The first official set of written intended eligibility criteria for Australia’s Cheaper Home Batteries program was published yesterday. Here’s what we learned.
The subsidy can knock thousands off the up-front costs of buying and installing a battery system for households and small businesses. So, it’s not actually a rebate but as has been the case with solar panels, the name has stuck.
We’ve been tracking developments closely and have a federal government battery rebate explainer that is regularly updated as new information comes in. The intended eligibility criteria published yesterday by the Department of Climate Change, Energy, the Environment and Water (DCCEEW) helps fill some of the gaps, but note these are still subject to change and there are still missing details.
Here’s some of the new, updated or clarified information:
Defining An “Installed Battery”
While the incentive officially kicks in on July 1, 2025, the industry has been previously told an eligible battery can be physically installed now but must be left “switched off” until July 1, 2025.
The new guidelines clarify that a battery system “may be eligible for support if it is installed on or after 1 July 2025″. A battery system is considered ‘installed’ when a certificate of electrical compliance (CoC) or equivalent is signed which confirms that the system complies with relevant state and territory electrical safety regulations.”
So, it’s my understanding while a battery could be physically installed beforehand, the CoC signature date can’t be before July 1, 2025. And without the CoC, the battery can’t be used. But SolarQuotes’ veteran installer Anthony Bennett is looking more deeply into the ramifications of this definition and other aspects of the guidelines as there’s a still a bunch of devil in the detail — so stay tuned.
Off-Grid Installations
The program supports off-grid battery systems, but this support is contingent on the installation being at least one kilometre from a mains grid line or where the cost to connect to the grid exceeds $30,000. And while grid-connected batteries need to be Virtual Power Plant (VPP) compatible (but do not need to be connected to one), VPP compatibility is not required for off-grid systems.
Adding To An Existing System
Additional capacity can be added to an existing battery system and receive the rebate, assuming the existing installation has not received a discount under this program. The added capacity must be at least 5 kWh (assumed: useable capacity) and the total *nominal* capacity of a system once upgraded doesn’t exceed 100 kWh.
Rebate Value
As with solar power systems, the battery rebate is based on bits of virtual paper called Small-scale Technology Certificates (STCs). It works out that in 2025, these will add up to a subsidy of around $372 per kilowatt-hour of a battery’s usable capacity — before any admin fees. The number of STCs per kilowatt-hour will reduce annually until the end of 2030, when the subsidy finishes.
| Estimated Rebate Value (Before Admin Fees) | ||||||
|---|---|---|---|---|---|---|
| Year | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
| Value per kWh | $372 | $336 | $296 | $260 | $224 | $188 |
| STC factor | 9.3 | 8.4 | 7.4 | 6.5 | 5.6 | 4.7 |
However, the guidelines note:
“The estimated value per kWh is approximate and based on $40 per STC for a battery installed in the year. This could vary over time in line with reviews of whether the discount remains appropriate.”
Rebate Double-Dipping
It was also intended for the federal government rebate to be “stackable”, meaning other battery rebates or incentives from states and territories, where available, could be claimed. But after potential complications became apparent, eligibility for other support will depend on criteria that applies in those schemes. As an example, the New South Wales Government has been seeking advice on fixing NSW’s battery rebate to make it compatible with the national scheme.
Consumer Protections And Inspections
Customers installing systems must be provided with technical details of the installation, including confirmation that safety and accreditation requirements have been met, and potential energy savings and payback periods must be provided.
All installations must comply with the industry developed “Best Practice Guide: Battery Storage Equipment”, and the Clean Energy Regulator’s role in solar inspections will be expanded to include inspections of battery installations. The Regulator is currently reviewing testing requirements.
I think that just about covers it for now — we’ve updated the Cheaper Home Batteries explainer with this information. But no doubt there will be more clarifications and changes in the weeks ahead. Stay up-to-date with what’s happening by subscribing to the SolarQuotes weekly newsletter; and if you want to learn everything you need to know about residential energy storage, check out our home battery guide.
About Michael Bloch
RSS - Posts
What is the definition of “small” business?
Possibly this from treasury . . . less than 20 employees
https://treasury.gov.au/review/tax-white-paper/chart-data/6-small-business
So, for those who took the plunge and installed their batteries based on the earlier advice of “install now, keep the battery turned off until on or before 1st of July, 2025”, and had their CoC signed off after installation, is it a case of “bad luck”, or will there be any industry movement and pushback to help them qualify, as, regardless of bureaucratic timeline, they have served the green objectives of the government?
