Victoria Battery Incentives
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What is the Cheaper Home Batteries Program?
The Cheaper Home Batteries Program is a $2.3 billion National initiative. It offers Australians a substantial upfront discount of approximately 30% on the installation of eligible home and business battery systems. This program aims to make battery storage more accessible, allowing households and businesses to store excess solar energy for use during peak times or when the sun isn't shining.
How Does It Work?
- Under the program, battery installations create Small-scale Technology Certificates (STCs) based on the system’s usable storage capacity.
- Each certificate represents an expected amount of clean energy generation and storage over time.
- These certificates can be sold by the installer (who must be accredited) and the value is usually passed on to the customer as an upfront discount off the battery installation cost.
Who is eligible?
- Eligible battery size: 5–100 kWh of nominal capacity
- Homeowners, small businesses, and community facilities with new or existing rooftop solar systems
- The battery must be paired with either a new or existing solar system
- A battery can be added to an existing system if it meets all eligibility requirements
- Each address is eligible for one battery system only
- Batteries must be installed and certified (with a Certificate of Compliance for Electrical Work) on or after 1 July 2025
- Batteries installed before 1 July 2025 may still be eligible if they are tested and certified on or after that date
- The battery must be listed on the Clean Energy Council’s approved product list and, if grid-connected, must be capable of participating in a Virtual Power Plant (VPP). Check battery eligibility here
- This rebate is not means-tested.
Battery Rebate Calculator
- Notes on the discount:
- Discount value: Up to $353 per usable kilowatt-hour (kWh), minus the cost of certificate registration. This equates to roughly 30% off the total battery cost
- Discount applies only to the first 50 kWh of usable capacity, providing up to $17,670 in potential discounts
- The rebate value will decrease each year until the program ends in 2030.
Battery Incentive Enquiry Form
To enquire about any of our battery incentives, fill out the form below and we will be in touch.
Residential Batteries FAQs
The incentive is not given directly to customers. Instead, it is typically applied as an upfront discount by the approved supplier responsible for installing the battery or managing the Virtual Power Plant (VPP).
Approved suppliers, also known as Accredited Certificate Providers (ACPs), are businesses accredited by the Scheme Administrator (IPART) to carry out specific installations and upgrades under the Peak Demand Reduction Scheme.
The incentives will be available from November 1, 2024. This allows the Scheme Administrator (IPART) time to finalise compliance processes, approve suppliers, and train staff for conducting audits.
Virtual Power Plants (VPPs) are networks of interconnected batteries managed by a VPP operator. The operator coordinates the release of stored energy to the grid to help balance frequency and voltage, and to address local disruptions, ensuring the network remains stable.
Participating in a VPP means that customers allow their battery to be managed by a VPP operator. The specifics, such as conditions for energy dispatch, are agreed upon between the battery owner and the VPP operator. The PDRS provides an incentive for proof of battery participation in a VPP.
Customers can receive financial incentives for joining a VPP, which can shorten the payback period for their solar and battery system.
To qualify for the battery incentives, you must have rooftop solar installed and use an approved supplier under the PDRS to install the battery.
Installers typically provide a quote that separates the cost of the battery and the installation. However, some installers may offer an all-inclusive price. It is recommended to keep records of communications that clearly state what is included and excluded in the quote before making any payments.
This range is consistent with schemes in other Australian states. Most sites will only require batteries under 28kWh, considering the national average energy use for a five-person household is 25kWh per day.
The installation incentive is only available for new battery installations. However, the VPP participation incentive is available for existing batteries if they are signed onto a VPP, have at least six years remaining on the manufacturer’s warranty, and meet the equipment requirements.
If all equipment and implementation standards required by the PDRS are met, and ongoing maintenance and monitoring are conducted, the risk of a battery causing a fire is very low. Approved suppliers under the PDRS must comply with strict safety standards, including professional installation and adherence to relevant regulations.
Yes, as long as the battery model is on the approved product list specified by the Scheme Administrator and meets all equipment and implementation requirements. If a particular approved supplier does not offer the battery you want, you can search for another supplier who does.
No, the PDRS aims to reduce the load on the electricity grid, so off-grid batteries are not eligible.
Ensure compliance with relevant Australian standards and regulations. Choose a proper battery design, ensure adequate ventilation, and have the battery professionally installed to prevent overheating and ensure optimal operation. Approved suppliers must work with licensed tradespeople, and the installer must be listed on the Clean Energy Council’s register.
