Explanatory Statement

Issued by the authority of the Minister for Climate Change and Energy

Renewable Energy (Electricity) Act 2000

Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025

Legislative Authority

The Renewable Energy (Electricity) Act 2000 (REE Act) promotes the reduction of greenhouse gas emissions in the electricity sector by encouraging investment in renewable energy resources through the Large-scale renewable energy target and the Small-scale Renewable Energy Scheme (SRES). The REE Act establishes a framework for the creation of renewable energy certificates, being small-scale technology certificates (STCs) and large-scale generation certificates, which are issued for the installation of small-scale technologies and electricity generated from accredited power stations respectively.

The Renewable Energy (Electricity) Regulations 2001 (Principal Regulations) are made under section 161 of the REE Act, which provides that the Governor-General may make regulations prescribing all matters required or permitted by the REE Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the REE Act.

Section 23A of the REE Act allows regulations to:

         prescribe conditions that must be satisfied in relation to a small generation unit or its installation before STCs can be created;

         require information or documents to be given to the Clean Energy Regulator (the Regulator) in relation to a small generation unit or its installation;

         impose conditions in relation to a small generation unit after its installation;

         make provisions relating to the time at which a small generation unit is taken to have been installed;

         make provisions relating to the time when a right to create certificates in relation to a small generation unit arises; and

         make provisions relating to the period within which certificates may be created in relation to a small generation unit.

Section 23AAA of the REE Act provides that the regulations must establish a scheme for the inspection of the installation of small generation units for which certificates have been created.

Subsection 23B(1) of the REE Act allows regulations to determine the number of certificates that may be created in relation to a small generation unit.

Purpose

The purpose of the Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025 (Amendment Regulations) is to give effect to the Cheaper Home Batteries Program (Program) by amending the Principal Regulations to:

• expand the SRES to enable the creation of STCs from battery connected (solar photovoltaic) (PV) small generation units;
• set out the method for calculating the number of STCs created from battery connected (solar PV) small generation units;
• set the eligibility criteria for battery connected (solar PV) small generation units to create STCs; and
• extend existing consumer safeguards, and other compliance requirements of the SRES to battery connected (solar PV) small generation units.

The Program is intended to provide an upfront discount on the cost of installing a small-scale battery. A small-scale battery is an energy storage system that is typically installed at a home or commercial premises to provide back-up power and shift electricity that is generated from rooftop solar PV systems during the day to supply evening peak electricity demand. The Program is not intended to cover other types of batteries such as those contained within an electric vehicle.

The discount will be delivered through the SRES using the same mechanism that acts to provide a discount on the cost of installing rooftop solar PV. The financial incentive will be provided in the form of STCs for batteries installed from 1 July 2025 until the SRES ends on 31 December 2030.

Eligible batteries will include small battery storage systems (up to 100 kilowatt-hours in capacity) installed with new or existing solar PV systems (up to 100 kilowatts). As currently applies under the SRES, support would be provided in the form of STCs that are created when eligible systems are installed.

Generally, the cost of compliance under the SRES (the cost of purchasing STCs) is passed through to electricity consumers by electricity retailers who are liable entities under the scheme and are required to surrender STCs to the Clean Energy Regulator annually to acquit their liability. However, as part of expanding the SRES to include batteries, the government is committed to ensure that the compliance cost of STCs from battery connected (solar PV) small generation units will not be passed through to consumers. To give effect to that, the Commonwealth will purchase the STCs created as part of the Program. Furthermore, the deployment of small battery systems is expected to reduce peak demand on the grid, providing savings to all consumers, whether or not they have a battery.

Background

Australia has become a world leader in rooftop solar installations, reaching a milestone of four million rooftop solar PV systems in 2024. However, solar battery adoption remains low, with one in 40 households having installed batteries, in part because the upfront cost of batteries is out of reach for many households. Batteries are critical to achieving net zero as they help secure renewable energy resources (including solar and wind), improve reliability in the energy system and help put downward pressure on prices by reducing peak demand. Batteries also support energy self-reliance and protection against global fossil fuel price and supply shocks, including from traditional dispatchable energy sources such as gas.

To encourage rapid battery deployment and help ease cost-of-living pressures, the Australian Government will provide an upfront discount on the cost of installing small battery storage systems from 1 July 2025, which are installed with new or existing solar PV systems (less than 100 kilowatts). The discount will be reviewed over time to ensure it remains appropriate having regard to technology costs. The discount will represent around 30 percent of the cost of an installed battery in 2025 (for example, around $3,000 discount on the cost of installing an 8 kWh battery at $10,000). The discount rate will gradually decline each year and be reviewed at least annually. If battery technology costs continue to decline to an extent that the discount is greater than 30% for most batteries or particular sized batteries, it may be necessary to amend the STC calculations. Particular attention will be paid to batteries considered to be ‘large scale’ under the Program, as an emerging area of the market where incremental capacity is likely to be cheaper as batteries scale towards 50 kWhs. The government also wants to ensure any such batteries are appropriately sized for consumer needs, including market participation through virtual power plants. The government’s reviews will consider market intelligence and industry consultation feedback through stakeholder advisory committees, especially in the early stages of implementing the Program.

The government has decided to provide the discount through expanding the SRES, which is a tried and tested mechanism that has safely supported and incentivised households and businesses to install small-scale solar, wind, hydro, solar water heater and air source heat pumps to lower their electricity costs.

The existing incentive under the SRES is provided through a certificate mechanism where installations of eligible technologies are entitled to create STCs. These amendment regulations extend the existing SRES requirements to batteries in relation to product and installer accreditation, electrical safety requirements and the statements that are required to accompany a claim for STCs. Additional obligations have also been included in the battery retailer statement to strengthen consumer protections. Existing State and Territory regulatory frameworks which have supported the SRES to date, continue to operate to ensure electrical safety and fair trading under the Program.  

The number and value of STCs represent the upfront discount to the price of an installed battery; the consumer or system owner opts to relinquish their rights to create STCs in return for an upfront discount to the price of an installed battery, which are ordinarily sold to liable entities who have an obligation to surrender STCs annually. The cost to liable entities of buying STCs are usually passed onto consumers. For batteries, to prevent a cost-pass-through to consumers, the government has committed to purchasing STCs created from battery installations under the Program, from the STC Clearing House.

The Program is part of a comprehensive set of policies implemented by the government to reach 82% renewable electricity in our grids by 2030 and deliver a 43% reduction in emissions from 2005 levels. This includes the Capacity Investment Scheme, Rewiring the Nation, Australian Renewable Energy Agency and Community Batteries Program as well as the Consumer Energy Roadmap, Social Housing Energy Performance Initiative, Community Solar Banks and Renewable Energy Transformation Agreements with States and Territories. The Program is expected to support around 1 million batteries over its life and complement state and territory policies and programs. In particular, the Program can be stacked with NSW incentives for virtual power plants and grants from Western Australia. There are also state and territory low interest loans and financial support as part of the Household Energy Upgrades Fund administered by the Clean Energy Finance Corporation.  

