Home Battery Market Declines for First Time Since Rebate Launch
Recent data has revealed that Australia’s thriving home battery market experienced its first decline in January 2026, following the launch of the Cheaper Home Batteries rebate in July 2025. Small-scale battery registrations dropped to 983 megawatt-hours, a significant decrease from nearly 1.2 gigawatt-hours recorded in December.
Warwick Johnston, the managing director of SunWiz, suggests that this 17 per cent drop may be attributed to installers enjoying a well-deserved break during the Summer holiday, rather than reflecting a decrease in consumer demand.
Impact of Federal Battery Rebate on Market Trends
A recent report by the Clean Energy Council highlighted the federal battery rebate’s role in boosting demand significantly, a trend expected to persist, especially with upcoming changes to the rebate set for May. However, data indicates that nearly all states saw market contractions exceeding 20 per cent in January, with Victoria being the sole exception, experiencing a minimal 3 per cent increase in registered home battery systems.
Battery Registrations and System Sizes
Overall, small-scale battery registrations stood at 983 megawatt-hours in January 2026, falling short of the 1 gigawatt-hour threshold, yet remaining robust, according to Johnston. Notably, the size of the battery systems that households are installing through the rebate has not decreased. Instead, the average battery system size has risen, reaching 35.64 kWh in January.
Rooftop Solar Installations Also Decline
In contrast, the rooftop solar sector took its typical January break, with only 244 megawatts of rooftop solar PV registered during the month, marking a 32 per cent decrease compared to December. Johnston noted that while this drop appears steep, it follows a strong finish to 2025, which included four months of growth, and mirrors figures from January 2025.
Commercial Solar Installations Taking a Hit
The commercial solar installation market appears to be facing a hiatus as well, particularly in the 50–70 kilowatt segment, which reported the most significant decline at a staggering 57 per cent. Meanwhile, residential installations noted a decrease of 24 per cent month-on-month.
