Melbourne households can cut energy bills by up to $3,000 a year by pairing rooftop solar with battery storage. But the initial investment can seem a little daunting, so in 2025, is the outlay worth it? What ROI will you see?
In Melbourne, the push for energy-efficient homes is growing. We mentioned in this blog post how you can increase the financial value of your home $100k with an enhanced energy-efficient solution.
With rising energy bills and the state’s decision to phase out gas in new homes, households are looking for smarter, all-electric solutions that deliver both comfort and long-term value.
One of the most effective pathways is combining rooftop solar with battery storage.
This approach extends beyond clean energy; it directly enhances your home’s energy rating, reduces household bills, and ensures you’re prepared for the future as the state transitions to a fully electrified grid.
Since May 2024, all new homes and major renovations must achieve a minimum 7-star rating under the Nationwide House Energy Rating Scheme (NatHERS), along with a Whole-of-Home score of at least 60 out of 100, covering the efficiency of the building envelope and fixed appliances such as heating, cooling, hot water, lighting and cooking.
For existing homes, the Victorian Residential Efficiency Scorecard provides a 1–10 star rating based on average annual energy costs, together with a comfort rating that measures performance in extreme temperatures; Melbourne’s average is about 3 stars, equating to annual energy costs of around AUD $1,773. (source)
Together, these measures aim to improve efficiency, reduce costs and ensure homes across Victoria are designed and retrofitted to meet higher sustainability standards.
Let’s start with the nuts and bolts. Here’s the average cost of installing solar + a battery to your home if you live in Melbourne, Victoria. This applies to 2025, and we’ll update this post to keep it relevant.
Solar energy systems: A typical 6.6 kW rooftop solar system in Victoria costs between $6,000–$8,500 installed (before applying available incentives). (source)
Battery storage: Adding a 10 kWh home battery currently ranges from $10,000–$12,000, depending on the brand and capacity.
Together, a solar + battery package can cost $16,000–$21,000 upfront in 2025.
⚡ But these costs are increasingly offset by state-backed incentives under the Solar Victoria Solar Homes Program and through alternatives such as low-interest green loans.
Here are some blog posts related to solar and financial incentives you might find helpful:
Can you claim STCs for a solar energy system and be eligible for the Solar Rebate?
What you need to know about Green Loans for Solar
What is a Solar PPA?
How to check if solar is right for you with interval billing
If you’re going to invest in a solar energy system, you need to understand the full context of the energy it will supply, and therefore how much it will save you in energy costs.
To understand the impact of solar on your home’s energy performance, let’s look at a standard 6.6 kW residential solar system, one of the most common sizes we install across Victoria.
On average, a 6.6 kW system generates around 7,400 kWh of electricity per year.
That annual generation is typically split into:
💡 Total estimated annual savings: $1,112.10
| Energy Type | kWh/year | Rate | Annual Saving |
|---|---|---|---|
| Self-consumed | 3,300 | $0.30/kWh | $990.00 |
| Exported to the grid | 4,070 | $0.03/kWh | $122.10 |
| Total Annual Saving | $1,112.10 | ||
Say your solar energy system is running gangbusters. It’s a sunny day, and while the household is using some of it, such as a pool heater, the washing machine, and the dishwasher, not all of the energy supplied is being utilised.
Without a battery, more than half of the energy generated (about 55%) is exported to the grid for a very low return.
By adding a home battery, you can store excess energy and use it when needed, or at night, thereby boosting your self-consumption rate and significantly increasing your annual savings.
In many cases, this can double the financial benefit and lift your home’s overall energy rating.
| Option | Upfront Cost (after incentives) | Average Annual Savings | 10-Year Estimated Savings | Key Benefits |
|---|---|---|---|---|
| Solar Only (6.6 kW system) | $6,000 – $7,000 | ~$1,100 | ~$11,000 | • Immediate bill reduction • Lower upfront cost • Can be battery-ready for future |
| Solar + Battery (6.6 kW + 10 kWh battery) | $13,000 – $19,000 | ~$3,000 | ~$30,000 | • Maximises solar self-use • Protects against evening peak rates • Energy independence and resilience |
| Figures are averages for Victorian households in 2025. Actual results depend on usage, location, and installation. | ||||
For Victorians in 2025, the numbers are clear: solar and battery storage represent one of the smartest investments you can make in your home. Not only can it help enhance the financial value of your property and reduce your reliance on grid energy, but it can also help cut your bills by up to $3,000 per year (solar & battery) and lower emissions.
Going all-electric is no longer a question of “if”, but “when”.
Here’s our article: The Rise of All-Electric Homes
👉 Check your options with Energy Makeovers today and find out how a tailored solar solution can start saving you money now, with the flexibility to expand into battery storage when it suits your household.
*Figures for cost sourced from Solarcalculator. System energy production figures sourced from Australian standard 4509 design of solar PV systems. Energy prices are based on VIC gov default offer source
Solar Only: ~5 years
Solar + Battery: ~7–9 years
Based on average Victorian household energy use in 2025.
Going all-electric with solar + battery can cut
up to 5 tonnes of CO₂ per year.
Equivalent to taking one petrol car off the road annually.
Yes, adding a solar power system can significantly improve your home’s overall energy performance and contribute to a higher energy rating.
Though solar panels don’t directly boost a building’s thermal insulation (NatHERS), they do reduce your reliance on grid electricity, leading to lower energy bills. (source)
In 2025, a typical 6.6 kW rooftop solar system in Melbourne costs between $4,000 and $6,000 once incentives are applied. Adding a 10 kWh battery usually ranges from $9,000 to $13,000, depending on the brand and size. Together, most households can expect to pay around $13,000–$19,000 for a full solar + battery package.
Victorians in 2025 can access several incentives and alternatives designed to lower upfront costs, including:
- Support through the Solar Victoria Solar Homes Program for rooftop solar and batteries.
- The Victorian Energy Upgrades (VEU) program, which helps reduce the cost of efficient home energy systems.
- Green loans and no-upfront-cost finance options offered through select providers.
These options mean homeowners can often save thousands on installation and start enjoying bill reductions much sooner.
No. A rooftop solar system on its own still delivers significant savings by offsetting the electricity you would otherwise buy from the grid. On average, a 6.6 kW solar system can save a Victorian household around $1,100 per year without a battery. Adding a battery increases those savings by allowing you to store excess solar and use it at night, lifting annual benefits closer to $3,000.
Yes. Many households install solar first and choose to add a battery later when it suits their budget or energy needs. At Energy Makeovers, our solar systems are designed to be battery-ready, giving you the flexibility to expand in the future without having to replace your existing system.
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