If people actually do get told those early installs don’t qualify (and this won’t necessarily be the case given the strong assurances made by Labor during the election campaign) we’ll certainly make a lot of noise about it, and I’m sure the industry will push back. Some installers also offered their own guarantees around the rebate.
Similar here. Our system was signed off on a new build in Dec 24 but we didn’t move in until April. Based on those election assurances, we have not turned the system on. Will be very disappointed, if not surprised, if the election promise is changed.
If the fed somehow twists the definition of “switched off” into meaning “installed after” which they’ve weasled into meaning “the CoC date” even though there’s a requirement for CoC certification within 8 business days* of installation, it’ll be a nice kick in the balls after they promised to purchase my vote, then reneged on it.
Not sure even government level creative accounting could make the original announcement date in April + 8 days mean “after 1st July”.
*8 days in Victoria at least for Prescribed COES:
https://www.energysafe.vic.gov.au/certificates-electrical-safety/certificates-electrical-safety-consumers#types-of-coes
Slightly off topic, but if car batteries now cost under $100 a kWh, why do home batteries cost $1,000 a kWh? Will the price drop dramatically in the near future?
Hi Nicholas,
Cells might be $100/kWh but a whole package of battery management system & durable casing is more. Then you have to run a raft of tests with an associated inverter to meet AS4777 and AS-5139. It’s expensive getting Australian regulatory approvals with DNSPs and the Clean Energy Council. Plus there has to be a margin built in to cover a ten year warranty.
Batteries are getting cheaper but they still need to meet a lot of rules.
Thanks for the ongoing updates on this program. Really valuable info. I completed electrifying my house last year and abolished the gas meter. I was holding off to see what would happen with batteries. Question is, if my solar system is too small? I have 19 panels 6.27KW solar system
(19x Q-Cells Dual Cell Q.Peak Duo G5-330W
19x Micro-Inverters Enphase IQ7+) What ye think?
More panels = less battery needed. E.g. Total overcast here now, 65 panels (27 kW) delivering 4 kW at noon for house battery & EV charging, i.e. not much, but both charging despite poor sky.
The 46 kWh of LiFePO₄ batteries often say at night that endurance is 10 days of that modest load, less when aircon heating from battery. (I’ve lit the wood heater, for better EV charging.)
They are independently optimisable parameters, but more panels is cheaper and has better endurance in prolonged crap weather. (9 consecutive overcast/cloudy days here in late April = big array best)
If you’re on-grid, a battery might be able to grab $0 power around noon, or even -$, to be better than more panels. My bias would be 20 kWh or more of battery, for useful blackout insurance and peak price avoidance, and double the panels when contemplating an EV. (Triple is even better, for useful EV charging in overcast.) If staging the cost, DC coupling later panels simplifies integration significantly.
That’s the maximum I put up on my townhouse five years ago, so it pretty much covered my whole roof. I’m just trying to understand whether a battery is viable in my scenario based on the energy my panels produce.
Hi Shane,
You may find a battery helps even if you don’t have enough roof. ROI relies on getting the right deal using time of use metering. See here for more.
Is rebate reduction happens end of financial year or calendar year?
In Australia as a rule of thumb $1 per Wh installed given the stated circumstance. So eg, $10k for a 10 kWh battery minus $3.7k subsidy = $6.3k installed.
Perhaps be mindful to ask when the battery cells were manufactured from a warranty State of Charge point of view. Also the install and commissioning according to the following needs to be supervised by an “accredited battery installer under Solar Accreditation Australia (SAA)”
https://www.dcceew.gov.au/energy/programs/cheaper-home-batteries
So i can get good quality battery system delivered to my door from china at 10kWh for $2300.
I am an electrical engineer and know what to look for and watched the various youtube reviews and some of these systems available are very good quality, with ten year warranty.
I dont know if i will bother with the rebate.
If there is a problem with standards compliance, i think i will just island with a transfer switch, so i can switch back over if i ever need grid power.
GS, is that assembled, or a Seplos or similar kit? If it uses EVE or CATL LiFePO₄ cells and a recognised BMS, then I’d go for it. My preference is a Jikong BMS, for its 2A active balancer and nifty phone app for easy monitoring and control.
