Hybrid Solar Systems: The Future of Smart Energy Management in Australia
Solar power is a fantastic source of free, clean energy—but what happens when the sun goes down? Traditional solar systems rely on the grid for nighttime power. You'll still be paying for electricity and vulnerable to blackouts.
Going completely off-grid sounds appealing for full energy independence, but it is expensive. It requires large battery storage and can leave you without power during extended cloudy periods.
What if you could enjoy continuous power, energy independence, and grid backup in one system? That’s exactly what a hybrid solar system offers.
Key Takeaways:
What Hybrid Solar Systems Offer: Hybrid solar systems combine the benefits of grid-tied and off-grid solar systems. It offers continuous power, energy independence, and grid backup in one solution.
Key Components of Hybrid Systems: A hybrid system includes solar panels, inverters, batteries, and smart energy management systems (like Heartbeat to optimise energy use and ensure reliable power.
Cost Considerations: Due to the added battery storage, hybrid solar systems are more expensive than grid-tied systems. However, they offer long-term savings on energy bills and provide more independence.
Retrofit Options: Homes with existing solar systems can retrofit battery storage, typically through AC coupling, to convert a standard grid-tied setup into a hybrid system.
Off-Grid Alternatives: Going off-grid offers complete independence but is costly and requires substantial space for panels and batteries. Hybrid systems provide a more affordable and manageable alternative for most homeowners.
Types of Solar Systems
Before we dive into the ins and outs of a hybrid solar system let's quickly refresh a few of the main types of solar systems.
1. Grid-Tied Systems
Grid-tied solar systems, also known as standard solar systems, are the simplest and most common type of solar setup. These systems consist of just solar panels and an inverter—without a battery—and are directly connected to the main electricity grid.
Despite their simplicity, grid-tied systems are still a fantastic investment. By using solar energy to power your home during the day, you can significantly reduce your electricity bills. Plus, the cost of installing a grid-tied system has dropped substantially over the past decade, making it an affordable and high-value option for homeowners.
However, the main limitation of this system is its reliance on sunlight. Once the sun sets or during periods of low solar production, you'll still need to draw power from the grid.
2. Off-Grid Solar Systems
There is increasing tension and mistrust between Australian homes and energy retailers, between the climbing power prices and general uncertainty in government rebates and subsidies. More and more people are looking to just separate themselves from the grid entirely.
Although an off-grid system sounds like a great idea in theory, it can become a real burden over time. Your system will require an enormous number of components to capture, convert, and store sufficient energy to run the home.
Additionally, you’ll need a backup generator on hand and ensure that regular maintenance is carried out. That being said, if you live in a remote location without a reliable electricity grid, an off-grid system can be a real lifesaver.
3. Hybrid Solar System
Hybrid solar systems combine the advantages of both grid-tied and off-grid setups, giving you greater energy control and independence. These systems include solar panels, an inverter, and a solar battery, allowing you to store excess energy for use after dark.
With a hybrid system, you can still benefit from Feed-in Tariffs by exporting surplus electricity back to the grid while maintaining the security of a grid connection as a backup. More importantly, having battery storage means you can rely on clean solar power even when the sun isn't shining, reducing your dependence on big energy providers and giving you greater control over your energy usage.
Hybrid solar is rapidly becoming the preferred choice for Australian households. With a lifespan of 25–30 years, these systems provide long-term access to clean, affordable, and reliable energy—making them a smart investment for the future.
Each solar system type comes with its advantages and challenges. To help you decide which system suits your needs best, let’s compare their key differences:
Grid-Tied System
A grid-tied system is the most common and affordable option. It consists of solar panels and an inverter but no battery storage. During the day, your home uses solar power, and any excess energy is sent back to the grid—earning you feed-in tariff credits.
✅ Pros:
Lower upfront cost
Reduces electricity bills
Simple and low-maintenance
❌ Cons:
No power at night or during blackouts
Still reliant on the grid
Feed-in tariffs are decreasing
Subject to energy rates
Grid-tied systems are still a great investment, but they leave you vulnerable to blackouts and rising electricity prices.
Hybrid Systems
A hybrid solar system combines the benefits of grid-tied and off-grid systems. It includes solar panels, an inverter, and a battery, allowing you to store excess energy for use at night or during power outages.
✅ Pros:
Reduces electricity bills
Backup power during blackouts
Less reliance on energy retailers
Avoids expensive off-grid setup
❌ Cons:
Higher upfront cost than a grid-tied system
Batteries have a lifespan and will eventually need replacing
For many Australian homeowners, a hybrid system is the ideal solution—it allows you to use solar power efficiently while keeping the security of grid access when needed.
