Solar retailers and installers must prepare for scrutiny: ACCC

With demand for home batteries and solar systems surging, thanks to subsidy schemes and the ability to save on energy bills, the Australian Competition & Consumer Commission (ACCC) is urging battery and solar suppliers and electricity retailers to act responsibly towards consumers.

The ACCC’s latest Electricity Inquiry Report examines emerging markets for new electricity services, especially those supported by solar and battery systems, and compares the electricity bills of solar and battery customers with the bills of regular customers who draw only from the grid.

“As more Australian households switch to battery and solar plans, it’s important that the deals on offer are fair, accurate and easy to understand,” said ACCC Commissioner Anna Brakey.

“The ACCC will be watching carefully and actively monitoring consumer complaints. We will hold solar and battery installers, retailers and suppliers accountable to ensure they comply with Australia’s consumer laws.”

The report emphasises the complexity of investing in a solar and home battery system and the need for consumers to understand whether the benefits they receive outweigh the costs, particularly when choosing system sizes.

The report supports additional consumer protections to safeguard those who are purchasing systems and signing up to new energy services like virtual power plants. It also supports calls for an overarching consumer duty that requires energy companies to act in the interests of consumers.

“We believe additional consumer protections are needed as more Australians participate in markets for new and emerging energy services,” Brakey said.

“We advise consumers to read the Australian Government’s Solar Consumer Guide, compare a number of quotes from different providers, and ask for personalised information from solar and battery sellers about the appropriate size for their system and the projected cost savings.”

Solar and batteries achieve biggest bill savings

Australian households with rooftop solar and a home battery have electricity bills that are on average 40% less than customers whose electricity comes entirely from the grid (regular users), the report found.

The report analysed the 2023–2024 billing outcomes of customers who had adopted different renewable energy solutions and compared them to regular users.

The median annual residential electricity bill for regular users, without rebates, in the National Electricity Market in 2023–2024 was $1565. The median household with rooftop solar paid about 18% less ($1279 per year), while a household with solar and a home battery paid about 40% less ($936).

Residential customers who are connected to a virtual power plant (an energy-sharing network of solar and batteries) paid about 63% less than the median household.

“Home solar and batteries continue to be a compelling option for Australians who can afford the upfront cost, with those who are connected to a virtual power plant saving up to almost $1000 off their annual bill,” ACCC Commissioner Anna Brakey said.

Rebates bring bills down by 21%

The report also showed that government rebates resulted in the median quarterly household power bill dropping by 21% between the third quarter 2023 and third quarter 2024.

Without rebates, the median quarterly bill would have instead risen by 4%.

“The sharpest decline across the National Electricity Market was in South East Queensland, where rebates exceeded the median bill amount,” Brakey said.

Background

In 2018, the Australian Government directed the ACCC to hold an inquiry into the prices, profits and margins in relation to the supply of electricity in the National Electricity Market (which covers NSW, Victoria, South East Queensland and South Australia).

On 23 March 2025, the government announced a 12-month extension to the inquiry; this is the 13th time the ACCC has reported as part of this inquiry.

To inform its latest report, the ACCC collected billing data from eight retailers, which cover 97% of residential customers and 90% of small business customers in NSW, Victoria, South Australia and South East Queensland. It obtained additional data for customers on virtual power plant services, electric vehicle tariffs and behavioural demand response plans.

The report is available on the ACCC’s website at Electricity market monitoring 2018–2025.

The ACCC is required to report at least every six months, with the next report scheduled for December 2025.

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