For years, Michael Atkinson – better known as Outback Mike – would think twice before flicking on the air conditioner.
Like millions of Australians, he had spent decades turning off lights, delaying the heater and sweating through summer afternoons in an effort to keep his power bills down.
Now, he does the opposite.
“I’m actually saving money by turning the air conditioner on,” he said.
It sounds counterintuitive during a cost-of-living crisis, but Mr Atkinson is among a growing number of Australians who say home batteries are changing not only how much they pay for electricity, but how they think about using it.
As governments roll out incentives to encourage households to install batteries and electrify their homes, energy experts say a quiet shift is underway that could help slash power bills, reduce Australia’s dependence on imported fuel and reshape the nation’s electricity grid.
Mr Aktinkson, recently passed the six month mark of living with a 40kWh home battery paired with 22kW of rooftop solar at his property near Nelson Bay.
While he received the solar system and battery at a discounted price in exchange for creating content about the technology, he said the experience had fundamentally changed the way he viewed electricity.
“The biggest thing that has struck me and something I’m still getting used to is I don’t feel guilty about using electricity,” he told news.com.au.
“I’m 49 years old, my entire life I’ve had drilled into me, make sure you turn the lights off … If it was cold, I would delay putting the heater on… Same if it was hot, I’d sweat it out.
“[Now] it is cheaper to use the electricity in your house … than to put it back into the grid.”
Before installing the battery, Mr Atkinson already had rooftop solar but still paid about $800 each quarter for electricity. He estimates the combination of battery storage, solar and switching away from gas heating will save thousands each year, with the system expected to pay for itself within five to six years.
The battery has also given him something harder to quantify: peace of mind.
When a recent blackout hit his area, his house seamlessly switched to battery power.
“I just got a notification saying that the system has gone to off grid and it just used electricity from the battery.
“Now I could have reduced my electricity needs, but I knew that there’s so much energy in the battery and it was a sunny day that the power was going to come back on the afternoon.”
His experience reflects a broader trend.
According to Dani Alexander, chief executive of the UNSW Energy Institute, more than 450,000 Australian households have already taken advantage of the federal government’s Cheaper Home Batteries Scheme, which subsidises around one-third of the cost of installing a home battery.
“For a country with around 11 million homes, that’s a really significant level of uptake in just one year,” she told news.com.au.
Australia already has the highest rate of rooftop solar adoption in the world on a per-capita basis, with around 36 per cent of homes connected to the National Electricity Market generating their own electricity.
By 2050, market operator forecasts suggest more than half of Australian households will have rooftop solar, while around two-thirds could also have batteries.
Ms Alexander said many people assumed the biggest financial benefit came from selling electricity back to the grid, but that’s only part of the story.
“If you can store your excess solar generation and use it later in your own home, you don’t even need to export it to receive a financial benefit,” she said.
“It’s about taking the energy you’ve generated during the day and using it when electricity is most expensive.”
Governments are increasingly encouraging households to do exactly that.
In addition to the federal battery subsidy, New South Wales has introduced interest-free loans of up to $15,000 and discounts of up to $4000 for a range of energy-saving upgrades, including batteries, heat-pump hot water systems, insulation, efficient airconditioning and electric vehicle chargers.
The state has also launched a “Solar Share” offer that allows eligible customers to access up to three hours of free daytime electricity.
Ms Alexander said the opportunity extended well beyond batteries.
Recent research has suggested widespread adoption of efficient electric hot water systems alone could provide benefits equivalent to installing two million home batteries.
“We have the potential to move towards a future of energy abundance if we capture more of the cheap solar energy that’s already being generated,” she said.
The shift isn’t only about lowering household bills.
Recent tensions in the Middle East and concerns over shipping through the Strait of Hormuz have once again highlighted Australia’s dependence on imported fuel.
Speaking to Alan Kohler on ABC Business Daily, Ampol chief executive Matt Halliday said the conflict had exposed Australia’s fuel security vulnerabilities after the country was forced to rely on increasingly distant fuel supplies.
He noted Australia has just two operating oil refineries remaining after five closures since 2013, leaving the country with less fuel storage and greater exposure to international disruptions.
The transition towards electrification, he said, would take time, but it was already reshaping Australia’s energy landscape.
Electric vehicles now account for about 15 per cent of new car sales, while Ampol continues expanding its national charging network.
For households like Mr Atkinson’s, that could unlock another major saving.
He’s planning to switch to an electric vehicle, allowing him to charge at home using excess solar generation instead of paying for petrol.
“If I’m filling it up at home, it’s basically free,” he said.
“That’s where I think it becomes a real game changer.”
“So basically anytime I’m refuelling at home, it’s completely free … So that, yes, when I go on longer trips … take that into account.”
Ms Alexander agrees, although she believes charging infrastructure, particularly outside major cities, remains one of the biggest barriers to faster EV adoption.
“The technology is already there for most people’s needs,” she said.
“It’s about making sure the charging infrastructure is available where and when people need it.”
Home batteries won’t suit every household. The upfront cost remains significant, and payback periods vary depending on electricity usage, location and existing solar systems.
But with electricity prices continuing to dominate household budgets, government incentives expanding and Australians increasingly looking for ways to insulate themselves from volatile global energy markets, experts say more households are beginning to see batteries as more than just an environmental investment.
For Mr Atkinson, the biggest change has been surprisingly simple.
“It’s still weird,” he said.
“I still feel like, ‘Nah, I shouldn’t put it on,’ but then I’m like, ‘Oh, I’m actually saving money by turning the aircon on.’
“It makes no sense, I know.”