Adding More Solar Panels vs Battery – Which Really Pays Off?
With electricity prices remaining high across Australia and solar technology becoming more accessible, many homeowners are asking a critical question: is adding more solar panels better than adding a battery?
For households that already have solar installed, deciding how to maximise returns can feel confusing. Batteries promise energy independence and blackout protection, while additional solar panels offer more generation at a lower upfront cost. But which option actually delivers the best financial payback under Australian conditions?
This detailed guide provides a real-world Australian payback comparison, examining costs, savings, feed-in tariffs, usage patterns, and long-term value. By the end, readers will have a clear understanding of when adding panels makes more sense than adding a battery — and when a battery may still be worthwhile.
Understanding the Two Options
Before comparing payback, it is important to understand what each upgrade actually delivers.
Adding More Solar Panels
Adding extra solar panels increases the total amount of electricity generated during daylight hours. This additional energy can:
- Be used directly in the home
- Be exported to the grid for a feed-in tariff
- Reduce reliance on grid electricity during the day
In Australia, solar panels remain one of the lowest-cost energy upgrades available to households.
Adding a Solar Battery
A solar battery stores excess solar energy generated during the day so it can be used at night or during peak tariff periods. Batteries can:
- Increase self-consumption of solar energy
- Reduce electricity purchased during evenings
- Provide backup power during outages (with compatible systems)
However, batteries involve a significantly higher upfront investment.
Typical Costs in Australia (Panels vs Batteries) Cost of Adding More Solar Panels
While prices vary depending on system design and roof space, adding solar panels is generally affordable compared to batteries. On average:
- Panels are relatively low-cost per kilowatt
- Installation is straightforward if inverter capacity allows
- Maintenance requirements are minimal
According to Australian government-backed information, solar PV remains one of the most cost-effective household energy investments available today
Cost of Adding a Battery
Battery systems remain expensive in comparison:
- High upfront costs
- Installation complexity
- Battery lifespan typically 10–15 years
Although government incentives are emerging, batteries still require careful financial consideration.
Real Payback Comparison: Adding More Panels vs Battery
1. Payback Period for Extra Solar Panels
For most Australian households, adding more solar panels delivers:
- Shorter payback periods
- Faster bill reductions
- Higher lifetime return on investment
Because panels are relatively inexpensive and generate energy for 25+ years, payback often occurs within a few years, depending on usage and feed-in tariffs.
2. Payback Period for Batteries
Batteries typically have:
- Longer payback periods
- Lower financial returns compared to panels
- Replacement costs later in life
In many Australian scenarios, battery payback can approach or exceed the battery’s warranted lifespan, making them less attractive purely from a financial perspective.
The Role of Feed-in Tariffs in Australia
Feed-in tariffs (FiTs) significantly influence the adding more solar panels vs battery decision.
- Australia’s feed-in tariffs are generally modest
- Exporting excess solar still provides value
- FiTs vary by state and retailer
For homes with reasonable FiTs, adding more panels can still deliver meaningful returns. For homes with very low FiTs, batteries may help capture more solar value — but at a higher cost.
Household Usage Patterns Matter
Homes That Benefit Most from More Panels
Adding more solar panels often makes sense if:
- Most electricity is used during the day
- The home has flexible loads (pool pumps, EV charging, air conditioning)
- Roof space is available
- Budget is limited
Homes That May Benefit from a Battery
A battery may be more suitable if:
- Evening and night-time electricity use is high
- Feed-in tariffs are extremely low
- Energy independence is a priority
- Blackout protection is valued
Battery Incentives and Government Support
While solar panel incentives have been well established for years, battery incentives are still evolving.
- The Small-scale Renewable Energy Scheme (SRES) supports solar panels
- Battery incentives are state-based and limited
- Some future programs aim to reduce battery costs
Households should always check current eligibility via official sources such as the Clean Energy Regulator and state energy departments.
Long-Term Value: Panels vs Batteries
Solar Panels: Proven Long-Term Performer
- Lifespan often exceeds 25 years
- Minimal performance degradation
- Low maintenance
- Strong resale value impact for homes
Batteries: Improving but Still Maturing
- Lifespan shorter than panels
- Degradation over time
- Technology improving rapidly
- Potential future value with virtual power plants (VPPs)
Environmental Considerations
From an environmental standpoint:
- Adding panels increases renewable generation
- Batteries improve solar utilisation
- Panels generally have a lower environmental cost per dollar invested
For households prioritising emissions reduction, both options contribute — but panels deliver more renewable generation per dollar spent.
So, Is Adding More Panels Better Than Adding a Battery?
For the majority of Australian households today, adding more solar panels is usually better than adding a battery from a pure payback perspective.
Panels offer:
- Lower upfront costs
- Faster payback
- Strong long-term returns
Batteries, while valuable for specific needs, are best viewed as a lifestyle and resilience upgrade, rather than a purely financial one.
Frequently Asked Questions (FAQs)
Is adding more solar panels better than adding a battery in Australia?
In most cases, yes. Adding more solar panels generally delivers a faster payback and better financial return than adding a battery under Australian electricity conditions.
When does a battery make more sense than extra panels?
A battery may make sense for households with high night-time usage, very low feed-in tariffs, or a strong desire for blackout protection.
Can both panels and a battery be installed together?
Yes. Many homes add panels first to maximise generation, then consider a battery later when prices fall or incentives improve.
Do batteries reduce electricity bills more than panels?
Batteries can reduce evening grid usage, but panels usually reduce overall bills more efficiently due to lower cost and longer lifespan.
Will battery prices come down in the future?
Most experts expect battery prices to decline as technology improves and government programs expand, improving future payback potential.
Conclusion: Choosing the Smarter Upgrade
When comparing adding more solar panels vs battery, the numbers clearly show that panels remain the smarter financial upgrade for most Australian households today. Batteries still play an important role, particularly for energy independence and resilience, but they are not yet the strongest investment purely on payback.
For homeowners wanting expert guidance tailored to their energy usage and roof space, professional advice is essential.
Talk to our expert by calling 1300 181 191. Prosolar Global can help determine whether adding more panels, installing a battery, or combining both is the right move for long-term savings.
