Source: Australian Ministers for Regional Development
The ACCC is warning battery and solar suppliers and electricity retailers their sales practices must meet scrutiny as demand for home batteries and solar systems jumps due to subsidy schemes and the large savings that households on solar and battery plans are experiencing.
The ACCC’s latest Electricity Inquiry Report examines emerging markets for new electricity services, particularly those supported by solar and battery systems, and compares the electricity bills of solar and battery customers with the bills of regular customers who draw only from the grid.
The report found that the Australian Government’s Cheaper Home Batteries Program is making batteries more affordable and providing more households an opportunity to lower their electricity bills. To ensure that consumers receive the full benefit of the Program, the ACCC is warning that retailers and installers must act in the consumer’s interest.
“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 said.
“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 said.
The report emphasises the complexity of investing in a solar and home battery system and the need for consumers to understand whether the benefits they receive outweigh the costs, particularly when choosing system sizes.
The report supports calls for additional consumer protections to safeguard consumers purchasing systems and signing up to new energy services like virtual power plants. It also supports calls for an overarching consumer duty that requires energy companies to act in the interests of consumers.
“We believe additional consumer protections are needed as more Australians participate in markets for new and emerging energy services,” Ms Brakey said.
“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 customers see biggest bill savings
Australian households with rooftop solar and a home battery have electricity bills that are on average 40 per cent less than customers whose electricity comes entirely from the grid (regular users), the report found.
The report presents new analysis of the 2023 to 2024 billing outcomes of customers that have adopted different renewable energy solutions and compares them to regular users.
The median annual residential electricity bill for regular users, without rebates, in the National Electricity Market in 2023 to 2024 was $1,565. The median household with rooftop solar paid about 18 per cent less ($1,279 per year), while a household with solar and a home battery paid about 40 per cent less ($936).
Residential customers who are connected to a virtual power plant, which is an energy sharing network of solar and batteries, paid about 63 per cent less ($580) than the median household.
“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 said.
Median bills paid by regular, solar, battery and virtual power plant customers, by region, quarter 3 of 2023 to quarter 3 of 2024.
Government rebates bring down power bills by 21 per cent
The report also shows that government rebates resulted in the median quarterly household power bill dropping by 21 per cent between the third quarter 2023 and third quarter 2024.
Without rebates, the median quarterly bill would have instead 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 said.
Background
The National Electricity Market is comprised of South East Queensland, New South Wales (including the ACT), Victoria, Tasmania and South Australia. Western Australia and the Northern Territory are not connected to the National Electricity Market.
To inform this report, we collected billing data from 8 retailers, which cover 97 per cent of residential customers and 90 per cent of small business customers in New South Wales, Victoria, South Australia and South East Queensland. We obtained additional data for customers on virtual power plant services, electric vehicle tariffs and behavioural demand response plans.
In 2018, the Australian Government directed the ACCC to hold an inquiry into the prices, profits and margins in relation to the supply of electricity in the National Electricity Market (which covers NSW, Victoria, South East Queensland and South Australia). On 23 March 2025, the Australian Government announced a 12-month extension to the inquiry.
This is the 13th time the ACCC has reported as part of this inquiry.
The report is available on the ACCC’s website at Electricity market monitoring 2018-2025.
The ACCC is required to report at least every 6 months. The next report is scheduled for December 2025.
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