Home batteries are booming in Australia, but who's missing out?
More than 380,000 Australian households have installed a home battery in the past year. Here’s what’s driving the surge and who isn’t benefiting yet.
The Cheaper Home Batteries Program
In July 2025, the Federal government introduced the Cheaper Home Batteries Program, a rebate that reduced the upfront cost of installing a home battery. The rebate offers a discount of around 30% on the upfront cost of eligible battery systems, delivered through the same Small-scale Renewable Energy Scheme that has driven Australia's rooftop solar uptake for years.
By May 2026, more than 380,000 systems had been installed nationally, adding over 10.7 gigawatt hours of storage capacity. The federal government has since lifted its funding commitment from an initial $2.3 billion to $7.2 billion, now expecting more than 2 million Australian batteries installed by 2030.
From 1 May 2026, the rebate structure changed to favour smaller, right-sized batteries. Systems up to 14kWh still receive close to the full discount, but every kilowatt-hour above that gets a smaller discount. In plain terms: most households only need a modest battery to cover their overnight energy use, so the government wants the rebate to help as many households as possible get a right-sized system, rather than subsidising oversized batteries that cost more, but add little additional benefit to the household or the grid.
How home batteries work
A home battery stores cheap solar power generated during the day so it can be used at night, instead of exporting it to the grid at low feed-in rates and buying it back later at a higher price. Batteries can also provide backup power during outages, and many are capable of joining a Virtual Power Plant (VPP), where batteries across many homes work together, trading stored energy back to the grid during periods of high demand. Modelling from the Australian Energy Market Commission suggests that even modest increases in battery uptake could reduce bills by around 3% annually across the whole energy system, by easing the pressure of expensive evening peaks.
The equity gap
Analysis of installation data shows that regional and outer suburban postcodes account for roughly three-quarters of battery uptake to date. This tends to be with bigger homes, existing solar systems already installed, and enough space for a battery unit. Renters, apartment dwellers, and anyone without their own roof or an existing solar system are largely missing out of this wave of savings, similar to the pattern seen with rooftop solar over the past decade.
Community battery and shared energy models are one way this gap is being addressed, allowing people to access the benefits of storage, lower bills, more grid stability, a cleaner energy system, without needing to own a roof or a battery outright.
What to check if you're considering a battery
If you do have the option to install a battery, check that it's on the Clean Energy Council's approved products list, use an accredited installer, and make sure the system is sized appropriately for your solar setup rather than simply going as big as possible.
Curious about how community batteries could work for your building or street? Get in touch at info@pingala.org.au.
Sources: Department of Climate Change, Energy, the Environment and Water, "Cheaper Home Batteries Program" (dcceew.gov.au); Minister for Climate Change and Energy, joint media release, 30 April 2026 (minister.dcceew.gov.au); Australian Energy Council, "Australia's Home Battery Surge: A Question of Equity" (energycouncil.com.au); Climate Council, "Plugging in: How to charge your home with a battery" (climatecouncil.org.au).
