Australia

How the Australian market works

The Australian Energy Regulator (AER) sets the Default Market Offer (DMO), a reference price that applies as the standing offer for households and small businesses in New South Wales, South East Queensland and South Australia. It protects customers who have not chosen a competitive plan, and it works as a reference when you compare plans (AER: DMO 2026-27 information kit). The DMO covers only those three regions. Western Australia (WA) has its own battery scheme, with retailers Synergy and Horizon Power (WA Government: Residential Battery Scheme).

The federal battery rebate is run through the Small-scale Renewable Energy Scheme (SRES). The Clean Energy Regulator (CER) administers it, and the Department of Climate Change, Energy, the Environment and Water (DCCEEW) holds the policy (CER: about the Cheaper Home Batteries program; DCCEEW: Cheaper Home Batteries Program). States and territories add their own schemes on top, and the rules differ a lot from one to the next, as the sections below show.

For a home battery the order of questions is usually: does the federal discount apply (almost always), is there a state scheme where you live, what do your network and retailer allow you to export, and is your retailer's plan one a battery can use? Our guide to whether you need a home battery for your solar panels covers the first sanity check.

The federal Cheaper Home Batteries Program

The program started on 1 July 2025. It does not hand you a cheque. Instead the battery earns STCs, and a registered agent (usually your retailer or installer) can give you an upfront discount if you assign your right to claim them. Your retailer may also offer its own discount. The STC amount depends on the battery's usable capacity, and only the first 50 kWh count (CER: solar batteries; CER: about the program).

The government set the budget at A$7.2 billion over four years in December 2025, up from an original estimate of A$2.3 billion, and said the aim after the 2026 change is a discount of roughly 30% across battery sizes. It also said the discount calculation will be adjusted over the life of the program to follow falling battery costs (CER: changes to the Cheaper Home Batteries program, 13 December 2025).

Since 1 May 2026 the support is tiered by size, with each tier applying only to the kWh inside it: up to and including 14 kWh: 100% of the STC factor; above 14 kWh up to 28 kWh: 60%; above 28 kWh up to 50 kWh: 15% (CER: battery rebates are changing). So a very large battery gets far less help per kWh than a small one, and the extra support for the part above 28 kWh is small.

The STC factor is the number of STCs per kWh of usable capacity, and it falls in half-year steps. Under the amended regulation it was 8.4 for January to April 2026 and is 6.8 for 1 May to 31 December 2026. It falls to 5.7 for 1 January to 30 June 2027, and to 2.1 for 1 July to 31 December 2030. The explanatory statement gives a worked example: 25 kWh installed in May 2026 gives 140 STCs. Batteries certified before 1 May 2026 keep the earlier factor for the installation year (Explanatory statement to the amending regulation, F2026L00093).

Rebates are fixed by the installation date, not the date you sign the contract (CER). We found no official statement of what an STC is worth in dollars, because that follows the market price of certificates and what your agent passes on. We therefore do not give a dollar figure per kWh. Ask for the discount as a line on the quote, and compare quotes on the final price. Our guide to what size home battery you need helps you avoid buying capacity you will not use.

Who qualifies for the federal discount

The CER lists the conditions (CER: solar batteries). The battery must be on the CEC approved battery list. If you reuse an existing VPP-capable hybrid inverter, it must be CEC-listed now or when your solar system was commissioned, and a replacement inverter must be CEC-listed and VPP-capable. The installer must be an SAA-accredited installer with a battery endorsement, working to SAA technical requirements, and installers face daily limits on eligible installations.

The nominal capacity must be 5 kWh to 100 kWh, and each battery in a group must meet the minimum. Only one battery per premises is eligible (one per NMI or commercial sub-meter). The battery must be new, meaning created within 12 months of installation and not previously installed or claimed, and it must be installed with a new or existing solar system of no more than 1 MW. An existing solar system must meet state electrical safety rules but need not be CEC-listed. Adding modules to an existing battery can qualify, but only the new modules, and the installer must recertify the whole system.