Consultation

The Program was announced as an election commitment on 6 April 2025. Members of the Government engaged with the industry and state and territory ministers both in formulating the policy and after the announcement on priorities for implementation, including through industry webinars.

Throughout May and June 2025, the Department of Climate Change, Energy, the Environment and Water (Department) consulted with the Regulator on the Amendment Regulations to ensure proposed amendments deliver the policy objectives in practice and would not result in unintended impacts on the existing operation of the SRES. In addition, consultation was undertaken jointly with the Regulator to discuss Program details with state and territory governments, the Clean Energy Council, and Solar Accreditation Australia, as well as peak bodies such as the Smart Energy Council, and Energy Networks Australia, and with key industry participants. Consultation was also undertaken with the Australian Competition and Consumer Commission (ACCC) and Safe Work Australia as key Commonwealth regulatory and oversight bodies. The Department and the Regulator consulted on key elements of the expanded SRES to:

• explain the eligibility criteria of the Program and test how that would be implemented in practice;
• confirm that the expanded SRES would operate independently but would complement state/territory battery schemes;
• gain insights from state/territory battery schemes to inform the design of the Program, support the Regulator in addressing compliance issues and common risks; and
• ensure understanding of the continued role of state/territory electrical safety and fair trading regulators to support the Program, as an expansion of the SRES scheme.

The policy details of the Program set out in the Amendment Regulations were also published online. On 27 May 2025, the Regulator and the Department conducted a joint industry briefing and Q&A session during which more than 1,500 industry representatives participated. Overall feedback from the targeted consultation and the industry briefing was positive and demonstrated that industry supported key elements of the Program. The text of key provisions was tested with industry representatives and peak bodies to ensure it achieved the policy intent.

Further consultation is being conducted prior to 1 July 2025 with safety, consumer protections regulatory agencies, distributed network service providers and state and territory energy policy areas to ensure awareness and understanding of continued regulatory roles to support smooth implementation of the scheme.

The consultation revealed key areas of focus for both the Regulator and industry, specifically in implementing and complying with new regulations, and identified potential safety risks requiring continued oversight. This feedback directly informed the proposed Regulations and pinpoint areas for ongoing communication and outreach. In particular, the statements to be made by solar retailers have been strengthened to ensure consumers are fully informed about their batteries, including relevant warranties and the appropriateness of the systems for their usage.

Incorporation by Reference

Subsection 160A(1) of the REE Act provides for the incorporation of documents as in force at a particular time or as in force from time to time. Subsection 160A(2) provides that this has effect despite subsection 14(2) of the Legislation Act 2003.

There are several standards that have been incorporated into the Amendment Regulations to ensure safety and electrical risks are managed. These are standards used in accreditation schemes, electrical licensing arrangements, and approved product lists by the Clean Energy Council. It is important that relevant updates are incorporated to ensure that requirements under the Principal Regulations are not different to those under the accreditation schemes, electrical licensing requirements and for distribution network connection. Therefore, these standards (further outlined below) are incorporated as existing from time to time.

List of approved batteries

The Amendment Regulations incorporates the list of approved batteries as existing from time to time consistent with section 160A of the REE Act. This list can be found on the Clean Energy Council’s website at https://cleanenergycouncil.org.au/industry-programs/products-program/batteries and is freely available. The process for changing this list is set out in regulation 20AE. It is important that the list remains up to date with new products and so it is incorporated as existing from time to time. The list of approved inverters as existing from time to time has already been incorporated into the Principal Regulations under existing subregulation 20AC(9). Not incorporating the list from time to time would deny consumers access to new product choices and would also continue support for models which may no longer comply with relevant Australian and industry standards and have been removed from the list.

AS/NZS 4777.2:2020 Grid connection of energy systems via inverters, Part 2: Inverter requirements

AS/NZS 4777.2:2020 Grid connection of energy systems via inverters, Part 2: Inverter requirements (the AS/NZS 4777.2:2020 standard) is already a standard applied in the Principal Regulations under subparagraph 20AC(5)(e)(ii) for grid-connected power systems. Solar PV systems and batteries (both consumer energy resources) connect to the electricity grid via inverters, which manage how they interact with the power grid and define how solar PV and batteries must perform under different system conditions. The AS/NZS 4777.2:2020 standard specifies the expected performance and behaviour of inverters at low voltages (such as households or small-scale commercial), and the necessary tests for compliance. The 2020 version of the AS/NZS 4777.2:2020 standard also includes new performance capabilities and requirements in line with international best practice to support secure power system operation with high levels of consumer energy resources (solar PV and batteries) penetration.

The same AS/NZS 4777.2:2020 standard will be applied to inverters used in the installation of batteries (sub regulation 20ACA(14)), and for defining what functions an inverter will be expected to perform for the battery to be able to participate in a virtual power plant (VPP). The standard can be accessed on the Clean Energy Council website for free: https://cleanenergycouncil.org.au/industry-programs/products-program/inverters/standards-change or Standards Australia’s website for a charge: https://store.standards.org.au/. It is expected that given the existing requirement for inverters to comply with the standard, the standard would already be widely used and accessed by affected members of the industry.

AS/NZS 5139 Electrical Installations, Safety of Battery Systems for use with Power Conversion Equipment.

AS/NZS 5139 Electrical Installations, Safety of Battery Systems for use with Power Conversion Equipment (the AS/NZS 5139 standard) specifies requirements for general installation and safety requirements for battery energy storage systems, where the battery system is installed in a location, such as a dedicated enclosure or room, and is connected with power conversion equipment to supply electrical power to other parts of an electrical installation. The new paragraph 39(fc) requires that the inspection of the battery consider whether this AS/NZS 5139 standard has been met. The Best Practice Guide: Battery Storage Equipment, which is published by the Clean Energy Council and is a condition of product accreditation, references AS/NZS 5139, so while the AS/NZS 5139 standard is available from Standards Australia for a charge at https://store.standards.org.au/, it is expected that it would already be widely used and accessed by affected members of industry. As a key safety standard, it is important the regulations keep up to date with the latest requirements and these are considered by the inspection regime.

Exemption from Sunsetting

The Principal Regulations are exempt from sunsetting under table item 56A of section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015, and by extension, the Amendment Regulations are also exempt from sunsetting.

Regulations made under the REE Act are exempt from sunsetting because they are essential for the continued operation of the RET Scheme, as they provide a national framework for the creation of renewable energy certificates to reduce greenhouse gas emissions in the electricity sector.

The continued existence of regulations made under the REE Act is crucial for the consistent operation of the certification framework and national renewable electricity investment and provides regulatory consistency for electricity retailers and renewable energy providers. The REE Act and its regulations are also an important part of implementing Australia’s international obligations under the Paris Agreement and United Nations Framework Convention on Climate Change.

Other

Details of the Amendment Regulations are set out in Attachment A.

