Households across Australia are diving into solar and battery systems like never before, fuelled by hefty government subsidies and a real chance to slash power bills. But with that boom comes a warning from the ACCC: watch out for dodgy deals.
As part of its ongoing deep dive into electricity markets, the Australian Competition and Consumer Commission has flagged increasing consumer interest in solar and battery setups—especially with the rise of new rebates under the Cheaper Home Batteries Program. The savings are real, but so are the risks, and the regulator says both suppliers and retailers are now firmly in the spotlight.
“As more households switch to solar and battery plans, it’s important the deals are fair, accurate and easy to understand,” said ACCC Commissioner Anna Brakey. “We’re actively monitoring complaints and won’t hesitate to step in if suppliers are doing the wrong thing.”
Solar + Batteries = Big Bill Cuts
The ACCC’s latest Electricity Inquiry Report shows the growing payoff for households investing in renewable energy solutions. If you're still relying purely on grid power, you're likely paying more than necessary.
Here’s how the numbers stack up (based on 2023–2024 data from the National Electricity Market):
- Grid-only users: $1,565 a year on average
- Households with rooftop solar: $1,279 (18% less)
- Solar + home battery users: $936 (40% less)
- Connected to a virtual power plant: $580 (a massive 63% reduction)
That last one—virtual power plants—refers to networks that link solar and battery systems across homes to share energy and smooth out supply and demand. It’s a fast-growing part of the renewable energy scene, and those who are connected are saving nearly a thousand bucks a year on average.
“Home solar and batteries are a compelling option for those who can afford the upfront cost,” Brakey added.
But Don’t Rush It
While the savings look appealing, the ACCC says this isn’t a ‘buy now, think later’ kind of situation. Choosing the right system size and understanding your long-term returns is crucial.
The market for these systems can be complex, and consumers are urged to take their time, get multiple quotes, and ask for personalised advice.
To help with that, the government has put together a detailed guide for buyers: Solar Consumer Guide
The ACCC is also pushing for stronger consumer protections in this evolving market—especially for things like virtual power plant programs and other new energy services.
Rebates Bring Broader Relief
Beyond individual system savings, government rebates are also putting downward pressure on general electricity bills.
Between Q3 2023 and Q3 2024, the median quarterly household bill dropped 21% thanks to these rebates. Without them, prices would’ve risen by about 4%.
The biggest win? South East Queensland, where rebates were so significant they actually exceeded many households’ average bills.
What’s Next?
This latest update marks the 13th instalment of the ACCC’s monitoring of Australia’s electricity market—an inquiry originally launched in 2018 and now extended into 2026. The next report is expected in December 2025.
Want to read the full report? Check it out here: Electricity Inquiry Report – July 2025
Government Subsidies
Below is a list of government subsidies I could find on the web today:
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Small-scale Renewable Energy Scheme (SRES) for Solar Photovoltaic (PV) Systems
Reduces the upfront cost of rooftop solar systems for households and businesses through Small-scale Technology Certificates (STCs), which are based on the system's estimated electricity generation until 2030. Read more
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Cheaper Home Batteries Program (Federal)
Offers an upfront discount of approximately 30% on eligible residential battery installations for households, small businesses, and community facilities, delivered through an expansion of the SRES. Read more
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Household Energy Upgrades Fund (HEUF)
A $1 billion federal initiative providing discounted finance products through lenders to help households undertake energy efficiency and renewable energy upgrades, including solar PV systems and modern appliances. Read more
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Energy Bill Relief Fund (2025 Extension)
Provides up to $150 in energy bill rebates to Australian households and eligible small businesses with electricity bills, automatically applied in quarterly instalments. Read more
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First Nations Clean Energy Program
A targeted federal initiative inviting Expressions of Interest for pilot projects and the development of a Clean Energy Toolkit to support First Nations peoples in progressing clean energy projects. Read more
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NSW Virtual Power Plant (VPP) Incentive
From July 1, 2025, this incentive offers up to $1,500 for households and small businesses that install a solar battery and connect it to a Virtual Power Plant, designed to stack with the federal battery incentive. Read more
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NSW Interest-Free Loans for Solar Systems
Offers interest-free loans of up to $14,000 for eligible low-income households to help cover the upfront cost of solar panels or battery systems. Read more
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NSW Energy Savings Scheme (ESS)
NSW's largest energy-efficiency program, providing financial incentives for households and businesses to install energy-efficient equipment and appliances, with changes expected from August 2025. Read more
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Victorian Solar Panel (PV) Rebate
Provides financial assistance of up to $1,400 and an option for an equivalent interest-free loan for eligible Victorian households and rental providers installing solar PV systems. Read more
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Victorian Solar for Business Program
Victorian small businesses and community facilities are eligible for the federal Cheaper Home Batteries Program, which offers an approximate 30% discount on the upfront cost of installing eligible small-scale battery systems. Read more
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QLD Battery Booster Program
Provides financial support of up to $3,000 (or $4,000 for lower incomes) for Queensland households investing in battery storage, designed to be combined with the federal Cheaper Home Batteries Program. Read more
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QLD Climate Smart Energy Savers Program
Helps Queenslanders manage energy use and reduce carbon emissions by upgrading to more energy-efficient appliances and systems, offering rebates of up to $1,000. Read more
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AGL Community Power (South Australia)
A program launched by AGL Energy (following its acquisition of Tesla's SA VPP) that provides significantly discounted energy prices to social and community housing residents through a network of residential solar and battery systems. Read more
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WA Residential Battery Scheme
Launching July 1, 2025, this scheme offers tiered state rebates (up to $1,300 for Synergy customers, $3,800 for Horizon Power customers) for residential batteries, complementing the federal program, with mandatory Virtual Power Plant (VPP) participation for the state rebate. Read more
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WA Interest-Free Loans
Offers interest-free loans of up to $10,000 with a 10-year repayment period for middle to low-income households, available for batteries, solar panels, and inverters, but must be installed with a battery. Read more
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Northern Territory Home and Business Battery Scheme
A generous grant program providing $400 per kilowatt-hour (kWh) of usable battery capacity, up to a maximum of $12,000, for homeowners, NT-based businesses, and not-for-profit organizations installing eligible battery systems. Read more
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Northern Territory New Feed-in Tariff
From July 1, 2025, introduces a new feed-in tariff of 18.66 cents per kWh for electricity exported to the grid specifically between 3 pm and 9 pm. Read more
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Tasmania Solar and Battery Rebates
For Tasmania, the primary direct incentive for solar battery installations in 2025 is the federal Cheaper Home Batteries Program. No specific state-level installation rebate beyond this federal program is detailed in the provided information. Read more
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Australian Capital Territory (ACT) Solar and Battery Rebates
Similar to Tasmania, the Australian Capital Territory primarily benefits from the new federal Cheaper Home Batteries Program for battery installations in 2025. No specific territory-level installation rebate beyond this federal program is detailed in the provided information. Read more
Article adapted from: accc.gov.au - Electricity industry on notice as more households invest in subsidised batteries and solar