A grid-connected battery must be technically capable of joining a VPP. The Clean Energy Council explains that you are not required to join one, and that VPP capability needs an ongoing internet connection (CEC: federal and state battery programs). Off-grid batteries must serve a lived-in dwelling, and sheds and bore pumps do not qualify. Off-grid systems within 1 km of the grid must be VPP-capable, or have written evidence that the connection cost exceeds A$30,000.

Two practical conditions are easy to miss. The battery must stay at the same premises until the later of the end of 2030 or the end of the warranty period, because moving it makes it ineligible. And the CER recommends an annual safety check by an SAA-accredited electrician. Ask your installer to confirm each condition in writing, and keep the CEC listing and installer accreditation numbers with your paperwork.

State and territory schemes

State schemes change often and several have closed. The pages below are the most recent ones we could read. Where we could only find a consumer or industry source, we say so. Check the state page before you rely on anything.

Western Australia: the Residential Battery Scheme gives up to A$1,300 to Synergy customers and up to A$3,800 to Horizon Power customers, based on 10 kWh of usable capacity. There are also no-interest loans up to A$10,000 for households with a combined income under A$210,000. You must commit to a VPP product from your retailer, use a battery on the Supported Solutions List, and an installer listed in the Plenti Vendor Directory. The scheme is capped at 100,000 rebates and was expected to run until 2027 when the page was written. It sits on top of the federal program (WA Government: Residential Battery Scheme).

New South Wales: a VPP incentive under the Peak Demand Reduction Scheme pays for connecting a battery to a VPP and can be combined with the federal rebate. NSW's own page from the 2024 launch describes an extra A$250 to A$400 for the VPP connection and an upfront installation discount (NSW Government: household battery incentives). A later industry guide reports that the VPP incentive is paid on usable capacity from 2 kWh to 28 kWh and that you need at least 5 kWh to also get the federal rebate (SolarQuotes: NSW VPP incentive). Energy Matters reports that the former NSW installation discount remains suspended, and that a Home Energy Saver Program offers zero-interest loans up to A$15,000 (Energy Matters, 22 June 2026). We could not read the current NSW incentive pages, so check energy.nsw.gov.au for the amounts.

Victoria: Choice reports that the Solar Homes Program is not accepting battery applications, although solar panel rebates and loans continue (Choice, 12 June 2026). Energy Matters says battery loans closed because funding ran out (Energy Matters). We could not read the Solar Victoria page, so check solar.vic.gov.au.

South Australia and Queensland: Choice reports that South Australia's Home Battery Scheme is closed and that Queensland has no dedicated battery rebate, so those households rely on the federal program and retailer VPP offers. It also reports that the ACT's Sustainable Household Scheme offers low-interest loans for batteries (Choice). We did not verify these against the state sites. Tasmania and the Northern Territory: we could not confirm the current position.

Default Market Offer, time-of-use and Solar Sharer

The DMO for 2026-27 applies from 1 July 2026. The AER's examples for flat-rate residential plans are A$1,899 a year for 3,900 kWh in the Ausgrid area, A$1,988 a year for 4,600 kWh in the Energex area and A$2,334 a year for 4,000 kWh in the SA Power Networks area. Prices fall in most regions, and South Australia is the exception with a small rise at the flat rate. Time-of-use DMO plans are only available to customers with smart meters (AER: DMO 2026-27 information kit). The DMO is a reference price, not a limit on what a market plan can charge, and the AER kit names only those three regions, so we did not review reference prices elsewhere.

The Solar Sharer Offer started on 1 July 2026 in the same three regions. It gives 3 hours of free electricity in the middle of the day, 11am to 2pm in NSW and South East Queensland and 12pm to 3pm in South Australia, up to 24 kWh a day. It is optional, retailers with more than 1,000 customers in those regions must offer it, and you need a smart meter. You still pay for use outside the window and the daily supply charge. You do not need solar panels, and there is no battery requirement. The government's page suggests charging a home battery or an electric vehicle in the free window (Australian Government: Solar Sharer Offer; AER information kit).

