Australia's battery storage boom: record growth in 2025

Record-breaking growth

Australia's residential battery market recorded 2,766 new installations in July 2025, the highest monthly total on record. That is a 41% increase on June's 1,962 installations, and continues a growth run that began in late 2024.

The rise follows a 50% jump in installations through the second half of 2024, bringing the total number of residential battery systems across Australia to more than 45,000. In May 2025, battery sales outpaced solar panel sales for the first time.

What's driving the boom?

Several factors are driving battery adoption:

Rising electricity costs

Electricity prices continue to climb across Australia, with Western Australian households seeing tariff increases from July 1, 2025. Synergy's Home Plan tariff rose to 32.37 cents per kWh, while the $400 electricity credit was removed. These price pressures make battery storage increasingly attractive for managing energy costs.

Government incentives

The Commonwealth's Cheaper Home Batteries Program launched on June 30, 2025, providing up to 30% discount on battery systems. In Western Australia, the state's Residential Battery Scheme offers rebates of $130/kWh up to $1,300 for Synergy customers for eligible batteries up to 10kWh who join the Battery Rewards VPP program. Eligible households can also access interest-free loans up to $10,000 for SSL-approved products. Combined with federal STCs, Perth homeowners can reduce upfront costs by $4,500-$6,000.

Virtual power plant programs

VPP programs like Synergy's Battery Rewards are creating new revenue streams for battery owners. With payments of $0.70 per kWh exported during VPP events (typically 15-25 times per year), households with 10-13kWh batteries can earn ~$100-180 annually while supporting grid stability. The WA battery rebate now requires VPP participation, further accelerating adoption.

Energy independence

Beyond financial considerations, Australian households increasingly value energy security and independence. Batteries provide backup power during outages and reduce reliance on the grid, appealing to homeowners seeking greater control over their energy supply.

Market evolution

The battery market itself has matured. There are now more than 750 Clean Energy Council-approved battery products available, a 17% increase in six months. That wider choice, along with improving technology and falling costs, gives buyers more options at better prices.

Average battery capacity has also increased to 10.8 kWh in July 2025, up from 9.4 kWh in 2024. This trend toward larger systems reflects both falling per-kWh costs and growing household energy needs, particularly as electric vehicle adoption increases.

Perth's position in the boom

Western Australia is well-positioned to benefit from this national trend. The state's combination of federal and state rebates, mandatory VPP participation, and high electricity costs creates strong incentives for battery adoption. Perth's abundant sunshine and high air conditioning usage also make batteries particularly effective for managing peak demand charges.

The $2.4 billion invested in battery storage reflects a shift in how Australian households generate, store, and use energy. For Perth homeowners, federal and state rebates, better technology, and lower prices now point the same way.