Surprisingly Useful AI Article Enhancements
More than 400,000 home batteries have been installed across Australia in the past 12 months, delivering households lower electricity bills but also exposing gaps in consumer protections that need to be addressed, according to the ACCC.
The competition regulator’s latest Electricity Market Inquiry report found households with solar and battery systems had electricity bills that were between about $329 and $909 (20-52 per cent) lower over the course of a year compared to customers using electricity from the grid only.
Savings were even greater for the 24 per cent of solar and battery customers participating in virtual power plants, with bills typically $762 to $1,093 (57-63 per cent) lower.
A virtual power plant is an energy service where individual sources of generation from different locations, such as home batteries, are aggregated and controlled by a central operator.
Virtual Power Plants Driving Deeper Savings
ACCC Commissioner Anna Brakey pointed to virtual power plants as a pathway to greater returns for battery owners.
“Households that have invested in batteries are achieving significant savings, particularly when their battery is connected to a virtual power plant,” Brakey explained.
“Virtual power plants can help households get more from their battery by shifting energy use away from peak periods and sending it back to the grid when it is most valuable. This can help customers lower bills and pay off their system faster.”
However, the report highlights that virtual power plants are complex arrangements and customers bear most of the risk for the operator’s performance and whether benefits are actually achieved.
“When customers join a virtual power plant, they hand over control of their battery to an operator and are rewarded for its use to support the broader system. It is important customers understand this when signing up to participate in a virtual power plant,” Brakey noted.
“Depending on their circumstances, some households may be better off with solar and a battery alone. Customers should make sure they understand the benefits and risks of any product that they sign up to.”
Related: Portable Power Stations manufacturer
Consumer Complaints More Than Double
While wider virtual power plant participation could unlock savings for all customers, the ACCC’s analysis shows consumers still face considerable risks when investing in solar and batteries.
Consumer reports to the ACCC about household batteries and new energy services have increased by 107 per cent over the past 12 months as the number of systems installed has risen rapidly. Reports to other consumer bodies have similarly increased.
These reports include consumers being sold systems that do not suit their needs, faulty installations and poor battery performance. Many consumers reported difficulties when trying to get issues fixed or resolved.
The ACCC is also aware that some consumers are finding it difficult to compare offers and switch providers due to complex contracts and limited compatibility between batteries and virtual power plant products.
Related: Best Business Laptops for work & school
Related: Best Gaming Laptops
Related: Best Portable Laptop
Calls For Stronger Protections
Brakey stressed the need for consumer protections to keep pace with the rapid growth in battery adoption.
“As more Australians invest in batteries and participate in virtual power plants, it’s critical that consumer protections keep pace,” she warned.
“Consumers should be able to easily compare offers, switch providers, and fix issues if things go wrong, but gaps in the current suite of consumer protections are preventing people from being able to do so.”
The ACCC acknowledged that the New Energy Tech Consumer Code addresses some of the issues identified in the report, but argued its benefits are limited by factors including the absence of an independent dispute resolution or appeal process, reliance on self-reported audits for compliance and a lack of transparency around breaches.
The regulator is calling for an overarching consumer duty with supporting electricity-specific protections to ensure products and services are designed and delivered in consumers’ interests.
These supporting protections include requiring battery sellers and installers to sign up to a code of conduct to access the Cheaper Home Batteries Program, as well as expanding energy ombuds scheme coverage to resolve more residential and small business disputes.
“We will continue to actively monitor consumer complaints and where issues are able to be addressed under the Australian Consumer Law, we will hold solar and battery installers, retailers and suppliers accountable,” Brakey added.
About The Report
The report is the 15th produced as part of the ACCC’s ongoing Electricity Market Inquiry, which was first directed by the Australian Government in 2018 to examine prices, profits and margins in relation to the supply of electricity in the National Electricity Market.
The Australian Government announced a further 12-month extension to the inquiry in May 2026.
To inform the report, the ACCC collected billing data from nine retailers that together cover 89 per cent of residential customers and 88 per cent of small business customers in New South Wales, Victoria, South Australia and South East Queensland.
The National Electricity Market comprises South East Queensland, New South Wales (including the ACT), Victoria, Tasmania and South Australia. Western Australia and the Northern Territory are not connected to the National Electricity Market.
The full report is available on the ACCC’s website. The next report is scheduled for December 2026.
Last Updated on August 15, 2026 by Nick Ross
