The Australian Competition and Consumer Commission has warned battery and solar suppliers and electricity retailers that their sales practices will face close scrutiny as demand for home batteries and solar systems surges under government subsidies and large household bill savings.
The ACCC’s latest Electricity Inquiry Report examines emerging markets for new electricity services and compares the electricity bills of solar and battery customers with those of households drawing only from the grid. The report found the Australian Government’s Cheaper Home Batteries Program is making batteries more affordable and giving more households an opportunity to lower their electricity bills.
“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.
New analysis of 2023–24 billing data shows households with rooftop solar and a home battery had median annual bills about 40 per cent lower than customers who rely entirely on the grid. The median annual residential bill for regular users in the National Electricity Market was $1,565; the median household with rooftop solar paid about 18 per cent less ($1,279), while a household with solar and a home battery paid about 40 per cent less ($936). Residential customers connected to a virtual power plant — an energy‑sharing network of solar and batteries — paid about 63 per cent less ($580).
“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.
The report also found government rebates reduced the median quarterly household power bill by 21 per cent between the third quarter of 2023 and the third quarter of 2024; without rebates the median quarterly bill would have 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.
The ACCC said the increasing uptake of solar and batteries makes it important consumers understand whether the benefits outweigh the costs, especially when selecting system sizes. “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.” Ms Brakey added: “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.”
The inquiry supports calls for extra consumer protections for people buying systems and signing up to services such as virtual power plants, and for an overarching consumer duty requiring 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.
The ACCC’s findings draw on billing data from eight retailers covering about 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, along with additional data on virtual power plant services and other emerging tariffs. The National Electricity Market covers those regions; Western Australia and the Northern Territory are not connected to it.
The ACCC was directed in 2018 to hold an inquiry into electricity prices, profits and margins in the National Electricity Market. This is the 13th report produced under that inquiry, which the government extended by 12 months on 23 March 2025. The ACCC is required to report at least every six months, with the next report due in December 2025.
The commission advised consumers to read the Australian Government’s Solar Consumer Guide, compare quotes from multiple providers, and ask sellers for personalised information about appropriate system size and projected savings.