For a battery owner this is a real option, with limits. A battery that charges for free in the middle of the day can supply the evening, but retailers set their own rates outside the window, and the plan may pay less for solar you export. Compare the whole bill with your own usage, not the free hours alone. Our guides on dynamic energy contracts and how a home battery saves money explain the arithmetic. Choice's savings examples (for example, a payback of 6.3 years in Adelaide and 13.9 years in Melbourne on A$8,500 installed) come from SolarQuotes and assume about 7 kWh of overnight use. Treat them as an illustration, not a forecast (Choice).

Solar export limits and virtual power plants

Export limits cap how much power your solar and battery system may send to the grid. A static limit is fixed. A flexible limit varies with network capacity, and the network sends signals to your inverter. In its October 2024 guidance, the AER says distribution networks should curtail only when and where it is necessary to maintain network security, that a zero static export limit can only be imposed in the circumstances set out in the network's connection policy, and that static limits should not be set unreasonably low. The guidance is non-binding for now, and it discusses small-scale generation in general, not batteries (AER: Export Limits Guidance Note, explanatory statement).

Limits differ by network, so ask your installer for the limit that applies to your connection before you decide on system size. We did not review each network's current limits.

A virtual power plant (VPP) is a network of home solar and battery systems controlled by a company, typically charging batteries in the day and selling stored power when prices peak. Participants may receive bill credits, higher rates or a share of profit (Choice). Joining is optional for the federal rebate, but WA's scheme requires it (WA Government). Read the contract: ask what the company may do with your battery, how much backup charge it must leave, what happens if you move, and how you leave. We did not review individual VPP offers. Our news piece on virtual power plants and home batteries explains the idea.

Installation, standards and who may install

Installation of battery systems follows AS/NZS 5139, the standard for the safety of battery systems used with power conversion equipment. Amendment 1 was published on 19 December 2025 and the NSW Government's page says it is now mandatory there. The changes include new figures for clearances and restricted locations, clearer treatment of windows and ventilation, inverters allowed within the restricted location, barriers to habitable rooms at least 6 mm thick when exempt materials are used, safety data sheets that must be physically provided, and updated warning labels (NSW Government: changes to the battery standard). Queensland's electrical safety regulator has also issued the amendment for installers (WorkSafe Queensland: amendment issued).

For federal STCs the installer must be SAA-accredited with a battery endorsement, and the CER advises you to make sure the installer attends the job at set-up, mid-install and commissioning (CER). Electrical work also needs the state licence, so ask to see both the SAA accreditation and the electrician's licence on the day. Our guide to how to choose a home battery lists what to ask an installer.

The 2019 version of the standard is not retrospective, so existing systems do not need upgrading, but adding or replacing batteries would likely require the whole system to meet the current rules (Renew: new battery installation rules). That article describes the 2019 text before the amendment, so rely on the NSW and Queensland pages above for the current detail. We have not read the standard itself, and AS/NZS 3000 (wiring rules) and AS/NZS 4777 (grid-connection of inverters) were not reviewed for this page.

Safety, fire and insurance

The standard treats location as a safety matter. The Renew summary of the 2019 text lists places where a battery may not go: habitable rooms, ceiling spaces and wall cavities, under stairways or access walkways, evacuation or escape routes, and near combustible materials. It says the likely compliant spots are an external house wall or a garage, with clear space of at least 600 mm to each side and 900 mm above, and a non-combustible barrier if a habitable room is behind a wall-mounted battery (Renew: new battery installation rules). Amendment 1 changed some clearances. For example, NSW notes that a system may be within 600 mm of an opening wider than 900 mm, such as a garage door (NSW Government). Treat the figures as indicative and ask your installer for the plan against the current text.

