Australia’s Home Battery Market Experiences Healthy Reset Amid Rooftop Solar Growth
New statistics indicate that Australia’s home battery sector is experiencing a significant “healthy reset,” with monthly installations dropping by nearly 30 per cent. The average size of the systems being installed has now adjusted to between 20-30 kilowatt-hours (kWh), a considerable reduction from the previous average of approximately 50 kWh.
According to solar industry analyst SunWiz, a total of 1.07 gigawatt-hours (GWh) of home batteries were registered in June, representing a decrease of 28.3 per cent compared to the total recorded in May. SunWiz’s managing director, Warwick Johnston, noted that while this slowdown marks market growth dipping below the 12-month trendline, it still remains significantly higher than figures from early 2026—around three times higher than the levels observed just a year ago, when the federal rebate programme had only just begun.
Market Adjustments Following Rebate Changes
Johnston commented that this current “reset” follows adjustments made on 1st May regarding the federal Labour government’s Cheaper Home Batteries rebate. These changes limited access to full discounts for battery systems with a usable capacity exceeding 14 kWh. Under the new scheme, a 60 per cent discount is available for capacities between 14 kWh and 28 kWh, while only a 15 per cent discount applies for those between 28 kWh and 50 kWh.
The primary goal of these modifications was to temper the previously burgeoning market and prevent government subsidies from being disproportionately claimed by batteries with capacities exceeding 50 kWh. Johnston stated that the market is now “right-sizing” itself, moving away from over-sized systems and focusing more on mid-scale 20-30 kWh storage solutions.
Shifting Trends in Battery System Installations
The data reveals a stark decrease in the oversized 40-50 kWh sector, which nearly halved (down 46% month-on-month), while the 10-20 kWh category also saw a decline (down 42%). Conversely, the 20-30 kWh range witnessed an impressive surge of 114%, confirming its position as the new focal point of the market, even though larger 40-50 kWh systems continue to dominate in sheer volume.
Even though the charts show growth for the 20-30 kWh segment, uncertainties regarding installation dates complicate the conversion of small-scale technology certificates into kWh data. This indicates that many systems now being reported may have been installed before the 1st May changes.
Johnston conveyed a cautious outlook, stating the market has cooled significantly since its previous peak and is likely to decline even further.
Rooftop Solar Trends Remain Strong Despite Battery Slowdown
On a brighter note, rooftop solar installations are enjoying a record high for the first half of the year, currently running approximately 41 per cent ahead of the same period in 2025. Following a boost from the battery rebate earlier this year, June saw the registration of 322 megawatts (MW) of new rooftop solar capacity, a 4 per cent decrease from May and 26 per cent down from April’s peak of 435 MW.
The increase in battery systems has had a notable impact on rooftop solar numbers; “June 2026 far surpasses the same month from 2023-2025, marking the strongest June recorded, albeit a decline from April’s surge,” Johnston explained.
Smaller systems in the 0-15 kW range saw a slight uptick (+2% month-on-month), while larger categories faced declines, particularly the 20-30 kW segment (-31%) and the 15-20 kW band (-16%). The 10-15 kW category continues to be central to the market, representing about 37% of overall installations at roughly 118 MW.
Johnston highlighted that much of the national decline can be attributed to the 15-100 kW segment, which significantly contributed to April’s surge. Furthermore, the average system size across the nation has decreased to a 12-month low of 10.01 kW, down from May’s 10.47 kW and April’s high of 11.32 kW.
