Batteries are gaining serious traction among Australian businesses, but a handful of persistent myths are still causing hesitation. Here’s what the evidence actually says.

The business case for commercial batteries has never been stronger. Costs have fallen sharply, revenue streams have multiplied, and the market volatility that once made batteries look speculative now makes them look essential.

And yet, many businesses are sitting on the sidelines, often because of concerns that don’t hold up under scrutiny.

Myth 1: “You need solar to have a battery”

Understandable, given how batteries are marketed to households. But for commercial businesses, the more valuable operating mode often has nothing to do with solar.

A Front of Meter or VPP battery, connected with a child meter, can participate directly in the Spot markets, buying energy when prices are low (or negative, which now happens 15% of the time) and discharging when prices spike during evening peaks. This is wholesale energy arbitrage, and it’s where much of the commercial revenue opportunity lies. Batteries can also earn revenue through Frequency Control Ancillary Services (FCAS) simply by being available to stabilise the grid.

Solar can enhance battery economics by lowering site demand during the day which provides capacity for the battery to charge during peak periods. In addition, the Federal Government’s Cheaper Batteries Program requires it for smaller systems. 

The reality: Solar helps, but it’s optional. 

Myth 2: “Batteries are too expensive”

Battery hardware and installation costs have fallen 20–30% in the past year alone. The Federal Government’s Cheaper Batteries Program (available since 1 July 2025) brings installed costs for smaller systems (under 100 kWh) close to half of what they were in 2024. For larger systems, scale enables more aggressive participation in wholesale markets and grid services, where revenue can fund a substantial portion of the asset over its life.

The right question isn’t “is this cheap?”. It’s “what’s the payback, and what’s the revenue upside?” Both answers have improved significantly.

The reality: Costs have fallen sharply and incentives have improved. Projects that looked marginal 18 months ago are increasingly clearing investment hurdles today.

(Be sure to register for our upcoming webinar to learn all the details and to have all your questions answered about commercial battery systems!)

Myth 3: “Batteries are a fire risk”

Modern commercial BESS include built-in fire suppression, real-time remote monitoring, and automatic shutdown capabilities. In Australia, installations must comply with Standards Australia and Clean Energy Council requirements, and all systems are signed off by relevant authorities, including local fire services, before going live.

A fair comparison isn’t “batteries vs. no risk”. It’s batteries vs. the diesel generators and fuel tanks many businesses already operate on-site. Properly installed commercial systems compare well.

The reality: Fire risk is real but well-managed with modern technology and reputable installation. Safety compliance is built into the process.

Myth 4: “Batteries don’t last very long”

In early battery implementations and early EVs, going back 10+ years, batteries had material limitations on their useful life. They would typically be ‘good’ for only 1,000 cycles (of charging and discharging), which would mean a life expectancy of around 5 years if operated on a daily basis.   

Since then, an enormous amount of R&D (CATL, the world’s biggest battery manufacturer, employs over 20,000 PHD level scientists) and manufacturing scale has improved this. Commercial batteries are typically warranted for 5-10,000 cycles and 10 years of operation. This is just the warranty, and actual performance is likely much better, with some high use EVs and commercial batteries showing excellent performance after millions of kms and tens of thousands of cycles. 

The reality: Improved technology and manufacturing scale have significantly progressed commercial batteries, which now typically perform over tens of thousands of charging cycles.

Myth 5: “A battery automatically works as backup power”

This one can catch businesses off guard, and it’s better to know before installation than after.

Standard grid-connected batteries are configured to operate with the grid and will not automatically island your site during a blackout. This is a deliberate safety feature. Backup capability requires additional hardware (an automatic transfer switch), specific configuration, and careful load-sizing decisions.

It’s entirely achievable, and for businesses where outages cause genuine financial pain, it can easily justify the additional cost. But it needs to be designed in from the start.

The reality: Backup power is possible, not automatic. If it’s a priority, raise it early, as it changes the system design and the cost.

Myth 6: “Insurance and compliance will be a headache”

Insurers are now well-acquainted with commercial batteries, and coverage is widely available. They’ll want documentation on technical specs, installation standards, and fire safety compliance, all things a reputable installer produces as standard. Compliance requirements (CEC accreditation, Australian Standards, local authority sign-off) are well-established and routine for experienced providers.

The reality: Straightforward with the right installer. The paperwork your insurer needs is the same documentation you should be demanding anyway.

The Bottom Line

These myths share a common thread: they were either never accurate, or they were accurate once and the world has moved on.

What hasn’t changed is the underlying problem batteries solve. Australia has the world’s most volatile electricity market. Evening peak prices regularly spike into the hundreds of dollars per megawatt hour. The gap between cheap midday solar and expensive evening peaks is exactly what commercial batteries are designed to exploit, and that gap is widening.

The businesses that move first tend to secure better terms, access more of the available incentives, and benefit from earlier payback on an asset that only becomes more valuable as the transition accelerates.

Be sure to register for our upcoming webinar going into all the details about commercial battery systems and how your business can benefit.

Our consultants provide independent assessments and connect you with trusted suppliers to secure compliant, cost-effective energy projects and savings. For the latest information or to speak to an expert at Sustainable Energy Solutions for a tailored conversation on your business’s needs and goals, please get in touch or call us on (02) 8044 0335.