Home batteries are having a moment - and for good reason. They offer more control, greater savings potential, and a pathway to a cleaner, smarter energy system. But like any technology reaching scale, there’s still a lot of confusion and outdated information getting in the way.
At Amber, we believe in cutting through the noise and giving you the facts. Here’s what you really need to know about home batteries in 2025.
Myth 1: Home batteries are too expensive and never pay for themselves
It’s true that batteries are a big upfront investment. But the idea that they “never pay back” is increasingly out of date, especially if you’re unlocking the full value of the wholesale energy market through Amber.
Here’s why:
- Without a battery, most households sell excess solar back to the grid at relatively low feed-in tariffs, often just a few cents per kWh, then buy back energy later at full retail rates (30c–45c/kWh). These rates are falling even further this year if you’re with a traditional retailer.
- A battery helps you store your cheaper solar energy to use later, reducing the amount of electricity you need to buy during expensive peak times, and making far better use of your solar.
With Amber SmartShift, the opportunity goes even further:
- Instead of just storing solar, SmartShift actively manages your battery to charge when wholesale prices are low (sometimes even negative) and discharge when prices spike (sometimes reaching $15–$20/kWh in extreme events).
- This means you are not just avoiding high prices - you are actively earning more from your stored energy.
Households using SmartShift have seen significant improvements in their battery payback periods compared to static setups.
Add in a battery rebate, and the financials start to look even better:
Today there are more rebates available than ever, with state and federal schemes helping to reduce upfront costs.
In some cases, customers have cut their battery payback to as little as 2-4 years, particularly when combined with available state or federal battery rebates (such as Victoria’s Solar Homes Program or South Australia’s Home Battery Scheme).
Rebates vary by state and eligibility, but they can shave thousands off the install price - making a smart battery setup not just impactful, but far more accessible.
Have a read of our rebate guide to see what support is available in your area, and how to make the most of it.
Myth 2: Home batteries require a lot of maintenance
Modern home batteries are designed to be largely set-and-forget.
- Lithium-ion batteries, the dominant technology for home use in Australia, do not require manual maintenance like older systems did.
- Smart management software is now standard, automatically optimising charging, discharging, and temperature management without you needing to intervene.
- Monitoring your system performance through an app or portal is recommended, but regular manual upkeep is not required.
- Lithium-ion home batteries typically have a lifespan of 10–15 years.
- Warranties generally guarantee around 70–80% capacity retention after 10 years.
- All batteries installed in Australia must meet AS/NZS 5139 safety and installation standards.
Myth 3: Home batteries are only useful during blackouts
While backup power during blackouts is a great benefit, it’s just one part of the story.
Here are some of the bigger everyday benefits:
- Batteries help you avoid expensive peak electricity prices every day by shifting your usage.
- If you’re with Amber, SmartShift enables your battery to actively earn you savings during wholesale price spikes.
- Batteries increase your solar self-consumption, helping you use your own power instead of selling it back at low rates, all while giving you more control over when and how you use your energy.
- Beyond selling energy during peak events, batteries could increasingly support the grid by providing services like frequency control (FCAS), opening up new ways for households to earn.
Myth 4: All home batteries are the same
Choosing the right battery matters, and can make a major difference to your long-term savings and performance.
Key differences to consider:
- Chemistry: Lithium iron phosphate (LFP) batteries, like Tesla Powerwall 3 or BYD, typically offer longer lifespans and better thermal stability than other chemistries like NMC.
- Capacity: A higher kWh capacity lets you store and use more energy when it counts.
- Power output: Affects how fast your battery can charge/discharge — critical for capitalising on high-price events.
- SmartShift compatibility: To unlock the full value of wholesale pricing, your battery must be compatible with Amber’s SmartShift. Check out the compatibility guide here.
- Rebate eligibility: Some batteries may not meet the criteria for state or federal rebates, so it’s worth checking the fine print before you buy.
Not every battery and inverter combination is automatically compatible, so it’s important to confirm this before you install.
Myth 5: Home batteries are dangerous and will drive up your insurance
Modern battery systems are designed with multiple safety layers and are installed under strict national standards.
- All home batteries installed in Australia must meet AS/NZS 5139 safety standards for system design, installation, and operation.
- Reputable systems include thermal management, emergency shutoff features, and real-time fault detection to prevent risks.
- Accredited installation by a Clean Energy Council-certified installer is essential and required for eligibility for most rebates.
Home battery fires are extremely rare. According to Fire and Rescue NSW and CSIRO data, home solar batteries account for less than 2% of lithium-ion battery fire incidents in Australia. Most battery-related fires involve portable devices like e-scooters, phones, and laptops - not professionally installed home storage systems.
When installed correctly and maintained properly, modern home batteries are a safe, reliable way to store and manage energy.
Insurance considerations:
- Some insurers may ask you to list the battery on your policy, but it does not automatically mean a premium increase.
- As batteries become more common and grid resilience becomes a bigger issue, insurers may see home energy storage as an asset rather than a liability.
The Bottom Line
There’s a lot of noise out there when it comes to home batteries, and a lot of it’s outdated. The truth is, batteries are safer, smarter, and more financially viable than ever before.
With the right setup, and the right technology behind it, they’re no longer just about backup power. They’re a way to take control of your energy, lower your bills faster, and unlock the full value of your solar.
Curious if a battery is right for you?
We can help. Whether you’re exploring a new battery or already have one installed, we can check your system’s compatibility with SmartShift and help you understand your potential savings.
- Call our energy specialists. They can help you figure out if a battery makes sense for your home.
- Head to our Get a Quote tool to check if your system is compatible with Amber and SmartShift.
