NSW Fair Trading said the recall includes 13 specific LG battery models which are at risk of overheating, catching fire and causing damage to property, serious injury or death.
The defective batteries may be installed in LG-branded solar systems, including RESU, or in non-LG systems including SolaX Power Station, Opal Storage and Eguana Evolve.
People with a product listed for recall should immediately switch the battery off and call LG Energy Solution on 1300 677 273 or email productau@lgensol.com.
The company will organise a remote or on-site visit by a technician to shut down and replace the batteries at no charge.
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Consumers may be able to alternatively request a refund for the product.
LG said it will compensate customers if their power bill increases during the time their battery is shut down and a new model is installed.
“If you have a solar storage system installed, you may have one of these potentially dangerous products and not know it.
“Please take a minute to inspect the batteries as soon as possible. If you are affected by the recall, don’t panic, turn off the battery and contact LG straight away.”