The rapid acceleration of renewable energy adoption has made battery storage systems increasingly common across residential, commercial, and council-owned properties, spurred by state and federal incentives. But with growing uptake comes an equally growing question: how safe are lithium-ion batteries in practice?
High-profile media reports about e-scooters or electric vehicle fires have understandably raised public concern. On top of that, solar systems had their time in the sun with rooftop isolators being a known hazard. Yet, despite this public perception, actual fire incidents involving stationary energy storage systems remain very low.
According to Fire and Rescue NSW, of the 456 battery-related incidents reported across 2022 and 2023, only 37 were tied to energy storage systems (ESS) rather than mobile devices like e-bikes or phones. These figures help place the issue into context and GSES’s field data provides further clarity.
What we’re seeing on the ground
At GSES, we’ve conducted nearly 3,000 battery inspections from 2024 to now. Our inspectors identified approximately 50 systems as unsafe, but only 21 of these involved the battery itself. The rest were related to broader electrical or PV issues such as switchboard wiring, rooftop isolators, or non-compliant install practices.
Importantly, we found no battery fires across these inspections, though we did observe a few DC isolator fire incidents.
Here are some of the most common battery-related safety issues we identified, along with the number of occurences:
- Improper neutral or earthing connections (grid feedback risk) – 6
- Battery installed near gas cylinders – 4
- No overcurrent protection between the battery and inverter – 4
- Loose battery cables (risk of arcing) – 3
- Battery not physically secured (risk of falling) – 2
- Swollen battery due to mechanical damage – 1
- Water pooling at battery terminals – 1
What are the risks?
Even though the battery itself is unlikely to catch on fire, an internal fault or heat source nearby can overheat the battery. Overheating of lithium ion batteries is extremely dangerous as the battery cells go through a process called ‘thermal runaway’. This process occurs when the fire is self-sustaining, accelerating the chemical reactions leading to a rapid temperature increase and build up of pressure.
Fires may start outside of the battery due to arcing caused by loose cables, water pooling or improper neutral and earthing connections. The thermal runaway process can also start internally when mechanical damage to the battery, due to physical impact, causes internal instability. Most importantly, if any of the above happens to a battery installed near highly combustible materials such as gas cylinders, the result may be catastrophic.
How to avoid these incidents
The good news? Most of these issues are entirely preventable. Here’s what you can do to ensure safety:
- Choose reputable installers – Check the reviews of the company you’ll be working with. Additionally, make sure that the installer is SAA accredited and works safely during the installation.
- Install trusted battery brands – Reputable brands are likely to have better warranty policies and technical support to installers. Batteries installed in Australia, should always appear on the Clean Energy Council’s approved product list.
- Undertake regular system maintenance – Period maintenance (at least every five years) is highly recommended. The installer is able to clean the system and check for any components that are getting degraded.
- Government mandated inspections – The Clean Energy Regulator (CER) currently inspects about two per cent of the systems installed. The Queensland Government approved a 100 per cent inspection rate for battery systems installed under the battery booster program. Solar Victoria requires all systems installed to be inspected. Third party inspections can ensure that systems are being installed to a high quality level of workmanship and compliant with Australian Standards and regulations. These inspections should also include thermal camera imaging to identify hot spots, faulty connections, or other issues that may not be visible during a standard visual inspection.
- Solar monitoring – For councils or organisations with distributed energy systems, digital monitoring platforms such as Diagno can help detect performance drops, alert you to safety risks, and streamline maintenance across multiple sites.
Are you sure your battery is safe?
Most owners don’t realise problems exist until it’s too late. Ask yourself:
- Does your system have loose or messy cabling that could arc or spark under load?
- Is there water pooling near terminals, or leaks from incorrect equipment ratings?
- Is your battery installed too close to gas bottles or other combustible materials?
- Is there overcurrent protection between the battery and the inverter?
- Are neutral and earthing connections done properly, or could they be sending dangerous feedback into the grid?
The truth is, most risks don’t come from the battery itself, they start with small, preventable installation mistakes. Get your system checked before it’s too late.
In summary, energy storage systems are not a widespread safety risk. However, it is important to maintain proactive industry practices through regulations, inspections and monitoring. We highly recommend that councils and asset owners (such as facility managers), engage with reputable companies such as GSES or Diagno to ensure that all their systems are safely installed and maintained according to industry best practices.
Want to learn more?
We’ll be sharing insights and real-world case studies in our upcoming webinar, ‘3000 BESS Inspections- The Results are In’, on 16 October 2025. Register here to confirm your attendance. Bring your questions, bring your concerns, and make sure you’re not sitting with a hidden risk.
Need help with inspections, maintenance or monitoring? Contact us at (02) 9024 5312 or submit an enquiry via gses.com.au/contact
