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 it 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
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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.