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Home Renewable Energy Batteries & Storage

Australia: The world’s third largest battery storage market

by Tom Parker
June 9, 2026
in Batteries & Storage, Electricity, News, Renewable Energy
Reading Time: 2 mins read
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Australia battery storage

The Melbourne Renewable Energy Hub is made up of 444 Tesla Megapack battery units. Image: SEC

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Australia continues to surge ahead in its adoption of battery storage systems, recently becoming the world’s third largest market for the dispatchable energy solution.

The Federal Government last week celebrated 420,000 home battery installations under the Cheaper Home Batteries scheme – equating to 12 gigawatt-hours (GWh) of added capacity since the program was introduced in July 2025.

“Australia is now ranked third globally across home and utility-scale battery storage, behind only China and the United States, after 4.4GW of capacity was commissioned in the year to March and a record 4.3GW of large-scale battery capacity reached final investment in 2025,” the Federal Government said in a statement.

Final investment decisions have been made on 2.4GW of new wind and solar projects in 2026, Government said, which has exceeded last year’s figure already.

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A first-quarter record was achieved on small-scale solar installations, achieving 791 megawatts in the three months to March.

“Our plan is delivering more cheaper, cleaner energy at record rates,” Federal Minister for Climate Change and Energy Chris Bowen said.

“We’ve got the best sun and wind in the world, and we’re using our sovereign renewables to shield our grid from global energy volatility and to bring down your energy bills.

“Our roll out of more renewables and storage saw batteries more than triple their daytime-to evening energy shifting in the first quarter, reducing our reliance on unreliable coal to put downward pressure on bills.”

The Federal Government said Australia has 26.9GW of renewable energy projects either “under contract or in negotiation” as it targets the commissioning of 26GW of new utility-scale generation and 14GW of dispatchable capacity by 2030.

“Thirty-five projects have already executed a Capacity Investment Scheme agreement with Government, including 20 generation projects amounting to 6.9GW and 15 dispatchable projects adding up to 3.3GW or 11.9GWh,” Government said.

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