Australia reached a tipping point in home storage in 2025: 221,000 new systems, a fivefold increase in installed capacity and almost twice as large batteries per home. The trigger is the government’s Cheaper Home Batteries Program, which not only drives demand but also changes which products customers choose.
The Australian energy storage industry grew to 221,000 home storage systems installed in 2025. This corresponds to a tripling compared to the previous year. With a newly installed total capacity of 4,790 megawatt hours, the technology has reached the mass market. Around 4.6 percent of Australian homes now have their own battery storage.
The Australian consulting company SunWiz finds in its research that the installed base in Australia is developing rapidly. The analysis portal has acted as a reference source for manufacturers, retailers, investors and policy makers since 2009. The report’s data is based on a detailed analysis of installation numbers per state and system size. This shows that government subsidies not only increase the quantity, but also influence the type of products purchased.
Home storage in Australia: funding doubles battery size
The CHBP funding program primarily promoted the acquisition of larger storage units. The average capacity of an installed home storage system climbed to 21.6 kilowatt hours in 2025. In the previous year this value was 11.8 kilowatt hours. Households primarily used the funding to maximize storage capacity rather than simply reduce overall installation expenditure.
The analysis shows that the costs per kilowatt hour have remained relatively stable compared to previous quarters. At the same time, end customers’ spending on individual systems barely increased, while the storage density of the systems increased. Batteries in the performance class between 20 and 25 kilowatt hours made up a significant part of the market in the reporting period.
This trend affects both retrofits and new installations in connection with photovoltaic systems. SunWiz writes: “The Cheaper Home Batteries program has not only boosted sales – it has fundamentally changed what Australians buy.”
Not just home storage: Why Australia’s companies are following suit now
Working with energy company Orkestra, SunWiz analyzed commercial sales drivers and market segmentation. In addition to the private sector, companies also showed growing interest in storage solutions to optimize energy costs. The research includes leaderboards of the top 20 retailers at the national and state levels.
A significant part deals with the payback periods in the various Australian states. The study differentiates precisely between retrofitting existing systems (ESS-only) and combined new installations (PV+ESS) in order to realistically reflect the economic viability.
The financial attractiveness depends heavily on regional funding programs and local electricity price structures. Manufacturers received a precise insight into the competitive situation through the monthly market share trends.
How the market could develop by 2030
Technological advances, optimized warranty conditions and further developments in inverters are expected to support market growth until 2030. Integration into intelligent power grids and participation in virtual power plants should also further increase the attractiveness of the systems.
The government programs remained a decisive factor for the long-term planning of investments. Industry giants such as SolarEdge and Solargain rely heavily on this data base for their strategies. Ultimately, it can be said that the financial support has lowered the inhibition threshold for end consumers. Australia is thus consolidating its position in the global comparison of energy storage markets.
Australia’s home storage boom shows how strongly targeted funding programs can guide household purchasing decisions – not just in terms of quantity, but also in terms of system size. The home storage market is also growing in Germany, but there is currently no comparable central funding program at the federal level.
The Australian figures provide a strong argument for everyone who calls for uniform storage funding in this country too. Anyone who subsidizes capacity instead of just purchasing it will get larger storage units on the grid and thus more benefits for the energy transition.
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