Cheaper Home Batteries Program

About the program

From 1 July 2025, households and small businesses may be eligible for around a 30% discount on the upfront cost of installing small-scale battery systems. The discount will be based on the solar battery’s usable capacity and will gradually decrease until 2030.

We will administer the program under the existing Small-scale Renewable Energy Scheme (SRES) once regulations are in place. The SRES has established compliance frameworks that will be extended to batteries to allow us to continue support states and territories fulfill their obligations for leading electrical and safety regulation. We will work closely with Solar Accreditation Australia, the Clean Energy Council, state and territory electrical safety regulators to make sure our processes, inspections and infrastructure supports their roles in ensuring:

• products and installations are safe and meet standards for electrical safety
• the people designing, selling and installing battery systems are qualified and properly accredited.  

The Australian Government will fully fund the discount for solar batteries by purchasing small-scale technology certificates (STCs). This means no costs will be passed on to householders through energy retailers.

Household batteries will assist in balancing electricity supply and demand across the whole grid. This should reduce costs to all households over time.

Stay up to date

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Proposed eligibility

Eligibility is still subject to amending the Renewable Energy (Electricity) Regulations 2001 and requirements may change. The proposed eligibility for the program includes:

• A single solar battery system with a nominal (total) capacity of 5 kWh to 100 kWh will be eligible.
• The solar battery system’s usable capacity will be used to calculate the number of STCs it will be eligible for STCs can only be claimed for the first 50 kWh of usable capacity.
• The solar battery will need to be installed with a new or existing solar photovoltaic (PV) system.
• The solar battery system is considered ‘installed’ when a certificate of electrical compliance or equivalent is signed, which confirms that the system complies with relevant state and territory electrical safety regulations.

See the full proposed eligibility requirements on the department’s website.

Safety

Safety is a priority. We’ll deliver the program through the SRES, which is a legislated scheme with an established regulatory framework. The SRES has provided consumer protection and safety measures for other small-scale renewable energy resources such as solar PV systems.  

As with solar, we will apply strict standards on where and how batteries are installed, and ensure certification of installation businesses with the skills, training and accreditation to install batteries safely. To ensure safety, solar battery systems must be:

• listed on the Clean Energy Council (CEC) approved product list
• installed by an installer with battery accreditation with Solar Accreditation Australia (SAA)
• installed to meet state and territory electrical safety requirements and installation standards.

Homeowners and small business owners can find out more about safety considerations when buying a solar battery on energy.gov.au.

Solar battery retailers, installers and designers can find out more about the work, health and safety laws in their state or territory on Safe Work Australia’s website. 

Inspections

We're responsible for conducting inspections on small-scale renewable energy systems. Our inspections ensure select systems under the SRES:

• meet installation requirements
• are eligible for STCs.

Shortly after the 1 July start date, we’ll begin conducting inspections on installed eligible solar battery systems. We’ll share inspection results with state and territory authorities responsible for electrical safety and fair trading.

Read more about safety and compliance measures and learn how we conduct inspections on small-scale renewable energy systems. 

STC markets

The main demand for STCs is from liable entities who need to source and surrender certificates to meet their legislative obligations under the Renewable Energy Target.

The small-scale technology percentage (STP) helps calculate the amount of STCs liable entities surrender each year. 

Solar batteries won’t be added to the STP as the Australian Government will purchase STCs equivalent to all battery STC creations.

No additional costs will be passed on to energy retailers and households.

Read more about how STCs will be calculated.

Who can participate

Homeowners and business owners

The solar battery system you choose will depend on your personal circumstances, including:

• current and future electricity usage
• if you will be installing a new PV system with your solar battery or if you have an existing solar PV system installed
• budget.

Make sure you research which system best suits your needs and get multiple quotes to compare the systems.  It is important to research the retailer and installer you choose and make an informed choice. Review the contract carefully, we also recommend you maintain documentation (email correspondence, quotes etc.) from the sales process.

