Australia’s residential battery storage market underwent a dramatic transformation in 2025, with new data from SunWiz showing installation numbers nearly tripling and new capacity added to the grid increasing fivefold compared to the previous year.
According to SunWiz’s Australian Battery Report, 221,000 battery systems were installed across the country in 2025, up from 72,500 in 2024.
Combined, these installations delivered an additional 4,790 megawatt-hours (MWh) of new capacity to the grid, enough to power around 1.2 million homes during the four-hour evening peak period.
That figure is roughly 25 times the capacity of South Australia’s Hornsdale Power Reserve, widely known as the “Big Battery”.
The surge was largely driven by the federal government’s Cheaper Home Batteries Program (CHBP), which not only encouraged more households to install batteries but pushed them toward significantly larger systems.
The average battery installed in 2025 measured 21.6 kilowatt-hours (kWh), nearly double the 11.8 kWh average recorded in 2024.
State-by-state figures show New South Wales retaining its position as the national leader, with more than 76,000 battery installations, over a third of the country’s total.
In a notable shift, Queensland overtook Victoria for the first time, capturing 19 per cent of installations nationally compared with Victoria’s 18 per cent, as changes to Victoria’s subsidy program continued to weigh on uptake there.
By the end of 2025, 4.6 per cent of Australian homes had a battery installed, and 13 per cent of all Australian solar deployments now included storage.
The report also confirmed Australia has become the third largest utility-scale battery energy storage system (BESS) market in the world, with more than 25 gigawatt-hours (GWh) of grid-scale storage currently under construction.
“2025 wasn’t so much a growth year for Australian batteries, it was the year they went mainstream,” said Warwick Johnston, managing director at SunWiz.
“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.”
On the manufacturing side, China-based Sigenergy emerged as the market leader despite only entering Australia in 2024.
Fox ESS also made a strong comeback, capturing 10 per cent of market share by kWh, while established brands Tesla and BYD continued to lose ground.
Looking to the year ahead, SunWiz forecasts continued strong demand, projecting around 350,000 battery installations in 2026.
The firm points to the ongoing CHBP alongside heightened anxiety over energy prices linked to the Iran War as key drivers of that momentum.
“We’re looking at years of higher energy costs and uncertainty over those costs,” Johnston added.
“That motivates Australian families to secure their own electricity supply.”
According to Johnston, installation volumes through 2030 will be driven by a mix of factors, falling rebates and battery prices on one hand, and climbing electricity costs and growing appetite for energy independence on the other.
Taken together, he said, these dynamics suggest demand will hold strong, with the current boom still having plenty of room to run.