I bought mine from an Aussie importer, at somewhat higher prices, but I have a local warranty. Second time round, I’d give direct import a go. (Perhaps from a seller on “The Off-grid Garage” website, for the confidence of other successes.)
My brother has multiple Victron battery inverters on-grid, so that’s compliant. Unlisted batteries on their other side ought only risk the rebate, and you’re well in front without it. Only retail bunnies are captive consumers. You can help drive their prices down by voting with your feet. (I did.)
It is worth understanding that standard car batteries are lead-acid – a short-life obsolete technology, no longer fit for purpose in domestic energy storage. But 18 months ago, I paid around $350/kWh for LiFePO₄ cells. And last week I was quoted $189 for just over 1 kWh of car battery. That 1:1.85 ratio makes LiFePO₄ cells cheaper than LA, for energy storage, as LA can only be discharged to 50% SoC, even if deep cycle – and then you pay even more.
Get a professionally quote for a 15 kWh-usable LA battery bank (so 30 kWh nominal), with Battery Management System, guaranteed for 80% capacity after 6,000 cycles or 20 years low-use life. Then compare LiFePO₄. 😉
A quick google for “100 AH 12 volt LFP battery” gave a $184 hit, $5 cheaper than last week’s LA battery quote. So comparing apples, LiFePO₄ is cheaper than LA, despite offering twice the usable capacity, and several times the lifetime.
Grid-scale prices are lower. Retail lacks buying leverage, has higher selling costs.
Different parts of the government use different definitions of small business. To know for sure the definition would either need to be in the documentation, or the documentation would need to reference another government source.
I am looking towards getting batteries in either 2026 or 2027 on our childcare centres.
Be interesting the hear about the “adding to a system” rules, as I added to mine 2 weeks after the rebate was announced, but figured it was impossible to “switch off” the new half of my battery, so i wouldn’t get a look in – perhaps i might.
Did I miss the “examples”
What does the average house actually get?
There are a few V2X Chargers coming to the market soon. Should people wait for those and then compare them with the battey installations?
Most EV owners have 50kw batteries already in their garage.
Please advise.
With an offgrid situation that cost more than $30k to connect to grid yet is closer than 1km to mains, and has a number of independent buildings on the same property, can they be independently run and still get the rebate for each,,..provided the total kwh is less than 28kwh, or do they all have to be connected to a mini grid?
So instal sooner rather than latter with the reducing rebate or wait for battery prices to continue to trend down?
Can you have another go at answering this please Anthony? It just can’t cost 10x as much as the wholesale cost. Are we not just plain getting ripped off?
A quick search and it seems you can possibly buy 10kW batteries from Alibaba for around the $1,000 mark and they include a BMS etc. They might not have the Australian certifications but it shows what’s possible? Surely we should be able to get an Australian certified 10kW battery for $3 or $4k and the company selling them will still make a good profit?
https://www.alibaba.com/trade/search?tab=all&SearchText=10kw%20home%20battery
Secondly, if I can buy a BYD Dolphin with a 45kW battery for $30,000 why should 3 Tesla Powerwalls cost more than this? That includes all the extra protection and battery management that a car requires, PLUS THE CAR ITSELF! – and all for significantly less than a home battery which just sitting in the garage. It really doesn’t make sense and I’d love a better answer from someone at Solar Quotes.
Some Chinese sites sell individual reject EVE cells at low prices, representing them as “firsts”. Complaining buyers are not hard to find. As a BMS that I’d rely on costs $500 here, I’m convinced that you’d be disappointed with the actual capacity and life of a bargain that is too good to be true. You’re welcome to prove the existence of Santa Claus, though. Then you’ll have shown us. 😉
Do include 10% import duty, customs agent fee, and a substantial freight charge in the real price you’re paying.
At the $2300 price point, you have a better chance of an adequate product. But still add duty, agent/forwarder fee, and freight.
You can save money, but not 90%. (I saved about 65% 18 months ago, including building my own battery enclosure, and self-assembling.)
Try getting it serviced in five years when the (Chinese) manufacturer has long gone from the Australian market. A bit like heat pumps and potential for another Pink Bats saga. I take it you are talking about Alpha ESS.
I have a SolarEdge system so am inclined to getting SolarEdge batteries. As they come in 9.7Kw, three would exceed the NSW threshold of 28kw. Is there a way to use two SolarEdge batteries and then another battery brand to get me closer to but not exceed the 28kw limit to get both the NSW and Federal rebate? If I could mix n match with another battery brand would it have to be a DC coupled battery or could I use an AC coupled?
