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Solar Power Battery Storage - An Introduction

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Solar Power Battery Storage - An Introduction

With power bills creeping up and those recent storms reminding us how important it is to keep the lights on, solar batteries are becoming a no-brainer for a lot of Kiwis – even in your typical family home. In fact, about a third of Kiwis who install solar are adding batteries to the mix too.

So, what’s the deal? Solar batteries store the extra energy your panels produce, so you can tap into it when you actually need it – like at night, on cloudy days, or during those annoying power cuts.

Most home systems today use lithium-ion batteries (like the Tesla Powerwall or SigenStor), which are compact, efficient, and low-maintenance.

In this guide, we’ll cover the basics: how solar batteries work, what they cost, and why they’re getting so much buzz. If you’re keen to future-proof your home and maybe save a few bucks along the way, let’s dive in.

1. Benefits of Solar Battery Storage

A. Maximise Savings

The key to truly unlocking the value of your solar panels is to use as much of your own solar power as possible. Why? Because every kilowatt-hour you consume from your solar system is a kilowatt-hour you don't buy from the grid, especially during peak times when electricity prices are highest. 

Most New Zealand households use the most electricity in the mornings and evenings. This is precisely when your solar panels are either just waking up or winding down. This common mismatch means you often export valuable solar energy during the day, only to buy it back at a higher price later. 

But here's how solar battery storage solves this problem. Batteries are clever; they scoop up all that excess solar electricity (you'll see it as that lovely yellow bell curve in the graph below) and safely tuck it away. Then, when the sun goes down and those power prices start to climb – typically in the evenings – you've got your very own stash of free, clean energy ready to go. This is how you genuinely maximise your savings and benefit from your genius solar power system!

the benefit of solar batteries shown in a graph

B. Solar Battery Storage For Black Outs

One of the best things about having a solar battery? It can be a total lifesaver during a power outage. While the rest of the street goes dark, your battery steps in and keeps the essentials humming—like your fridge, lights, or even medical gear.

(Heads up: not all batteries offer backup power, so make sure to ask about this when you're shopping around.)

Here's how solar batteries work in a power outage:

  1. Storm detection: Many solar batteries receive storm warnings from meteorological data. When a storm warning is received, the battery will proactively prepare for a power outage by storing as much power from solar generation and the grid.
  2. Outage detection: The system senses grid power loss instantly.
  3. Backup mode: In response to the power outage, the solar battery system switches from grid-tied mode to backup mode, isolating from the grid for safety.
  4. Power supply: The stored energy kicks in during the outage, keeping your most important appliances running—like lights, fridges, Wi-Fi, or whatever else you’ve prioritised.
  5. Recharge: After the outage, the battery recharges from solar panels or the grid.

Video: View how the Tesla Powerwall works in a power outage 

2. How Solar Batteries Work

Solar batteries store excess energy generated by your solar panels so you can use it later—typically at night, during cloudy weather, or in a power outage. This maximises your solar self-consumption and reduces reliance on the grid.

How Solar Power Is Stored In Batteries - GIF

  1. Solar panels generate electricity
    During the day, your solar panels soak up sunlight and turn it into electricity.
  2. Power your home first
    That solar energy is used to run your home’s appliances and devices in real time.
  3. Store the extra energy
    If your panels produce more electricity than your home needs, the extra energy is sent to your solar battery (instead of the grid).
  4. Use stored energy later
    When the sun goes down or your panels aren't producing enough (like on a cloudy day), your home starts drawing power from the battery.
  5. Top up when needed
    Some batteries can also charge from the grid if needed—useful if you want to make sure it’s full before a storm or overnight or take advantage of free or off-peak power deals.
  6. Recharge and repeat
    The next sunny day, your panels start generating again, and the cycle continues.