Off-Grid System
Off-grid systems completely disconnect your home from the electricity grid. They require a large solar array, substantial battery storage, and often a backup generator to ensure 24/7 power.
✅ Pros:
Full energy independence
No electricity bills
Not subject to changing energy rates
❌ Cons:
High upfront cost
Requires significant space for panels and batteries
Need a backup generator for cloudy periods
Off-grid systems are ideal for homes in remote areas without reliable grid access. However, for most households, the cost and maintenance make them less practical.
Hybrid Solar Systems in Action
Installing a hybrid solar system lets you enjoy the best of both worlds—reliable electricity from the grid when needed and self-managed, clean solar energy available anytime. But the benefits don’t stop there. One of the biggest advantages of adding a solar battery is blackout protection. While having the grid as a backup is reassuring, it’s equally comforting to know that if the grid goes down, your stored energy can keep essential appliances running.
Compared to an off-grid system, a hybrid solar setup is a more practical and affordable investment. Off-grid systems require a large number of solar panels and extensive battery storage—both of which can be costly. Many also rely on a diesel generator for extra backup. While hybrid systems do come at a higher upfront cost than standard grid-tied solar, they offer a balanced approach to energy independence, making them a worthwhile investment depending on your needs and energy goals.
Components of Hybrid Systems
A hybrid solar system combines different technologies to ensure seamless energy use. Here are the key components that make it work:
Solar Panel System and the Grid
These are the backbone of your setup, capturing sunlight and converting it into direct current (DC) electricity. A solar inverter then transforms this power into alternating current (AC), which powers your home’s appliances. 1KOMMA5° or your trusted solar installer can help you select the best solar panels in Australia for your needs.
Solar Battery
The solar battery makes a hybrid system different from a traditional grid-tied setup. Instead of sending excess solar energy back to the grid, a battery stores it for later use—such as at night or during power outages.
1KOMMA5° provides advanced battery solutions that offer high storage capacity and reliability. Here are our top brand recommendations:
Battery Inverter or Hybrid Inverter
The battery inverter manages the charging and discharging of the battery. In some hybrid systems, this function is built into a hybrid inverter, which combines both solar and battery inverters into one unit such as the Tesla Powerwall 3. It ensures that stored energy is efficiently used when needed and switches between solar, battery, and grid power.
Smart Energy Management System
A hybrid system is most effective when it knows when and where to use power. The smart energy management system monitors energy production, battery levels, a nd household consumption in real-time. It prioritises solar energy first, battery storage second, and grid power only when necessary.
1KOMMA5°s Heartbeat is a smart energy management system designed to optimise home energy consumption. By connecting devices such as solar panels, batteries, heat pumps, and EV chargers, Heartbeat ensures efficient energy use.
How Does a Hybrid Solar System Work?
The process is much like the operation of a standard solar system except with one added layer. The panels will generate electricity for use in the home, the difference is in what happens to the excess power, instead of exporting this energy back into the grid (for feed-in tariffs that are ever decreasing) it is stored in solar batteries for use later. The battery then allows you to switch between solar power, stored power and grid power depending on electricity prices and the rate of generation.
Additionally, by installing a Smart Energy Manager like Heartbeat, you can have all of this done for you. Heartbeat can take into account factors such as current prices, predicted weather events and all the devices and electrical circuits in your house, you can achieve smart energy management with little to no effort.
Another reason to install a solar storage solution is the added benefit of blackout protection. If the grid goes down, your battery can disconnect your solar system and home from the grid temporarily and seamlessly take over, continuing to power essential loads and keeping your home up and running.
Hybrid Solar System vs. Standard Grid Connected Solar System
If you're unsure about installing a hybrid solar system, that’s completely understandable—a solar battery is a significant investment. However, several factors make it a worthwhile consideration.
Keep Your Home Up & Running While the Grid is Down
A standard grid-connected solar system shuts down during a power outage to protect utility workers repairing the network. In contrast, a hybrid solar system with a smart battery can detect the outage and automatically disconnect from the grid, using stored energy to power essential circuits in your home. In other words, your home becomes its own temporary power plant, ensuring uninterrupted electricity when you need it most.
Escape Export Limits Set by Your Electricity Network
Some electricity networks impose restrictions on how much solar energy households can export to the grid. These limits help prevent grid overload but can be frustrating for homeowners who want a system that fully offsets their electricity usage.
Adding to the challenge, the "sun tax" (solar export charges) is now being introduced in certain Australian states, allowing energy networks to charge solar households for exporting excess energy during peak times. This means you could actually be penalized for sending power back to the grid instead of benefiting from it.
