Rooftop Solar Now Outpowers Coal as Home Battery Demand Hits Record

Australia's rooftop solar capacity has overtaken its entire fleet of coal-fired power stations. And the rush to add home batteries is accelerating, with installations hitting record levels in February and a government rebate change on 1 May driving a wave of urgency.

Solar capacity passes the coal fleet

Data from the Clean Energy Council shows rooftop solar capacity has reached 28.3 GW across 4.3 million homes and small businesses. That now exceeds the combined capacity of every coal-fired generator in the country at 22.5 GW. Rooftop solar contributed 14.2% of Australia's electricity in the second half of 2025, nearly double the 7.2% share it held in 2020.

The battery boom

The battery side of the equation is where the real momentum is building. The Clean Energy Regulator recorded 1.2 GWh of small-scale battery storage in February alone, a 24% jump on January and the biggest month on record. Every state showed growth, with Tasmania leading at 58%.

Behind the surge is the federal government's Cheaper Home Batteries Program, which launched in July 2025 and offers roughly a 30% discount on upfront battery costs. Before the program, Australia averaged around 200 battery installations a day. That number has jumped to 1,500.

In the second half of 2025 alone, 183,245 batteries were sold, more than the previous four years combined. For 2026, the Clean Energy Regulator is projecting between 350,000 and 520,000 installations, delivering up to 12 GWh of storage capacity.

The economics

A household with rooftop solar typically saves around $1,500 a year on power bills. Adding a battery can push that closer to $3,000, and some households are earning additional credits by feeding stored energy back into the grid through virtual power plant programs. The Clean Energy Council estimates around $106 per quarter in VPP savings.

The May 1 deadline

From 1 May, the government's rebate structure changes. The STC factor drops from 8.4 to 6.8, and the discount for batteries larger than 14 kWh falls more sharply. The government has tripled program funding from $2.3 billion to $7.2 billion over four years, signalling long-term commitment, but the per-unit rebate will be smaller going forward.

If you've been weighing up a battery, focus on these in the next three weeks:

• Get multiple quotes now. Installer availability is tightening as the deadline approaches. Three quotes from CEC-accredited installers is a reasonable benchmark.
• Check your state rebate. Several states and territories offer additional incentives that stack with the federal program.
• Right-size the battery. The average system installed in February was 10.34 kW. Match the battery to your household's evening consumption, not the maximum you can fit.
• Look into virtual power plants. Programs from major retailers let you earn credits by sharing stored energy during peak demand.
• If upfront cost is a barrier, explore financing. Personal loans and green finance products from several lenders are structured for solar and battery installations.

Update, September 2026: the rebate change described here took effect on 1 May 2026, so the small-scale technology certificate settings quoted are the ones that applied before that date.

This article is general information only and is not financial advice.