The Amendment Regulations are compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

The Amendment Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

Attachment A

Details of the Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025

Section 1 – Name

This section provides that the name of the instrument is the Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025 (Amendment Regulations).

Section 2 – Commencement

This section provides for the Amendment Regulations to commence the day after they are registered. An application provision (see item 71) applies to the amendments, with the effect that certain requirements will apply from 1 July 2025.

Section 3 – Authority

This section provides that the Amendment Regulations are made under the Renewable Energy (Electricity) Act 2000.

Section 4 – Schedules

This section provides that each instrument that is specified in a Schedule to the Amendment Regulations is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule has effect according to its terms.

Schedule 1—Amendments

Item 1 – Subregulation 3(1)

1.              This item inserts new definitions of “battery”, “battery connected (solar PV) small generation unit”, “nominal capacity” and “useable capacity”.
2.              The new definition of “battery”, in relation to a battery connected (solar PV) small generation unit, is intended to include a single battery or a group of batteries connected to operate as a single battery. This definition of battery is not exhaustive, and all batteries must meet the requirements under the new regulation 20ACA before additional STCs can be created for a battery connected (solar PV) small generation unit.
3.              The definition captures a battery system or battery energy storage system (BESS) which reflects how batteries are listed on the approved product list for batteries published (in 2025) by the Clean Energy Council as the body responsible for the product accreditation scheme. Batteries are generally supplied as a pre-assembled package with a battery system including the battery cells or modules and auxiliary supporting equipment, while a BESS includes those components as well as the power conversion equipment (inverter) that is built into the integrated system.
4.              The definition also recognises that batteries come in standalone units or modular units. Modular batteries can be stacked to form a larger battery system as one package, or can be incrementally added to an existing battery in accordance with energy needs.
5.              Modular batteries that are stacked together are treated as one battery unit, with the size of the battery being the combined total nominal capacity. For example, two modular batteries each of 3.2 kWh capacity connected together as a unit would have a combined total capacity of 6.4 kWh.
6.              The definition of battery in relation to a battery connected (solar PV) small generation unit, excludes batteries that are in electric vehicles or other types of batteries that are not listed on the approved battery product list published by the Clean Energy Council.
7.              “Nominal capacity” in relation to a battery for a battery connected (solar PV) small generation unit, is the amount of energy (measured in kWh) specified as the nominal capacity for the battery in the list of approved batteries, published by the Clean Energy Council. Nominal capacity of a battery is intended to represent the theoretical maximum amount of energy the battery can store under ideal conditions.
8.              “Useable capacity” in relation to a battery for a battery connected (solar PV) small generation unit, is the amount of energy (measured in kWh) the battery specified as the useable capacity in the list of approved batteries, published by the Clean Energy Council. Useable capacity is intended to represent the battery’s capacity under normal operating conditions, dependent on the depth of discharge of the battery. This is generally specified in the warranty conditions as the discharge threshold beyond which it would compromise the battery’s useful lifespan.
9.              For example, a battery with 10kWh nominal capacity with a depth of discharge of 90% has a useable capacity of 9kWh. For clarity, nominal capacity is used for the purpose of the Program to determine the overall eligibility of a battery, while useable capacity is used to determine the calculation of STCs that an eligible battery is entitled to create. This helps ensure consumers get the most value from their investments and the program rewards the capacity of the battery which benefits both the consumer and energy grid.
10.          The term “battery connected (solar PV) small generation unit” is defined in new regulation 3C. This is intended to describe a circumstance where a battery is considered a small generation unit that is eligible for STCs under the Program.

Item 2 – At the end of regulation 3

1.          This item adds a new subregulation 3(3) to clarify that a device whose energy source is solar (photovoltaic) that is connected to a battery is taken to be a device for the purposes of paragraph 3(2)(c). This is to clarify that a small generation unit can be a stand-alone small-scale solar photovoltaic (PV) system (less than 100 kilowatts in capacity) or a small-scale solar PV system that is connected at a premises to a battery system.
2.          There is a notable difference between the requirements of stand-alone solar PV small generation units and those that apply to batteries connected to solar PV small generation units. The capacity and generation limitations under paragraph 3(2)(c) only apply to the solar PV unit, not any battery connected to the unit. Subregulation 20ACA(3) sets out the separate capacity requirements concerning batteries.

Item 3 – At the end of Part 1

1.          This item inserts a new regulation 3C at the end of Part 1 after regulation 3B.
2.          Regulation 3C sets out the requirements that need to be met in order for a “small generation unit” installed at a premises to be considered as a battery connected (solar PV) small generation unit. Small generation unit is defined in subregulation 3(2) of the Principal Regulations. The requirements established by regulation 3C are—
   • the small generation unit is a solar (photovoltaic) system; and
   • the system is connected (directly or indirectly) to a battery also installed at the premises.
3.          The definition of a “battery connected (solar PV) small generation unit” is intended to describe a type of small generation unit where there is a battery connected to a solar PV system in a way that allows the battery to capture excess electricity from the solar PV and store and discharge that electricity to the premises or the electricity grid. The phrase ‘connected (directly or indirectly)’ in paragraph 3C(b) is used in a general sense to capture all possible ways of connection between the battery and the solar PV. It is intended to allow for circumstances where the solar PV system is connected to an inverter that is also connected to a battery at the premises, or some other configuration where the battery and solar PV operate as a small generation unit, allowing the battery to store excess energy from the solar PV and discharge for later use.
4.          To be eligible under the Program, a battery cannot be a standalone battery and must be connected to a solar PV system installed at the same place. This is intended to support the use of renewable energy by storing electricity from the solar PV and discharging the stored electricity to the premises or the electricity grid when electricity is most needed. 
5.          The small generation unit that is a solar PV system referred to in paragraph 3C(1)(a) follows the definition of a small generation unit under paragraph 3(2)(c); that is, the small generation unit needs to meet the criteria that (i) it has a kW rating of no more than 100kW, and (ii) it generates no more than 250MWh of electricity per year.
6.          Additional certificates for a battery connected (solar PV) small generation unit may be created under regulations 19D and 20 if the conditions under regulation 20ACA are met.

