Australia's home battery installations triple to 221,000 in 2025 as storage goes mainstream

The number of solar battery systems installed across Australian homes tripled in 2025, pushing the country's household battery penetration to 4.6 per cent, according to the latest annual Australian Battery Report from solar analytics firm SunWiz.

Australia installed 221,000 residential solar battery systems in 2025, up from the 72,500 systems added in 2024.

The report, published today, found the surge added a record 4,790 MWh of new residential storage capacity, a fivefold increase on the prior year, which was enough to power 1.2 million homes during the four-hour evening peak demand window.

The average battery size grew from 11.8 kWh to 21.6 kWh as homeowners increasingly opted for larger systems.

NSW led all states with more than 76,000 installations, accounting for over a third of the national total.

Queensland overtook Victoria for the first time, capturing 19 per cent of installations compared with Victoria's 18 per cent, a shift SunWiz attributes to changes in Victoria's subsidy program settings.

Warwick Johnston, managing director at SunWiz, says 2025 wasn’t so much a growth year for Australian batteries, "it was the year they went mainstream".

“It’s telling that while installations have increased threefold, capacity has increased fivefold – Australian homes are benefiting from more modern and larger battery systems that are supporting the country’s emissions goals and their own back pockets at a time when energy costs have become such a major national concern,” he says.

Johnston points to the federal government's Cheaper Home Batteries Program (CHBP) which has encouraged the installation of larger battery systems.

The brand landscape shifted markedly during the year with China-based Sigenergy, which entered the Australian market in 2024, claiming the leading position in battery brand market share.

Fox ESS captured 10 per cent of the market on a per-kilowatt-hour basis, while established players Tesla and BYD continued to lose ground.

At the utility scale, Australia has cemented its position as the third-largest battery energy storage system market globally, with more than 25 GWh of grid-scale storage under construction.

SunWiz's report covers both residential and grid-scale segments and draws on installation data, brand registrations and capacity metrics across all Australian states and territories.

Looking ahead, SunWiz forecasts continued momentum from the CHBP combined with the Iran conflict causing anxiety over energy prices will see about 350,000 battery installations completed in 2026 across the country.

SunWiz is forecasting about 350,000 residential battery installations in 2026 as both drivers persist.

“We’re looking at years of higher energy costs and uncertainty over those costs,” says Johnston.

“That motivates Australian families to secure their own electricity supply.

"We anticipate installation volumes to 2030 will be shaped by the interplay of declining rebates, falling battery costs, rising electricity prices, and rising demand for energy self-sufficiently.

"On balance, these forces point to sustained demand. The boom is far from over.”