Hi Matt,
The NSW governement is working in changing the PDRS presently. They’re making it stackable with the federal CHBP but we’re still waiting on details.
I wouldn’t add a different battery because having a salad of different equipment opens up a can of worms when you’re trying to integrate controls.
Most punters I’ve spoken with rule out investing more with Solar Edge when they realise it’s headquartered in Israel.
While the installer I spoke to last night was the latest amongst many who used to install but now refuse to deal with Solar Edge because of their warranty service.
“While the installer I spoke to last night was the latest amongst many who used to install but now refuse to deal with Solar Edge because of their warranty service”
Please explain ?
Hi David,
In my travels I have encountered many installers who have used their experience and expertise to diagnose a faulty inverter.
They’ve taken measurements and images of the inverter only to be told by SE tech support they need to go back, do more tests and take more pictures of the meter readings they use to determine the fault. Return visits that cost money, waste time and make these people look like idiots in front of the customer.
This was especially annoying when SolarEdge knew they had a problem with HD wave units blowing up regularly.
So many installers simply don’t want to use Solar Edge. I always say sort for the one star reviews…
Solar Edge = 46:1 (2107 5 star reviews, 46 1 star)
Fronius = 135:1 (7432 5 star reviews, 55 1 star)
Thanks for the background. In my own case, I had a Load Controller (LC) installed to run the HWS. As a result, the negative curtailment setup in the SE inverter stopped working. I represented the issue with the retailer (Amber) and at the same time the installer (Tindo). SE acknowledged the issue and within two weeks sent out a tech with a comms board h/w upgrade.. 48 hours later the negative curtailment setup started working again.
I can see why some electricians do not like them as they are basically a General Purpose Computing device that can digitally synthesise alternating current. If you are not unduly concerned about IT and Internet Protocol (IP) networking issues they can appear overly complicated.
Just for the record, I did ask five installers to quote for the SE LC and associated dry contacter. One responded in the affirmative. The other four either could not or would not, one even replying in capital letters “WE INSTALL SOLAR PANELS AND BATTERIES. ” Ah well.
Thanks for the information David,
You’ve found first hand that SE tends to polarise installers. Either they love ’em; or consider them the red headed stepchild of complexity.
I’ve already claimed the NSW rebate when I had a new system installed (last Dec – Panels / Inverter and Batteries), and the Federal Scheme was not even suggested at the time, so does the NSW limited of 28kw stop me from now using the Federal rebate to now go over 28kw?
I was under the 28kw when I claimed the NSW rebate and they surely cannot be suggesting that if you ever increase the size to over 28kw you would have to repay the NSW rebate…, they would have to have stipulated a time frame (eg if you go over within 2 years rebate must be repaid etc) as an unlimited time frame would never have been enforcable.
I have not found anything in the NSW scheme that says you cannot go over 28kw AFTER your system has been installed and rebate claimed, it seems to say that’s a restriction at the point in time at which the rebate was claimed/paid
Does anyone know of anywhere they says you cannot increase later unless you repay the NSW rebate?
Very interesting. Could you elaborate on the issues with the headquarters location and the warranty issue?
Hi Matt,
I’ve outlined a few warranty issues elsewhere on this thread.
For context, While leading Tesla, Elon Musk has set fire to his reputation by making obscene gestures that would see him gaoled if he performed them in Germany.
Solar Quotes is seeing our customers boycott the brand as a result.
As for Solar Edge headquarters, Israel is lead by people who aren’t just making gestures, rather they’re wanted by the ICJ for War Crimes:
-Starvation as a Method of Warfare
-Intentionally Directing Attacks Against Civilians
Crimes Against Humanity:
-Murder
-Persecution
-Extermination
-Other Inhumane Acts
In addition; allies like UK, France, Canada, Spain, EU, Germany, Italy, Netherlands, Belgium, Sweden are variously cancelling trade talks, imposing sanctions & travel bans on Israel. Even Albo is finding his voice to criticise Israel.
We are seeing customers boycott Solar Edge as a result.
The eligibility criteria for existing battery owners under the Federal rebate program appear to be unclear, and I would appreciate some clarification on this.
The main issue is that most older battery models are now discontinued and cannot be expanded, meaning a complete new battery system is often required.
