From 1 July 2025, solar battery systems will be eligible for support under the Small-scale Renewable Energy Scheme (SRES).
The change could unlock a long-anticipated national incentive for residential and small commercial battery uptake.
The Cheaper Home Batteries Program will provide an upfront discount of around 30 per cent for eligible battery storage systems with a nominal capacity between 5kWh and 100kWh.
The rebate will apply to up to 50kWh of usable capacity and is equivalent to 9.3 small-scale technology certificates (STCs) per kilowatt-hour in 2025.
The value of the discount will gradually decline until the SRES ends in 2030.
The policy aims to address Australia’s lagging adoption of home batteries – currently installed in just one in 40 solar households – despite more than 4 million rooftop PV systems already deployed.
The upfront cost of batteries, which ranges from $10,000 to $25,000, remains a key barrier to uptake.
Unlike other SRES-supported technologies, the government will purchase the STCs for battery systems directly from the STC Clearing House, shielding liable entities and consumers from additional compliance costs.
Only battery systems paired with a new or existing solar PV array will be eligible.
Installers must be accredited by Solar Accreditation Australia for either grid-connected or stand-alone battery systems. Systems must meet all relevant Australian Standards and be listed on the Clean Energy Council’s approved product list.
Battery installations must comply with all state and territory electrical safety regulations and be verified through a certificate of electrical compliance to qualify as “installed” under the scheme.
The Clean Energy Regulator will expand its existing inspection regime to include battery systems.
A new requirement mandates that all on-grid battery systems be capable of participating in a virtual power plant (VPP), although participation itself remains optional.
Off-grid systems are exempt from the VPP-ready condition but must still meet all technical and compliance criteria.
The Department of Climate Change, Energy, the Environment and Water, which developed the program, said the expansion of the SRES to include batteries reflects the evolving needs of Australia’s energy transition. It emphasised safety, consumer protection, and system reliability as central to the scheme’s implementation.
While eligibility remains subject to legislative amendments, the program has already received strong support from industry groups, including the Clean Energy Council and Smart Energy Council.