About solar panel systems and home batteries
Solar panels and home batteries are an important investment. They can save consumers money, increase property value and generate electricity. Investing in solar has a positive environmental impact.
Federal, state and territory governments offer incentives for consumers to purchase these products. Subsidies can make products more affordable. However, there is still a significant upfront cost to installing solar products.
Deciding to invest in solar products
When deciding whether to install a solar panel system or home battery you should find out about all the available options. If you decide to buy solar products it is important you choose those that meet your energy needs and budget. It will take time to assess all the relevant product and financial information so you must not feel pressured into buying.
Obtain multiple quotes from different businesses to work out if the investment is the right one for you.
Be wary of advertising, particularly on social media. This includes suppliers promising ‘no cost solar’ or ‘low cost offers for a limited time’. They may also imply that incentives have complex eligibility criteria.
Check to see if you’re eligible for any government rebates or subsidies.
Look for reputable businesses. They will provide detailed quotes, be upfront about all costs and charges and take time to talk to you about different options.
When comparing quotes, make sure they are for the same size solar panels or home battery. Remember that higher quality systems may cost more, but this higher cost may be worth it in the long run. Especially if the systems are accompanied with warranties and post-purchase and maintenance support.
The Australian Government has published free and helpful information about solar panel systems and home batteries. This ACCC recommends the Solar Consumer Guide.
Checklist before you commit
- Research your electricity needs. Make sure you choose a solar panel system or home battery that aligns with your size and capacity requirements.
- Read any contracts or agreements carefully and ask your supplier any questions. If unsure about terms you should obtain legal advice.
- Consider the impacts of buying outright versus through an agreement. These include ownership and your finances.
- Ask questions. Make sure you understand how the products work and what you are agreeing to, including agreement terms and conditions.
- Research your supplier options. Choose one based on accreditations, experience, support services, locality and reviews.
Understand your electricity needs and choose carefully
- Consider your current electricity needs. Going solar often benefits those who use most of their electricity during the day or have a home battery installed. To check energy usage, refer to a recent energy bill. If you don’t have a bill, you can get an estimated usage based on postcode and household size from Energy Made Easy.
- Choose the correct sized panel system or home battery to match your needs. You may have to pay for the energy supplied whether you use it all or not.
- Understand who will benefit from feed-in-tariffs. This is the rate paid for excess energy fed back into the grid or green energy certificates if they apply. This may be the consumer or the solar supplier.
- Consider whether using solar will affect your current electricity rate.
- Consider the cost of any additional or upgrade to infrastructure. These may be required to fully utilise the solar panel system or home battery at your home or business.
Consider the financial benefits and long-term cost
The long-term financial value of installing solar depends on several factors, including:
- your usage of electricity
- initial purchase and installation costs
- any available government rebates or offers used
- the impact of your electricity provider’s feed-in tariffs and rates on your bills.
Signing up to long-term agreements can affect cost and benefits
- Work out potential savings on your bills and how long it would take to recover the total cost of installing solar panels or a home battery.
- Consider the expected performance of the solar panels and home battery within the stated warranty periods.
- Consider the long-term financial impacts. This includes how long you plan to remain in the property and the impact of any exit fees that apply. You should also check if any agreements can be terminated early if there is a change of mind.
- Be aware of any agreement that ties you to a particular energy supplier. Even if they offer competitive prices at the start, this can change over the life of the agreement. You may be exposed to excessive electricity prices over a longer period of time.
- The overall cost of a solar power purchase agreement or solar leasing agreement is likely to be higher than if the system is paid for upfront.
- With agreements, you are likely to be responsible for 2 electricity accounts. One from the electricity retailer and another from the solar system provider.
Understand what is involved and ask questions
- Read and understand the contract or agreement. If unsure, ask questions and obtain legal advice.
- At the end of the contract or agreement, consider who owns the solar panel system and home batteries and who is responsible for removing them.
- Ask your local council or building authority if there are any building regulations for installing solar power.
- If you agree to buy a solar system in an unsolicited sale, you have a 10-day cooling-off period where you can freely cancel. During the cooling-off period, you are not required to make any payments, and the solar products must not be installed.
Learn more about contracts.
Given the nature of solar and home battery systems, it may be several years before you notice any problem with a defective system or installation. If the business has closed or become insolvent by that time, it may be difficult for you to obtain a remedy.
To protect yourself against this risk, you should conduct your own independent research on solar and home battery businesses before you buy. Ask around about the history and experience of the businesses selling and installing solar and home battery systems in your local area.
- Check the history of the company and whether it been operating in Australia for the past 5 years. If not, it may be a sign that the business has previously gone insolvent or is not to be trusted. You can find company details, including when they were first registered, on the Australian Securities and Investments Commission register.
