As more Australians turn to renewable energy, questions often arise about what type of system is best suited to different households and businesses. For example, many property investors are considering solar for landlords as a way to increase rental appeal and reduce tenant energy costs. But when it comes to solar power, a common debate centres on whether installing just solar panels is enough, or if adding a solar battery is worth the additional investment.
This blog explores the key differences between solar panels and solar batteries, their benefits, and whether having both is the right choice for your circumstances.
How Solar Panels Work
Solar panels are the foundation of any solar energy system. They work by capturing sunlight and converting it into electricity. This electricity is used to power household appliances during the day, while any surplus is typically exported back to the grid.
The main benefits of solar panels include:
- Lower energy bills: By generating your own electricity, you reduce reliance on the grid.
- Environmental impact: Solar panels cut greenhouse gas emissions and reduce fossil fuel dependence.
- Low maintenance: Once installed, panels generally require little upkeep beyond occasional cleaning.
For many households, solar panels alone provide significant cost savings and environmental benefits. However, without a storage option, excess energy produced during the day is exported, often at a lower rate than it costs to buy electricity back from the grid in the evening.
How Solar Batteries Work
Solar batteries are designed to store unused solar power for later use. Instead of sending excess energy back to the grid, the battery holds it so you can use it at night, during cloudy weather, or in the event of a blackout.
The main advantages of solar batteries are:
- Energy independence: Reduce reliance on grid power and protect against rising electricity prices.
- Backup power: Some batteries provide emergency power during outages, offering peace of mind.
- Maximised solar use: Instead of exporting electricity at lower feed-in rates, you use more of the power you generate.
The key consideration is cost. Solar batteries are still a significant investment, though prices are gradually becoming more affordable as technology advances and demand increases.
Do You Need Both Solar Panels and Solar Batteries?
The decision depends on your goals, lifestyle, and budget. Here are some factors to weigh:
1. Your Daily Energy Use
Households with high evening electricity consumption may benefit most from pairing panels with a battery. For example, if your family uses appliances like dishwashers, washing machines, or air conditioning mainly at night, a battery ensures you’re not drawing expensive grid electricity after the sun sets.
2. Grid Reliability in Your Area
If you live in an area prone to power outages, a battery system can provide valuable backup power. For some households, the security of knowing that lights and essential appliances will still run during a blackout is worth the extra investment.
3. Financial Priorities
Solar panels alone often deliver the fastest return on investment, as the upfront costs are lower. Adding a battery increases savings over time but usually extends the payback period. That said, many households view batteries as a long-term investment in energy independence.
4. Environmental Goals
If reducing carbon emissions is a priority, combining solar panels with a battery ensures that more of your energy use is covered by renewable power. This reduces the need for electricity generated by fossil fuels during peak evening hours.
5. Property Investment Considerations
For those exploring solar for landlords, installing both panels and batteries can make a rental property far more attractive. Tenants are increasingly drawn to homes with lower running costs and energy security, and a solar-plus-battery system can serve as a strong incentive in a competitive rental market.
Benefits of Installing Just Solar Panels
- Lower upfront cost: Solar panels alone are more affordable and still deliver significant savings.
- Faster payback: Because they cost less, it takes less time to recover the initial investment.
- Proven technology: Panels have been widely used for decades and are known for their reliability.
- Eligibility for feed-in tariffs: Even without a battery, excess solar exported to the grid earns credits that reduce bills.
For many households, panels alone are sufficient, particularly if daytime energy usage is high.
Benefits of Adding a Solar Battery
- Greater self-consumption: Store excess power and use it at night, reducing grid dependence.
- Energy security: Protects against outages and volatile energy markets.
- Enhanced property value: Homes with solar and batteries are often more desirable to buyers and renters.
- Future-proofing: As electricity prices rise and grid feed-in tariffs decline, batteries help maximise savings.
While the initial investment is higher, the long-term advantages can make a battery worthwhile for households seeking greater independence.
The Best of Both Worlds
In many cases, the combination of solar panels and a battery provides the most comprehensive benefits. Panels generate clean, affordable power, while the battery ensures that none of that energy goes to waste. Together, they reduce costs, support sustainability, and offer resilience against energy market fluctuations and outages.
For beginners, it may make sense to start with solar panels alone and consider adding a battery later. Many systems are designed to be battery-ready, allowing households to expand as needs and budgets evolve.
Final Thoughts
The choice between solar panels, solar batteries, or both depends on individual circumstances. Solar panels alone provide significant cost savings, environmental benefits, and a relatively quick return on investment. However, adding a battery delivers energy independence, backup power, and the ability to use more of the energy you generate.
For property investors exploring solar for landlords, combining panels with batteries can make rental properties stand out in a competitive market, offering tenants lower bills and greater security.
Ultimately, while not every household or business may need both panels and batteries immediately, the combination represents the future of renewable energy — cleaner, smarter, and more resilient.
