Federal Incentives Now Available for Home Battery Installations

As of today, Australian households and small businesses can benefit from federal rebates for solar battery installations, following a recent amendment to the Small-scale Renewable Energy Scheme (SRES).

The regulatory update, known as the Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025, came into effect on 27 June. It builds upon the existing Renewable Energy (Electricity) Regulations 2001, expanding support for battery energy storage systems.

This development is part of the Australian Government’s broader Cheaper Home Batteries Program, which aims to reduce upfront costs for residential battery installations by approximately 30%. For example, an 8kWh battery system could see a cost reduction of around AUD 3,000.

The initiative utilises the same small-scale technology certificate (STC) system that has long supported rooftop solar adoption. Now, eligible battery installations – whether paired with new or existing solar photovoltaic systems – can generate STCs based on their usable capacity, up to a limit of 50kWh. The number of STCs is determined by multiplying the battery’s capacity by a declining annual factor, set at 9.3 for installations completed in 2025, with reductions continuing until 2030.

To prevent costs from being passed on to consumers by electricity retailers and other liable entities, the federal government will directly purchase the STCs generated from approved battery installations.

Eligible battery systems must appear on the Clean Energy Council’s approved product list and have a nominal storage capacity between 5kWh and 100kWh. All installations are required to comply with strict technical and safety standards, including AS/NZS 5139 for battery safety. Additionally, systems intended for connection to the grid must be ready to participate in virtual power plant (VPP) programs.

This regulatory update represents a significant step toward wider adoption of energy storage solutions in Australia, supporting greater energy resilience and the transition to cleaner energy sources.