Adding a Battery to Your Solar: AC vs DC Coupling
Ever tried to make sense of how to add a battery to your solar system… and ended up with more questions than answers? You’re not alone. If you’re here, you’re probably trying to figure out how a battery actually fits into your existing solar setup — or whether you need to plan differently for a new install. And then someone throws around terms like “AC vs DC”, and it starts to sound more like a physics class than a home energy upgrade.
Solar panels generate direct current (DC) electricity, whereas household appliances operate on alternating current (AC). Batteries also store energy in DC form. So, somewhere between your roof and your appliances, something needs to convert, control, and manage the flow of power.
This is where the difference between AC and DC coupling comes in — and why choosing the right setup matters for efficiency, compatibility, and cost.
What Does It Mean to Add a Battery to Your Solar System?
When you install a solar system, your panels generate electricity during the day — but that energy only helps you while the sun’s shining. A battery changes that. It stores the excess solar energy your panels produce so you can use it later, like at night or during a blackout.
The challenge however, is that solar panels produce DC (direct current) electricity. Whereas your home runs on AC (alternating current) electricity. That’s why every solar system includes an inverter — to convert solar DC into usable AC.
Batteries also charge and discharge DC electricity, which means you need a system in place to manage how the power flows between your panels, your battery, your appliances, and the grid. That’s where AC and DC coupling comes into play.
There are two main ways to connect a battery to your solar system:
- DC Coupling, where your solar panels and battery share a single hybrid inverter.
- AC Coupling, where the battery and solar system each have their own inverter and work more independently.
Choosing between the two depends on whether you already have solar installed, how much flexibility you need, and whether efficiency or ease-of-retrofit matters more.
What’s the Difference Between AC and DC Electricity?
To understand how batteries connect to your solar system, you need to know the basics of AC and DC power — and why the difference matters.

DC (Direct Current) electricity is the type of power that solar panels generate. It’s also how batteries store energy. The current flows in one direction, which makes it ideal for generating and storing energy.
AC (Alternating Current) electricity is what powers your home and the grid. It changes direction rapidly (50 times per second in Australia — that’s 50Hz), which makes it better for travelling long distances across power lines.
Since most household appliances are built to run on AC power, and solar panels produce DC, an inverter is essential. It converts the DC power from your panels into AC so your home can use it.
Batteries also need conversion.
Because batteries store power in DC and your home runs on AC, any system that includes a battery needs a way to manage those energy conversions — both when storing and using that power. The method used to handle this — whether through a shared or separate inverter — has a direct impact on how efficient the system is, how much it costs to install, and how flexible it will be in the future.
How Does DC-Coupled Battery Storage Work?
In a DC-coupled system, your solar panels and battery share a single hybrid inverter. This is often called a “one box” or “all in one” solution because it combines the functionality of a solar inverter and a battery inverter into a single unit.
Here’s how it works:
- DC from solar panels flows directly into the hybrid inverter.
- The inverter sends that DC either:
- To your battery (still as DC) for charging, or
- Through conversion to AC to power your home.
- To your battery (still as DC) for charging, or
- When you need power at night, the battery discharges its DC energy, and the hybrid inverter converts it into AC for your household use.
- Some hybrid inverters can also convert AC from the grid back into DC to charge your battery — although this isn’t always standard.
Because the system avoids extra conversion steps (like turning DC into AC, then back to DC), DC coupling is generally more efficient. There are fewer “energy stops” along the way, which means less power is lost in translation.
But there’s a trade-off. DC-coupled systems rely on specific hybrid inverters that are only compatible with certain battery brands or models. If you’re installing both solar and battery at the same time, that’s usually fine. But if you’re planning to add a battery later, or want flexibility to upgrade, DC coupling may limit your options.
How Does AC-Coupled Battery Storage Work?
An AC-coupled system treats your battery as a separate unit — with its own inverter. This is known as a “two box” solution: one inverter for your solar panels and another for your battery.
Here’s what happens in an AC-coupled setup:
- DC power from the solar panels is sent to the solar inverter, where it’s converted into AC for use in your home.
- If your home doesn’t use all that energy, the battery’s inverter then converts some of the AC back into DC to store it.
- Later, when you need that stored power, the battery discharges as DC — and the battery inverter turns it into AC for your home.
Because the power is converted multiple times (DC → AC → DC → AC), AC-coupled systems are slightly less efficient than DC-coupled ones. Each step creates small energy losses.
That said, AC coupling has some clear advantages:
- It’s ideal for retrofitting a battery onto an existing solar system.
- It’s more flexible, because the battery system works independently of the original solar inverter. This means you can mix and match brands more easily.
- It can also provide redundancy — if your solar inverter fails, the battery inverter can still function independently.
Some AC-coupled batteries, like the Tesla Powerwall 3, come with a built-in inverter. Others, such as Sungrow, require a separate battery inverter to be installed alongside them.