I have noticed that batteries must be VPP compliant but not actually connected.
Does this mean that sometime in the future your energy retailer will be able to insist that you connect to the VPP as part of the deal to supply you.
This in turn means that the retailer and the government will be using your battery as part of their net zero push.
I read recently where one person signed up to a VPP, then the retailer changed his account to a time of use while draining his battery so that at peak time he was charged the highest fee and got no use out of his battery.
Ah ha, another Les . . .
I too was (and still a little) concerned about this being highlighted in the initial and subsequent details so far.
I raised this ver question in a previous battery scheme blog post here on SolarQuotes in the past couple of weeks.
It could be that being VPP compatible means it being just naturally compliant with 2 way metering needs.
It could also mean Govco (more than retailers) might one day mandate that subsidised batteries are opened up to contribute something more to the country’s needs, to help alleviate peak times usage / grid shortfalls outside of normal solar soak.
It comes down to ‘do you trust govco’ ?
We’ve seen WA govco tear up grandfathered FITs contracts in that state (2 or 3 years ago ?), and those had quite a number of years to run, people being put back onto very low FITs.
. . . further . . .
Getting people with solar onto batteries will help the grid enormously, removing a lot of peak needs away from the grid, but obviously grid specific usage needs / stabilisation with VPP contribution would be so much more beneficial.
Beneficial to who though ?
Like you say retailers profits / govco lack of proper planning, perhaps.
Certainly trusting govco is not easy, last day or so media regarding admissions of total underestimating of poles and wires for renewables, expected HUGE costs passed onto consumers.
If most is passed on through supply charges, then it’s going to make solar and batteries much less possible to be self sufficient / netral in billing.
Especially with FITs heading to probable zero.
I don’t know enough about VPP rules that apply to what a retailer can take, but even Amber users complain quite often about terrible strategies for battery charging / drawing used by that wholesaler.
Too bad for owners of Tesla PowerWall 2’s if they want to add an extra battery. PW 2’s no longer available and the PW 3 is not compatible with the earlier battery.
Hi we live in an embedded network and have been unable to claim the NSW rebate as we have a child meter with no NMI and are feed from the mother meter which is our NMI for the network.
In the federal scheme can a non NMI meter be a VPP.
Cheers
Hi Michael,
Regarding the “stackability” of the NSW incentive for home batteries, provided under the Peak Demand Reduction Scheme, I received the following response from IPART, the Scheme Administrator:
“Thanks for your enquiry.
At this point, the NSW Peak Demand Reduction Scheme (PDRS) does not allow incentives for activities that are eligible for incentives under the Commonwealth Small-scale Renewable Energy Scheme. This means when installing a battery becomes eligible under the Commonwealth Scheme on 1 July, it will not be eligible for incentives under the PDRS. Signing a battery up to a VPP will still be eligible under the PDRS.
NSW Department of Climate Change, Energy, the Environment and Water is responsible for PDRS policy including eligibility. Feedback on PDRS policy issues can be directed to NSW DCCEEW at sustainability@environment.nsw.gov.au.”
I emailed the NSW DCCEEW to see if they are intending to change the eligibility rules. Has SolarQuotes approached them?
We are providing feedback yes – there’s a few aspects of the scheme that the NSW government is looking to refine.
We had our new solar and 10kw battery system installed on April 10. The battery was tested working on the day, then turned off, the CoC signed in NSW as it’s mandatory to be done within 7 days. As per the election promise of simply switching it off, that is what we did.
Been waiting patiently through the election campaign and now until July 1st. Spoke to my installer who have confirmed with the Clean Energy Regulator that we are NOT eligible for the federal battery rebate for 2 reasons :
1. The CoC was signed deeming the system “installed”
2. The battery was already claimed under NSW’s PRC and due to policy updates you now cannot claim both
So … essentially the federal promises do not apply to anyone in NSW who have had their batteries installed in faith of a promised rebate. The backdating of the rebate was to help keep the industry running during this time which people in NSW, like us, have done. We’ve sacrificed potential savings by keeping our battery switched off, but now left with no incentives.
What can be done about this? I was going to get our installers to come turn the battery on this week, but with only 2 weeks until July 1st anyway, if there is any chance we could still qualify, may as well wait. On a 10kw system, the rebate is worth $3K. Any thoughts on our next move? Thanks!