs (FiTs). Homeowners save a lot more money by utilising solar power directly, which balances grid energy prices of 25–35c/kWh, than they do by exporting their electricity, as FiT tariffs are now only averaging 4–6c/kWh (IPART, 2025). Batteries are therefore turning into a crucial investment for storing and using solar energy during periods of high demand.
Which is the Better Investment?
Depending on the system's size, location, and energy costs, a solar-only system's payback period might be anywhere from three to seven years. Budget systems may have lower warranties and a shorter lifetime, but they frequently give speedier returns. The payback period usually comes to 5–10 years when paired with a battery. The size of the battery, the energy consumption of the home, particularly in the evening, and the relevant power rates all have an impact on this. Homeowners may lessen their dependency on the grid, better control peak pricing, and safeguard themselves against potential increases in energy prices by including a battery. Additionally, it can increase the value of real estate, especially in places where power prices are high.
The ideal investment ultimately depends on the specifics of each case. To evaluate your unique needs and ascertain the ideal system size and configuration for your house, it is advised that you speak with a solar specialist.
ed national rebate to make batteries more accessible across the board.
At Smart Commercial Solar, we’re seeing firsthand how battery integration is helping businesses improve energy resilience and maximise solar savings. Through programs like the government’s battery rebate for businesses, we help clients access support that covers up to 50% of installation costs, making it easier than ever to add a battery, reduce peak demand charges, and stay ahead of rising energy prices. It’s all about future-proofing your energy setup while keeping costs in check.
Solar Powers Impact on Australia’s Net-Zero Goals
Solar energy is a big part of Australia's goal of reaching net-zero emissions by 2050. The National Electricity Market's emissions have dropped by nearly 40% since 2015, primarily due to the use of solar and other renewable energy sources.
Along with policies that reduce emissions and boost renewable capacity nationwide, the government also provides funding for massive solar and battery projects in high-priority regions like Central Queensland and the Hunter Valley.