Rooftop solar slump continues as consumers hold out for cheaper batteries

Australia’s rooftop solar slump has continued into its fifth month, as the wait for the launch of federal home battery rebate in July keeps a dampener on investment in new home PV systems around the country. New numbers from Australian solar consultancy SunWiz have revealed that households and businesses added around 235MW of new rooftop solar in May, a slight increase from the previous month, but still well down on what would normally be expected at this time of year. According to SunWiz, the volume of small-scale solar PV installations (0-100kW) in April increased by 6 per cent compared to the previous month, which itself was hampered by the combination of Easter, school holidays and Anzac Day. As such, an only 6 per cent increase in May was “far below the post-April rebound that typically occurs”, according to SunWiz.

The 235MW installed across May was 11 per cent up on levels seen in May of 2022, but well down on May of 2023 and 2024, both of which hovered around the 260MW mark. The amount of rooftop solar installed through the first five months of 2025 has therefore dropped by around 8 per cent compared to the same period last year.

State-by-state, volumes of rooftop solar installed rebounded in all but South Australia and Tasmania where figures declined even further, by 5 per cent and 1 per cent respectively. Conversely, the Northern Territory rebounded the fastest, increasing rooftop solar installations by around 30 per cent compared to April – although even this “represented only a modest nominal rise” according to SunWiz.

There are believed to be several drivers behind the lacklustre rooftop solar installations seen this year, with SunWiz pointing to the upcoming federal battery rebate, the recent federal election, the effects of Cyclone Alfred, and heavy rainfall along the East Coast. “The upcoming federal battery rebate is causing delays in many PV installations, as customers wanting both solar and batteries are choosing to wait until the rebate becomes available on 1st July,” said SunWiz in its latest market analysis. “In the meantime, retailers appear more focused on generating sales than progressing installations. “Additionally, we suspect that figures remain soft due to lingering effects of the election, Cyclone Alfred, and persistent heavy rainfall, with STC registration delays further holding back reported activity.”