Australia's Home Energy Storage Boom: Chinese Battery Manufacturers Drive the Market

A New Wave of Residential Energy Storage

Australia is experiencing an unprecedented surge in home energy storage, with government incentives, rising electricity costs, and growing interest in energy independence fueling demand. The Australian government's AUD 2.3 billion "Affordable Home Battery"  program, launched on July 1, 2025, as part of the Small-scale Renewable Energy Scheme (SRES), aims to make battery installations more affordable by cutting upfront costs by roughly 30%.

In practical terms, this policy has transformed rooftops across the country into active energy hubs. According to SunWiz and PV Magazine, July 2025 saw nearly 19,600 new solar PV systems installed, with an average battery capacity of 18.2 kWh. By the end of August, over 43,500 home battery units had been installed in just two months — nearly matching the entire 2024 annual total of 45,200 units. The total installed storage reached 825 MWh, with an average per-unit capacity of 19 kWh.

This rapid adoption represents a second energy revolution in Australian households, following the rooftop solar boom that began over fifteen years ago. Home batteries are no longer a luxury — they are becoming a practical necessity.

The number of battery installations in each state of Australia from July to August

Policy Incentives and Market Momentum

The “Affordable Home Battery” program provides rebates of up to AUD 372 per kWh (around RMB 1,716), making systems like an 11.5 kWh backup battery eligible for over AUD 4,000 in subsidies. Tesla's Powerwall 2, with a 13.5 kWh capacity, quickly gained traction under this program.

SunWiz data shows that in July 2025, the ratio of new home batteries to new solar systems reached 72%, and in mid-July, it even spiked to 137%. This indicates that not only are new solar systems being paired with batteries, but existing solar setups are also being retrofitted, signaling a strong shift toward “solar-plus-storage” households.

The ACCC reports that homes equipped with solar and batteries spend about 40% less on electricity compared to fully grid-dependent households. Virtual power plants (VPPs) — networks where households share energy — offer even greater savings, with annual bills dropping by roughly 63% to AUD 580 (around RMB 2,900).

Chinese Manufacturers Take the Lead

Chinese battery manufacturers are now the dominant force in Australia's home energy storage market. SunWiz reports that Chinese brands accounted for over 70% of the market in 2024. Companies like Sigenergy, Sungrow, and BYD are capitalizing on both affordability and technology to expand rapidly.

The proportion of new solar energy and energy storage batteries in Australia from 2016 to 2024

Several factors explain this dominance:

Cost-Effective, Reliable Products: Advanced LiFePO₄ technology from Chinese manufacturers provides durability and safety at competitive prices.

Rapid Response to Policy Incentives: Established supply chains allow these companies to meet sudden spikes in demand.

Competitor Challenges: Tesla recalled approximately 18,000 Powerwall 2 units in Australia in September 2025 due to thermal runaway risks, creating opportunities for alternative suppliers.

Sigenergy, for example, captured 17.4% of the March 2025 battery market — leading all other brands for that month. While Tesla and other global brands faced setbacks, Chinese companies have solidified their position as market leaders.

Challenges Ahead

Despite the rapid growth, sustainability of the market is a concern. Analysts from SolarQuotes estimate that the AUD 2.3 billion funding may not last until 2030 at current installation rates. With an average battery capacity of 17 kWh, installations could reach 133,000 units by 2026 and 177,000 units by 2027. Policymakers may need to adjust subsidy limits or eligibility to ensure long-term program viability.

For manufacturers, this means that relying solely on price to capture market share is not enough. Companies must focus on service, reliability, and long-term customer support to maintain a strong market presence.

GSL ENERGY: Trusted Global LiFePO₄ Battery Solutions

Among international players, GSL ENERGY has established itself as a reliable provider of LiFePO₄ battery systems. Founded in Shenzhen in 2011, GSL ENERGY operates a 15,000 m² automated factory with an annual capacity of 5.8 GWh. Its products carry UL9540, UL1973, CE, and IEC62619 certifications, meeting global safety and performance standards.

For the Australian market, GSL ENERGY offers:

Residential Tower Batteries: Modular and stackable 5–20 kWh solutions compatible with popular inverters like Deye and Sungrow.

Commercial & Industrial BESS: Systems ranging from 10 kWh to 5 MWh, suitable for hybrid and utility-scale applications.

OEM/ODM Services: Tailored solutions for EPCs, distributors, and developers, with full technical support and after-sales service.

With installations in over 138 countries, GSL ENERGY combines global experience with local adaptability, positioning itself as a trusted partner for Australian households seeking safe, efficient, and reliable energy storage.

The Future of Australia's Residential Energy Storage

Australia's home battery market is entering a new phase of rapid expansion. Government incentives, consumer interest in energy autonomy, and the proven value of solar-plus-storage systems are driving this growth. Chinese manufacturers, including GSL ENERGY, are well-positioned to meet demand with high-quality, certified solutions.

As the market continues to mature, long-term sustainability, reliable service networks, and technological innovation will be critical. Companies that can combine affordability with dependable performance are likely to be the long-term winners in Australia’s dynamic home energy storage sector.

For customized LiFePO₄ battery solutions or partnership inquiries, please visit www.gsl-energy.com or email info@gsl-energy.com