Ultimate Guide: Save Big on Home and Electric Car Energy Costs

Australia is experiencing a rapid increase in home battery storage installations as households rush to capitalize on government subsidies. My home is among those making the switch. Recently, we became part of the 300,000 homes that have already installed subsidized batteries, enabling us to power our house and electric vehicle at minimal costs.

My fascination with household batteries began when I first wrote about them for New Scientist. They store energy produced by rooftop solar panels, making it possible to use clean energy for daily needs or to charge an electric vehicle. By generating and retaining energy on-site, we significantly lower our carbon footprint and safeguard against volatile energy prices, especially those heightened by current global events, such as the disputes surrounding the Strait of Hormuz.

Initially, household batteries seemed unattainable due to their steep price. However, recent reductions in cost have made them increasingly affordable, even without government support.

To achieve home ownership under my first requirement, my family and I relocated from high-cost Sydney to a regional city about 400 kilometers north. There, we purchased a modest but durable 1970s brick home. We installed 13 solar panels on our roof, totaling 6.6 kilowatts—the most common size in Australia—maximizing our solar energy collection and acquired a reasonably priced electric vehicle.

Thanks to our solar panels, we now enjoy free electricity for appliances like dishwashers, washing machines, refrigerators, and induction cooktops on sunny days. However, when the sun sets or during gloomy weather, we revert to grid power. Charging our car overnight or running air conditioning during heatwaves incurs costs.

We contemplated purchasing a standard 15-kilowatt-hour domestic battery to store solar energy for night-time use but were daunted by the AU$20,000 (£10,000) price tag. With the government’s subsidy program launched in July 2025, costs dropped to AU$13,000 (£6,500), making it more feasible, especially since repayment could be done interest-free over five years.

The battery system we opted for comprises three lithium iron phosphate (LiFePO₄) packs housed in an aesthetically pleasing white box, located on a shaded wall outside our home to prevent overheating.

Since installation, our electricity bills have plummeted to approximately AU$25 (£13) monthly, even with continual overnight air conditioning use. This is a stark contrast to the average AU$300 (£150) monthly expenditure prior to the installation of our solar panels and batteries, although we still pay a minor fixed supply charge covering meter readings and grid maintenance.

To further curtail expenses, we recently joined a virtual power plant initiative that connects thousands of households with home batteries, allowing participants to share excess energy. Those who contribute can earn up to AU$300 (£150) annually for sharing this energy, potentially eliminating electricity costs.

Our batteries also shielded us from recent fuel price spikes following the Strait of Hormuz closure, where Australian petrol costs surged by 40 percent. Even with a shift to 70% diesel for travel, we maintained nearly free vehicle operation. Additionally, our batteries ensured we had power during a recent hour-long outage in our neighborhood.

While not everyone can afford a home battery or even homeownership, there are initiatives for making this green technology accessible. For instance, in South Australia, residents of public housing managed by the government can apply for free solar panel and battery installation to lessen their energy expenses.

Concerns regarding household battery safety are common, but the risk appears low. A study from Germany found that the likelihood of a household battery fire is 1 in 50, making them less likely to catch fire than standard residential fires and comparable to clothes dryer fires. Some household batteries, particularly lithium iron phosphate, are deemed safer than others.

The Australian Government’s home battery storage initiative is gaining momentum, requiring an additional AU$5 billion (approx. £2.65 billion) to expand the program. However, individual subsidies may decrease next month to enable broader accessibility. With aspirations for 2 million storage batteries installed by 2030 in Australia, significant progress is hoped.

Similarly, California has embarked on a battery storage subsidy scheme, with 200,000 storage batteries installed to date.

In contrast, the UK’s adoption of this technology has been sluggish, with only 20,000 household batteries established annually. However, recent government announcements hint at the impending rollout of new subsidies to enhance uptake.

While some technologies I’ve discussed in the past have seemed outlandish—like massage-giving robots or tiny cars driven by rats—home batteries exemplify tangible, groundbreaking tech. It’s gratifying to witness their rise in popularity and to benefit from this innovation ourselves. With the considerable savings we’ve gained, we could even afford a robot massage therapist someday!