The Australian Competition and Consumer Commission’s (ACCC) latest Electricity Inquiry Report, found that the Commonwealth’s Cheaper Home Batteries Program is giving more households the chance to reduce their power bills.
But the ACCC has a warning for retailers and installers.
“As more households switch to battery and solar plans, it’s important that the deals on offer are fair, accurate and easy to understand,” commissioner Anna Brakey said.
“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 consumer laws.”
Brakey advises those wanting to use new solar battery subsidies to “take their time and not feel pressured to rush in straight away”.
The ACCC report says investing in a solar and home battery system is complicated and consumers need to understand if the benefits they receive outweigh the costs, particularly in regard to system sizes.
The report also supports calls for more consumer protections to safeguard those buying systems and signing up to new energy services like virtual power plants.
“We believe additional consumer protections are needed as more Australians participate in markets for new and emerging energy services,” Brakey says.
BILL SAVINGS
Households with rooftop solar and a home battery have power bills, on average, 40% lower than those drawing power entirely from the grid (regular users), the ACCC report found.
The report analysed 2023-24 bills of customers who adopted different renewable energy solutions and compared them to regular (grid) users.
WHO PAID WHAT
> The median annual residential power bill for regular users, without rebates, from 2023-24 was $1565.
> The median bill for a household with rooftop solar was about 18% less ($1279 per year) while a household with solar and a home battery paid about 40% less ($936).
> Homeowners connected to a virtual power plant (an energy sharing network of solar and batteries) paid about 63% ($580) less than the median household according to the ACCC.
“Home solar and batteries continue to be a compelling option for (those) 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,” Brakey says.
The report also shows that government rebates reduced the median quarterly household power bill by 21% between the third quarter of 2023 and third quarter of 2024.
Without those rebates, the median quarterly bill would have risen by 4%, it says.
“The sharpest drop across the National Electricity Market was in South-East Queensland, where rebates exceeded the median bill amount,” Brakey says.
The national market comprises of South East Queensland, NSW and ACT, Victoria, Tasmania and South Australia.
The ACCC says its report was compiled from the billing data supplied by eight retailers, covering 97% of residential customers and 90% of small business customers in NSW, Victoria, South Australia and SE Qld.