Item 4 – At the end of regulation 19D

1.          This item inserts subregulations 19D(4) to (6) at the end of regulation 19D under a new heading “Additional certificates for battery connected (solar PV) small generation units”.
2.          Subregulation 19D(4) provides that an additional right to create STCs arises if:
   • a small generation unit installed at a premises is a battery connected (solar PV) small generation unit;
   • the small generation unit is certified as complying with the laws of the jurisdiction in which it is installed relating to safety and technical standards;
   • the small generation unit is certified on or after 1 July 2025, notwithstanding whether or not the unit was installed or began to be installed before 1 July 2025; and
   • subregulation 19D(4) has not previously applied to the small generation unit or any other small generation unit at the premises before, whether in relation to that battery or any other battery.
3.          This subregulation clarifies that STCs may be created for an installation of an eligible battery system that is installed alongside a small-scale solar PV system. The right to STCs would be additional to the STCs that may be created, or have already been created, for a solar PV system that the battery is directly or indirectly connected to.
4.          Subregulation 19D(4) clarifies that the right to create STCs arises when the battery installation meets requirements and is certified as complying with the relevant state/territory laws relating to safety and technical standards. Eligibility for STCs is contingent on a battery installation meeting the electrical safety laws and technical standards of the relevant state or territory in which it is installed. This requirement extends to the small generation unit including the solar PV system and inverter. Additional certificates may only be created for the battery if it has been assessed as compliant with those electrical safety requirements as detailed in a certificate of electrical safety or equivalent electrical safety compliance certification, as required by the relevant state or territory.
5.          The right to create STCs can only arise from the date that the certificate of compliance with electrical safety is issued by the person who is authorised to make that certification in accordance with the electrical safety law in the relevant state or territory. To be eligible for STCs, that certification of compliance can only be provided on a day that is on or after 1 July 2025, even if the installation of the battery (the work to prepare and install the battery but not electrically connect it) commenced before 1 July and no earlier than 6 April 2025.
6.          The right to create STCs only arises once for a premises (whether in relation to that battery or any other battery). The discount under the Program (provided through STCs) is a once-only discount for any battery at that premises. If a battery that was installed at a premises created STCs on or after 1 July 2025, then no other battery at the premises, whether it is an upgrade (adding capacity), or a replacement to the existing battery, would subsequently be eligible for STCs. The right to create STCs for batteries is restricted to one per premises and not the individual owner. Therefore, if a battery was installed at a premises and created STCs then there was a transfer of ownership of the premises, the new owner would not be eligible for STCs for any additional battery installation.
7.          An additional right to create STCs for the battery connected (solar PV) small generation unit arises within 12 months after the day the battery is certified under paragraph 19D(4)(c). This is similar to the allowance of 12 months to create STCs for other forms of small generation units.
8.          A note to subregulation 19D(4) states that additional certificates for a battery connected (solar PV) small generation unit cannot be created unless the conditions under regulation 20ACA are met. This clarifies that the right to create additional certificates only arises if the battery meets the conditions outlined in new regulation 20ACA.
9.          Subregulation 19D(5) clarifies that the right to create STCs in relation to a battery connected (solar PV) small generation unit is in addition to and does not limit the right to create certificates for the small generation unit under subregulation 19D(2). This clarifies that there is a separate right to create STCs for a solar PV system and a battery installed at the same premises, whether that solar is installed at the same time or earlier than the battery.
10.          Subregulation 19D(6) clarifies that subregulation 19D(1) also applies in determining when a battery connected (solar PV) small generation unit is taken to be installed. This item does not affect the operation of subregulation 19D(1) for small generation units, which provides that a small generation unit that is a solar PV system is considered to be installed when it is first able to produce and deliver electricity. That is the point at which the right to create certificates for a solar PV small generation unit arises. A battery connected solar PV small generation unit could be considered to be installed at a different point in time to the solar PV. Subregulation 19D(6) clarifies that the small generation unit that is a solar PV system can be considered ‘installed’ on a different date to when a battery connected (solar PV) small generation unit can be considered ‘installed’. Therefore, the right to create certificates for a small generation unit that is a solar PV system and a battery connected (solar PV) small generation unit under the new regulation 3C can also arise on different dates.
11.          The examples at the end of paragraph (6) outline scenarios where there are different timeframes of when the right to create STCs arises.
12.          In example 1, a solar PV system is installed in advance of a battery installation. The solar PV system is considered to be installed on the day that it is first able to deliver electricity. Eligibility to create STCs arises within 12 months of that date. The battery is later installed and the battery connected (solar PV) small generation unit is considered eligible to create STCs within 12 months of the date that the battery is certified as being compliant with electrical safety regulations.
13.          In example 2, a solar PV system and battery are installed together. The right to create STCs for the solar PV system arises from the day of installation (within 12 months of the day that it is first able to deliver electricity), but the battery connected (solar PV) small generation unit is able to create STCs within 12 months of the date that it is certified as compliant with electrical safety regulations.

Item 5 – At the end of regulation 20

1.          This item inserts subregulations 20(6) and (7) at the end of regulation 20 and new heading “Additional certificates for battery connected (solar PV) small generation units”.
2.          Subregulation 20(6) provides that the number of STCs that may be created for a battery connected (solar PV) small generation unit is to be calculated in accordance with subregulation 20(7). This is in addition to the number of STCs that have been, or may be created, in relation to the small generation unit under subregulation 20(1). This clarifies that the volume of STCs that a battery connected (solar PV) small generation unit is eligible to create is separate and in addition to the volume of STCs that can be created for the solar PV system that the battery is connected to. This applies whether the solar PV system and the battery are installed together or if there is an existing solar PV system and a battery is later added. Additional STCs in relation to the battery cannot be created unless the battery meets the requirements set out in regulation 20ACA.
3.          Subregulation 20(7) provides a formula for calculating the number of additional STCs a battery connected (solar PV) small generation unit can create. This number is calculated by multiplying the useable capacity of the battery for the unit by the STC factor in column 2 of the table for the year in which the battery is certified for compliance in paragraph 19D(4)(b). This is based on the calendar year, similar to calculations of STCs for existing forms of small generation units. The formula applies to useable capacity up to a maximum of 50 kWh. If a battery is greater than 50kWh in useable capacity, the volume of STCs will only be calculated on the maximum of 50kWh.
4.          The number of STCs per kWh that a battery connected (solar PV) small generation unit may create is scheduled to decline each year. For example, a battery with 10kWh useable capacity installed in the calendar year 2025 would be eligible for 10*9.3 = 93 STCs. The same sized battery installed in calendar year 2026 would be eligible for 10*8.4 = 84 STCs. The calculation of STCs is intended to provide a discount on the cost of installing a battery that reflects technology costs with an expectation that those costs will decline over time. This will be monitored to ensure that the discount is appropriate in the context of technology costs, which may be different across the different sizes of batteries in the market.
5.          To calculate STCs for a small generation unit that is a solar PV system, paragraph 20(1)(b) will continue to apply.

Item 6 – After regulation 20AC

1.          This item inserts a new regulation 20ACA which sets out conditions for the creation of additional STCs for a battery connected (solar PV) small generation unit. Subregulation (1) sets out that additional certificates cannot be created unless the conditions in this regulation are satisfied in relation to the unit and its installation. This is a specific set of conditions that apply to a battery and its installation in order to create STCs. Separately, regulation 20AC sets out the conditions that apply in relation to the creation of STCs for a small generation unit that is a solar PV system.