DC-Coupled Batteries: Pros and Cons
DC-coupled systems make a lot of sense — especially if you’re installing solar and battery together from day one. Here’s a clear breakdown of the main advantages and drawbacks:
Pros
- Higher Efficiency: Because there are fewer conversions between DC and AC, more of your solar energy is stored and used. That translates into better performance.
- Lower Upfront Cost (for new systems): You only need one hybrid inverter, which reduces equipment and installation costs for new builds.
- Bypasses Grid Inverter Limits: With only one inverter handling both solar and battery, you avoid Distributed Network Service Provider (DNSP) limits on total inverter capacity. This is especially useful in areas with tight restrictions (e.g. 5kW limits in parts of South Australia).
Cons
- Compatibility Limits: Hybrid inverters usually only work with specific battery brands or models. That can lock you in — or limit your future upgrade options.
- Not Ideal for Retrofits: If you already have solar installed with a standard inverter, switching to a hybrid system for DC coupling often means replacing your existing inverter — which adds cost and complexity.
- Single Point of Failure: With only one inverter managing everything, if it fails, both your solar and battery go offline.
In short, DC coupling is efficient and streamlined — but it’s best suited for new solar + battery installs, not retrofits.
AC-Coupled Batteries: Pros and Cons
AC-coupled systems shine when you’re adding a battery to an existing solar setup — but they come with their own trade-offs. Here’s a look at where they excel, and where they fall short.
Pros
- Easy to Retrofit: Already have solar? AC coupling lets you add a battery without replacing your current inverter.
- Brand Flexibility: Because the battery system runs independently, you’re not locked into a specific inverter–battery combo. This opens up more product options.
- Redundancy: With separate inverters for solar and battery, one can keep working if the other fails — handy for resilience and backup.
Cons
- Lower Efficiency: Power gets converted multiple times — DC to AC, then back to DC to charge the battery, and then AC again to power your home. That creates small energy losses.
- Higher Installation Cost (for new systems – Solar + a Battery): You’ll need two inverters — one for solar, one for the battery — which adds to the cost.
- Inverter Capacity Limits: Some DNSPs count your solar and battery inverters together toward grid limits. So if your solar inverter is 6kW and your battery has a 5kW inverter (like the Tesla Powerwall 2), you might hit a 10kW cap per phase and be told no.
In summary, AC coupling is perfect for adding a battery to an existing solar system — just be aware of potential network limitations and slightly reduced efficiency.

Which Setup Is Right for You?
Choosing between AC and DC coupling isn’t about which one is “better” — it’s about which one suits your situation.
Here’s our simple rule of thumb:
If you’re installing solar and a battery together:
DC coupling is usually the smarter choice.
You’ll get higher efficiency, lower overall cost, and a simpler, all-in-one setup with a hybrid inverter. Just keep in mind the brand compatibility — your battery and inverter will likely need to be matched.
If you already have solar and want to add a battery:
AC coupling is typically the easier and more flexible option.
You can keep your existing solar inverter, choose from a wider range of batteries, and avoid replacing gear that’s still working well.
That said, it’s worth checking one important thing before you decide: your local network’s inverter limits. Some DNSPs limit the total inverter capacity per phase — and that might affect whether an AC-coupled battery is even allowed on your system. In those cases, a DC-coupled system may offer a workaround.
If you’re planning a new solar-plus-battery setup, DC coupling offers streamlined efficiency. If you’re retrofitting a battery, AC coupling is likely more cost-effective and flexible. Either way, understanding these options puts you in control of your energy future — and helps you avoid expensive mistakes.
Still not sure which setup fits your home best?
At Lenergy, we’ve helped hundreds of Australian homeowners navigate their battery options with honest, jargon-free advice. Whether you’re adding storage to an existing system or starting from scratch, we’ll walk you through it — no pressure, just clarity.












