According to the Clean Energy Regulator’s (CER) Quarterly Carbon Market Report for the first quarter of 2026, household battery installations surged under the Federal Government’s Cheaper Home Batteries Program.
Within just nine months, the report shows that total installed battery capacity reached 7.4 gigawatt-hours (GWh).
Further, by mid-May 2026, Australia surpassed 400,000 battery systems nationwide, representing more than 11.4 GWh of usable storage capacity across validated and pending installations.
The report highlights the increasing role distributed energy resources are playing in shifting renewable electricity generation from daytime periods into the evening peak. In turn, this has improved the utilisation of rooftop solar and grid stability.
Small-scale solar also recorded its strongest first quarter on record, with 791 megawatts (MW) of new rooftop capacity installed.
The CER shared that current market conditions point to another strong year for residential solar deployment.
David Parker, Chair at CER, explained that the rapid uptake of batteries and solar was beginning to change how Australians generate, store and consume electricity.
“As more Australians install solar and batteries, they are changing how they generate, store and use electricity,” Parker said.
“The full benefits of this shift will be realised as these technologies become better integrated and able to work together. The Clean Energy Regulator’s new role as National Technical Regulator for distributed energy resources will help enable this next phase of the energy transition.”
Investment remains strong
The report also found continued momentum in the large-scale renewable energy sector.
During the quarter, 1.1 GW of large-scale renewable generation projects received approval, while a further 946 MW reached final investment decision.
Corporate demand for renewable energy remained robust, with voluntary surrender of Large-scale Generation Certificates reaching a record first-quarter level of 4.1 million certificates.
The Renewable Electricity Guarantee of Origin scheme also achieved a milestone during the quarter, with its first certificates issued.
Carbon market activity
Australia’s carbon market remained active throughout the quarter, with a record 5.5 million Australian Carbon Credit Units issued.
The CER said ACCU issuance remains on track to reach between 22 million and 26 million units during 2026.
The report also found the Safeguard Mechanism is continuing to operate broadly as expected, with covered facilities surrendering ACCUs and Safeguard Mechanism Credits to meet compliance obligations and manage emissions above baseline levels.
For more information about CER’s recent Quarterly Carbon Market Report, visit the CER website.
