Solar Battery Rebates vs Feed-in Tariffs: What’s the Better Deal in 2025?

In 2025, more Australian households are weighing up the benefits of installing a solar battery versus relying on feed-in tariffs to maximise solar savings. With rising electricity bills and changes to the best solar feed in tariffs NSW and other states, understanding your options for solar energy battery storage is more important than ever.

So which option offers better value in 2025—solar battery rebates or solar feed-in tariffs? Let’s break it down.

Understanding Solar Battery and Feed-in Tariffs

Before diving into which is better for you, let’s get clear on the two options.

What is a Solar Battery?

A solar battery stores excess solar power generated during the day so you can use it later—typically at night when your panels aren’t generating electricity. This means greater energy independence and lower reliance on the grid.

Many state and federal incentives are still available in 2025 to reduce the cost of installation through solar battery rebates. These rebates make battery storage more accessible to homeowners looking to maximise their solar investment.

What are Feed-in Tariffs?

Feed-in tariffs (FiTs) are payments you receive for sending surplus solar electricity back to the grid. Energy retailers pay you a set rate (cents per kilowatt-hour) for every unit exported.

The best solar feed in tariffs NSW, Victoria, QLD, and SA can vary significantly between providers, with some offering higher rates for peak exports or time-of-use tariffs.

The 2025 Solar Landscape: Rebates & Tariff Trends

Solar Battery Rebates in 2025

Australia continues to offer financial support for home battery adoption through government schemes. Depending on your state, you could save anywhere from $1,000 to $4,000 on installation via:

• Solar Victoria Battery Rebate

• South Australia Home Battery Scheme

• ACT Next Gen Energy Storage Program

• Low-interest green loans for battery systems

These rebates reduce the upfront cost of installing a solar battery and shorten the return on investment timeframe. Paired with decreasing battery prices, this makes solar energy battery storage more affordable than ever.

Feed-in Tariffs in 2025

Feed-in tariffs have continued to decline in recent years. In 2025:

• Some NSW retailers offer as little as 5c/kWh

• The best solar feed in tariffs NSW can reach around 10-12c/kWh, often tied to time-of-day pricing

• Victoria and SA have similar trends, with standard FiTs becoming less rewarding as solar penetration increases

As more households adopt solar, the grid is flooded with excess daytime electricity—reducing the value of your exports.

Comparing the Two: Solar Battery vs Feed-in Tariffs

Let’s break this into key comparisons to see which offers the better return.

1. Maximising Solar Usage

• With a Solar Battery: You store excess electricity and use it later, reducing your grid reliance. More of your solar energy stays in your home.

• With Feed-in Tariffs: You export electricity during the day but may pay more to buy it back at night.

Verdict: A solar battery wins here—you're using your own energy rather than buying it back at higher rates.

2. Return on Investment (ROI)

• Solar Battery: Initial cost after rebates is around $6,000 to $9,000, depending on size. ROI is achieved in 7–10 years on average, especially when paired with time-of-use tariffs or blackout protection.

• Feed-in Tariffs: There’s no cost to participate. But with rates as low as 5–10c/kWh, payback is slow.

Verdict: While feed-in tariffs are passive income, a solar battery can deliver higher long-term savings.

3. Energy Independence & Blackout Protection

• Solar Battery: Adds energy security. During a blackout, systems like Tesla Powerwall or Sungrow Hybrid can provide backup power.

• Feed-in Tariffs: No blackout protection. You’re fully reliant on the grid.

Verdict: Another win for the solar battery, especially in blackout-prone areas.

4. Environmental Impact

• Solar Battery: Increases self-consumption and reduces strain on the grid during peak hours. Supports grid stability.

• Feed-in Tariffs: Sends clean energy to the grid, but the utility decides how it’s used.

Verdict: Both options are green, but solar energy battery storage enhances your home’s sustainability footprint.

Real-World Example: NSW Homeowner

Scenario 1 – Without Battery:Sally exports 12 kWh/day at 5c = $0.60/dayAnnual FiT income: ~$220/year

Scenario 2 – With Battery:Sally stores 8 kWh/day, avoids buying electricity at 30c = $2.40/dayAnnual savings: ~$875/yearBattery pays itself off in ~8 years with a rebate

Who Should Choose What?

Choose a Solar Battery If You:

• Have high evening or night energy use

• Want to reduce reliance on power retailers

• Live in an area with frequent blackouts

• Qualify for state rebates

Stick with Feed-in Tariffs If You:

• Use most energy during the day

• Have a small system (<4kW)

• Can’t afford upfront battery costs

• Are in a rental or short-term living situation

Final Verdict: What’s the Better Deal in 2025?

For most Australians planning long-term energy savings, solar battery storage, especially with generous solar battery rebates, offers better value than low-paying feed-in tariffs. While FiTs are still useful, their shrinking rates make them less attractive compared to storing and using your own power.

Get Started with Power Market

Find out if you qualify for a solar battery rebate and compare solar battery prices in your area. Contact Power Market today for expert help and no-obligation quotes!

Frequently Asked Questions ( FAQS )

1. What is the difference between a solar battery and a solar feed-in tariff?

A solar battery stores energy for later use, while a solar feed-in tariff pays you for sending excess power back to the grid.

2. Are solar battery rebates still available in 2025?

Yes, many states still offer generous solar battery rebates, helping reduce upfront battery costs.

3. What are the best solar feed in tariffs NSW in 2025?

In NSW, best solar feed in tariffs reach up to 12c/kWh, but most average around 5–8c/kWh depending on the retailer.

4. How much can I save with a solar battery vs feed-in tariffs?

You could save over $800/year with a battery compared to ~$200/year with feed-in tariffs, depending on usage and FiT rates.

5. Is it worth getting a solar battery in 2025?

Yes, especially with solar battery rebates and rising electricity costs. Battery systems offer strong ROI and energy security.

6. Can I use both a solar battery and feed-in tariffs?

Absolutely. Batteries supply your home first, and any remaining excess can still be exported for a solar feed in tariff.

7. What’s the average cost of a solar battery after rebates?

Most home systems cost $6,000 to $9,000 after applying available solar battery rebates.

8. How long does a solar energy battery storage system last?

Most batteries last 10–15 years, with warranties covering a certain number of cycles or capacity retention.

9. Do feed-in tariffs apply when I have a battery installed?

Yes, but you’ll export less if your solar battery stores most of the excess power.

10. Where can I compare solar battery systems and feed-in tariffs in one place?

Use Power Market to compare solar battery prices, rebates, and the best solar feed in tariffs NSW and beyond.