Australia's Clean Energy Regulator Forecasts 520,000 Residential Battery Installations By 2026

Australia's Clean Energy Regulator forecasts 520,000 residential battery installations by 2026, with a maximum storage capacity of 12 gigawatt-hours

 

 

 

The regulator forecasts that the number of residential installations of advanced battery energy storage systems in Australia will reach 520,000 by 2026, corresponding to a maximum storage capacity of 12 gigawatt-hours. The regulator has set a range of 350,000 to 520,000 installations and 8 to 12 gigawatt-hours of storage capacity, reflecting the challenges of predicting the adoption of its "Cheaper Home Battery Scheme" subsidy program, which aims to reduce battery energy storage costs for households. The regulator stated that the program performed better than early expectations in the first six months, with over 193,000 effective battery systems installed by 2025, delivering a capacity of 4.6 gigawatt-hours, exceeding the combined storage capacity of the 12 largest operational large-scale batteries in the national electricity market.

 

The regulator is increasing its focus on the quality of installed batteries as a surge in demand for subsidies from residents puts pressure on installers. Executive General Manager Carl Binning announced that installers will be required to submit more on-site photos for verification, artificial intelligence will be used in the evaluation process, and on-site inspections and audits of homes with installed batteries will be increased. The agency will also address instances of substandard workmanship. As of February 19, 2026, the agency had completed 846 solar panel inspections, 350 of which were finalized. Of these inspections, 0.9% of installations had safety issues related to wiring and protection devices; 62.8% were rated "non-compliant," meaning technically non-compliant but safe to operate. Most non-compliant installations stemmed from incorrect or missing warning labels, incorrect backup circuit labeling, and incorrect emergency service labeling. Furthermore, issues were found on the supplier side; Sigenergy energy storage products were voluntarily recalled due to multiple overheating reports leading to AC plug damage. The regulator also warned manufacturers and installers to proactively disclose systemic risks, especially as questions arise like "are ice batteries the future of energy storage" amid evolving technologies.

 

Rooftop PV installations were somewhat suppressed in 2025 due to installers shifting their capacity from small-scale rooftop PV to residential battery installations, with approximately 270,000 systems installed for a total of 2.8 gigawatts throughout the year. However, regulators expect rooftop solar installations to recover to 3 to 3.7 gigawatts by 2026, and the "cheaper home battery program" will continue to support demand for new and upgraded systems, including those from innovative players like BLOOPOWER in the growing all in one containerized battery energy storage system market.