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.
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 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.
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.
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, here's what to focus on in the next three weeks:
This article is general information only and is not financial advice.