Bunnings Launches Zero Upfront Solar and Battery Subscription Service
Hardware giant Bunnings is making a bold move into Australia’s rapidly growing rooftop solar and household battery sector, introducing a subscription service with no upfront costs and aiming to become the leading player in the market.
In collaboration with digital energy management firm Intellihub, Bunnings has launched a new service named Zelora, offering a variety of solar panel and battery options available for online access. The products will feature solar panels from Das Solar and batteries from SigEnergy, both of which have established a strong presence in the Australian market.
Government Initiatives and Market Timing
This launch coincides with the federal government’s recent rollout of a $2.3 billion battery rebate programme, which aims to install one million batteries in Australian homes by the end of the decade. Additionally, it follows Bunnings’ introduction of home EV charging equipment in its stores, a move that has been in consideration for several years.
The entry of such a prominent brand, supported by Australia’s largest conglomerate, is expected to disrupt the home energy market, which, despite its strength, has been characterised by low profit margins due to fierce competition.
Streamlining Renewable Energy for Households
Ryan Baker, Bunnings’ chief operating officer, highlighted the growing interest among Australian households in transitioning to renewable energy and seeking practical home solutions. “Many customers find home electrification complex and may not be aware of the benefits it can offer,” he explained. “Zelora has been developed to simplify the home battery and solar opportunity for customers in a cost-effective way.”
Alastair McKeown, Intellihub’s executive general manager in Australia, noted the appeal of Bunnings’ strong brand recognition. “They wanted to enter the home energy space, and we aimed to create something unique, so we co-designed a product that provides access to those who cannot afford the typical $15,000 to $20,000 for solar and batteries,” he stated. “That’s why we opted for a subscription-based model.”
Smart Technology and Customer Insights
Intellihub, which has been deploying smart meters across Australia at a rate of 30,000 to 40,000 per month, will utilise the same network of installers and electricians for this initiative. They will also provide the technology for the app that Bunnings will offer to its solar and battery customers. This app will provide insights into savings and alert users to any issues with their equipment, ensuring they are aware of their system’s performance.
The Zelora service will initially be trialled in Newcastle and greater Sydney before expanding nationwide.
Subscription Pricing and Government Support
The pricing structure for the subscription service is already available online, with plans starting at £126 per month for a 3.96 kW solar system and 7.8 kWh battery storage, rising to £174 per month for a 10.56 kW solar system with 15.6 kWh battery storage. For those interested in batteries alone, subscriptions begin at £80 per month for a 7.8 kWh system, going up to £126 per month for a 15.6 kWh system.
The subscription plans are designed to align with the Australian Government’s battery rebate scheme, with Bunnings managing the administrative aspects and applying the full rebate value to the subscription term, thereby reducing monthly fees without requiring a significant upfront investment.
Market Impact and Future Aspirations
McKeown expressed confidence in the potential impact of this offering on the market. “Given Bunnings’ size, we have dedicated considerable time and resources to this initiative, and we aim to make a significant mark in the market,” he said. “While the ultimate decision lies with the customers, we aspire to become the leading player in the near future.”
Earlier this year, Bunnings announced it had reached its goal of sourcing 100% renewable electricity across its Australian and New Zealand stores, as part of its commitment to achieve net zero Scope 1 and 2 emissions by 2030. Recently, Bunnings and its parent company Wesfarmers secured £100 million in low-cost financing from the Clean Energy Finance Corporation to expand solar installations at more stores and provide EV fast-charging stations for customers while they shop.
