What the Batteries Program means for your business

With the re-election of the Labor Government and reappointment of Chris Bowen MP as Minister for Climate Change and Energy, the highly anticipated Cheaper Home Batteries Program is set to begin on 1 July 2025. Backed by a $2.3 billion investment, this program aims to revolutionise energy storage across Australia. This initiative not only slashes the cost of home batteries but also empowers businesses to unlock significant operational efficiencies. With a commitment to making battery storage affordable and accessible, this represents a pivotal step toward lowering energy costs, improving grid resilience, and reducing carbon emissions.

For businesses and community organisations, this game-changing program can help you optimise energy management strategies and achieve cost savings–especially when you connect your solar and batteries to a Virtual Power Plant (VPP).

Understanding the Cheaper Home Batteries Program

The $2.3 billion Cheaper Home Batteries Program targets households, businesses, and community organisations, promising to cut the cost of a typical installed battery by 30%. With over 1 million new battery installations expected by 2030, the program helps mitigate upfront costs, removing one of the primary barriers preventing the adoption of energy storage solutions.

According to federal modelling, households and businesses with existing rooftop solar could save up to $1,100 annually, while those opting for a combined system of solar and battery storage could save up to $2,300 a year.

Final details of the rebate have yet to be confirmed. We’ll keep you updated when they are available. However, this is what has been proposed to date.

Key program features include:

Open eligibility to homeowners, small businesses, and community facilities. Not means-tested.
Applies to those with existing solar or looking to invest in a new solar plus battery set up.
Limited to one battery system per property, whether that property is a household or business premises. However, this rule does not preclude individuals or entities that own multiple distinct properties from applying for separate rebates for installations at each eligible property.
The federal rebate applies to household battery systems with up to 50 kWh of usable capacity.
Businesses and community facilities can receive subsidies for battery capacity up to 50 kWh; for batteries sized up to 100 kWh, catering to higher energy demands.
The rebate is based on a battery’s usable storage capacity and excludes installation costs.
Installation must be carried out by accredited providers (licensed electricians who have undergone certified training in battery installations).
All solar batteries must be on the Clean Energy Council (CEC) approved batteries list.
Batteries must have the capability to integrate with VPPs.
Program commences on 1 July, 2025 with backdated eligibility: batteries installed from 6 April 2025 may be eligible as long as they are not switched on until 1 July. The Certificate of Electrical Safety must be dated 1 July 2025 or later.
Subsidies will be delivered through the Small-scale Renewable Energy Scheme (SRES) – a trusted framework that’s been driving the solar boom since 2011.
The federal rebate can be combined with any state or territory battery rebates.

The business case for battery storage

Australia has the highest rooftop solar adoption in the world, but this success presents growing challenges for the electricity grid and energy management. By complementing solar systems with battery storage, facilities and organisations can extract greater value.

1. Cost savings

Solar feed-in tariffs have dropped significantly (as low as 1 cent per kWh), reducing the financial incentive to export excess solar power to the grid during the day. Batteries allow businesses to retain energy generated during off-peak times and use it during peak periods when grid electricity is most expensive. This not only reduces energy costs but also creates a significant hedge against future electricity price hikes.

2. Energy resilience

Batteries enhance facilities’ ability to withstand power disruptions. By storing energy on-site, businesses can maintain operations during grid outages, providing continuity and security.

3. Reduced carbon footprint

By relying on stored solar energy instead of fossil-fuel-powered grid electricity, businesses can significantly cut emissions, helping to achieve sustainability targets.

4. Grid benefits for all

Batteries alleviate pressure on the energy grid by reducing peak demand, which benefits the entire market. According to Smart Energy Council modelling, installing 1 million batteries nationally could collectively save $1.3 billion annually in wholesale power costs.

5. Added value with virtual power plants

Participating in a VPP means businesses can share energy with other sites or contribute their excess stored energy back to the grid during peak demand, earning profits while also supporting grid reliability. This creates a win-win scenario for organisations and the broader community.

Why businesses should integrate solar & batteries with VPPs

An essential element of the Cheaper Home Batteries Program is its focus on compatibility with Virtual Power Plants.

What is a Virtual Power Plant?

A Virtual Power Plant (VPP) is a network of decentralised and customer energy resources (CER) coordinated through a central control platform. This network includes resources like solar PV, battery storage, EV chargers, and electric vehicles. The central control platform orchestrates these CERs across multiple locations, enabling them to behave as a unified energy source, similar to a traditional centralised power plant. Combined, the energy stored across these assets functions like a large-scale energy storage system, stepping in to support the grid during periods of high demand or unexpected outages.

VPP technology varies in complexity. Basic systems rely on tools like APIs or IoT to manage batteries and inverters, helping to balance peak energy usage. On the other hand, advanced solutions, such as Karit, utilise machine learning-based software to forecast energy requirements and dynamically manage & optimise the performance of connected devices and assets with remarkable precision and efficiency.

What are the benefits of VPPs?

For businesses, participation in a VPP offers several benefits:

Maximise ROI: With your battery integrated into a VPP, you can monetise surplus energy, creating an ongoing revenue stream.
Boost asset performance: VPP platforms give asset owners and managers the ability to visualise and improve the overall performance, efficiency, reliability and availability of distributed renewable energy assets.
Enhanced grid stability: VPP-connected batteries improve the grid’s capacity to handle surges in demand or extreme weather events, reducing the likelihood of blackouts and energy instability.
Reduce emissions: By sharing clean, renewable energy with others, VPPs help organisations contribute to Australia’s carbon reduction efforts.
Support energy equality: By participating in a VPP, businesses help lower wholesale energy prices, creating cost-of-living relief for everyone.

From an operational perspective, battery integration becomes more than just an energy storage solution; it evolves into an investment with long-term value and future-proofing capabilities.

Take advantage of the Batteries Program today

The Cheaper Home Batteries Program is more than an opportunity to lower energy costs. It’s an invitation to future-proof operations, contribute to Australia’s energy transition, and gain a competitive edge.

Businesses and organisations should act now:

Evaluate your energy needs: Determine the best solar system and battery size for your facilities based on energy use and requirements.
Explore partnerships: Partner with professionals to ensure your battery system is CEC-approved, compatible with VPPs, and functions efficiently.
Plan for implementation: Avoid delays by preparing for the program’s launch on 1 July 2025.

Empower your business with Karit

At Karit, we’re dedicated to helping you make the most of the Cheaper Home Batteries Program. Whether it’s evaluating your energy needs, designing your virtual ecosystem, connecting you to a VPP, or providing strategic procurement advice, our team is here to support your organisation every step of the way. We also have an extensive network of strategic partners.

Contact us today to learn how we can help you leverage this government initiative for a sustainable, cost-effective future. Together, we can help your organisation navigate Australia’s evolving energy industry and thrive.