Amber Electric: Can Wholesale Energy and Smart Batteries Beat the Big Retailers?
For decades, Australian households have been squeezed by electricity retailers who set fixed tariffs, add hidden markups, and leave customers powerless. Now, one challenger—Amber Electric—is offering a radically different model: direct access to wholesale energy prices, smart automation for batteries, and transparency that cuts out the middleman.
But does Amber really live up to its promise, or is it too good to be true? Let’s unpack how it works, why batteries matter, and what the federal and state rebates mean for customers.
How the Energy Market Works in Australia
To understand Amber’s appeal, you first need to understand the three layers of the energy market:
Generators – coal, gas, hydro, solar and wind farms producing electricity.
Networks – poles and wires that transport electricity to your home.
Retailers – companies like Origin, AGL, and EnergyAustralia that buy power on the wholesale market, add a margin, and sell it to you.
Traditional retailers shield you from wholesale price spikes, but in return, they set fixed tariffs (often 40–45c/kWh) and pocket the profits when wholesale prices fall to 2c, 7c, or even below zero.
Amber flips that model. Instead of charging a big margin, they pass through real-time wholesale prices and charge just $25/month subscription. That means customers benefit when prices crash during sunny, windy days—and can also profit when batteries sell back power during evening price spikes.
Why Batteries Are the Game-Changer
Here’s the catch: without a battery, you’re exposed to risk. During the day, feed-in tariffs are often close to zero. At night, grid demand spikes, and wholesale prices can jump to $3, $10, or even $19/kWh.
With no battery: you’re forced to buy expensive power when the sun goes down.
With a battery: you can charge when it’s cheap (or free) and sell back when it’s expensive.
“The bigger the battery, the bigger the shield,” says Carlos Garcia from Amber.
Amber’s SmartShift automation uses machine learning to predict usage, weather, and price signals. Customers can set reserve levels (e.g., “Always keep 12 kWh for my household”) and let Amber trade the rest. Some even report making $500 in a single night during extreme spikes.
How Much Can You Really Earn?
Amber claims customers with 10 kWh of battery capacity can earn an extra $400–$500 per year just by optimising with SmartShift—on top of regular solar and battery bill savings.
That means:
A 20 kWh battery could earn ~$1,000 annually.
A 30 kWh battery could push beyond $1,500 annually in volatile states like NSW or SA.
It won’t fully pay off a battery (which might cost $10,000–$15,000), but it significantly improves the return on investment.
Federal Battery Rebate: Go Big or Go Home
The $2.3 billion Federal Battery Rebate announced in 2025 is set to turbocharge installations. While the government pitched it as supporting “one million batteries,” the maths suggests closer to 200,000–250,000 units—since most Australians install larger 12–24 kWh batteries, not tiny 6 kWh ones.
The rebate only applies once, so experts recommend: get the biggest, best-quality battery you can afford.
Avoiding ultra-cheap, no-name batteries is critical. As Garcia warns, “They don’t care if your battery only lasts two or three years. That’s your risk.” A dead battery isn’t just a financial loss—it can be a fire hazard, and disposal costs fall on the homeowner.
State Rebates and VPP Requirements
NSW: Offers up to $1,500 for joining a VPP, though poorly designed rules currently cap it at 28 kWh.
SA: Through the REPS scheme, households can claim up to $2,000.
WA & QLD (Ergon regions): Only state-run retailers operate, forcing customers into limited VPP options.
Right now, the federal rebate only requires VPP capability, not participation. But with funds likely to run out in under 12 months, future versions may mandate joining a VPP. If that happens, Amber’s flexible model—where customers control how much of their battery is used—will likely be the most attractive option.
What About Renters?
Here’s where policy still falls short. Renters can’t usually install solar, and the rebate doesn’t cover standalone batteries. Yet as Garcia points out, renters could benefit hugely by:
Charging a battery when wholesale prices fall (sometimes below zero).
Using that stored energy at night when prices rise.
Exporting to the grid during price spikes.
Without reform, the rebate mainly benefits wealthier homeowners—while renters remain locked out of savings.
Amber vs The Big Retailers
Most big retailers run VPPs too, but with a catch:
They offer fixed payments (e.g., $200/year for 200 kWh) but pocket most of the profits.
Customers have no control over when their battery is discharged.
Amber is different:
All profits flow back to the customer.
You set reserve levels and can override automation.
You can cash out credits whenever you want.
It’s the difference between being a player in the market versus a spectator collecting scraps.
The Future: EVs as Giant Batteries
One of the most exciting frontiers is Vehicle-to-Grid (V2G) and Vehicle-to-Home (V2H) technology.
With cars like the BYD Seal Premium offering 80 kWh+ of storage, EVs could become mobile power plants. Trials show households earning $500–$600 in a single day by discharging EVs during extreme price events.
While manufacturers still worry about battery warranties, competition is likely to force them to allow V2G. When that happens, Amber’s software platform will be perfectly positioned to integrate EVs into the wholesale market.
Risks and Considerations
Amber isn’t for everyone. Risks include:
No battery: you’re more exposed to price volatility.
Small inverters/cables: can limit export potential during spikes.
Location: some states (NSW, SA) see far more volatility than others (VIC).
Still, Amber offers a bill guarantee: if your wholesale costs exceed the government’s Default Market Offer, they’ll reimburse you. That’s a safety net traditional retailers don’t provide.
Conclusion: A Win-Win-Win
Amber Electric’s wholesale model is shaking up an industry long dominated by the “GenTailers.”
Customers win with wholesale access and real control.
Amber wins with a scalable subscription model.
The grid wins with thousands of distributed batteries acting as shock absorbers.
As one customer put it: “With Amber, you’re not just a spectator. You’re actually in the game.”
For homeowners with solar and a decent-sized battery, Amber may well be the smartest energy decision you can make in 2025.