- Read independent consumer reviews on the relevant business. Try and read reviews from multiple different sources. Some businesses will only post positive reviews on their own website. Businesses may also try to place fake reviews about their business on other websites. Learn more about online product and service reviews.
- Speak to others in your local area who have already installed solar or home battery systems or may be thinking about doing so.
- Be cautious around businesses that approach you directly. Choose who you want to deal with and be aware that many salespersons operate on a commission and they have a financial incentive to make you buy.
- Make enquiries about retailers’ and installers’ accreditations and peak industry body memberships. It is a requirement for some government schemes for the retailer, installer and/or product to be accredited by the Clean Energy Council (CEC).
- While accreditation bodies do not provide any guarantees, accredited retailers or installers are required to meet industry best practice and safety standards in selling and installing the solar and home battery system. You can also check that they use accredited products.
- Check whether the retailer is a New Energy Tech Approved Seller.
- Check the accreditation status of solar and home battery installers can be checked at Solar Accreditation Australia.
Agreements and programs for solar products
There are several options available to consumers interested in solar products. Consumers can:
- outright purchase or enter into a financing agreement for the purchase of a solar panel system and/or home battery
- purchase a solar panel system through a solar power purchase agreement or solar leasing agreement.
Solar power purchase agreement
A solar power purchase agreement is a contract where a solar supplier provides, installs and maintains the solar panels. This is in exchange for the consumer agreeing to buy the energy produced by the system at an agreed price for an agreed period.
Solar leasing agreement
A solar leasing agreement is a contract where the solar supplier installs the system in exchange for the consumer agreeing to make periodic repayments on the system for an agreed period.
Solar power purchase agreements and solar leasing agreements may last for 5 to 20 years. These agreements can benefit you by giving access to solar power where you otherwise wouldn't be able to afford to purchase and maintain it outright.
Cheaper home battery program
From 1 July 2025, households and small businesses may be eligible for around a 30% discount on the upfront cost of installing small-scale battery systems. The discount will be based on the solar battery’s usable capacity and will gradually decrease until 2030.
The program includes consumer protection requirements. Battery sellers are required to provide certain information to consumers before they sign any agreement. This includes:
- expected payback periods, energy benefits or energy cost savings
- the appropriate battery size in relation to the solar system
- the current and expected electricity needs of the premises
- whether additional infrastructure would be required to participate in a virtual power plant
- the expected performance of the battery within the warranty period
- feed in tariffs and export limits.
Solar products are covered by consumer law
Under Australian Consumer Law, products and services that consumers buy from a business come with automatic guarantees that they will work and do what they’re supposed to do. These are called consumer guarantee rights.
These rights apply to solar products and installation services and cannot be restricted or excluded. They are separate to any manufacturer’s warranty.
You should be aware that in many cases, the retailer and installer are separate businesses. Generally, if you paid one business for both the products and installation, that business is responsible for providing a remedy if something goes wrong. Even if that business has subcontracted a third party for installation.
If you paid one business for the product and another for installation. You will have to contact the retailer for any issues with the solar product. Contact the installer for any issues due to or caused by the installation process.
Consumer guarantees cannot be excluded from any contract and apply regardless of any terms and conditions of the solar power purchase agreement or solar leasing agreement, as well as any warranties provided.
State based laws apply to solar too
Specific state-based laws also apply to solar power that coexist with the consumer guarantees. State and Territory consumer protection agencies can provide information on their individual laws in this area. For example, some state-based laws prohibit the unsolicited sales of solar products.
Responsibilities of solar suppliers under the law
A solar supplier must:
- make sure their products and services meet the consumer guarantees
- not provide you with false or misleading information
- not create a misleading impression in advertising, promotions or during their sales pitch
- be careful about statements they make to you about product availability and installation timeframes especially as demand increases for solar products
- provide you with information and a 10-day cooling-off period where you can freely cancel if you agree to buy a solar system in an unsolicited sale. During the cooling-off period you are not required to make any payments and the products must not be installed. Learn more about telemarketing and door to door sales.
- not use forceful or high-pressure sales tactics to get you to buy something you don’t want or can’t afford. Learn more about unconscionable conduct.
- not harass or coerce you to buy a solar panel system or home battery
- not harass or coerce you to sign up to a solar power purchase agreement or solar leasing agreement
- not take unfair advantage of any vulnerability or disability affecting you
- not make you buy energy services from a particular third party retailer.
Learn more about the responsibilities of solar suppliers under the law.
Repairs, replacements and refunds for solar products and services
If a consumer discovers a problem that fails one or more of the consumer guarantees, they may be entitled to a repair, replacement or refund.
Consumers can go back to the supplier and explain the problem. The supplier must assist and cannot tell the consumer to contact the manufacturer for a remedy.
If there is a problem with the solar panel system or home battery or the service provided, you may be able to cancel the solar power purchase agreement or solar leasing agreement under the consumer guarantees.
