Rooftop installs rebound but battery program takes bite

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The latest monthly update from solar and storage market analyst SunWiz shows more than 235 MW of new rooftop solar systems (0-100 kW) were installed across Australia in May 2025, up from the 221 MW deployed in the previous month.

The figure represents a 6% increase in national market volumes compared to the April 2025, but SunWiz Managing Director Warwick Johnston said the impending introduction of the federal government’s Cheaper Home Batteries Program means the monthly total is below expectations.

“The upcoming federal battery rebate is causing delays in many PV installations as customers wanting both solar and batteries are choosing to wait until the rebate becomes available on 1 July,” he said. “In the meantime, retailers appear more focused on generating sales than progressing installations.”

Registered monthly volume

Image: SunWiz

Johnson said the federal government’s subsidy program, that is expected to see more than one million small-scale battery energy storage systems installed over the next five years, is set to reshape the residential solar industry.

“Historically, batteries have been added to support new PV systems. That’s changing,” he said. “We’re approaching a tipping point where more batteries will be installed each year than greenfield PV systems.”

“In other words, batteries will become the primary market driver, pulling PV installations along with them, a reversal of the industry dynamic we’ve known for years.”

The May rooftop solar total is 11% above the volume installed during the same month in 2022 but below those observed in 2023 and 2024. The year-to-date figure is 8% below the figure observed at the same time last year.

Small-scale technology certificates (STCs) volumes rose in May across all states except South Australia and Tasmania, where figures declined by 5% and 1%, respectively. The Northern Territory recorded the highest relative increase at 32%.

For households, the biggest growth in installs for the month was in the 10-15 kW segment, as the average home rooftop solar system size jumped to 10.2 kW.

The strongest commercial segment was the 50–75 kW capacity range.

The STC commercial rooftop solar (15-100 kW) market remained robust in May with volumes exceeding levels from the past three years.

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