Cheaper Home Batteries Program
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The $2.3 billion Cheaper Home Batteries Program will encourage the rapid uptake of batteries. From 1 July 2025 Australian households, businesses and community organisations can get an upfront discount of around 30% on the cost of installing a battery, subject to meeting eligibility criteria.
Australia is a world leader in rooftop solar. Incentives like the Small-scale Renewable Energy Scheme (SRES) have supported the widespread uptake of rooftop solar photovoltaic (PV) systems across Australia.
Batteries provide back-up power and shift electricity that is generated from rooftop solar PV systems during the day to supply evening peak electricity demand. While there are more than 4 million rooftop solar PV systems in Australia, only one in 40 households have installed batteries. The high upfront cost of batteries means installing batteries is out of reach for many households and businesses.
From 1 July 2025, the Australian Government will extend the SRES to deliver the Cheaper Home Batteries Program. The program will provide an upfront discount on the cost of installing small battery storage systems (less than 100 kWh) connected new or existing solar PV systems.
The program will:
- help participating households reduce electricity bills by making the most of cheap and clean solar power by storing it for when it is needed.
- reduce costs for everyone - not just those who install a battery. They also reduce the draw on the electricity system at times of peak demand meaning a more stable electricity grid for everyone.
- outline responsibilities for retailers, installers and consumers to ensure batteries are bought and installed legally, safely and for permanent use.
The program will provide around a 30% discount on the upfront cost of installing eligible small-scale battery systems in 2025. The discount will be based on the battery’s usable capacity and will gradually decrease until 2030. The discount will be reviewed at least annually, given rapidly reducing battery prices.
The program will be administered by the Clean Energy Regulator (CER) and the discount will generally be provided via solar and battery retailers and installers. The government will fund the discount to ensure no extra costs are passed on to consumers.
The Renewable Energy (Electricity) Regulations 2001 will be amended to expand eligibility of the SRES to include batteries.
Timeframes
The program will apply to batteries that are installed on or after 1 July 2025, subject to regulations being in place. We are progressing the necessary regulations to support successful delivery of the program.
The CER is developing arrangements to manage applications for small-scale technology certificates (STCs) under the program.
This period provides time for:
- industry to prepare and ensure that accredited products and installers are ready for the program. This includes compliance with electrical safety and consumer protections required under the SRES.
- state and territory regulators to prepare and provide information about the program.
Intended eligibility criteria
Intended eligibility criteria have been developed to provide guidance on the likely settings of the Cheaper Home Batteries Program.
Eligibility details will be confirmed in the regulation amendments. Until then, requirements may change.
Read the program’s intended eligibility.
Expanding the SRES to include battery systems
The SRES is a legislated tried-and-tested scheme with an established regulatory framework. This has provided 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.
- tools to reduce regulatory burden and collect mandatory information.
- an inspections program.
These measures will be leveraged to apply to batteries under the expanded SRES, while also leaning on the CER’s extensive regulatory experience in small-scale renewable technologies.
Compatibility with state or territory incentive schemes
Some states and territories have incentive programs for installing residential battery systems. The SRES is a national scheme that applies to installations in all jurisdictions. Consumers may be eligible for support under multiple schemes.
If you take part in a state or territory scheme, this does not exclude interested persons from participating in this program. However, consumers and installers should check the eligibility requirements of state and territory schemes to understand any additional conditions or exclusions in those schemes.
Minimising waste
A battery that is installed alongside an existing solar PV system (including an inverter) may be eligible under the program as long as the existing solar PV system meets electrical safety requirements and other eligibility including VPP capability. It may not be necessary to completely remove and replace existing solar PV systems to get a battery, depending on the quality and capability of those existing systems.
Where homeowners and businesses seek to replace or update existing solar PV systems and batteries, we are looking at ways to minimise waste.
We recognise that managing end-of-use solar panels is an important part of transitioning to a more circular economy. Everyone who imports, designs, produces, sells, uses and disposes of products has a shared responsibility to reduce the environmental and human health and safety impacts of those products. This includes increasing recycling of, and reducing waste from, renewable energy systems.
We are currently investigating options to reduce waste from solar PV systems and will consult publicly where appropriate as the work progresses. More information is available on the department’s consultation hub.
State and territory governments hold many of the legislative levers needed for effective waste battery management, such as setting requirements for storage, transportation, and recycling. We are working with states and territories on a coordinated, state-led, nationally consistent approach to enhancing waste battery management.
New South Wales has created the new Product Lifecycle Responsibility Act 2025, to allow more effective management of waste batteries. This legislation can act as a model for other states, including Victoria, for better battery management.
Before opting to add, upgrade, or replace a solar PV system, refer to the regulator’s advice on STC eligibility for these systems.