20AC conditions

1.          Subregulation (2) sets out the conditions that apply in relation to a solar PV small generation unit that is either newly installed with a battery at the same time, or is an existing solar PV system where the battery is later retrofitted. Paragraph (2)(a) provides that where the battery for the small generation unit is installed at the same time as the solar PV system, the conditions in regulation 20AC must also be met in relation to that system and its installation. The solar PV system including the inverter must meet the conditions of 20AC and would be eligible to create certificates under regulation 19D. Separately, the battery would need to meet the conditions outlined in regulation 20ACA. If a battery uses a hybrid inverter that supports the solar PV system and the battery, the inverter will need to meet the conditions specific to inverters in both regulations 20AC and 20ACA.
2.         Paragraph (2)(b) provides that where the battery is installed after the small generation unit has been installed, subregulation 20AC(4) must be satisfied in relation to the small generation unit and its installation, and any inverter used in the installation must meet the requirement of subregulation 20ACA(17). The intent is that where a battery is installed alongside and connected to an existing small generation unit that is a solar PV system, the existing solar PV system does not need to meet all of the conditions under regulation 20AC again as the solar PV system would have already met those conditions at the time it was installed (or was not required to).
3.         However, the solar PV system including the inverter would at least need to meet the condition specified in subregulation 20AC(4) which relates to compliance with relevant state and territory requirements including electrical safety regulation. Paragraph 20ACA(2)(b) is intended to capture the full small generation unit including solar PV, inverter and battery to ensure that the whole system is compliant with state and territory electrical safety regulation. Subparagraph 20ACA(2)(b)(ii) acknowledges that the inverter used in the battery installation could be a newly installed inverter that should be listed on the approved product list, or an existing inverter that is either still on the approved product list or has not been declared ineligible or removed from the approved product list for safety reasons.

Nominal capacity of battery

1.          Subregulation (3) provides a size range for batteries as a condition of eligibility for STCs. A battery that has a total nominal capacity, as defined in subregulation 3(1), of at least 5kWh and no more than 100kWh is an eligible battery. This may be the individual nominal capacity of a stand-alone battery or the combined nominal capacity of a group of modular batteries which are scalable, as long as the minimum total capacity is at least 5kWh and no more than 100kWh. For example, a battery which consists of a group of three battery modules connected to operate as a single battery where each module has a nominal capacity of 2 kWh would have a combined capacity of 6 kWh. The individual modules would not meet the minimum eligibility threshold, but the combined nominal capacity of the battery modules means that the battery system would be eligible.
2.          The condition could also be met by capacity that is added to an existing battery which has not previously received STCs under regulation 20ACA. The following examples set out circumstances where additions or upgrades to an existing battery with nominal capacity of 4kWh may or may not be eligible for STCs:
   • Addition of a battery of 4kWh would NOT be eligible for STCs, as it does not exceed the minimum threshold of 5kWh.
   • Addition of a battery of 6kWh would be eligible for STCs, as it does exceed the minimum threshold of 5kWh.
   • Addition of a battery of 95Wh would be eligible for STCs, as the total after addition is less than 100kWh.
   • Addition of a battery of 97kWh would NOT be eligible for STCs, as the total after addition exceeds 100kWh.

List of approved batteries

1.          Subregulation (4) requires a battery for the small generation unit to be included on the list of approved batteries (as existing from time to time) that is published by the person to whom regulation 20AE applies. The list of approved batteries is freely available on the Clean Energy Council’s website (refer to the Incorporation by Reference section above for further information). The list of approved batteries includes stand-alone pre‑assembled battery systems and battery energy storage systems that include inbuilt power conversion equipment (inverters).

VPP readiness

1.          A virtual power plant (or VPP) is a system of coordinated behind-the-meter solar PV and batteries that acts as a single power source and enables energy to be shared. To be eligible for STCs, a battery system needs to have the technical capability to participate in a VPP, which would provide a consumer with the option to engage in a VPP arrangement. A condition of eligibility under the Program is that the battery system including the inverter is VPP capable.
2.          Where a small generation unit is connected (directly or indirectly) to the grid, subregulation (5) requires the battery and the inverter used in the installation of the battery to be capable of connecting (directly or indirectly) to external entities in a way that allows the battery and that inverter to respond to remote signals. A battery that is installed off-grid is not required to meet the criteria of VPP readiness, but a VPP ready battery that is installed off-grid could still be eligible for STCs.
3.          A battery is VPP capable if the associated inverter is able to be connected to the electricity grid and to external entities (directly or indirectly), able to communicate and respond through remote signals and has the communications protocol to allow the battery to receive and respond to signals by external entities.
4.          Inverter equipment listed on the approved product list includes products that are compliant with the Australian/New Zealand Standard AS/NZS 4777.2:2020, Grid connection of energy systems via inverters, Part 2: Inverter requirements. Products included on the approved product list contain features such as export control, generation control and integrated battery DC switch control which indicate the equipment’s capability to communicate with third-party signals. These capabilities can also provide functionality to support network and energy system responses. 
5.          The capability of a battery installation at a location to respond to third party signals for VPP participation will depend on the configuration at the location and could vary by region or jurisdiction. Capability to participate in a VPP will require an ongoing internet connection and depending on the inverter, there may be other requirements relating to the installation including hardware and software. Where there is more than one inverter at a premises that is registered for emergency backstop measures or flexible exports, then a site controller may also be required to control the multiple devices.
6.          Subregulation 20ACA(13) requires the battery retailer to provide information on whether additional equipment or software is required for VPP connection, and whether the battery retailer has completed their obligations relating to the connection of the unit to the grid, which may involve additional requirements relating from the distribution network providers.

Design and installation

1.          Subregulation (6) requires the person or persons who design or install the battery for the small generation unit to be accredited under either paragraph 20AC(2)(a) or (b). The appropriate accreditation should apply for design, install, or a combination of design and install of grid-connected battery systems, or off-grid power systems. The accreditation scheme for designers and installers is operated by Solar Accreditation Australia which provides relevant training and assurance of technical competency including appropriate electrical licence requirements.
2.          On the day the battery installation is completed (if completed in a single day) or the day the installation began in any other case, the designer or installer must not have an effective declaration under regulation 20AG or 47 declaring them as ineligible to design or install small generation units. In addition, the designer or installer must be on site to install or supervise the installation of the battery in accordance with the accreditation scheme requirements.

Provision of serial numbers

1.          Subregulation (7) requires the battery for the small generation unit to comply with regulation 20AD which sets out the requirements relating to the provision of serial numbers.

Inverter used in battery installation

1.          Subregulation (8) states that if the installation of the battery for the small generation unit uses an inverter, the inverter must comply with regulation 20AD which relates to the provision of serial numbers. The subregulation also requires that the inverter meet the requirements under paragraphs 20AC(9)(a) to (d) which specify requirements including that an inverter is on the approved inverters published by the Clean Energy Council.
2.          In general, an inverter that a battery is connected to should be listed on the approved product list. However, where an existing inverter is used in the installation of a battery and is not listed on the approved product list, it may still be eligible if it meets the conditions of subregulation (17), including that it has not been declared ineligible, not subject to a product recall or removed from the approved product list for safety concerns.  

