Home Batteries Surge In Popularity
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Home Battery Installations Surge in Australia as Rebates Drive Record Growth

Australia’s home battery market is experiencing rapid growth, with more than 1.2 GWh of behind-the-meter energy storage capacity installed in December 2025, driven by strong demand for the federal government’s Cheaper Home Batteries Program.

According to new data from energy market analyst SunWiz, 1,203 MWh of home and small business battery capacity was registered through the Small-scale Renewable Energy Scheme (SRES) in December, marking the second consecutive month that installations exceeded the 1 GWh milestone.

Home battery uptake remains strong despite slower monthly growth

While monthly growth eased to 19% in December, down from 42% in November 2025, the overall trend for home battery installations in Australia remains firmly upward. SunWiz Managing Director Warwick Johnston said demand has continued to rise steadily since batteries became eligible for Small-scale Technology Certificates (STCs).

Since the introduction of STCs for batteries, installation volumes have increased consistently on a month-on-month basis, with no signs of the market plateauing.

Australians shifting to larger home battery systems

Not only are more batteries being installed, but average battery system sizes are increasing. The national average battery capacity reached 32.86 kWh in December, up from 32.74 kWh in November, highlighting a clear shift toward larger energy storage systems.

The trend reflects households and businesses moving quickly to take advantage of higher subsidies available for larger batteries while rebate settings remain favourable.

Cheaper Home Batteries Program delivers 4.27 GWh in six months

Between 1 July and 31 December 2025, Australians installed 184,672 home batteries, delivering a combined 4.27 GWh of energy storage capacity under the Cheaper Home Batteries Program.

The rapid uptake prompted the federal government to revise rebate settings in December, amid concerns the $7.2 billion program could be exhausted well before its planned 2030 end date.

Home battery rebates to taper from May 2026

Under the scheme, eligible households and small businesses can receive up to a 30% discount on a home battery installed alongside new or existing rooftop solar. Rebates initially applied to systems ranging from 5 kWh to 100 kWh, with incentives covering the first 50 kWh.

From 1 May 2026:

  • Batteries up to 14 kWh will retain the full 30% rebate

  • Systems between 14–28 kWh will receive a reduced rebate

  • Rebates will taper further for systems above 28 kWh

Large battery systems dominate market growth

Despite upcoming changes, large battery systems continue to lead the market. Systems in the 30–100 kWh range recorded the strongest growth in December, with the 40–50 kWh segment rising 61% month on month. The 50–100 kWh segment more than doubled compared with November, albeit from a smaller base.

In contrast, smaller residential battery systems (under 15 kWh) recorded the largest decline in installations.

Home battery growth recorded across all states

Every Australian state and territory recorded growth in December:

  • Western Australia: 4% growth

  • Northern Territory: 62% growth

  • Other states posted double-digit growth between 14% and 24%

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