How to Avoid These Limitations:
By installing a hybrid solar system with a smart hybrid inverter, you can optimise energy usage without exceeding export limits or facing extra charges. For example, if you install a 10kW solar system, you can configure your inverter to direct 7kW for home use while exporting only 3kW to the grid—ensuring you maximise self-consumption and avoid unnecessary fees.
Reduce Your Electricity Bills
In the early days of solar, feed-in tariffs for exported electricity were a major draw for homeowners. However, in recent years, these tariffs have significantly declined, meaning the rate you receive for exporting excess solar power is often much lower than the cost of grid electricity.
This is where solar batteries come in. Rather than sending excess energy to the grid for minimal return, a solar battery lets you store that energy and use it when you need it most. With a battery, you can maximize your solar power consumption, lowering your reliance on grid electricity and reducing your electricity bills—some homeowners even manage to bring their bills down to nearly zero.
Is a Hybrid Solar System Worth It?
For many Australian homes, a hybrid solar system with battery storage is a game-changer, but whether it's the right choice depends on your specific needs and energy goals. While installing a battery requires a significant investment, the long-term benefits of energy independence, reduced electricity bills, and blackout protection can make it a worthwhile consideration for many homeowners.
If you're planning to stay in your property for the long haul, a battery can help you maximize the benefits of your solar system over time, making it a smart investment.
Solar batteries come with a variety of benefits, from storing excess energy for later use to reducing your reliance on the grid. They help you make the most of your solar power, especially during high-demand periods or when the sun isn’t shining. Every home is different, and the value of a hybrid system ultimately comes down to your personal motivations—whether you're looking to cut down on electricity costs, ensure power during outages, or simply take control of your energy use.
Already Have an Existing Solar System? Retrofitting Battery Storage
To see any benefits from installing a solar battery, you should have a larger solar system installed. The minimum recommended system size is 6.6kW, but this may not even be enough with household consumption and the growing prevalence of larger systems. Having enough solar capacity is important as it ensures that the solar system will generate enough electricity to fill the battery and power your home, even in winter or overcast days.
You may also want to consider oversizing the rated power of your panel array to the rated power of your solar inverter. Your solar retailer will advise you as to whether this would be beneficial for your specific system and situation. Whether or not to oversize the inverter depends on several factors, including your climate, battery size, and individual household consumption.
AC Coupling
AC coupling is the most common method of retrofit installation of a solar battery. This is the most simple process as it more or less leaves all the wiring and components of the existing solar system alone. Simply put, the solar battery will be connected to your home’s existing AC circuit.
How Much Does a Hybrid Solar System Cost?
This is where a lot of people get put off. It's no secret that a hybrid solar system, in comparison with a standard grid- tied solar system, is far more expensive. Adding a storage solution could potentially double the initial cost (depending on how many batteries you wish to install).
For example: a 10kW system will usually cost around $11,000 whereas a 10kW solar system with a 13.5W battery will usually cost around $21,000.
But if you’re someone who is really keen on an off-grid solar set-up but have some reservations around the huge cost of doing this or the lack of security without backup grid power, then a hybrid solar installation could be right up your alley.
Going Off-Grid
Going off-grid may seem like the next logical step to escape the unreliability of energy retailers but before you do it’s important to consider how beneficial this will actually be for you and your home.
Benefits of Going Off-Grid
Yes, by removing your home from the main electricity network you will become self-sufficient and can eliminate the need to pay your energy retailer entirely. You can manage your own energy and will no longer have to concern yourself with fluctuating rates like us ordinary grid connected individuals.
Drawbacks of Going Off-Grid
Going off-grid is easier said than done, this process is extremely costly. In order to effectively go off-grid you will need to install a large solar system and quite a few batteries to ensure a reliable source of power. And even then sometimes the reliability of the grid can be comforting and a real help should anything with your solar system ever go wrong.
Don’t Dismiss Grid Power Just Yet
The electricity grid is a tried-and-tested piece of infrastructure that provides a reliable power source for most Australians. It’s there when you need it, offering peace of mind in case something goes wrong with your solar system. While going off-grid can be an expensive and complex process, it may not always be the best solution.
Fortunately, you don’t have to choose between grid power and solar. A hybrid solar system gives you the best of both worlds—minimizing your reliance on the grid while still benefiting from its backup. With a hybrid system, you can lower your electricity bills, maximize energy savings, and enjoy the security of having grid power as a backup when needed.
