Power Up Your Home: A Look at Australian Battery Programs
Thinking about adding a battery to your solar system? It's a smart move for energy independence and can save you serious money on your electricity bills. Luckily, both the Federal and State Governments across Australia recognise the benefits of home battery storage and offer programs to help you make the switch.
This blog post will explore some key incentives available to Australian homeowners, helping you navigate the landscape of rebates and programs. For a more comprehensive look, check out our Complete Guide.
The Federal Cheaper Home Batteries Program
The Australian Federal Government is committed to making home battery storage more accessible through the "Cheaper Home Batteries Program". This program aims to reduce the upfront cost of battery systems and encourage participation in Virtual Power Plants (VPPs).
Here's what you need to know:
- Rebates via STCs: The program is managed under the existing Small-scale Renewable Energy Scheme (SRES), offering rebates through Small-scale Technology Certificates (STCs). This means you'll effectively receive a discount on the purchase and installation of your battery.
- Approved Batteries: To qualify for STCs, your chosen battery system must be listed on the Clean Energy Council (CEC) approved product list. This ensures the safety and quality of the batteries being installed. Always double-check the list before making your purchase.
- VPP Readiness is Key: Battery systems need to demonstrate "virtual power plant readiness". This means the system can connect to the electricity grid and respond to signals. This is usually achieved through an ongoing internet connection and regular testing to ensure the battery can actively participate in the VPP.
- Minimum Storage Capacity: New, additional, and replacement battery systems generally need a minimum storage capacity of 5kWh to be eligible for the rebates.
By connecting your battery to a VPP, you're essentially joining a network of homes that can collectively contribute energy back to the grid when needed. This helps stabilise the grid, reduces reliance on fossil fuels, and can even earn you additional income.
Western Australia: The WA Residential Battery Scheme
Western Australia has its own specific initiatives to encourage battery uptake. The WA Residential Battery Scheme focuses on integrating batteries into the electricity grid through Virtual Power Plants (VPPs).
Here's the breakdown:
- VPP Participation is Essential: To be eligible for the WA Residential Battery Scheme, customers must participate in a VPP product. This is a core requirement of the scheme.
- Synergy and Horizon Power: Horizon Power and Synergy (WA's electricity retailers) will each publish a list of supported battery equipment solutions that meet CEC standards and the specific technical requirements of their service areas. Be sure to consult these lists when making your decision.
- VPP Product Evolution: As VPPs develop and mature, the products offered will also evolve. Synergy customers have the option to choose alternative VPP products, provided they meet certain criteria.
- Non-Co-optimised Essential System Services (NCESS): Synergy acts as the parent aggregator for residential customers, enabling them to provide Non-Co-optimised Essential System Services (NCESS) or Network Support Services (NSS) through their VPP participation.
Essentially, the WA scheme aims to create a more resilient and sustainable grid by actively involving households with battery storage in grid management.
New South Wales: Peak Demand Reduction Scheme (PDRS)
As of July 1, 2025, direct rebates for batteries have ended in NSW under the Peak Demand Reduction Scheme (PDRS). However, larger incentives for connecting to a Virtual Power Plant (VPP) have become available.
Previously, the PDRS offered upfront rebates for battery installations (until June 30, 2025). To be eligible, batteries had to be on the Clean Energy Council's list of approved batteries.
Now, the focus is on rewarding homeowners who contribute to grid stability through VPP participation. It's crucial to investigate the current VPP incentive structure in NSW to determine the potential benefits of connecting your battery to a VPP.
Important Considerations Before You Buy
Before diving into a battery purchase, it's essential to do your research:
- Check Eligibility Criteria: Carefully review the eligibility requirements for each program. This includes battery specifications, installation requirements, and VPP participation criteria.
- Approved Products Lists: Always refer to the Clean Energy Council's approved product list to ensure the battery you're considering meets the necessary safety and quality standards.
- VPP Options: Explore the different VPP products available in your area. Consider factors such as earning potential, grid contribution requirements, and the reputation of the VPP provider.
- Professional Advice: Consult with a qualified solar installer who can assess your energy needs, recommend suitable battery systems, and guide you through the application process for available incentives.
By understanding the available programs and carefully planning your investment, you can take advantage of the benefits of home battery storage and contribute to a more sustainable energy future for Australia.