3. Types of Solar Batteries

Here are the main types of solar batteries you'll come across:

LFP (Lithium Iron Phosphate)

  • Pros: Super safe, long lifespan, thermally stable
  • Cons: Slightly lower energy density than NMC
  • Popular brands: BYD, Tesla Powerwall 3, Sigenstor

NMC (Nickel Manganese Cobalt)

  • Pros: High energy density, compact
  • Cons: Degrades faster, more heat-sensitive
  • Popular brands: Tesla Powerwall 2, SolarEdge Home Battery

 4. AC vs. DC-Coupled Systems

When adding a battery to your solar setup, there are two main ways it can connect: AC-coupled or DC-coupled. Most batteries are designed for one or the other—for example, the SolarEdge Home Battery is DC-coupled, while the FranklinWH runs on an AC-coupled setup. A few rare hybrids, like the Pylontech Force H3X, can be configured for either.

DC-Coupled Batteries

  • Efficiency: Higher, with only one DC-to-AC conversion.
  • Installation: More complex, especially for retrofits.
  • Components: Requires a charge controller (often integrated in newer models).
  • Best for: New builds or off-grid setups.

AC-Coupled Batteries

  • Efficiency: Slightly lower due to multiple conversions.
  • Installation: Simpler and quicker, ideal for existing systems.
  • Flexibility: Can be charged from the grid.
  • Best for: Retrofits or when grid charging is desired.

5. Sizing Your Battery Storage

Below is a guide to help you figure out what size battery you should install, but a heads up — this part can get tricky.  Rather than figure it out yourself, when you get 3 free quotes, simply ask the solar installers for a recommendation. They’ll consider your energy use, solar setup, and goals to suggest the best size for your home.

1. Check your daily power use

Look at your power bills—find your average daily usage in kWh (kilowatt-hours). If you're using 20 kWh a day, that gives you a baseline.

2. Decide what you want it for

Backup during outages? → You might only need 5–10 kWh to run essentials.
Maximise solar self-use? → Match battery size to excess solar generation.
Go off-grid or near to it? → You’ll need enough to cover several days—maybe 15–30+ kWh depending on lifestyle.

3. Consider your solar panel size

If your solar system is small (e.g. 3 kW), installing a massive battery (e.g. 20kWh) won't help much—you won’t have enough excess energy to fill it.

4. Think about your budget

Battery prices scale with size. If money’s tight, a smaller battery (like 5–10 kWh) can still offer decent savings and blackout protection.  Many solar battery models these days are modular / stackable, so you go smaller now, and add more modules when the bank allows.

5. Plan for the future

If you are thinking about getting an EV or a spa pool down the track, you might want to oversize slightly to stay ahead.

Solar battery size sweet spot for most NZ homes:
👉 10–20 kWh 

6. How Much Do Solar Battery Systems Cost in NZ?

The price range for solar batteries is roughly $6,000 to $20,000 NZD.  Typically the more storage a battery has, the more it will cost.  Other factors that affect the price are the capabilities of the battery, quality of the battery, chemistry used and how long it’s expected to last.

Here’s a quick rundown of  some of the products available on the market along with their estimated price:

Battery Model Usable Capacity Battery Chemistry Power Output Approximate Price inc GST
Solax Triple Power 6.3 kWh Lithium Nickel Manganese Cobalt Oxide 3 kW $6,500 (uninstalled)
Huawei Luna2000 10 KWH 10 kWh Lithium Iron Phosphate 5 kW $10,500 (uninstalled)
BATTERY-BOX PREMIUM HVS 5.12 kWh Lithium-Ion Phosphate 5.1 kW $10,000 (installed)
Tesla Powerwall 3 13.5 kWh Lithium-Ion Phosphate 5 kW or 10 kW $19,000 (installed and includes a solar inverter)
Sigen Battery 8.0 kWh 7.8 kWh Lithium-Ion Phosphate 4 kW $10,000 (installed)

Please note these prices are rough estimates.  For accurate quotes, fill in our quote request form here for 3 free quotes.  

View and compare more battery storage products available in New Zealand here.

7. Retrofitting Solar Storage Batteries

Good news for early solar adopters: you don’t need to replace your entire solar power system to add battery storage. Most grid-connected solar setups can be retrofitted with a solar battery bank, and an AC-coupled battery is often the best choice. These batteries work independently of your existing inverter, making installation simple and compatible with most setups. It’s a cost-effective way to upgrade, boost energy independence, and get more out of your solar investment.

Having a battery ready solar power system is an excellent option if a user is considering adding solar storage at a later date.

