Rooftop solar market on hold for home battery policy
Rooftop solar installations across Australia have experienced a slowdown as consumers delay new investments until after the upcoming federal election on May 5. Both major political parties have pledged to introduce some form of national home battery discount, leading to a cautious approach from consumers.
Recent data from solar market analyst SunWiz reveals that approximately 253 megawatts of new rooftop solar capacity were added by homes and businesses in March. However, this only represents a 2% increase from the previous month and a 3% decrease compared to the same period last year.
Impact in Queensland
Surprisingly, Queensland, known as the Sunshine State, has seen a decline in new rooftop solar installations, with an 11% drop. This decrease is primarily attributed to a decline in the 10-15 kW segment. Queensland stands out as one of the major states without a government subsidy for home batteries, following the conclusion of the Battery Booster program by the former Labor government in May 2024.
Shift in Economics
The shift in consumer behaviour towards battery rebates influencing rooftop solar installations can be attributed to the changing economics of rooftop solar systems. With the continuous reduction in electricity costs during the day due to rooftop solar systems, the incentives for feeding excess solar power back to the grid have diminished. This has led to a preference for self-consumption, prompting the inclusion of batteries in residential solar systems to store surplus energy for later use.
Warwick Johnston from SunWiz highlights that the future growth of residential rooftop solar is likely to involve battery storage to maximise self-consumption. However, the trajectory of this trend will depend on the ongoing decrease in battery prices and the introduction of new rebate schemes by state and federal governments.
Anticipation for Federal Election Policies
With the federal election approaching, both major political parties, Labor and the Coalition, are expected to unveil their respective home battery subsidy or rebate schemes. This anticipation has led consumers to hold off on further solar investments until the policy announcements are made. The promise of a home battery subsidy has become a focal point in the election campaign, addressing concerns about the cost of living.
Consumers are keen to assess the details of these proposed policies before making decisions to enhance their energy cost management strategies. The upcoming announcements are poised to shape the future landscape of rooftop solar installations and battery integration in Australia.
