Australian households leveraging home batteries and Virtual Power Plants (VPPs) are experiencing some of the nation’s lowest electricity bills, according to a significant report released by the Australian Competition and Consumer Commission (ACCC) on 10 July 2026. However, this promising trend comes with a stark warning: consumer complaints related to battery sales and installations have surged by a staggering 107% over the past 12 months.
The ACCC’s 15th inquiry report into the National Electricity Market (NEM) delves into the real-world billing outcomes for households and small businesses, with a particular focus on the growing impact of Consumer Energy Resources (CERs) like batteries and VPPs. The report confirms that a significant increase in battery installations, partly driven by the Australian Government’s Cheaper Home Batteries Program, is directly contributing to lower energy costs for participants.
“The ACCC’s report demonstrates the value retailer-led virtual power plant products can deliver for customers through lower bills and greater participation in the energy system,” said Louisa Kinnear, Chief Executive of the Australian Energy Council (AEC).
This analysis arrives just weeks after the 1 July 2026 Default Market Offer (DMO) and Victorian Default Offer (VDO) adjustments saw regulated electricity prices fall for most standing offer customers in NSW, South East Queensland, and Victoria, while South Australia experienced a modest increase in flat-rate standing offers. While these changes offered some relief, the ACCC’s findings highlight how proactive engagement with CERs can yield even greater savings.
Batteries and VPPs: A Path to Lower Bills
The ACCC report unequivocally states that households with batteries are seeing lower bills than those without, and those actively participating in VPPs are achieving even more substantial savings. VPPs allow aggregated home batteries to act as a collective power plant, exporting stored energy to the grid during peak demand periods, which can earn participants credits and help stabilise the wider energy network.
For many Australians, the promise of reduced energy costs is a powerful incentive, especially as federal energy bill relief programs have concluded. The universal federal energy credits, which provided up to $300 in 2024-25 and a further $150 in the second half of 2025, ceased on 31 December 2025, meaning winter bills in 2026 are the first without this federal support. This makes the savings offered by CERs more critical than ever.
The report also examines the impact of various tariff types, including flat rate, time-of-use, and demand tariffs, on overall billing outcomes. It underscores the importance of customers understanding their energy consumption patterns and choosing plans that align with their CER investments to maximise benefits. For those considering home battery systems, understanding the upfront costs and potential savings is crucial. You can find a comprehensive guide to Home Battery System Costs in Australia 2026: A Complete Guide to Prices & Reduced Rebates.
The Dark Side: Skyrocketing Complaints and Consumer Risks
Despite the significant financial benefits, the ACCC’s report identifies a concerning rise in consumer issues. The 107% increase in complaints about battery sales and installations over the past year points to a growing problem within the rapidly expanding CER market. These complaints often relate to “dodgy deals,” misleading sales tactics, and poor installation practices.
The ACCC highlights several consumer risks associated with investments in battery and solar systems, and VPP participation. These include:
- Misleading information: Consumers being sold systems that don’t meet their needs or deliver promised savings.
- Poor installation quality: Faulty installations leading to safety hazards or underperformance.
- Complex VPP offers: Difficulty understanding VPP terms, conditions, and how much control over their battery consumers relinquish.
- Warranty issues: Challenges in claiming warranties for faulty equipment or installation.
Retailers and new energy services providers offering VPPs are also facing challenges, with the ACCC noting that VPPs are “not taking off like the industry had hoped because folks are reluctant to give up control of their battery.” The complexity and difficulty in comparing VPP offers further contribute to consumer hesitancy. You can explore current market offers in our guide to Best Virtual Power Plant (VPP) Offers Australia 2026: Earn Up To $2,050 Annually.
ACCC’s Push for Enhanced Consumer Protections
In response to these findings, the ACCC is advocating for enhanced consumer protections to foster greater trust and facilitate increased uptake of batteries and VPPs. The report suggests measures such as requiring installers to adhere to more stringent membership standards, introducing a ‘consumer duty’ to prioritise customer interests, and mandating membership of an ombudsman scheme in every state and territory of operation.
The Australian Energy Council (AEC) echoed the sentiment, stating that while VPPs offer significant savings, more needs to be done to unlock the full value of customer batteries and ensure these benefits are shared equitably through competitive energy products. The AEC also emphasised the critical role of CERs in maintaining affordability and reliability as Australia electrifies, aligning with the 2026 Integrated System Plan (ISP) which stresses the importance of better orchestration of these resources.
For households considering solar and battery installations, it is crucial to conduct thorough research, compare multiple quotes, and verify installer credentials. Resources such as our Solar System Installation Costs in Australia 2026: A Complete Guide can assist in navigating this complex market.
As the energy landscape continues to evolve, the ACCC’s latest report serves as a vital reminder that while innovation offers unprecedented opportunities for energy savings, robust consumer protections are essential to ensure a fair and transparent market for all Australians.