Introduction
When solar households look for the best returns, two common options appear: installing a battery or switching to a plan with a higher feed-in tariff (FiT). Both approaches can improve your bill savings, but the winner depends on your usage, location, and export volumes. This guide runs through the basics, worked examples, and tools to help you decide.
If you’re new to solar exports, start with What is FiT? before comparing options.
Key Definitions
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Battery storage: A home battery lets you store excess solar to use later, reducing imports from the grid.
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Higher FiT plan: A retailer pays you more per exported kWh, but may balance it with higher daily charges or import tariffs.
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Self-consumption: Using solar directly or from the battery at home.
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Export credit: Income you receive for sending solar to the grid.
See state-based FiT levels here: Compare FiT by State.
Worked Example 1 — Higher FiT, No Battery
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Solar system: 6.6 kW
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Daily generation: 25 kWh
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Self-consumed: 10 kWh
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Exported: 15 kWh
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FiT: 12c/kWh
Daily savings:
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Self-consumption = 10 kWh × 30c = $3.00
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Export credit = 15 kWh × 12c = $1.80
Total = $4.80/day
Worked Example 2 — Lower FiT, With Battery
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Same 6.6 kW system, 25 kWh/day
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Battery stores 10 kWh
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Self-consumed solar: 10 kWh
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Battery discharge used at night: 8 kWh
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Export: 7 kWh @ 6c
Daily savings:
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Daytime solar = 10 × 30c = $3.00
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Battery use = 8 × 30c = $2.40
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Export = 7 × 6c = $0.42
Total = $5.82/day
In this case, the battery option saves more despite a lower FiT.
Worked Example 3 — High FiT vs Mid-size Battery
Plan A: 15c FiT, no battery → Export 15 kWh × 15c = $2.25
Plan B: 7c FiT + 5 kWh battery → Battery use 5 × 30c = $1.50 + Export 10 × 7c = $0.70 = $2.20
Here, the high FiT plan slightly edges out the battery scenario.
Run your own numbers with the Solar ROI & FiT tool.
Why the Outcome Varies
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High FiTs work best if you export a large share of your solar.
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Batteries work best if your import tariff is much higher than FiT.
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Retailer plans change often — track them with the Rate Change Tracker.
Always review plan details at Retailer Rates.
Tools to Compare Options
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FiT Savings Calculator — compare FiT vs self-consumption.
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Postcode Estimator — find your solar output by region.
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Solar ROI & FiT — run payback scenarios with or without a battery.
FAQs
Q1. Is a higher FiT always better than a battery?
Not always. A high FiT helps heavy exporters, while batteries help households with high evening usage.
Q2. Do batteries pay off faster with low FiTs?
Yes. The lower the FiT, the more valuable it is to store power instead of exporting it.
Q3. Can I combine both — battery and higher FiT?
Yes, but battery discharge reduces exports, so you may not benefit much from a higher FiT plan.
Q4. Should I wait for battery prices to fall?
If payback is long in your state, waiting could make sense. Use Solar ROI & FiT to check.
Conclusion
The choice between a battery or higher FiT depends on your solar generation, export share, and retailer plan. Batteries usually win in high-tariff states with low FiTs, while high FiT plans can compete strongly if your export volumes are large.
Next steps:
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Explore FiT rates in your state: Compare FiT by State
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Run numbers: FiT Savings Calculator
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Compare offers: Retailer Rates