8. Maintenance and Lifespan

Solar batteries are generally low-maintenance, especially modern lithium-based ones like LFP and NMC. Most systems are monitored via apps, making it easy to track performance and spot any issues. As for lifespan, a good-quality battery will typically last 10 to 15 years, depending on usage, temperature, and how deep the battery is discharged regularly. To maximise lifespan, it's best to keep the battery within its recommended temperature range and avoid draining it to zero too often. Most battery models these days run regular software updates automatically to keep things running smoothly.

9. Solar Battery FAQ's

Will Solar Power Still Be Exported To The Grid If Solar Batteries Are Installed?

Exporting solar power to the grid is like getting paid peanuts – we’re talking around 8-18 cents per kWh. So, it’s no surprise your solar system makes sending power to the grid its last priority.

Battery storage will be sent to (1) appliances first (if they are switched on),(2).  Only if there is additional excess solar power will the system export solar power to the grid, and thats if you tell the battery to do so.  Some energy retailers offer good buy-back prices for battery storage discharged to the grid during peak demand periods (i.e. first thing in the morning and in the evenings). But for most people weighing up this option you probably find it's more valuable to hold to your battery storage, as it's always good to have a reserve amount of storage just in case.

Where Solar Power Is Directed When Solar Batteries Are Added

Should You Install Solar Batteries In Your Home?

For Power Security - Yes!  If you are sick of power outages, or the idea of not having power for a day makes you nervous, then absolutely, solar batteries can be sure to provide a home or business with power during a blackout.
For Financial Return -A solar battery is an expensive item, the financial return on a battery isn't as high as a solar power system alone.  But it will help you save on power bills, particularly as the price of electricity in New Zealand continues to climb.
To Reduce Power Bills - Yes!  A battery will reduce those pesky power bills on top of the savings already made with a solar power system.

How long does it take to install a solar battery?

The latest battery models have evolved to become easier and simpler to install – not quite plug-and-play, but getting pretty close! Modern systems like the BYD Battery-Box or Tesla Powerwall 3 are designed with efficiency in mind, meaning they typically take just a few hours to install. The exact duration depends on factors like the system's complexity, site specifics, and the installer's proficiency.

A good rule of thumb: set aside the day, enjoy a cup of tea, and by the afternoon, your new battery will be ready to start saving you money and powering your home.

Chris&Co electrician installing the tesla powerwall 3
Chris & Co Installing the Tesla Powerwall 3

Where Is The Best Place To Put A Solar Battery?

The best spot for a solar battery is somewhere cool, dry, and well-ventilated. Heat is the enemy of battery life, so avoid direct sun and uninsulated garages or sheds that get hot in summer. Common locations include inside a garage, under a carport, or on a shaded exterior wall—some batteries are weatherproof, others aren’t, so check the IP rating. If you are in a flood-prone area, consider raising it off the floor with a stack of concrete tiles or wall mounted if possible. If indoors, make sure there’s airflow and easy access for servicing. Bonus tip: keep it close to your switchboard and inverter to minimise wiring costs and energy loss.

What Are The Common Solar Battery Brands in New Zealand?

  • Tesla Powerwall: A leading name in the solar industry, offering high-capacity batteries with seamless integration and advanced smart technology, ideal for maximising energy independence and efficiency.
  • Sungrow: A cost-effective and efficient option, Sungrow batteries are perfect for those seeking reliable energy storage on a budget without compromising performance.
  • BYD: Known for its modular and scalable battery systems, BYD provides safe and flexible solutions that cater to a variety of energy needs, making it a popular choice for both homes and businesses.
  • FranklinWH: Recognized for its innovative approach to energy management, FranklinWH delivers comprehensive whole-home backup solutions with integrated solar, battery, and energy control systems.
  • Sigenergy: A rising star since its founding in 2022, Sigenergy is making waves with its SigenStor system—a unique 5-in-1 solution combining an energy management system, solar inverter, battery pack, power conversion system, and EV charger into one compact unit.

For further reading:

Read our blog articles about solar battery storage here>

Read about grid-scale batteries in New Zealand here>

Get 3 free quotes for solar + battery storage here>