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Off The Press: Cheaper Home Batteries Labor Election Announcement

The Albanese Labor Government announced a key election policy the $2.3 billion Cheaper Home Batteries Program. Now that the Labor government has been elected the policy will see the typical cost of a battery be reduced by 30% and over one million new batteries are expected to be installed by 2030. Analysis by the government shows houses will generate energy savings greater than $1,100 per year as well as reducing reliance on the grid.

Key program details - what we know so far:

  • Launch Date: 1 July 2025
  • Target: Installation of over one million new batteries by 2030.
  • Implementation: Delivered through the existing Small-scale Renewable Energy Scheme (SRES).
  • Subsidy: $370 per kwh or approximately 30% off the upfront cost, saving around $4,000 on a typical battery.
  • Eligibility: Households, small businesses, and community facilities​.
  • Battery Capacity: 5–50 kWh for homes, and up to 100 kWh for businesses and community facilities
  • Requirement: Batteries must be Virtual Power Plant (VPP) enabled.
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.

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