How each set-up works
DC coupled
Hybrid inverter- Solar charges the battery directly on the DC side
- One inverter for panels and battery
- Usually cheapest when buying solar and battery together
- Needs a compatible hybrid inverter
- Existing solar may need a new inverter
AC coupled
Battery inverter- Works alongside any existing solar inverter
- Simple to retrofit
- Panels and battery are independent
- Extra conversion step when storing solar
- Two inverters to maintain
Which batteries are which
| Battery | Coupling | Notes |
|---|---|---|
| Tesla Powerwall 3 | Built-in hybrid inverter | Takes solar panels directly, and can be added alongside existing solar |
| Tesla Powerwall 2 | AC | No longer sold in Australia |
| Enphase IQ Battery | AC | Designed for Enphase microinverter systems |
| Sungrow SBR | DC | With a Sungrow SH-RS hybrid inverter |
| BYD Battery-Box | DC | With compatible hybrid inverters such as Fronius GEN24 Plus |
| AlphaESS SMILE | Both | Hybrid and AC-coupled models |
Which to choose
- New solar and battery together: DC coupled with a hybrid inverter, or an all-in-one such as Powerwall 3.
- Existing solar with a working inverter: AC coupled, so the old inverter keeps running.
- Existing hybrid inverter: a compatible DC battery, the cheapest option in the Solar Choice index.
- Microinverters: AC coupled.
Backup works with both
Either kind can provide blackout backup if the system includes the right hardware. Ask the installer what will run in an outage. See solar in a blackout.
Common questions
Yes. An AC-coupled battery works with any existing solar inverter. If you already have a hybrid inverter, a compatible DC battery is usually cheaper.
Slightly, for storing solar, because the power is converted fewer times. The difference is small compared with price and compatibility.
It has a built-in solar inverter, so panels connect to it directly on the DC side. It can also be installed alongside an existing solar system.
Sources
Rules and program details come from government sources. Prices are industry averages, named and dated where used. Last checked October 2026. Prices include GST unless we say otherwise.