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Battery Storage vs. Solar Feed-in Tariffs: What’s the Best Option in 2025?

  • Writer: Kennedy's Plumbing & Electrical
    Kennedy's Plumbing & Electrical
  • Apr 22
  • 3 min read

Updated: 7 days ago

With energy prices on the rise and feed-in tariffs continuing to drop, more Aussies are wondering: Is it smarter to store your solar power in a battery, or send it back to the grid for credit? In this guide, we’ll break down the pros and cons of battery storage vs. solar feed-in tariffs in 2025, and help you figure out which option suits your home, budget, and lifestyle.


Why This Matters in 2025


Thanks to ongoing government support for renewable energy and rising electricity costs, more Australian homeowners are investing in solar. But there’s one big question that often follows:


“Should I get a battery to store my solar power, or stick with a feed-in tariff?”


In 2025, this decision is more important than ever. Let’s look at the facts.


What Is a Feed-in Tariff?


A solar feed-in tariff is the credit your electricity retailer gives you when your solar panels export unused electricity back to the grid.


The Problem?


Feed-in tariffs have dropped significantly in 2025. Some providers offer as little as 5–7 cents per kWh, while you’re buying power back at 35+ cents per kWh during peak times.

It’s no wonder homeowners are starting to think twice.



What Is Battery Storage?


Solar battery storage lets you store the excess energy your panels generate during the day, so you can use it later, like in the evening when electricity rates are higher.


With battery technology improving and rebates available in many states, more homes are taking the leap.


Battery Storage vs. Feed-in Tariffs: Pros & Cons

Feature

Feed-in Tariff

Battery Storage

Cost

No upfront cost

Higher upfront cost, but long-term savings

Energy Savings

Limited – you still buy back power at peak rates

Use your own power anytime

Returns

Credit per kWh has dropped significantly

Offset high retail rates with self-use

Energy Independence

Dependent on grid during inclement weather and night time

Greater control & backup during outages

Sustainability

Helps support the grid

Reduces reliance on fossil fuel energy


What’s the Best Option for You in 2025?


The answer depends on your energy usage, budget, and long-term goals.

You might benefit from battery storage if:

  • You’re using a lot of energy in the evenings

  • You want to be less dependent on the grid

  • You live in an area prone to outages

  • You're eligible for a solar battery rebate (check your state!)


Still relying on feed-in tariffs? You’re missing out on real savings.


Battery Rebates and Incentives in 2025


In 2025, there are state-level battery rebates available in:

  • NSW: Battery rebates up to $2,400

  • VIC: Solar battery loan options

  • QLD & SA: Various energy incentives depending on location


Federal Battery Scheme – What We Know So Far


The Federal Government has announced plans to roll out a national solar battery rebate scheme, aiming to make battery storage more accessible to Australian households. While full details are still being finalised, here’s what we know:

  • The scheme is expected to offer means-tested rebates to eligible households

  • It will likely be tied to energy usage patterns and home ownership status

  • Implementation is expected to begin late 2025, starting in priority regions

  • It may complement, not replace, existing state-based programs


The Federal Labor Government has proposed a "Cheaper Home Batteries Program" which, if they are re-elected, would provide a rebate of up to 30% off the cost of installing new home batteries, potentially saving an average of $4,000 on a 11.5 kWh system. The program is estimated to cost $2.3 billion and aims to accelerate home battery adoption, with the goal of supporting over one million new batteries by 2030.

*** The results are in! Read about the latest updates and what we know here - 2025 Solar Battery Rebate - What to Know:



How Kennedy’s Can Help


At Kennedy’s Plumbing and Electrical, we specialise in:


  • Solar system design

  • Battery installations

  • System upgrades

  • Expert advice on rebates and savings


We’ll help you crunch the numbers, claim your rebate, and future-proof your home for years to come.


Ready to save more and rely less on the grid?


Call Kennedys today to get a free solar & battery quote! Let’s make your home smarter, greener, and more cost-efficient in 2025.

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Kennedys Plumbing & Electrical logo, providing plumbing, electrical, solar and energy services to Hawkesbury & Penrith

Need a trusted local expert for plumbing, blocked drains, hot water systems, electrical work, or solar installations? The team at Kennedy’s Plumbing & Electrical (KPE) is here to help, on time, every time.

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