When Warwick Johnston heard that Bunnings was preparing to sell solar panels and batteries to households, he wasn’t surprised. The retail giant’s move into what’s become one of Australia’s hottest markets was big news yet Johnston, head of solar industry research firm SunWiz, had seen it coming before.
Years ago, Swedish multinational IKEA entered a similar space. As history showed, IKEA soon discovered that succeeding in the solar and batteries market wasn’t as easy as it seemed, and Johnston suspected Bunnings would face similar hurdles.
“I think it’s fantastic that these big brands are getting involved,” Johnston remarked. “But it remains to be seen how successful they’ll be.”
The solar industry has long been intensely competitive, and large companies often struggle to establish a foothold. Bunnings’ entry into the solar and batteries market comes at a pivotal moment. Since early July, consumers have been able to access significant discounts on the upfront cost of battery systems, thanks to a federal government subsidy scheme. This scheme, a key promise from Prime Minister Anthony Albanese’s government during the last election, offers households up to 30 percent or approximately $4,000 off the cost of a typical battery.
Johnston explained that the subsidy scheme is already driving a surge in demand. According to SunWiz, for the first time this month, the number of batteries registered through the Commonwealth’s small-scale renewable energy subsidy program has surpassed solar systems. This shift highlights the growing importance of batteries in Australia’s renewable energy landscape, as consumers increasingly look to store their solar power efficiently.
Bunnings’ entrance into this rapidly expanding market underscores the sector’s potential, but it also signals a competitive battle ahead for retail giants aiming to capture a share of Australia’s clean energy future.
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