Cheaper Home Batteries Program – Vendor & Installer Update

Date: Wednesday, 7 May 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

The Cheaper Home Batteries Program is currently a proposed initiative by the newly elected Labor Government. It has not yet been confirmed or legislated as an official government rebate.

Important update for NSW-based installations

The Smart Energy Council advises caution regarding stacking of NSW Battery Incentive with Federal Government Cheaper Home Batteries program.

The NSW Peak Demand Reduction Scheme (PDRS) Rule does not allow peak reduction certificates (PRCs) to be created where an implementation is eligible to create certificates under the Commonwealth Small-scale Renewable Energy Scheme (STCs).

This means battery implementations will not be eligible for PRCs under the PDRS once they are eligible to create certificates under the Commonwealth scheme. Changes to the PDRS Rule are a matter for NSW DCCEEW to consider.

Feedback on the PDRS Rule requirements and other policy issues can be directed to NSW DCCEEW at sustainability@environment.nsw.gov.au.

The situation is very fluid at the moment and Brighte recommend that you exercise caution when applying POS discounts which have not yet been formally approved.

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 legislation and requirements

• 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

CEC Accredited Batteries: Clean Energy Council Battery List

For solar & battery vendors and sales agents

While the newly elected Labor Government has proposed the Cheaper Home Batteries Program, it has not yet been legislated or confirmed as an official rebate.

Until further details are released, please advise your customers of the risks of proceeding early. Customers must acknowledge the risks of proceeding early via a pop-up notification in a battery or solar and battery loan application before submission.

Pre-settlement checks & guidance

We strongly advise caution before proceeding with any battery installations.

If you choose to install and submit for settlement through Brighte, the following will apply:

Review process

• All battery settlement requests will undergo review by a Brighte Settlements Officer.
• Your Sales Invoice must clearly outline: The rebate status That the finance amount reflects the net cost, accounting for STCs (Small-scale Technology Certificates)

If the invoice does not include the rebate

Brighte will contact the customer to confirm that:

• They are aware the finance does not include a rebate.
• They understand the rebate is not confirmed or guaranteed.
• They accept the risk of proceeding before the program becomes active.
• They understand the battery must not be commissioned before 1 July 2025.
• They acknowledge Brighte will not fund any rebate and they remain liable for full repayment.
• If concerns arise, Brighte will refer the customer back to you for further clarification before proceeding.

Loan repayments and deferrals

Some customers may express concern about loan repayments beginning before their battery is turned on.

• If no deferral has been requested, Brighte will contact the customer to confirm they accept repayments to begin before commissioning.
• If the customer is unsure or concerned, the application will be referred back to you to discuss payment deferral options.