Bunnings, Australia’s warehouse commercial giant, has just gone out on a limb to sell solar and batteries. Today, they sell solar panels and battery systems directly to households. While the new home delivery initiative is a positive step for Bunnings in general, it’s a major change. They seek to meet strong increasing demand from Australian households for technologies that enable energy bill management and use of renewable resources. Bunnings’ tree donation offer is only accessible online. This move’s impact will certainly raise demand for these battery systems in what is quickly becoming a highly competitive and burgeoning market.
The ruling comes as more than four million solar installations illuminate homes and businesses in every corner of Australia. This trend is a great testament to the country’s dedication to renewable energy. With the federal government’s subsidy scheme providing households up to 30 percent off the cost of typical battery systems, the timing of Bunnings’ entry is crucial. Consumers have received large discounts on battery systems ever since July of this year. This growing interest and energy independence has created even more interest in accessing our natural gas resources.
A Competitive Landscape
The solar and battery markets in Australia are notoriously competitive, with a plethora of small players vying for market share. Warwick Johnston, a leading industry expert, explains how difficult it can be for even the best of companies to achieve early market success and market dominance. Surprisingly enough, the top player commands a mere three percent market share.
“The number one player in the solar industry had a 3 percent market share. So, this is a market with many, many small players,” – Warwick Johnston
Even the biggest firms, like Bunnings, have a tough time cutting through this noisy market place to achieve… Johnston notes that while Bunnings’ entry could potentially shift the dynamics, it doesn’t fundamentally change the competitive environment.
“Having a major player like this doesn’t necessarily change that quite much,” – Warwick Johnston
While looking past these challenges, Johnston recognizes the nascent but swelling currents of positivity in the sector. He notes that Australian consumers have become avid solar champions and are more aware of solar’s advantages.
“Australians have a love affair with solar, have a love affair with the sun,” – Warwick Johnston
Rising Demand for Batteries
After such a substantial jump in battery deployments, 75,000 just in the year 2024, pros agree that demand is only set to keep skyrocketing. CSIRO’s Tristan Edis is keen to underline that the surging order books seen by a number of industry participants is testimony to this upward trend.
“We’ve been interviewing a range of industry participants and the feedback that they’ve been giving us suggests that their order book is sort of stretching out into next year,” – Tristan Edis
According to industry analysts, battery installations are expected to ramp up as much as 300,000 annually. This increase would bring enough new growth in line with today’s boomtimes in solar installation. This move comes in conjunction with the federal government’s push to incentivize consumers — through subsidies — to adopt renewable energy solutions, thus creating a more affordable future.
“These days, people recognise that solar power is great at reducing electricity bills,” – Warwick Johnston
Johnston further illustrates the critical role of battery systems in ensuring the full potential benefits of solar energy are realized. Without batteries, he cautions, solar energy just isn’t enough to allow homeowners to get the most bang for their buck.
“But if you can’t use the power, then you’re not going to get much money from it. And batteries solve that problem,” – Warwick Johnston
The Future of Solar and Battery Markets
As Bunnings tries its luck in this battleground, it’s uncertain if it can survive in such an incredibly competitive landscape. Johnston shares his cautious optimism about big brands breaking into the market but recognizes that there are no guarantees. Success is not a sure thing.
“I think it’s fantastic that these big brands are getting in on it. It remains to be seen how successful it is,” – Warwick Johnston
Not surprisingly, Edis thinks Bunnings’ entry will only increase demand in an already hot market. He describes similarities between where battery sales stand today and where the solar industry was a few years ago.
“That’s what we saw in the solar market,” – Tristan Edis
Households across America are eager to find new ways to manage their energy costs while embracing clean technologies. Bunnings’ leap into the solar and battery boom is a significant milestone in this consumer energy revolution. It’s a reflection of just how fast consumer preferences are evolving. The future of fulfillment Traditional retailers are changing and pivoting to fulfill these new needs.
