The $2.3 billion Cheaper Home Batteries Program is now available to help more people install batteries in Australia.
Australia is a world leader in rooftop solar with more than 4 million rooftop solar PV systems, however only one in 40 households have installed Lithium Storage Batteries. The high upfront cost of batteries means installing batteries is out of reach for many households and businesses.
The Australian Labor government recently launched the “Home Storage First Plan,” which will be implemented in February or March 2025 and has a funding commitment of AU$230 million, making it one of the most ambitious policies in the global distributed energy storage sector.
The plan promises to reduce the cost of installing home energy storage systems by 30% and aims to add 20.3 million new energy storage systems by the end of the year. Based on the mainstream 10kWh configuration, this is equivalent to adding 10GWh of energy storage capacity, which is already double Australia’s current total grid-scale energy storage capacity.
Australian households, businesses and community organisations can now get a discount of around 30% on the upfront cost of installing small-scale Lithium battery systems (5 kWh to 100 kWh).
Such as:
1) 5KWh 51.2V 100Ah Simple Rack battery
2) 10KWh 51.2V 200Ah Powerwall Battery
3) 50KWh 51.2V 200Ah Stackable Battery
The discount is:
- Available for batteries connected to new or existing solar PV systems.
- Funded by the government to ensure no extra costs are passed on to consumers.
- Based on the battery’s usable capacity and the number of small-scale technology certificates the battery is eligible for.
- Going to be reviewed at least annually and will gradually decrease until 2030, in line with reducing battery prices.
- Going to be reviewed at least annually and will gradually decrease until 2030, in line with reducing battery prices.
Eligibility for the discount is subject to requirements in the Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025 being met.
The program is administered by the Clean Energy Regulator (CER) and the government is funding the discount.
- The program is:
- Helping participating households, businesses and community organisations reduce electricity bills by making the most of cheap and clean solar power by storing it for when it is needed
- Lowering costs for everyone – not just those who install a battery – by reducing peak demand and creating a more stable electricity grid
- Communicating responsibilities for retailers, installers and consumers to ensure batteries are bought and installed legally, safely and for permanent use.
“With 400,000 rooftop PV systems installed in Australia, rooftop solar is a national success story. Currently, one-third of households have solar panels, but only one-quarter have batteries. This will revolutionize energy use,” said Australian Prime Minister Anthony Albanese when announcing the AU$230 million program. According to Australian agencies, the policy will reduce the payback period from over 10 years to 7-8 years. This represents a significant market opportunity for investors.
Accessing the battery discount：
Consumers do not need to apply for the discount.
The discount is generally provided through accredited installers/retailers. The discount will be offered as an upfront reduction on the cost of the battery, unless you decide to register for STCs yourself via the CER.
The CER provides more information about creating and selling STCs under the program.
However, most people will decide to receive the upfront discount from the retailer/installer as a reduced price. In these instances, you should:
1. Carefully research what LifePO4 battery system would best suit your energy needs, including seeking multiple quotes from retailers/installers.
2. Make sure information about the value of the program discount, the system warranty, and the anticipated payback period is communicated.
3. Select a reputable retailer and installer. Check with family, friends or neighbours. Ensure the battery is approved by the Clean Energy Council and the installer is properly accredited by Solar Accreditation Australia.
More guidance on installing a battery is available on the CER’s website.
Free, independent advice is available through the Solar Consumer Guide.
Expanding the SRES to include battery systems
The Small-scale Renewable Energy Scheme (SRES) has successfully delivered the widespread uptake of rooftop solar photovoltaic (PV) systems across Australia. The government has expanded the SRES to support batteries installations for households, businesses and community facilities.
The SRES is a legislated, tried-and-tested scheme with an established regulatory framework. This has supported consumer protection and safety measures for other small-scale renewable energy resources, such as rooftop solar PV systems.
This framework relies on a combination of state and territory safety requirements as well as measures specific to the SRES.
This includes:
- The requirement that the products be on the Clean Energy Council’s (CEC) approved product lists
- Training and accreditation of installers through Solar Accreditation Australia
- Tools to reduce regulatory burden and collect mandatory information
- An inspections program.
- These measures also apply to batteries under the expanded SRES. The CER’s extensive regulatory experience in small-scale renewable technologies ensures they are well-placed to implement the program.
Cheaper Home Batteries Works with Other Schemes
The program is a national scheme with broad eligibility intended to complement state and territory government battery incentives. Support under state and territory programs will depend on the conditions established by state and territory governments.
This means people could be eligible for support under multiple schemes. Households and businesses should seek advice from their state or territory government to ensure they understand eligibility across schemes and where they are compatible.
Households can also receive discounted finance for home upgrades under the Household Energy Upgrades Fund (HEUF).
Minimising Waste
We are looking at ways to minimise waste where homeowners and businesses seek to replace or update existing solar PV systems and storage batteries. We recognise that managing end-of-use solar panels is an important part of transitioning to a more circular economy.
