Cheaper Home Batteries Program: A Comprehensive Guide

The Cheaper Home Batteries Program is a $2.3 billion Australian Government initiative aimed at helping households and small businesses install small-scale battery systems at a discounted cost. Launching from 1 July 2025, the program is designed to make it more affordable to store solar energy for use when it’s needed most, reduce pressure on the energy grid, and lower electricity costs across the board.

What Is the Cheaper Home Batteries Program?

This national program provides an upfront discount of around 30% on eligible small-scale battery storage systems. The support will be delivered through the Small-scale Renewable Energy Scheme (SRES) and managed by the Clean Energy Regulator. It is part of the broader effort to transition to cleaner, more reliable, and cost-effective energy solutions.

By encouraging battery storage alongside solar power systems, the program aims to:

• Help households make better use of affordable and clean solar power
• Reduce reliance on expensive gas generation and grid infrastructure
• Deliver long-term energy cost savings to all Australians, not just those installing batteries

Related News: Labor Reveals $2.3 Billion Cheaper Home Batteries Program

Intended Eligibility for the Cheaper Home Batteries Program

The proposed eligibility criteria offer a preliminary guide to how the Cheaper Home Batteries Program is expected to operate. These details are intended to help households and installers prepare for the program’s rollout.

Please note that final eligibility requirements will be confirmed through formal regulations and may be subject to change.

Eligible Battery Systems

Minimum and Maximum Battery Size

• An eligible battery storage system must have a nominal capacity between 5 kWh and 100 kWh. Nominal capacity refers to the maximum amount of energy a battery can store when fully charged.
• The program provides a discount for up to 50 kWh of usable capacity within a battery system.
• The initiative is designed to support residential and small-scale systems. Electric vehicles are not considered eligible battery systems under this program.

Battery System Composition

• Eligible battery systems must meet the specifications outlined in the Australian standard AS/NZS 5139:2019. These systems may consist of:
  • A single battery unit, or
  • A configuration of modular battery cells connected to function as one unit.
• Additional capacity added to an existing battery system may qualify if:
  • The system has not previously received a discount under the program
  • The added capacity is at least 5 kWh, and the total nominal capacity does not exceed 100 kWh
• If a battery system has already received a discount through the program, any additional capacity added later will not be eligible.

Accreditation of Battery Systems

Both the battery system and its inverter must be included on the Clean Energy Council (CEC) approved product list to qualify.

On-grid and Off-grid Battery Systems

Battery systems eligible under the program may be installed either on-grid or off-grid.

• An on-grid battery system is connected to an electricity grid, including the National Electricity Market.
• An off-grid system is not connected to an electricity network and is located either at least one kilometre from a main grid line, or where grid connection would cost more than $30,000.

VPP capability

• A battery in an on-grid system must be capable of coordination through a virtual power plant (VPP), though it does not have to be connected to one.
  • To qualify as VPP capable, the battery system must be able to connect to the electricity grid and respond to signals from third-party VPP operators (such as a DNSP). This capability requires an ongoing internet connection.
  • Consumers are not required to participate in a VPP.
• Off-grid battery systems are not required to be capable of connecting to a VPP.

Discount for eligible battery systems

STC calculation

• The number of small-scale technology certificates (STCs) available for a battery system will be determined by the system’s usable capacity in kilowatt-hours (kWh). Usable capacity refers to the amount of energy that can be discharged from a battery and used by a home or small business.
• Only the first 50 kWh of usable capacity will be eligible for STCs under the program.
  • For battery systems installed in 2025, the discount will be calculated at a rate of 9.3 STCs per kWh of usable capacity, which is equivalent to approximately $372 per kWh.
• This discount rate will reduce in subsequent years, with the number of STCs per kWh declining annually until the scheme ends in 2030.
• The number of STCs awarded will depend on the battery’s installed usable capacity and the year it is installed, as shown below.

• The estimated value per kWh is based on a $40 STC price and may change over time depending on reviews of the scheme’s discount level.

Number of Battery Systems

• Only one battery system installation per premises is eligible for support under the program.
• Additional rebates or incentives may be available through state and territory programs. Eligibility and other support will depend on the specific criteria of those schemes.

Installing an Eligible Battery System

Accreditation of Battery Installers

The battery system must be installed by an individual accredited for battery installations by Solar Accreditation Australia (SAA).

Supervision of the Installation

The installation must be carried out by, or under the on-site supervision of, an installer accredited by Solar Accreditation Australia (SAA).

Installation Date

To be eligible for support, a battery system must be installed on or after 1 July 2025.

• A system is considered installed when a certificate of electrical compliance (or equivalent) is signed, confirming it meets the applicable electrical safety regulations in the relevant state or territory.

Installing a Battery System with Solar PV

A battery system must be installed alongside a new or existing solar PV system at the premises.

Battery System Installation Standard

The battery system installation must follow the industry-developed Best Practice Guide: Battery Storage Equipment.

Consumer Protections and Additional Safety Measures

Written Statements

Retailers and installers must provide written statements to the system owner, as required under the Small-scale Renewable Energy Scheme (SRES). These statements must include:

• Technical details of the installation, confirming compliance with safety and accreditation requirements
• Information about potential energy savings and estimated payback periods

Inspections

• The existing inspection program for solar PV systems, managed by the Clean Energy Regulator, will be extended to include battery installations.
• The Clean Energy Regulator is also reviewing testing requirements to support the rollout of this program.

Compliance with Laws and Safety Regulations

Battery systems and their installation must meet all applicable state and territory laws, including electrical safety regulations.

• Required documents and supporting statements must be provided to demonstrate that the design and installation meet relevant jurisdictional regulatory requirements.

For more information about this program, please visit the Department of Climate Change, Energy, the Environment and Water website.