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How does solar battery storage work?

Solar panels are a great renewable energy source, but they only generate energy when the sun is shining. That's when a solar battery can help.
8 min read
Published on 06 Jun, 2019

Solar panels are a great way to power the home with renewable energy.

They enable you to use the sun to create your energy supply rather than simply drawing energy from the grid. Using less energy from the grid makes it a cost-effective way to power your home, too – and helps save on your electricity bills.

However, installing solar panels isn’t the only part of creating an efficient energy setup.

Install a battery to your solar power system

Solar panels are a great start, but they can only generate energy when the sun is shining. That’s where a solar battery can help.

It stores unused energy from your solar panels to use at night-time, or on a cloudy day. You’re paying for even less energy from the grid, so it’s still a great way to use more of your solar energy.

Plus, an AGL battery helps you support your local community. It can speak to other solar home batteries in your neighbourhood to create a Virtual Power Plant and support the grid when needed like on a hot day when lots of people turn on the air-con at the same time.

How do solar panels and batteries work together?

There are a number of components that make up a home solar system. First, you have your solar panels, which feed energy into an inverter. The energy then travels through a switchboard where it’s directed to the appliances in your home.

When the sun isn’t shining, the grid steps in to keep your power running. If you’re generating more solar energy than you need, that energy will go back into the grid and you’ll receive a solar feed-in tariff (FiT) as a credit on your bill.

But if you’ve installed a battery solar system, the switchboard directs any excess solar energy you are generating to the battery – charging it up for later use. When the sun goes down or you’re using more energy than your panels produce, your battery’s stored energy will power your appliances. And if your battery is empty, the grid will lend a helping hand.

Here’s an example of how an AC-coupled battery system works, involving a battery being added to an existing solar system.

Illustration explaining how battery storage works during the daytime
  1. The solar panels take in sunlight.
  2. The solar energy travels as direct current (DC) through the solar inverter so it can be converted into alternating current (AC) energy that everyday appliances can use.
  3. The switchboard then directs the solar energy to where it’s needed. First, it will power the appliances in your home, then direct any excess to the battery inverter.
  4. The battery inverter converts the energy into a form of storable energy.
  5. The battery stores the energy to use for when the sun goes down.


In this scenario, there’s a change in the battery, so energy from the grid isn’t required to power the home.

And then, when the sun goes down…

Illustration explaining how battery storage works during the night

The solar panels stop generating energy and the household switches to stored battery energy.

  1. The battery starts sending energy through the battery inverter to power the home.
  2. The battery inverter converts the energy into a form that appliances can use.
  3. The switchboard directs the energy to your appliances.
  4. When the battery’s charge runs out, the grid will kick in and provide energy to keep your appliances running.

How do I get a solar power system started?

Ready to switch to a brighter way of powering your home? Learn more about whether installing solar is right for you.

Find out more

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