The CER advises an annual safety check by an SAA-accredited electrician, and the program requires the battery to be on the CEC list. The CEC says the list covers lithium-based devices only, because no Australian Standard exists for other household chemistries, and the CER can deem a battery ineligible if it was listed on false or misleading information or poses a risk to the scheme (CEC: federal and state battery programs).

We could not confirm any fire-service rule specific to home batteries in bushfire-prone areas, or how insurers treat them. Tell your home insurer before installation, ask in writing whether the battery location affects your cover, and ask your installer how the location suits a bushfire attack level if you live in a mapped bushfire area. Our guides on fire risk and chemistry and installing a battery outside cover the practical side.

Blackout backup, storms and bushfires

A grid-connected solar system, with or without a battery, may switch off in an outage. Solar Victoria says the best way to have backup power is a battery with backup functionality, installed with the panels, and that some systems can isolate from the grid ("islanding") and supply selected circuits such as lights and the fridge (Solar Victoria: power outages). RACV says grid-tied solar shuts off in a blackout because Australian standards require it, power may be cut for about 30 seconds while the system switches to backup, and high-draw appliances such as air conditioners or ovens can drain a battery within hours (RACV: solar batteries and blackout protection).

Whole-of-home backup runs everything on the battery but drains it quickly, while essential-load backup isolates circuits such as lighting and the fridge so the charge lasts longer. A solar battery is not an uninterruptible power supply and is not suitable for people who depend on essential medical equipment (RACV).

The federal rules do not require backup. Choose it on purpose, and ask the installer which circuits it supports, how many hours it will last in a typical storm outage, and whether the system recharges from solar during the outage. We did not review how backup performs in particular storm or bushfire events. Our guides on how long a battery lasts in a power cut, whole-home backup and batteries for emergency power explain the trade-offs.

Portable power stations versus a home battery

Portable power stations are popular in Australia for camping, caravans and short outages. They are a different product from a home battery. A home battery is fixed, connected to your switchboard and solar by a licensed electrician, and can run circuits automatically. A portable power station is a self-contained box you plug appliances into, usually with limited capacity and output.

The federal discount is built for the first kind. The CER's rules require a battery on the CEC approved list, installed by an SAA-accredited installer with a battery endorsement, together with a solar system, and the battery must stay at the same premises (CER: solar batteries). A portable unit does not fit that description, and the CER pages we read do not mention portable units, so we could not find an explicit statement either way. Check the CEC list and ask the CER before you count on a discount for any unit.

For an outage, a power station can run a few essentials such as a fridge for part of the time, a phone charger and lights, but it does not switch the house over by itself. It is a stop-gap and a camping tool, not a replacement for a fixed system. We do not recommend brands here. Our guide to portable power stations and plug-in batteries compares them, and our guide to using a battery without solar explains what changes without panels.

Costs in outline

We do not quote product prices, because they change every few weeks. The official figures to start from are the ones above: the STC factor for your installation period, the tier your battery size falls in, and any state incentive. Choice's June 2026 indicative installed prices after the federal rebate run from A$7,000 to A$11,000 for 10 kWh and A$11,000 to A$15,000 for 15 kWh, and it warns that complex installs can cost much more (Choice, 12 June 2026). Choice is a consumer organisation, not a government source, and the table is an estimate.

Ask each installer for the same things on the quote: usable capacity, the CEC listing, the STC discount as a separate line, any state incentive, the backup circuits, the warranty, and who handles a VPP sign-up. Then compare. Our guide to choosing a home battery has a checklist.

Outside Australia

Rules, tariffs and incentives for home batteries differ from country to country, so do not apply the figures on this page to a home elsewhere. We are adding guides for other countries to this section.

Common questions about Australia

Related guides

Compare how other markets handle the same questions, or size your own system first:

• Home batteries in United States
• Home batteries in United Kingdom
• Home batteries in Canada
• Home batteries in Japan
• Home battery capacity guides (5 kWh to 30 kWh+)
• Home battery brand guides
• All country guides