Unpacking Labor's Cheaper Home Batteries Program

Australia boasts the world's highest rate of rooftop solar adoption, with one in three Australian homes benefiting from solar power. Despite this impressive uptake, only about one in 40 households currently have a battery, limiting their ability to store affordable renewable energy for when it's most needed.

To address this, the Australian Government has launched the Cheaper Home Batteries Program, set to begin on July 1, 2025. This initiative aims to help more homes manage their electricity bills and reduce emissions by offering significant upfront discounts on battery systems. If you're an Australian homeowner or small business considering solar or looking to enhance your existing solar setup, this program could be a game-changer.

Are Home Batteries the Next Big Thing?

During the day, your solar panels generate electricity, powering your home and often exporting surplus energy back to the grid. However, without a battery, you typically have to buy electricity from the grid during evening peak hours when solar generation drops and demand (and often prices) are highest. This is where home batteries become essential: they store that excess solar energy, allowing you to use your own clean power at night or during cloudy periods, thereby maximising self-consumption and significantly cutting your electricity bills.

The benefits extend beyond individual savings. A broader adoption of home batteries across Australia helps reduce overall electricity costs for everyone. By decreasing the need for expensive gas power generation, and easing pressure on poles and wires infrastructure, batteries contribute to a more stable, efficient, and cost-effective energy grid for all Australians.

What Labor's Cheaper Home Batteries Program Offers

This $2.3 billion Cheaper Home Batteries Program will support Australian households and small businesses with a discount on the cost of installing small-scale battery systems. The program aims to help households make the most of cheap and clean solar power by storing it, and to reduce costs for everyone by lessening the need for expensive gas power generation and grid infrastructure.

Here's how the program works and what you need to know:

  • Significant Discount: From July 1, 2025, eligible households and small businesses can receive approximately a 30% discount on the upfront cost of installing typical small-scale battery systems. For example, a household could save around $4,000 off the upfront cost of installing an 11.5kWh battery, which might typically cost around $13,000.
  • How it's Delivered: The discount will be delivered through the existing Small-scale Renewable Energy Scheme (SRES), which currently provides incentives for rooftop solar panels. The Renewable Energy (Electricity) Regulations 2001 will be amended to include batteries under the SRES. The discount will generally be provided by solar and battery retailers and installers, who will be able to make claims for Small-scale Technology Certificates (STCs) for eligible installations. The Clean Energy Regulator will administer the program.
  • Discount Calculation: The discount is based on the usable capacity of the battery system. STCs will be provided for up to the first 50 kWh of usable capacity of the battery system. The number of STCs will decline for battery systems installed in 2026 and later years until the scheme ends in 2030. The estimated value per kWh for 2025 is $372 (based on 9.3 STCs per kWh). This value is set to decline in subsequent years:
    • $336 per kWh (8.4 STC factor) in 2026
    • $296 per kWh (7.4 STC factor) in 2027
    • $260 per kWh (6.5 STC factor) in 2028
    • $224 per kWh (5.6 STC factor) in 2029
    • $188 per kWh (4.7 STC factor) in 2030
  • Intended Eligibility Criteria:
    • Start Date: A battery system is eligible if installed on or after July 1, 2025. An installation is considered "installed" when a certificate of electrical compliance or equivalent is signed.
    • System Size: Eligible battery storage systems must be in the range of 5 kWh to 100 kWh. The discount applies to the first 50 kWh of usable capacity.
    • Battery Composition: Can include a single battery unit or modular cells forming a unit.
    • Existing Systems: Additional capacity is eligible if the system hasn't already received a discount and meets capacity requirements.
    • Accreditation: Battery and inverter must be on the Clean Energy Council (CEC) list and installed by or under supervision of an accredited battery installer.
    • On-grid and Off-grid: Off-grid eligibility applies if not connected, more than 1 km from the grid, or grid connection exceeds $30,000.
    • VPP Capability: Required for on-grid systems (internet connection needed). Not required for off-grid systems.
    • Coupled with Solar PV: Must be installed with new or existing solar PV.
    • Installation Standards: Must comply with Best Practice Guide: Battery Storage Equipment.
    • One Per Property: One eligible installation per property under the program.
  • Duration: The discount rate will gradually decline each year until 2030.
Cheaper Home Batteries Rebate Calculator
advertisement

Will a Battery Really Save You Money?

  • Combined Solar + Battery Savings: Up to $700 to $1,600 per year in savings.
  • Battery's Contribution: $300 to $900 annually.
  • Reduced Grid Dependency: Offers independence and resilience.

While battery systems still represent a significant investment (often over $10,000 before rebates), prices are steadily decreasing. A 5 kWh battery can now be found for under $5,000. Most families consider 6–7 kWh an optimal size. Use tools like the SolarQuotes Battery Calculator for estimates.

The Power of Virtual Power Plants (VPPs)

A VPP is a network of interconnected home batteries managed by an energy provider. It enables batteries to respond to grid needs during high demand, offering stability and financial incentives for households.

  • Stabilise the Grid: Balances supply and demand.
  • Reduce Peak Demand: Less reliance on expensive power plants.
  • Integrate More Renewables: Supports intermittent sources like solar.

Consumer Protections and Safety

  • Written Statements: Installers must provide statements outlining compliance and savings estimates.
  • Inspections: Battery systems will be inspected as part of the expanded SRES program.
  • Compliance: Must meet all applicable safety and legal standards.

Combining Incentives: State and Federal

Several states and territories offer rebates or interest-free loans that may be combined with the federal program. Check local guidelines and consult accredited installers.

The Bigger Picture: A Greener, More Resilient Grid

The program supports the goal of 82% renewable electricity by 2030 and one million household batteries. It helps reduce fossil fuel dependence, lowers energy costs, and improves system resilience.

Taking the Next Step

  • Research Approved Products and Installers: Must be CEC listed and installed by SAA-accredited professionals.
  • Get Multiple Quotes: Compare battery system prices and savings.
  • Understand VPP Options: Explore with your installer or retailer.

The Cheaper Home Batteries Program marks a pivotal shift towards affordability, reliability, and sustainability in Australia's energy future.

Source: dcceew.gov.au - Cheaper Home Batteries Program

How Much Should You Pay for Solar?
advertisement
How Much Should You Pay for Solar?
advertisement
Contact

Solar Directory
Doing what I can to promote solar and renewable energy in Australia. I want to help small Aussie solar businesses increase their digital footprint.

About
Contact
Facebook
Bluesky
Add Solar Business
Affiliate Disclosure Statement