Electrical wiring

1.          Subregulation (9) requires that the electrical wiring of the installation of the battery for the small generation unit must be undertaken by an electrical worker holding an unrestricted license for electrical work issued by the state or territory authority of the place where the battery was installed.

Electrical wiring to which subregulation (9) does not apply

1.          Subregulation (10) provides that for off-grid installations, under specified circumstances, the wiring may be undertaken by a person who is not a licensed electrician. These exemptions already apply to the installation of solar PV and are extended to batteries in specific circumstances relating to low voltage off-grid installations. The installation will still have to meet the relevant electrical safety requirements set by the relevant state or territory government.

Local and State or Territory government requirements

1.          Subregulation (11) requires the installation of the battery for the small generation unit to have met all local and state or territory government requirements, such as in relation to electrical wiring and safety, as well as work health and safety or the siting of the unit. For example, this would include all requirements relating to electrical safety by state and local governments as well as rules regarding wiring and connection related to distribution network providers. Compliance with subregulations 20ACA(9) and (10) in relation to electrical wiring would also be required. The intent is that batteries that fail to comply with relevant laws and regulations applicable to the installation and enforced by relevant State, Territory and local government bodies and agencies would not meet requirements to create STCs. Installers are informed of these requirements, through both installer accreditation schemes and requirements of their state or territory electrical licences.

Written statements, documents and evidence

1.          Subregulation (12) provides for the statements, documents and evidence that the person entitled to create STCs must have obtained before being able to create the STCs.
2.          Paragraphs (a) to (c) outline the information that a designer and an installer of a small generation unit would need to provide in a written statement to the person entitled to create STCs for the installation. If the designer and installer are the same person and the installer is accredited for system design, then just the installer would need to provide the information in a written statement. The information must confirm the following—
   • the details of the designer of the battery, including name and accreditation scheme under which they are accredited as well as the accreditation number;
   • a statement that the designer complied with all the relevant requirements of the accreditation scheme in designing the battery;
   • the details of the installer, including name and accreditation scheme under which they are accredited as well as the accreditation number;
   • a statement that the installer complied with all the relevant requirements of the accreditation scheme in installing the battery; and
   • a statement that the installation complied with all local, state or territory requirements, including in relation to electrical wiring and safety.
3.          Paragraph (d) requires the person entitled to create STCs to obtain a copy of any documentation, to be provided to the owner of the battery, certifying that the electrical installation of the battery complies with laws relating to safety and technical standards, as required by the laws of the jurisdiction where the battery was installed. This certification relates to paragraph 19D(4)(b), which determines the date that the right to create STCs arises in relation to a battery connected (solar PV) small generation unit.
4.          Paragraph (e) outlines additional information that the installer would be required to attest to in a written statement to the person eligible to create the STCs.
   • The written statement must outline that the installer has a copy of the design of the battery and the battery has been installed, in all material respects, in accordance with that design. The design may be the size, layout and components that comprise the system that was agreed with the battery retailer at the time the contract was agreed or the order was made.
   • In the event that the installer decides it is necessary to modify the design during the installation, the written statement should outline that the modifications are consistent with the requirements of the accreditation scheme, and that the battery was installed in accordance with the modified design in all material respects. These modifications may arise as a result of unexpected issues with the space where the battery is to be located that was not able to be detected through the design phase and result in adjustments to the placement of battery. It would be expected that the modifications and why they were made are communicated to the consumer.
   • The installer would also be required to include in the written statement that the battery will perform consistently in accordance with the design or modified design. It is expected that this statement would take into account information that is reasonable for the installer to be aware of.
5.          These requirements are intended to capture the variety of business models, noting that not all installers would work directly to a retailer and may not have access to confidential contract information. These provisions are intended to provide the consumer with a level of assurance that the installation complies with safety and quality standards and is consistent with the consumer expectations as agreed with their retailer through the purchasing process. However, this would not detract from the retailer’s responsibility to quote responsibly and ensure the design and installation is consistent with that quote.
6.          Paragraph (f) also requires a written statement by the battery installer outlining to the person eligible to create STCs that the model of inverter used in the installation meets the requirements under paragraphs 20AC(9)(a) to (d) at the time of installation. This only applies if the installation of the battery uses a new inverter. Additionally, if the battery connected (solar PV) small generation unit is connected (directly or indirectly) to the grid, a written statement that the model of inverter used at the time the battery is installed complied with Part 2: Inverter requirements of the AS/NZS 4777.2:2020 Standard is also required.
7.          Paragraph (g) sets out further requirements for when the battery for the small generation unit is installed after the small generation unit has been installed. This paragraph requires that the written statement by the installer of the battery outline that the small generation unit and its installation meet all the local and state or territory government requirements under subregulation 20AC(4) and the model of inverter meets the requirement of subregulation 20ACA(17). In these cases, the existing equipment including the inverter may be on the approved product list, or may no longer exist on the list but has not been removed for safety reasons or otherwise declared ineligible. This provides flexibility to allow existing inverters that have already been installed with a solar PV system to be used for a battery installation provided they are safe and meet the requirements of VPP capability and other requirements relating to safety.
8.          Paragraph (h) requires the person entitled to create STCs to provide a written statement by the battery installer that the battery model meets the requirements of subregulation ACA(16) when it was installed, a written statement that the installer was on site, evidence in support as per paragraph (6)(c) and a written statement by the installer of the battery and inverter that they are capable of connecting (directly or indirectly) to external entities in a manner that would enable the battery and that inverter to respond to remote signals.

Written statement from battery retailer

1.          Subregulation (13) relates to the requirement for the person entitled to create STCs for the small generation unit to obtain a written statement by the battery retailer who sold the battery to the battery owner. The written statement must state the following:

1.    The name of the accredited installer of the battery;
2.    Whether or not the installer is an employee or a subcontractor of the battery retailer. This transparency helps identify any potential conflicts in the roles of each party, but is not intended as a barrier to the variety of business models in the sector.
3.    That the battery will perform in accordance with the contract (or the quote accepted) for the sale of the battery to the owner of the battery, and that the battery retailer reasonably believes that the battery will remain installed at the premises until after the end of 2030, or for the duration of the warranty period, whichever is the later. To make this statement the retailer would need to verify that the battery was installed to the agreed design and with the agreed components. In making the statement, the battery retailer would provide an assurance that they believe the battery will be installed for permanent use, and would not be moved or on-sold.
4.    That the battery is complete and storing and delivering electricity, or that the battery is capable of storing and delivering electricity for the unit.
5.    That the battery is connected to the grid or that the battery retailer has completed its obligations under the contract (or the quote accepted) in relation to grid connection (where applicable). This may be necessary in circumstances where it is not possible to provide assurance of grid connection, such as where distribution network requirements mean that grid connection occurs at a later date after installation.
6.     That the battery retailer has provided information in writing to the battery owner about the feed-in tariffs and export limits that are specific to the battery, and which are known to be in place at the time or come into effect in future.
7.    That the battery retailer has provided information in writing to the battery owner about one or more of the following—
   • the expected payback period;
   • the expected energy benefits;
   • the expected cost savings.

