Consumer complaints about home battery installations more than doubled in the first quarter of 2026, with Australia’s competition watchdog warning that gaps in consumer protection could slow one of the country’s fastest-growing energy markets.

The Australian Competition and Consumer Commission (ACCC) released a review finding that complaints about home battery systems surged 107 per cent in Q1 2026 compared with the same period in 2025, as reported by The West Australian. The spike coincides with the federal government’s home battery rebate scheme, under which more than 400,000 batteries have now been installed across the country.

Common grievances lodged with ombudsmen and state fair trading offices include misleading or incomplete advice, recommendations for oversized systems that don’t match a household’s actual needs, long delays after deposits are paid, and batteries not performing as promised. ACCC Commissioner Anna Brakey said the problems go beyond individual installs.

“As more Australians invest in batteries and participate in virtual power plants, it’s critical that consumer protections keep pace,” Brakey said. “Consumers should be able to easily compare offers, switch providers, and fix issues if things go wrong, but gaps in the current suite of consumer protections are preventing people from being able to do so.”

The ACCC review also flagged problems specific to virtual power plant (VPP) arrangements, where home batteries are pooled to feed electricity back into the grid. Despite the financial benefits, VPP participation is lagging well behind install rates. Customers enrolled in a VPP plan saved a median of $762 to $1,093 per year on electricity bills compared with grid-only customers, while those with battery and solar but not on a VPP plan still saved $329 to $909 against the typical household.

The catch: operators hold significant discretion over how batteries in the pool are used, and customers bear most of the risk. Batteries compatible with only some VPP products also make it harder for customers to switch providers.

The ACCC has recommended an overarching duty that would shift responsibility onto energy providers to deliver benefits to customers, rather than leaving households to parse the fine print themselves. The findings were independently corroborated by AAP wire reports carried by the Newcastle Herald and The Courier in Ballarat.

For solar and battery installers, the complaints surge is a direct warning. Recommending an oversized system, collecting a deposit and dragging out delivery, or failing to explain VPP terms clearly are exactly the behaviours driving formal complaints to regulators. With demand still climbing under the federal rebate scheme, installers who don’t get their advice and paperwork right face both reputational damage and regulator scrutiny. The ACCC’s push for a provider duty could also draw more of the installer supply chain into compliance obligations as the rules tighten.

Frequently asked questions

Why did home battery complaints surge in early 2026?

The ACCC links the 107 per cent rise in Q1 2026 complaints to the rapid growth in installations under the federal home battery rebate scheme, with common issues including misleading advice, oversized system recommendations, delayed delivery after deposits, and underperforming batteries.

How much can households save by joining a virtual power plant?

According to the ACCC review, customers on a VPP plan saved a median of $762 to $1,093 per year compared with grid-only customers. Those with battery and solar but not enrolled in a VPP still saved $329 to $909 annually.

What is the ACCC recommending to fix the problem?

The ACCC has recommended an overarching duty that would make energy providers responsible for actually delivering the benefits they promise, rather than leaving consumers to work through complex fine print on their own.

What does this mean for solar and battery installers?

Installers who recommend oversized systems, delay delivery after taking deposits, or fail to explain VPP terms clearly are among those driving formal complaints. The ACCC’s proposed provider duty could extend compliance obligations further into the installer supply chain.

Sourced from The West Australian, ACCC, Newcastle Herald, The Courier (Ballarat), AAP. Original article.