From Perth to Penrith, Aussies are slapping solar panels on their roofs … and for good reason. Electricity prices are climbing faster than a huntsman up a wall, and many households are looking for ways to rein in their power bills.
Solar systems – and increasingly, home batteries – are among the most practical solutions. Costs have come down, technology has improved, and government incentives can help soften the upfront price … for now.
Here’s what you need to know about solar and batteries in 2026.
Soaking up the sun
Our sunburnt country was made for solar. Around 4.3 million Aussie rooftops are now harnessing those powerful rays to generate electricity. There are now more panels on roofs than pools in backyards.
One in three households produce at least some of its own power and according to Clean Energy Council data, rooftop solar supplied 12.8 per cent of Australia’s electricity in the first half of 2025. By the end of the year, this had risen to 14.2 per cent.
Solar is hot right now.
But beyond sustainability, there’s another bonus: solar is cutting power bills by about $6 billion a year, or roughly $1,200–$1,500 per home (Clean Energy Australia Report 2025).
That’s more money in the pockets of everyday Aussies.
Why solar slashes your bills
Solar saves you money in a few straightforward ways:
- Generating electricity on your roof instead of buying from the grid.
- Using your own power during the day, when production is highest.
- Reducing exposure to rising electricity prices.
These days, using your own solar is the way to go. You’re better off running your home on it during the day than selling it back for peanuts and buying power again later at a higher price.
When you’re cooking dinner, running the dishwasher and heating water for evening showers, electricity is usually at its most expensive. So, it makes sense to store your solar for those times.
Which is where a battery comes in.
Powering on with a battery
A home battery (also known as a Battery Energy Storage Systems – BESS) stores solar power generated during the day, allowing you to use your own supply at night, when prices spike.
Despite the fact that they are an additional expense, batteries are becoming increasingly popular. Over 180,000 home batteries were installed in the second half of 2025 alone; that’s a four-fold increase on the same period the previous year, partly thanks to the Cheaper Home Batteries Program (more on that below).
Adding a battery to your solar set-up reduces your reliance on the grid during the most expensive part of the day.
Here’s the maths:
- Solar saves households around $1,200–$1,500 per year.
- Add a battery and you could save hundreds more – even over $1,000.
- That means a combined solar and battery system typically pays for itself in around five to eight years.
It might sound like a long time, but think of it as an investment. You’re putting money into renewable energy to deliver long-term returns.
And the good news? You can soften the upfront cost of that investment.
Incentives available in 2026
There are various government subsidies, rebates and loan options that can help you pay for rooftop solar and batteries. These are:
Federal incentives:
Small-scale Renewable Energy Scheme (SRES): Earn Small-scale Technology Certificates (STCs) when you install solar, reducing upfront c
- osts based on your system’s expected energy generation. Think of STCs as credits.
- Cheaper Home Batteries Program: Get an upfront discount of around 30 per cent on home batteries. Note, rebates are tapering from 1 May 2026, so earlier installations mean bigger savings.
- Community Solar Banks Program: Supports shared solar systems for households that can’t install individually, such as apartment dwellers.
State incentives:
Your state government – and sometimes your local council – may also offer additional incentives (eligibility applies), including:
- NSW: Up to $1,500 for connecting a battery to a Virtual Power Plant (VPP).
- ACT: Zero-interest loans up to $15,000 for solar and batteries.
- WA: Rebates up to $1,300 (Synergy) or $3,800 (Horizon Power), plus interest-free loans.
- VIC: Solar panel rebates and interest-free loans.
- SA: Discounts, rebates or vouchers through the Retailer Energy Productivity Scheme.
- QLD: State battery rebates have closed, but some local councils may offer support.
- TAS: Energy-efficiency loans that may include batteries as part of home upgrades.
- NT: State battery scheme closed; households rely on federal support.
Things to consider
Going solar can feel overwhelming with so many providers competing for your business.
So do a little homework before you jump in. Learn about solar systems and batteries, chat with friends who’ve already taken the plunge, and get a few quotes so you can compare properly.
It’s also worth thinking about how your household actually uses power – what your current bills look like, whether backup power matters to you, and whether your roof gets plenty of sun (or is shaded by buildings and trees).
A bit of thinking now can pay off for years to come.
In the green
Solar and batteries are smart ways to cut your power bills and protect yourself from rising electricity prices. Incentives are still on the table in 2026 – but they won’t last forever – so now’s a good time to see what you could save.
We live in the sunburnt country, after all – so we might as well make the most of it.
