Bunnings' Entry into Solar and Batteries Market Shows Industry's Mainstream Potential

As Bunnings becomes the latest major player to enter the Australian solar and battery market, industry experts are debating the potential implications and whether the retailer's move will significantly impact the highly competitive space. Recently, the federal government introduced a subsidy scheme that offers households up to 30 per cent, or $4,000, off the cost of a typical battery system. According to SunWiz research, the number of batteries registered through the Commonwealth's small-scale renewable energy subsidy program has surpassed solar systems for the first time this month, with 75,000 battery installations in 2024 and a projected 200,000 installations by 2025.

Key Takeaways:

• The solar industry has a long history of being hyper-competitive, with large companies struggling to adapt to the market's needs and maintain market share.
• Bunnings' entry into the market comes as the industry is experiencing a surge in demand, driven by the federal government's subsidy scheme, which has already led to 75,000 battery installations in 2024.
• According to SunWiz, the number of batteries registered through the subsidy program has surpassed solar systems for the first time this month, with expectations of 200,000 installations by 2025.
• Green Energy Markets analysis suggests that if battery installations continue at their current rate, they could reach 300,000, equivalent to the number of annual solar installations, and have a profound impact on the electricity market.
• The analysis also suggests that at this scale, batteries could displace gas generation, particularly on the east coast, over the next five years.
• Industry experts caution that the surge in demand may be short-lived or sustained, with commercial interests potentially trying to stop the subsidy scheme, and the demand spike reflecting an early mover, technology-loving market.
• Battery prices and ongoing cost reductions will determine the long-term sustainability of the market, with SunWiz's and Green Energy Markets' research indicating that prices need to continue to fall to attract new customers.

Statistics:

• 75,000 battery installations in 2024 (Source: SunWiz)
• Projected 200,000 installations by 2025 (Source: SunWiz)
• 1,000 battery installations per day (Source: SunWiz)
• Up to 30 per cent discount on battery systems under the federal government's subsidy scheme (Source: various sources)
• $4,000 maximum subsidy under the federal government's scheme (Source: various sources)
• 300,000 potential battery installations (equivalent to annual solar installations) at current rate (Source: Green Energy Markets)

Sources:

• "Bunnings to start selling solar panels and batteries to households" by Daniel Mercer
• SunWiz research
• Green Energy Markets analysis
• Australian government subsidy scheme information