Melbourne, Victoria — 31 August 2026 — Australia’s growing uptake of rooftop solar is being accompanied by increased interest in household battery storage, supported by the Australian Government’s Cheaper Home Batteries Program and changes designed to encourage appropriately sized battery systems.

The Cheaper Home Batteries Program, introduced on 1 July 2025, provides around a 30% discount on eligible small-scale battery systems connected to new or existing rooftop solar installations. The program is delivered through the Small-scale Renewable Energy Scheme and is available to eligible households and small businesses across Australia.

The policy is designed to make it easier for households to store electricity generated during daylight hours and use that energy later when solar panels are producing less electricity. Solar panels generate electricity when sunlight is available, while batteries provide a means of storing excess generation for later household use.

The distinction between the two technologies means that households do not necessarily need to install both at the same time. Solar panels can generate electricity for immediate household consumption and export excess electricity to the grid. A battery can store some of that excess electricity for use later, including during evening periods when solar generation has declined.

The suitability of battery storage depends on individual electricity consumption, solar generation, tariff arrangements, battery capacity and household energy requirements. Government guidance notes that a battery may not provide sufficient financial benefits for every household and recommends considering the costs and benefits before installation.

The Australian Government announced in December 2025 that the estimated funding for the Cheaper Home Batteries Program would increase from its original $2.3 billion to $7.2 billion over four years. The government said the expanded program was expected to support more than two million Australians to install batteries by 2030 and add approximately 40 gigawatt-hours of storage capacity.

The government also announced adjustments taking effect from 1 May 2026 to encourage households to select batteries that are appropriately sized for their energy requirements and to maintain the long-term sustainability of the program.

Battery storage can provide several functions within a household energy system. In addition to storing excess solar generation, batteries can reduce reliance on electricity purchased from the grid and increase the proportion of solar electricity consumed within a property. Some systems can also provide backup electricity during outages when they are specifically configured for that purpose.

For households considering solar panels, battery storage or both technologies, system sizing is an important consideration. Government guidance recommends assessing electricity consumption, solar generation, evening usage, battery capacity, future energy requirements and the technical characteristics of the proposed installation.

The current policy environment means solar panels and batteries are increasingly being considered as complementary technologies rather than direct alternatives. Panels generate electricity, while batteries store energy for later use, with the appropriate combination depending on the individual household's energy profile and circumstances.

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