Live Free with 1KOMMA5° - Bringing You Real Energy Independence
At 1KOMMA5° we offer an extensive range of solar and storage solutions, helping us to achieve our mission of bringing clean energy to Australian homes, allowing them to escape bill shock and climbing power prices.
We have a home energy solution for every household, from small homes to large families.
Frequently Asked Questions about Installing Hybrid Systems
How much battery storage do I need for a hybrid system?
The right battery size depends on your household’s energy consumption, the amount of solar power you generate, and how much backup power you want during outages or at night.
A smaller battery (around 5–10 kWh) may be enough if you only want to cover nighttime electricity use. However, if you run multiple appliances during a blackout or store more solar energy for later use, you may need a larger battery (10–20 kWh or more).
Other factors to consider include:
Your average daily electricity usage – The more power you consume, the larger the battery you’ll need.
Your solar panel output – Your battery should have enough capacity to store excess solar energy.
Blackout protection needs – If you want to power essential appliances like fridges and lights during outages, you’ll need sufficient storage.
Budget and future expansion – Larger batteries cost more, but you can start with a smaller one and expand later if your system allows it.
Your 1KOMMA5° installer can assess your needs and recommend the best battery capacity for your hybrid system.
Are there any rebates available?
There are great government rebates/incentives still in place for eligible households. Basically, the larger the panel array, the more STCs your solar system generates as it is based on the expected output of the system over time.
When you buy a solar system, the purchase price is normally reduced by the value of the STCs created by your system. You simply fill out a form on the day of installation to confirm that the system has been installed, and that’s it. There is no additional paperwork that you need to do.
Small-scale Technology Certificates (STCs)
Small-scale Technology Certificates (STC’s) – previously known as Renewable Energy Certificates or RECS – are created when a Renewable Energy System such as a Solar PV system is installed.
The number of STC’s depends on the predicted amount of energy generated and hence the larger the system the greater the rebate. In essence, one STC is created for every megawatt-hour of production capacity of the system.
This is further multiplied by the number of years the system is likely to generate energy (for home solar systems, this is usually 15 years, although the life of the solar panels themselves is considerably more than that).
This incentive program is being phased out until 2030, so each year the number of certificates your system is eligible for reduces.
STC Price
The system for trading and pricing STCs for small systems is managed by the Small-scale Renewable Energy Scheme (SRES).
STCs are bought by Liable Parties (usually electricity retailers) and must be surrendered at the end of each quarter. As the number of STCs that are required to be surrendered is a fixed amount each year, but the number of STCs created is variable, the price paid for STCs also varies and is determined by supply and demand.
The Federal Government legislated in 2010 a fixed price for STCs by implementing a Clearing House system where STCs can be bought and sold for $40. However, there is no requirement for Liable Parties to purchase from the Clearing House, so they are likely to only do so if there is a shortage of STCs or the market price exceeds $40. There is currently a surplus of STCs in the market which means the market price of STC’s below $40
Can I add a battery to my existing solar to make it hybrid?
Yes! If you already have solar panels, you can upgrade to a hybrid system by adding a compatible battery and inverter. However, your system may need some modifications. Here are a few things to consider before making the switch:
Inverter Compatibility–Standard grid-tied solar inverters are not designed to work with batteries. You may need to replace your current inverter with a hybrid inverter or add a battery inverter.
Battery Compatibility—Not all batteries work with every solar system. It is essential to choose a battery that integrates smoothly with your existing setup.
System Modifications–Depending on your current system’s design and capacity, some electrical work or additional components may be required.
Since every system is different, consult a 1KOMMA5° solar installer to assess your setup and recommend the best solution for upgrading to a hybrid system.
Do you offer finance?
Green Loans can be an affordable way to pay for your solar power system and is only available for approved products. As a Clean Energy Council Accredited installer, all our systems qualify.
Green Loans can be used to finance 1KOMMA5° systems from $1,000 to $30,000 over a 2-7 year term. Once you have received a referral from 1KOMMA5°, online approval usually occurs within 1-2 business days. Green Loans have a competitive fixed interest rate that is as low as 7.99% p.a.* | Comparison rate 9.21% p.a.^ Establishment fee of $299 added to the loan amount. $2.70 per week account keeping fee included in repayments.
To be eligible to apply you must:
Be over 18 years old and an Australian resident or citizen
Own or be purchasing a home
Be employed, self-employed, a self-funded retiree; or is receiving the Government Age Pension
Have an Australian driver’s license or Passport
Provide two most recent payslips or 90 days of bank statements
There are a number of good, competitive Green Loan providers – ask us about the options available.
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