Electricity trade on discover as extra households spend money on subsidised batteries and photo voltaic

The ACCC is warning battery and photo voltaic suppliers and electrical energy retailers their gross sales practices should meet scrutiny as demand for residence batteries and photo voltaic techniques jumps as a result of subsidy schemes and the big financial savings that households on photo voltaic and battery plans are experiencing.

The ACCC’s newest Electricity Inquiry Report examines rising markets for brand spanking new electrical energy companies, significantly these supported by photo voltaic and battery techniques, and compares the electrical energy payments of photo voltaic and battery clients with the payments of standard clients who draw solely from the grid.

The report discovered that the Australian Government’s Cheaper Home Batteries Program is making batteries extra reasonably priced and offering extra households a chance to decrease their electrical energy payments. To be certain that shoppers obtain the complete good thing about the Program, the ACCC is warning that retailers and installers should act within the client’s curiosity.

“As more Australian households switch to battery and solar plans, it’s important that the deals on offer are fair, accurate and easy to understand,” ACCC Commissioner Anna Brakey mentioned.

“The ACCC will be watching carefully and actively monitoring consumer complaints. We will hold solar and battery installers, retailers and suppliers accountable to ensure they comply with Australia’s consumer laws.”

“Consumers looking to take advantage of the new subsidies for solar home batteries to lower their energy bills, should take their time and not feel pressured to rush in straight away,” Ms Brakey mentioned.

The report emphasises the complexity of investing in a photo voltaic and residential battery system and the necessity for shoppers to grasp whether or not the advantages they obtain outweigh the prices, significantly when selecting system sizes.

The report helps calls for extra client protections to safeguard shoppers buying techniques and signing as much as new power companies like digital energy vegetation. It additionally helps requires an overarching client obligation that requires power firms to behave within the pursuits of shoppers.

“We believe additional consumer protections are needed as more Australians participate in markets for new and emerging energy services,” Ms Brakey mentioned.

“We advise consumers to read the Australian Government’s Solar Consumer Guide, compare a number of quotes from different providers, and ask for personalised information from solar and battery sellers about the appropriate size for their system and the projected cost savings.”

Solar and battery clients see greatest invoice financial savings

Australian households with rooftop photo voltaic and a house battery have electrical energy payments which are on common 40 per cent lower than clients whose electrical energy comes completely from the grid (common customers), the report discovered.

The report presents new evaluation of the 2023 to 2024 billing outcomes of shoppers which have adopted completely different renewable power options and compares them to common customers.

The median annual residential electrical energy invoice for normal customers, with out rebates, within the National Electricity Market in 2023 to 2024 was $1,565. The median family with rooftop photo voltaic paid about 18 per cent much less ($1,279 per 12 months), whereas a family with photo voltaic and a house battery paid about 40 per cent much less ($936).

Residential clients who’re related to a digital energy plant, which is an power sharing community of photo voltaic and batteries, paid about 63 per cent much less ($580) than the median family.

“Home solar and batteries continue to be a compelling option for Australians who can afford the upfront cost, with those who are connected to a virtual power plant saving up to almost $1000 off their annual bill,” ACCC Commissioner Anna Brakey mentioned.

Government rebates convey down energy payments by 21 per cent

The report additionally exhibits that authorities rebates resulted within the median quarterly family energy invoice dropping by 21 per cent between the third quarter 2023 and third quarter 2024.

Without rebates, the median quarterly invoice would have as an alternative risen by 4 per cent.

“The sharpest decline across the National Electricity Market was in South East Queensland, where rebates exceeded the median bill amount,” Ms Brakey mentioned.

Background

The National Electricity Market is comprised of South East Queensland, New South Wales (together with the ACT), Victoria, Tasmania and South Australia. Western Australia and the Northern Territory are usually not related to the National Electricity Market.

To inform this report, we collected billing information from 8 retailers, which cowl 97 per cent of residential clients and 90 per cent of small enterprise clients in New South Wales, Victoria, South Australia and South East Queensland. We obtained further information for patrons on digital energy plant companies, electrical automobile tariffs and behavioural demand response plans.

In 2018, the Australian Government directed the ACCC to maintain an inquiry into the costs, income and margins in relation to the availability of electrical energy within the National Electricity Market (which covers NSW, Victoria, South East Queensland and South Australia). On 23 March 2025, the Australian Government introduced a 12-month extension to the inquiry.

This is the thirteenth time the ACCC has reported as a part of this inquiry.

The report is on the market on the ACCC’s web site at Electricity market monitoring 2018-2025.

The ACCC is required to report at the least each 6 months. The subsequent report is scheduled for December 2025.