This is different to the solar PV statement which requires information on energy savings, given batteries are intended to provide benefits of storing electricity for later use.

1.    That the battery retailer has provided information in writing to the battery owner about—
   • the appropriate size of the battery relative to the size of the solar (photovoltaic) module;
   • the appropriate size of the inverter used by the battery and the solar (photovoltaic) module;
   • the current and expected electricity needs of the premises at which the small generation unit is installed;
   • whether any additional equipment, software, or other technology would be required to enable the battery owner to participate in a virtual power plant;
   • the expected performance of the battery within the warranty period; and
   • if the battery retailer, or responsible person for the battery (ie importer or manufacturer), is covered by a registered modern slavery statement within the meaning of the Modern Slavery Act 2018—how the owner of the battery may access the statement.

The intent of the informational requirements under paragraphs (g) and (h) is such that the owner considers current and expected electricity needs in deciding on the size of the battery and that the retailer provides information to the battery owner that would inform their decision to invest in the battery having regard to the appropriate size of the solar PV system and inverter relative to those needs. Information on expected payback period, expected energy benefits and expected cost savings would inform the consumer on whether the chosen size, model, brand of the battery and inverter is suitable. Paragraph (h) includes information on modern slavery to enable the owner to consider the supply chain information available for that product as relevant.

1.      That the information provided is true, correct and complete.
2.      That any actual or potential conflicts of interest of the battery retailer relating to the sale or installation of the battery, or the creation of certificates for the small generation unit, including any conflicts of interest in relation to persons or entities related to the battery or the small generation unit, have been disclosed to the battery owner and managed appropriately.
3.    That the battery retailer is not the subject of a declaration under regulation 20AH by the Regulator that it is not able to make written statements.

Statements to include statement of truth, correctness and completeness

1.          Subregulation (14) requires each statement that is obtained for the purposes of subregulation (12) or (13) to include a statement that the information in the statement is true, correct and complete.

Information not to be false or misleading

1.          Subregulation (15) requires all documents, statements or evidence obtained for the purposes of subregulation (12) or (13) to not contain information that is false or misleading in a material particular or omits a matter or thing without which the information is misleading in a material particular. Giving false or misleading information in relation to the installation of small generation units resulting in improper creation of certificates may attract civil penalties under section 24B of the REE Act.

Statement by battery installer that battery requirements are met

1.          Subregulation (16) sets out the requirements that a model of battery used in the installation must meet for the purposes of the statement in subparagraph (12)(h)(i). The model is required to be included in the list of approved batteries published and as existing from time to time by the person to whom regulation 20AE applies. In determining whether a battery can be included in the list of approved batteries, compliance with relevant standards will be taken into account, for example the Australian/International Standard AS IEC 62619:2023. In addition, the battery must:
   • not be subject to a declaration by the Regulator that it is ineligible under regulation 20AF;
   • not be subject to a compulsory recall notice under the subsection 122(1) of the Competition and Consumer Act 2010 (Australian Consumer Law);
   • not be subject to a voluntary recall under section 128 of the Australian Consumer Law.

Inverter used in small generation unit installation

1.          Subregulation (17) sets out the requirements that, at the time a battery is installed, an inverter used in the installation of the small generation unit must meet for the purposes of subparagraph (2)(b)(ii). These requirements are that the inverter must:
   • not be a model declared ineligible under regulation 20AF; and
   • either:
     • be included in the list of approved inverters published on the Clean Energy Council’s website; or
     • if the model is no longer in the list of approved inverters, it was not because there was a safety risk to a person or property from the use of the model in the installation of small generation units.
2.          Examples of situations where the inverter is no longer on the approved inverter list other than for reasons under regulation 20AF or safety reasons, are where the manufacturer has decided not to maintain the inverter on the list because the inverter has been discontinued or has been superseded by a newer model, but is nevertheless still safe and functional for the battery connected (solar PV) small generation unit.

Item 7 – Regulation 20AD (heading)

1.          This item inserts “, batteries” after “inverters”.

Item 8 – Before subregulation 20AD(1)

1.          This item inserts new heading “Inverters and photovoltaic modules”.

Item 9 – After subregulation 20AD(1)

1.          This item inserts subregulation 20AD(1A) after subregulation 20AD(1) as well as new heading “Batteries and inverters used in installation of batteries”.
2.          Subregulation 20AD(1A) requires the responsible person for a battery connected (solar PV) small generation unit, or an inverter used in the installation of such a battery, to provide the serial number to a person nominated under subregulation 20AD(2) or if no nomination is in place, the Regulator. For the definition of responsible person, refer to subregulation 20AD(4) as updated in item 12 below.
3.          This new subregulation is required for the purposes of new subregulation 20ACA(7) and paragraph 20ACA(8)(a).
4.          A note to subregulation 20AD(1A) states that the responsible person may commit an offence if the person provides false or misleading information or documents; and makes reference to sections 137.1 and 137.2 of the Criminal Code.

Item 10 – Subregulation 20AD(2)

1.          This item omits “paragraph (1)(a)” and substitutes “paragraphs (1)(a) and (1A)(a)”.

Item 11 – Paragraph 20AD(2)(a)

1.          This item inserts “, batteries” after “inverters”.

Item 12 – Subregulation 20AD(4) (definition of responsible person)

1.          This item replaces the definition of responsible person in subregulation 20AD(4) of the Principal Regulations.
2.          The new definition includes batteries which were not subject to the previous definition and describes the responsible person for an inverter, battery or photovoltaic module as the manufacturer (if not imported into Australia) or the person who imported the item. 

Item 13 – Regulation 20AE (heading)

1.          This item inserts “, batteries” after “inverters”.

Item 14 – Subregulation 20AE(1)

1.          This item updates the references to the parts of the Principal Regulations that contain requirements in relation to the list of approved batteries.

Item 15 – Paragraph 20AE(4)(a)

1.          This item inserts “, battery” after “an inverter”.

Item 16 - Paragraphs 20AE(4)(a) and (b)

1.          This item inserts “, approved batteries” after “approved inverters”.

Item 17 - Paragraph 20AE(4)(c)

1.          This item inserts “, battery” after “an inverter”.

Item 18 - Paragraph 20AE(4)(c)

1.          This item inserts “, approved batteries” after “approved inverters”.

Item 19 - Regulation 20AF (heading)

1.          This item inserts “, batteries” after “inverters”. This and the following seven items allow the Regulator to declare models of battery as ineligible under the SRES. This is an expansion of the existing power under regulation 20AF, which already applies to models of inverters and photovoltaic modules.
2.          This power can be used by the Regulator to respond to a number of risk criteria that are outlined in subregulation 20AF(2). This may include, but is not limited to, concerns in relation to physical safety, cyber security and national security.

