Australia’s energy transition is accelerating at an unprecedented pace. With rooftop solar now a mainstream technology and battery storage rapidly following, 2025–2026 marks a turning point in how households and commercial enterprises consume, store, and manage electricity. This is not just a renewable energy trend; it is a structural shift in how Australians think about energy independence, cost control, and grid reliability

Australia’s Renewable Momentum in 2025–26

Australia added approximately 7 GW of renewable energy capacity in 2025, continuing its strong momentum after record growth in 2024. In the final quarter of 2025, renewables supplied nearly 50% of electricity across the National Electricity Market, with an annual average of 42.9% for the full year. Behind these numbers is a clear reality:

• Rooftop solar is widespread.
• Utility-scale renewables are expanding.
• Battery storage, especially residential, is scaling rapidly

Most notably, in the second half of 2025 alone, over 185,000 home batteries (4.27 GWh of storage) were installed under federal support programs. This signals a major shift from simply generating solar power to storing and optimising it.

Where Australia Stands on Solar & Batteries

According to industry reporting:

• More than 4 million Australian households and businesses have rooftop solar
• However, only about 320,000 systems currently include battery storage (roughly 1 in 12 solar users)

This gap highlights a massive growth opportunity. As feed-in tariffs decline in some cases, dropping from 15 cents per kWh to 3 cents per kWh, households are increasingly choosing to store their solar energy rather than export it to the grid. The economics are changing, and so is consumer behaviour.

Impact on Households

1. Greater Energy Independence With falling feed-in tariffs and rising retail electricity prices, households are prioritising self-consumption. A battery allows families to:

• Store excess daytime solar
• Use stored energy at night
• Reduce grid dependence
• Maintain power during outages (in many system

For many households, battery systems cost around $10,000, with estimated payback periods of roughly eight years. As incentives improve and technology prices fall, adoption is expected to accelerate further. 2. Protection from Tariff Volatility As energy pricing becomes more dynamic, batteries allow households to:

• Avoid peak pricing
• Participate in virtual power plant programs
• Optimise time-of-use tariffs

Instead of being passive energy consumers, Australians are becoming active energy managers. 3. Stronger Property Value Appeal Homes equipped with both solar and battery storage are increasingly seen as future-ready assets, particularly as Australia pushes toward higher renewable penetration targets.

Impact on Commercial Enterprises

While residential uptake is accelerating, commercial battery storage is also gaining traction. 1. Demand Charge Reduction Commercial and industrial businesses face high peak demand charges. Battery systems help:

• Smooth load curves
• Avoid peak penalties
• Lower operational electricity costs

For energy-intensive industries, this can mean substantial annual savings. 2. ESG & Sustainability Commitments Companies are under growing pressure to reduce their carbon footprints. On-site battery storage paired with solar enables:

• Lower Scope 2 emissions
• More predictable renewable sourcing
• Greater resilience in operations

With 23.2 GW of renewable and storage projects under construction or finalising contracts in 2025 (up 43% year-on-year), the commercial storage pipeline is expanding rapidly. 3. Grid Stability & Revenue Opportunities Larger commercial battery systems can:

• Provide grid services
• Participate in frequency control markets
• Generate additional revenue streams

Energy storage is no longer just a backup solution; it is becoming a financial asset.

Why Adoption Is Accelerating Now

Several structural drivers are aligning

• Falling solar feed-in tariffs
• Rising retail electricity prices
• Government-supported battery programs
• Rapid growth in renewable generation
• Increasing grid volatility and blackout concerns

Australia is targeting 82% renewable electricity by 2030, and storage will play a central role in achieving that goal Without batteries, high renewable penetration would strain grid stability. With batteries, Australia can smooth supply, store excess solar during the day, and dispatch it during peak demand periods

What This Means for the Future

Australia is entering the “storage decade.” Rooftop solar adoption is mature.
Battery adoption is scaling.
Commercial storage is industrialising. The next 3–5 years will likely determine how fast Australia transitions from a solar-heavy grid to a storage-enabled renewable system. For households, batteries mean independence and cost control.
For businesses, they mean resilience and competitive advantage.
For the grid, they mean stability in a renewable future.