Australia is no stranger to energy transformation. Over the past 15 years, rooftop solar has revolutionised how households generate and use power. Now, the Cheaper Home Batteries Program is fuelling what experts are calling a “second energy revolution.” While much of the attention has focused on savings for individual households, the wider benefits for the energy market and electricity system are equally important. This program is not only cutting power bills but also reshaping the way energy is produced, stored, and shared across the nation.
A Second Energy Revolution in Motion
The launch of the Cheaper Home Batteries Program in July 2025 triggered a surge in installations. Within just three weeks, over 11,500 batteries were installed nationwide, averaging more than 1,000 per day. This rapid adoption mirrors the rooftop solar boom of the 2010s. Just as solar reshaped daytime electricity generation, batteries are now transforming storage and evening demand. Together, solar and batteries are creating a more self-reliant energy system—one that relies less on coal and gas and more on distributed, renewable power.
How Batteries Support the Grid
Batteries don’t just benefit individual households; they also bring vital stability to the electricity grid. During the day, solar panels often generate more power than homes can use, causing excess electricity to be exported to the grid. In the evening, when demand peaks, the grid struggles to meet demand without relying on fossil fuel generation. Batteries solve this problem by storing solar energy during the day and releasing it when demand is highest. This reduces the strain on the grid, minimises blackouts, and smooths out fluctuations in supply and demand.
Reducing Reliance on Fossil Fuels
One of the biggest winners from the Cheaper Home Batteries Program is the environment. By helping households store renewable energy, the program reduces the need for coal and gas plants to fire up during peak times. Analysts suggest that within five years, household batteries could deliver up to 10,000 MW of storage capacity—comparable to Australia’s entire fleet of coal power stations. This is a huge step towards decarbonising the grid and meeting Australia’s climate targets. For residential buyers, this means their investment in a battery contributes not only to personal savings but also to the nation’s clean energy future.
Lowering Energy Market Costs for Everyone
Electricity prices are shaped by wholesale costs, which rise sharply when demand peaks. When thousands of households release stored energy during these periods, demand on the central grid is reduced. This lowers the need for expensive fossil fuel generation, which in turn helps reduce wholesale electricity prices. These benefits don’t just flow to battery owners—they ripple across the entire community. Even households without solar or batteries can see indirect savings as market prices stabilise.
Virtual Power Plants: A Growing Opportunity
Another exciting outcome of widespread battery adoption is the growth of Virtual Power Plants (VPPs). A VPP is a network of household batteries connected through software, allowing them to operate like a single large power plant. By joining a VPP, homeowners can sell stored energy back to the grid during peak demand and earn credits or payments from energy retailers. This not only provides extra income but also strengthens the energy system by making more renewable energy available at critical times. The Cheaper Home Batteries Program encourages VPP-ready systems, helping accelerate this shift.
Building Energy Independence for Communities
The program also has important implications for local communities. In regional and remote areas, where grid reliability can be an issue, batteries are improving resilience. Communities with high battery uptake can keep lights on even during outages, by drawing on stored energy. Over time, this could reduce the need for costly upgrades to transmission lines and other infrastructure. By investing in household batteries, Australians are effectively building a more resilient, decentralised energy system that can withstand shocks and disruptions.
Driving Innovation in the Energy Sector
As battery adoption surges, the energy industry is responding with new products and services. Retailers are offering innovative tariffs that reward households for using stored energy strategically. Technology companies are developing smarter software to manage energy flows across thousands of homes. And local battery manufacturers are scaling up production to meet demand. This wave of innovation creates jobs and strengthens Australia’s renewable energy industry, delivering broader economic benefits beyond just the energy savings.
FAQs
How do household batteries benefit the wider energy market?
Batteries store excess solar power during the day and release it during peak demand in the evening. This reduces reliance on fossil fuels, lowers wholesale energy costs, and helps stabilise the electricity grid.
What is a Virtual Power Plant (VPP)?
A Virtual Power Plant is a network of household batteries connected through software. Together, they act like a single power plant, feeding energy into the grid when needed. Households in a VPP can earn financial rewards for participating.
Will battery adoption really reduce coal and gas use?
Yes. Analysts estimate that household batteries could provide 10,000 MW of storage capacity within five years, similar to Australia’s coal-fired generation. This reduces the need to fire up fossil fuel plants during peak demand.
Do non-battery owners benefit from this program?
Absolutely. As more households install batteries, wholesale electricity costs are reduced and grid stability improves. These benefits flow through to all energy consumers, not just those with solar and batteries.
How do batteries help with community resilience?
In regional and remote areas, batteries can provide backup power during outages. At scale, communities with high battery adoption are less vulnerable to grid failures and can operate more independently.
Why Homeowners Should Act Now
The Cheaper Home Batteries Program is not just about reducing household bills—it’s about reshaping Australia’s energy future. By installing a battery today, homeowners are helping drive a transformation that makes the grid cleaner, cheaper, and more reliable for everyone. The sooner households act, the greater the benefits they enjoy, as rebates will phase down towards 2030. Whether you already have solar panels or are considering a new system, adding a battery is the most powerful step you can take to cut costs and support a cleaner energy future.
👉 Be part of Australia’s second energy revolution. Install solar and battery storage now, claim your rebate, and join thousands of homeowners driving down bills and powering a cleaner, stronger energy system.