Solar power has become a cornerstone of Australia’s energy transition, with thousands of households turning to renewable energy to lower their electricity bills and reduce their reliance on the grid. In New South Wales alone, over 188,000 solar panel installations highlight the widespread adoption of solar energy. Yet, the role of solar batteries—a critical component in making the most of solar power—is still evolving, with adoption rates varying significantly across states and territories.
This report examines the factors shaping solar battery uptake between January 2023 and November 2024, offering a detailed look at installation trends, government incentives, energy costs, and solar resources. By comparing adoption rates across the country, we identify where the greatest opportunities lie and explore the challenges that need to be addressed.
From the leading adoption rates in the Northern Territory to the untapped potential in New South Wales and Queensland, this report provides actionable insights for decision-makers and consumers alike. It’s a comprehensive guide to understanding what’s driving solar battery adoption—and what can be done to accelerate it.
Australia’s solar adoption scenario reveals an intriguing disparity between the number of solar panel installations and the uptake of solar batteries across states and territories between January 2023 and November 2024. While the integration of solar panels is widespread, battery adoption remains comparatively low in most regions.
In New South Wales (NSW), 188,225 solar panels have been installed compared to just 11,431 batteries, resulting in a 6.1% adoption rate for batteries. Similarly, Queensland (QLD), with 150,952 solar panels and 8,907 batteries, has a 5.9% adoption rate, the lowest among all states. These figures highlight immense untapped potential in two of the nation’s largest markets for solar energy.
By contrast, the Northern Territory (NT) leads the way, with a staggering 43% adoption rate for batteries, derived from 2,221 solar panels and 954 batteries. This high adoption rate, despite the NT’s smaller population and lower total installations, underscores the region’s strong inclination towards maximising energy independence.
In South Australia (SA), the battery adoption rate stands at 21.6%, with 45,950 solar panels and 9,908 batteries. This success can be attributed to targeted government rebate schemes and the state’s high electricity costs, making batteries an attractive solution for savings and energy stability.
Other states, such as Victoria (VIC) and Western Australia (WA), show moderate battery adoption rates of 9.5% and 9.3%, respectively, with VIC installing 11,569 batteries and WA adding 6,133 batteries. Tasmania (TAS), with its limited solar exposure, has a battery adoption rate of 6.4%, while the Australian Capital Territory (ACT) performs slightly better at 10.6%, with 1,313 batteries installed.
The period between January 2023 and November 2024 highlights a diverse landscape in the distribution of solar panels and batteries across Australia’s states and territories. On a per-capita basis, the Australian Capital Territory (ACT) and South Australia (SA) emerge as leaders in solar panel density, while the Northern Territory (NT) excels in battery adoption.
Highest Density of Solar Panels (per 1,000 residents):
Highest Density of Batteries (per 1,000 residents):
The ACT boasts the highest density of solar panels, with 26 panels per 1,000 residents, followed closely by SA, with 24.5 panels per 1,000 residents. This high solar panel density reflects these regions’ strong commitment to renewable energy. However, the NT has the lowest solar panel density at just 4.7 panels per 1,000 residents, suggesting room for growth in panel installations.
When it comes to solar battery density, the NT leads with 2.0 batteries per 1,000 residents, followed by Tasmania (TAS) at 1.1 batteries per 1,000 residents, and Western Australia (WA) at 2.1 batteries per 1,000 residents. These figures highlight the NT’s focus on battery storage as a complementary solution to solar panels.
From January 2023 to November 2024, the variation in energy costs across Australia presents a compelling case for the adoption of solar batteries. With rising electricity prices, feed-in tariff reductions, and consistently high solar exposure in many regions, the potential for battery ROI (Return on Investment) is significant.
Electricity Cost vs Battery ROI
Feed-in Tariffs (FiTs)
Quarterly Electricity Bills
The highest average price of power is seen in South Australia (SA), at a staggering 45.54c/kWh, followed by Tasmania (TAS) and New South Wales (NSW). Conversely, the Australian Capital Territory (ACT) enjoys the lowest average power price, at just 23.67c/kWh. These disparities create distinct market dynamics where battery ROI is potentially highest in SA, NSW, and TAS, given their high electricity costs and available sunlight hours.
FiTs, which determine the financial return for exporting solar energy to the grid, also influence battery adoption:
Quarterly electricity bills further reveal the financial impact of energy costs:
From January 2023 to November 2024, government incentives across Australia have played a pivotal role in shaping solar battery adoption trends. These incentives range from rebates to interest-free loans, significantly impacting the affordability and attractiveness of battery installations.
