The Cheaper Home Batteries Program

Eligible battery systems  

• An eligible battery storage system must be in the range of 5kWh-100kWh in nominal capacity.  
• The discount will be provided for up to 50kWh of a battery system’s usable capacity. 
  • The Program is intended to support residential and small-scale battery systems; electric vehicles are not eligible battery systems for this Program. 

• An eligible battery system could include: 
  • A single battery unit 
  • A system of modular battery units connected to serve as one battery unit. 
    • To be eligible, the combined capacity of the system would need to be at least 5kWh (even if the individual units are smaller) and not exceed 100kWh in nominal capacity.

• Battery capacity, which is added to an existing battery system that has not previously received a discount under the Program, is eligible for a discount for the additional capacity. The additional capacity must be at least 5kWh nominal capacity, and the total system size after the upgrade must not exceed 100kWh. 
  • Additional capacity that is later added to an existing battery that received a discount under the Program would not be eligible. 

• Only a single battery installation at a premises is eligible for support under the Program once. 

• A system must be installed with an existing or new solar PV system. 

• A battery and inverter must be accredited by the Clean Energy Council (CEC), as listed on the Clean Energy Council (CEC) approved product list. 

• Batteries that are installed on-grid and off-grid are supported under the Program, provided they meet the accreditation and other eligibility criteria. A battery system (including an inverter) that is installed on-grid must be VPP capable, while a battery system installed off-grid does not need to be VPP capable to be eligible (see VPP section below). 
• A battery system connected to an electricity grid, including the National Electricity Market as well as smaller grids, is an on-grid system. 
• An off-grid battery is considered to be defined in the same way as an off-grid solar PV system under the SRES, where the unit is at least 1 kilometer from the nearest main-grid line, or there is written evidence from the local network service provider that connecting to the grid costs more than $30,000. 
• Off-grid batteries and inverters must still be listed on the CEC-approved lists to be eligible.   

• A battery in an on-grid system must be capable of being coordinated through a virtual power plant (VPP), but does not need to be connected to a VPP.   
  • To be VPP capable, a battery system must be able to connect to the electricity grid and respond to signals from VPP operators (e.g., electricity retailers or specialist VPP operators). This will require 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.  

• The number of certificates (STCs) that a battery system is eligible for will be in reference to the kilowatt-hours of usable capacity of the battery system (as published on the approved product list). 
  • STCs will only be provided for the first 50kWh of the usable capacity of a battery system. 
  • The volume of STCs will be equivalent to around a 30% discount on the average cost of an installed battery system. For example, the discount rate in 2025 will equal 9.3 STCs per kWh of usable capacity.   
• The number of STCs will decline for battery systems installed in 2026 and later years until the scheme ends in 2030. 

• It is intended that support under the Program will be additional to rebates or incentives offered by states and territories. When applying for incentives under multiple programs the system must comply with all eligibility requirements under each program, including separate application processes.

• A battery would be eligible if installed on or after 1 July 2025. The date of installation refers to the date that an electrical certificate of compliance is signed, which confirms that the system has been tested and confirmed to be safe and comply with relevant state and territory electrical safety regulations. 

Installing an eligible battery system 

• The battery installation must be signed off by a person/s accredited for battery design and installation by Solar Accreditation Australia (SAA), including Grid Connected Battery Systems (GCBS) for on-grid systems and Stand-Alone Power Systems (SAPS) for off-grid systems.

• The battery installation must be undertaken by or with supervision on site from an accredited battery installer under Solar Accreditation Australia (SAA). 

• A battery system installed by an accredited installer must comply with all Australian Standards relevant to the particular battery installation as well as with the industry-developed Best Practice Guide: Battery Storage Equipment.   

• Written statements from the retailer, installer, and designer, as required under SRES, must be provided to the system owner.   
  • These statements provide the consumer with information on the technical details of the installation, including that safety and accreditation requirements were met, as well as information on potential energy savings and payback periods.  

• The existing program of inspections for solar PV systems, administered by the Clean Energy Regulator, will be expanded to include inspections of battery installations. 

• The battery system and installation must comply with all relevant state and territory laws, including electrical safety regulations.  
• This includes all relevant Australian Standards and the requirements of a body with the ability to set rules under state or territory laws, such as DNSPs.
• Documents and supporting statements will be required, relating to the design and installation of the system, including meeting all jurisdictional regulatory requirements.