12/05/2025
On Sunday, 6 April 2025, Prime Minister Anthony Albanese and Minister for Climate Change and Energy, Chris Bowen, announced the 'Cheaper Home Batteries Program.' This initiative, part of the 2025–26 Budget, allocates $2.3 billion to subsidise home battery installations, aiming to reduce the cost of a typical installed battery by 30% and facilitate over one million new battery installations by 2030.
Official announcement: Labor to deliver one million energy bill-busting batteries
Current Status
As of now, the program remains a policy proposal of the newly elected Labor government; however, official appointments, including that of the Energy Minister, are pending due to unconfirmed results in certain electorates.
Once the government is reappointed, we anticipate confirmation and progression of this policy, potentially involving the expansion of the Small-scale Renewable Energy Scheme (SRES) to include batteries.
Election results: AEC Tally Room
Key details from the announcement
Installation targets: Over one million batteries by 2030
Cost reduction: Approximately 30% off the typical battery installation cost, equating to around $4,000 savings
Eligibility: Residential homes, small businesses, and community facilities
Battery capacity support: Up to 50 kWh for households; systems up to 100 kWh eligible for subsidies
Delivery mechanism: Through the existing SRES via Small-scale Technology Certificates (STCs)
Subsidy rate: $370 per kWh of usable battery capacity
Battery size requirements: Minimum 5 kWh, maximum 50 kWh for households
VPP readiness: Batteries must be Virtual Power Plant (VPP) ready; participation not mandatory
Eligibility per site: One claim per site; separate claims allowed for primary and secondary residences at different addresses
Grid connection: Applicable to both off-grid and grid-connected properties
Means testing: No means testing; open to all eligible participants
Solar requirement: Existing solar panels required on-site
Installation timing: Batteries must not be commissioned (i.e., 'switched on') before 1 July 2025
Additional installations: Sites with existing batteries may qualify if further eligible installations are made
Uncertainties and considerations
Program finalisation: Awaiting official government reappointment and policy confirmation
Regulatory details: Specific regulations and administrative guidelines are yet to be developed
STC calculator: Current calculators for solar PV exist; battery-specific calculators are pending
Commissioning definition: Clarification needed on what constitutes 'switching on' a battery before 1 July 2025
Eligible equipment List: Anticipated that batteries must be on the Clean Energy Council's accredited list; additional requirements may apply