Rebates
Among the various schemes, the Australian Capital Territory (ACT) offers the most attractive incentive, with interest-free loans up to $15,000 for solar battery installations. This substantial financial support positions the ACT as a leader in promoting sustainable energy solutions.
Other states also offer compelling rebate opportunities:
In contrast, Western Australia (WA) offers no battery-specific schemes, which could explain its 9.3% battery adoption rate, lower than other states with robust financial support programs.
Australia’s abundant solar resources highlight the vast potential for solar battery adoption.
Solar Exposure (MJ/m²) and Sunlight Hours
Sunlight Hours
The Northern Territory (NT) and Western Australia (WA) boast the highest solar exposure, with levels reaching 24–27 MJ/m². This abundance of solar energy provides a significant opportunity for batteries to store surplus energy, ensuring high-efficiency utilisation throughout the day and night.
Conversely, Tasmania (TAS) experiences the lowest solar exposure, with just 12–15 MJ/m². In such regions, solar battery marketing should focus on maximising efficiency and saving energy during limited sunlight hours, addressing the unique challenges of shorter daylight periods.
Between January 2023 and November 2024, the dynamics of solar panel and battery adoption across Australian states and territories highlight unique opportunities for promoting solar batteries. Tailored strategies can address specific market conditions and consumer needs.
As Australia’s largest market with 188,225 solar panels installed, NSW presents immense potential for solar batteries. However, low battery adoption (6.1%) and high electricity bills ($345 quarterly) reveal untapped opportunities.
Emphasise the state’s government rebates of up to $2,400, highlight the high ROI of batteries due to expensive electricity, and promote the benefits of energy independence from the grid.
The ACT leads in solar density with 26 panels per 1,000 residents, yet battery adoption has room for growth. The interest-free loans of up to $15,000 offer a compelling incentive.
Position solar batteries as affordable and accessible, emphasising long-term savings and the simplicity of the loan scheme.
With 121,656 solar panels installed, VIC is a significant market. However, the state has the lowest feed-in tariff (4.9c/kWh), reducing the financial appeal of exporting energy.
Promote batteries as a solution to low FiT returns and rising energy costs, enabling homeowners to maximise their solar investments.
QLD benefits from high solar exposure (21–24 MJ/m²) and 9 sunlight hours/day, offering substantial energy generation potential. Despite this, rebate schemes have ended, which could slow adoption.
Highlight the long-term savings of batteries, focusing on their ability to store surplus energy from abundant sunlight even without incentives.
SA is a battery adoption leader, with a 21.6% adoption rate driven by the highest electricity prices (45.54c/kWh). Rebates of up to $2,000 for Adelaide residents further incentivise adoption.
Market batteries as essential for reducing reliance on the most expensive electricity in Australia, while underscoring the benefits of available rebates.
WA enjoys high solar exposure (24–27 MJ/m²) but lacks any battery-specific government incentives, potentially slowing adoption.
Highlight the cost savings from self-storage of solar energy, leveraging the state’s abundant sunlight as a key advantage.
With the lowest solar exposure (12–15 MJ/m²) and just 4.5 sunlight hours/day, TAS faces unique challenges. Yet, high quarterly bills ($372) make batteries a valuable efficiency tool.
Promote batteries as a way to maximise efficiency and reduce high electricity bills, even under challenging solar conditions.
The NT leads with a 43% battery adoption rate, showcasing its success in solar storage despite having just 2,221 solar panels installed.
Leverage the NT’s battery adoption leadership to demonstrate the ROI of solar storage, encouraging further installations as a model for other regions.
Australia’s progress in renewable energy is clear from the widespread adoption of solar panels. However, as this report highlights, the next step in this transition is ensuring that solar energy is stored and used effectively through the adoption of solar batteries. Addressing the barriers and opportunities outlined in this report can help households achieve greater energy savings and independence from the grid.
States like the Northern Territory and South Australia have shown how targeted government incentives and consumer awareness can drive significant battery uptake. Meanwhile, regions like New South Wales, Queensland, and Victoria have room for growth, with their large populations and high energy costs providing a strong case for investment in solar storage.
By combining supportive policies, greater consumer education, and technological advancements, solar batteries can play a central role in Australia’s energy future. Ensuring every home can fully harness the benefits of solar energy isn’t just good for the environment—it’s a smart financial move for households. The opportunity is here, and it’s time to take the next step.
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