Choosing the Right Battery Storage for Your Home

The robust program was designed with the pitfalls and disasters of previous incentives firmly at the fore and policies implemented to mitigate potential issues. While the framework of the program was designed to ensure that the batteries installed are safe, some homeowners might find that their new battery may not perform as expected.

From brands and models to features and sizes, the battery you choose for your home should meet your current and future needs.

Not all batteries are made equal

Almost all of the battery storage systems installed in Australian homes are LiFePO 4 (lithium ion phosphate) or LFP (lithium ferrophosphate). Strict safety standards should mean that you should not have to worry about the brand or model of battery you choose to install. However, some batteries have greater safety features included to truly minimise the risk of thermal runaway.

Then there’s partial and whole home backup. Did you know that some batteries will not operate during a blackout? This may sound ridiculous, but there are many out there that do not switch to a backup mode when the grid goes down. For those that do offer blackout protection, the ability to run your house as usual will be determined by the capacity and features of the battery. Most will offer partial backup, while some are designed for full home backup.

And then there’s future-proofing your system. Your energy needs may double in a few years. Can your battery be expanded with additional modules?

Let’s break down the features you should be looking for.

Battery safety: What happens in case of a fire?

The figures don’t lie – home battery storage is very safe, and the incidence of fires was 0.25 fires per 10,000 battery homes per year, as of 2024. While the odds of your battery catching fire are close to zero, safety must always be paramount.

Australian standards such as AS/NZS 5139 ensure that batteries are correctly located, installed, and separated from habitable areas. Installers must also follow strict wiring, signage, and clearance requirements to reduce risks further.

On top of this, manufacturers are incorporating additional technologies. Look for batteries with integrated fire safety measures, such as:

• Battery management systems (BMS): Monitor and balance individual cells, detecting faults before they escalate.
• Thermal sensors and cut-offs: Shut down systems if temperatures exceed safe limits.
• Automatic isolation switches: Disconnect faulty modules to contain any incident.
• Fire suppression features: Some models, such as the Alpha ESS SMILE M5, even include internal aerosol extinguishing systems.

Systems like the Alpha ESS SMILE 5, GoodWe ESA, and others are leading the way with advanced built-in safety.

GoodWe ESA All-in-One

Other important features to consider

While safety is the priority, other features will make or break your system’s performance:

• Usable capacity: The actual kWh available, not just the advertised nominal size.
• Power output: Both continuous and surge ratings which dictate what appliances you can run. This can mean the difference between running your dishwasher and washing machine when the grid goes down, or being limited to powering just the necessities like your fridge.
• Blackout protection: Whether the system provides partial or full backup during grid outages. GoodWe’s all-new residential ESA will come with whole-home backup straight out of the box.
• Efficiency: Round-trip efficiency (charge to discharge) affects your long-term savings.
• Scalability: Modular systems allow you to expand capacity as your needs grow. Being able to add a single module when needed could save you thousands in battery and installation costs.
• Smart features: Look for virtual power plant (VPP) readiness, remote monitoring, and automatic updates. Being able to trade your electricity on the wholesale market could bring extra savings in the hundreds or thousands each year.
• Warranty and support: A long warranty is essential, but local service and spare parts availability are just as important. Reputable brands with a good history in the Australian market will serve you better in the long run.
• Weather protection: An appropriate IP rating is essential for outdoor installation.

How to choose the right battery for your home

The best way to find the right system is to take a step back and plan properly.

1. Review your power bills: Gather 12 months of bills to understand your average daily consumption.
2. Decide on backup needs: Do you want partial or whole-home backup during blackouts?
3. Plan for the future: Factor in expected changes such as EV chargers, additional family members, or working from home.
4. Check compatibility: Ensure your current solar inverter works with the battery, or plan for an upgrade.
5. Think about expansion: Choose modular systems if you expect your energy needs to grow.

Some quick sizing rules of thumb:

• For simple evening load shifting, match the usable kWh to your evening usage. Though we recommend adding extra storage if your budget allows.
• For EV charging, add an extra 10–20 kWh capacity.
• For whole-home backup, check both battery size and inverter output.

Avoid this one mistake

The Cheaper Home Batteries Program is designed to end. Each year, until 2030 or funds are depleted, the amount you can claim as an upfront discount will reduce. Right now, until 31 December 2025, will be the maximum you can claim.

Choose the largest battery your budget and system allow. You can only claim the federal discount once. Average installed prices in 2025 are about $8,260 for 10 kWh, and $14,120 for 20 kWh. In 2025, the discount is roughly $372 per usable kWh. That is about $3,720 off 10 kWh, and $7,440 off 20 kWh.

If you install only 10 kWh now, you miss a second discount later. Adding 10 kWh in 2026 means full price, plus call-out and reconfiguration fees. Installing 20 kWh in 2025 secures the full discount now and a lower cost per kWh. If your budget truly allows, I would recommend scaling all the way up to 50kWh (the maximum covered by the Cheaper Homes Program). Electricity needs only ever increase, and services like Amber Electric will allow you to capitalise on the ever-fluctuating energy market. You can buy and sell your electricity to take advantage of market trends.

Choosing the best battery for today and tomorrow

Home battery storage in Australia is safer than ever, thanks to strict standards, improved chemistry, and smarter technology. Fires are incredibly rare, but it pays to choose a system with additional safeguards, reliable backup, and room to grow.

Your battery should be chosen for today’s lifestyle and tomorrow’s possibilities. By matching it to your bills, planning for future demand, and selecting a brand with strong local support, you’ll have a system that delivers energy security, financial savings, and peace of mind.

Energy Matters recommends GoodWe, Fronius, BLUETTI, Anker SOLIX, and Alpha ESS batteries that offer an array of home battery storage options to meet your home’s needs. If you’re ready to add storage to your solar system, or looking to start from scratch by adding solar and a battery, request free quotes from local and trusted installers.

About the author

Nicole is the Media and Communications Manager for Energy Matters with experience working with the Department of Climate Change and Energy Efficiency and a passion for renewables and sustainability. Energy Matters aims to provide Australians with a real-world insight into practical ways to save money whilst helping the environment.