Here are some links that may help you:

• energy.gov.au's Solar Consumer Guide including reasons to consider getting a battery and the different battery types that are available
• Your Home's guidance on batteries and inverters for information about how batteries work
• the NSW Government's household guide to solar batteries for information on installing a battery
• the NSW Government’s sign your battery up to a Virtual Power Plant (VPP) for information about VPPs and how they may benefit you
• the Victorian Government’s virtual power plan benefits for information about VPPs including a video about someone who has joined a VPP
• the Clean Energy Council's consumer guidance for information on how to check if your installer is accredited and who to talk to if you have a complaint
• the South Australian Government’s Consumer and Business Services solar energy for buying guides and what to consider before signing a solar-related contract
• ACCC’s information about consumer rights.

Small-scale technology certificates

Installing a small-scale renewable energy system and creating and selling STCs can be complicated. To make things simpler, most people assign the right to create STCs to a registered agent in exchange for an upfront discount on the system's purchase price.

This discount is based on the value of the STCs their system is eligible for, minus administration fees and charges incurred by the solar retailer and registered agents. The value of STCs is set by the open market or the STC clearing house.

We don’t set the STC price used by agents. When entering an arrangement, you should do your due diligence and make sure clear contracts are in place to ensure payment is made promptly after STCs are created. 

If your solar battery system will be installed before 1 July, make sure it is tested as capable of storing or discharging energy on or after 1 July 2025, as shown on the state/territory certificate of electrical compliance. If your solar battery is tested and certified before 1 July 2025, it won’t be eligible for STCs.

Read more about accessing the discount and how STCs are calculated.

Solar battery retailers

As a solar battery installer or designer, there are a few things you can do to be ready for 1 July 2025:

• Check you’re accredited for battery installation by Solar Accreditation Australia.
• Check you’re installing approved battery systems and components listed on the Clean Energy Council (CEC) approved product list.
• Make sure that installation complies with relevant state and territory electrical safety requirements.

If installing a solar battery system before 1 July, make sure it is tested as capable of storing or discharging energy on or after 1 July 2025, as shown on the state/territory certificate of electrical compliance. Testing the solar battery system before will result in it not being eligible for STCs.

Solar battery installers and designers

As a solar battery installer or designer, there are a few things you can do to be ready for 1 July 2025:

• Check you’re accredited for battery installation by Solar Accreditation Australia.
• Check you’re installing approved battery systems and components listed on the Clean Energy Council (CEC) approved product list.
• Make sure that installation complies with relevant state and territory electrical safety requirements.
• Take selfies of your presence at each stage of the installation for solar battery and solar PV installations. 

Collect the required documentation for the creation of certificates (including installer, designer and retailer declarations and Certificate of Compliance or equivalent).  If installing a solar battery system before 1 July, make sure it is tested as capable of storing or discharging energy on or after 1 July 2025, as shown on the state/territory certificate of electrical compliance. If your solar battery is tested and certified before 1 July 2025, it won’t be eligible for STCs.

Each jurisdiction has its own requirements. However, the Solar Victoria website provides useful guidance based on the Australian Standards for battery installations and includes past webinars on commonly found compliance issues.

Registered agents

As a registered agent, there are a few things you can do to be ready for 1 July 2025:

• Check that installers and designers are accredited for battery installation by Solar Accreditation Australia.
• Check that only approved battery systems and components have been installed. Refer to the Clean Energy Council (CEC) approved product list.
• Review the attached screenshots which has validations rules and questions. The mock-up provides an example of what information you may be required to collect to claim STCs for solar batteries. Noting that these are subject to change as regulations are developed and the final application form will be in the REC registry.

Solar battery systems installed before 1 July must be tested as capable of storing or discharging energy on or after 1 July 2025, as shown on the state/territory certificate of electrical compliance. Solar batteries tested and certified before 1 July 2025 won’t be eligible for STCs.

As with all applications for STCS, you must comply with all eligibility criteria and documentation requirements.