Item 20 – Subregulation 20AF(1)

1.          This item inserts “, a model of a battery” after “an inverter”.

Item 21 – Subregulation 20AF(1)

1.          This item inserts “, or connection to,” after “use in the installation of,”.

Item 22 – Subregulation 20AF(2)

1.          This item inserts “, battery” after “model of an inverter”.

Item 23 – Paragraph 20AF(2)(a)

1.          This item inserts “, battery” after “inverter”.

Item 24 – Paragraphs 20AF(2)(c) and (d)

1.          This item inserts “, subregulation 20ACA(4) or paragraph 20ACA(16)(a) or (17)(b)” after “paragraph 20AC(9)(a) or (10)(b)”.

Item 25 – Subregulation 20AF(5)

1.          This item inserts “, battery” after “inverter”.

Item 26 – Subregulation 20AF(5)

1.          This item inserts “, or connection to,” after “installation of”.

Item 27 – Subregulation 20AG (at the end of the heading)

1.          This item inserts “or batteries”.

Item 28 – Subregulation 20AG(1)

1.          This item inserts “or one or more batteries for battery connected (solar PV) small generation units as mentioned in subregulation 20ACA(6)” after “subregulation 20AC(2)”, to extend the power of the Regulator to declare a person ineligible to design batteries for battery connected (solar PV) small generation units.

Item 29 – Paragraph 20AG(1)(a)

1.          This item inserts “or 20ACA(12)(a)” after “paragraph 20AC(5)(aa)” to include written statements made by the designer or installer of the battery mentioned under paragraph 20ACA(12)(a).

Item 30 – At the end of subregulation 20AG(1)

1.      This item inserts a note at the end of subregulation 20AG(1) to clarify that the three or more statements under paragraph 20AG(1)(a) could include any combination of statements made under paragraph 20AC(5)(aa) or 20ACA(12)(a).

Item 31 – At the end of subregulation 20AG(2)

1.      This item adds “or to design batteries for battery connected (solar PV) small generation units for the purposes of subregulation 20ACA(6)” at the end of subregulation 20 AG(2).

Item 32 – After subregulation 20AG(2)

1.      This item inserts new subregulation 20AG(2A) after 20AG(2).
2.      Subregulation 20AG(2A) states that where the Regulator makes a declaration under 20AG(2) to a person who has designed one or more small generation units that are solar (photovoltaic) systems, or batteries for battery connected (solar PV) small generation units, then that person is not eligible to design either of these.

Item 33 – Subregulation 20AG(3)

1.      This item inserts “or one or more batteries for battery connected (solar PV) small generation units as mentioned in subregulation 20ACA(6)” after “subregulation 20AC(2)” to extend the application of subregulation (4) to persons who have installed batteries for battery connected (solar PV) small generation units.

Item 34 – Paragraph 20AG(3)(a)

1.      This item inserts “or 20ACA(12)” after “subregulation 20AC(5)” to include statements mentioned in subregulation 20ACA(12).

Item 35 – Paragraph 20AG(3)(b)

1.      This item inserts “, or a battery for a battery connected (solar PV) small generation unit,” after “installed a small generation unit”.

Item 36 – Paragraph 20AG(3)(b)

1.      This item inserts “or battery” after “installation of the unit”.

Item 37 – At the end of subregulation 20AG(3)

1.      This item adds two notes at the end of subregulation 20AG(3). Note 1 clarifies that the three of more statements for the purposes of paragraph 20AG(3)(a) can include any combination of statements made under subregulation 20AC(5) or 20ACA(12). Note 2 clarifies that the three or more occasions for the purposes of paragraph 20AG(3)(b) can include any combination of occasions involving the installation of a small generation unit or a battery for a small generation unit.

Item 38 – At the end of subregulation 20AG(4)

1.      This item adds “or to install batteries for battery connected (solar PV) small generation units for the purposes of subregulation 20ACA(6)” to extend the power of the regulator to declare a person not eligible to install batteries for battery connected (solar PV) small generation units.

Item 39 – After subregulation 20AG(4)

1.      This item inserts new subregulation 20AG(4A) after subregulation 20AG(4).
2.      Subregulation 20AG(4A) states that where the Regulator makes a declaration under 20AG(4) to a person who has installed one or more small generation units that are solar (photovoltaic) systems, or batteries for battery connected (solar PV) small generation units, then that person is not eligible to install either of these.

Item 40 – Paragraph 20AH(1)(a)

1.      This item omits “in relation to small generation units for the purposes of subregulation 20AC(5A)”, and substitutes it with “, in relation to small generation units for the purposes of subregulation 20AC(5A) or batteries for battery connected (solar PV) small generation units for the purposes of subregulation 20ACA(13),”. This has the effect of extending the application of paragraph 20AH(1)(a) statements relating to batteries for battery connected (solar PV) small generation units given under subregulation 20ACA(13).

Item 41 – Subparagraph 20AH(1)(b)(i)

1.      This item inserts “, or a battery for a battery connected (solar PV) small generation unit,” after “solar (photovoltaic) system”.

Item 42 – At the end of subregulation 20AH(1)

1.      This item inserts a note at the end of subregulation 20AH(1) to clarify that the three or more statements for paragraph 20AH(1)(a) can include any combination of statements made under subregulation 20AC(5A) or 20ACA(13).

Item 43 - At the end of subregulation 20AH(2)

1.      This item adds “or make statements in relation to batteries for battery connected (solar PV) small generation units for the purposes of subregulation 20ACA(13)”.

Item 44 – After subparagraph 20AH(2)

1.      This item inserts new subregulation 20AH(2A) which means that, if the Regulator makes a decision under subregulation 20AH(2) in relation to a person who has given statements in relation to, or sold one or more small generation units that are solar (photovoltaic) systems or batteries for battery connected (solar PV) small generation units, then the person is—
   • not eligible to make statements in relation to small generation units that are solar (photovoltaic) systems; and
   • not eligible to make statements in relation to batteries for battery connected (solar PV) small generation units.

Item 45 – Paragraph 20AI(1)(d)

1.      This item inserts “or batteries” after “small generation units”. This includes battery owners under matters that the Regulator must consider under paragraph 20AI(d).

Item 46 – Regulation 20BA

1.      This item inserts “or 20ACA” after “20AC”.

Item 47 – Before subregulation 30(1)

1.      This item inserts new heading “Inspections of small generation units”.

Item 48 – After subregulation 30(1)

1.      This item inserts new subregulation 30(1A) which requires the Regulator to ensure that each year a ‘statistically significant’ selection of small generation units, that are battery connected (solar PV) small generations units, where the battery was installed for the unit in a year that is after the year the small generation unit was installed, are inspected for conformance with Australian standards and other standards and requirements relevant to the creation of STCs.
2.      New subregulation 30(1A) requires inspection of the entire unit that is the battery connected (solar PV) small generation unit, that is including the solar PV system, where the battery was installed after the solar PV system was installed. The requirement to inspect the entire unit, rather than just the battery, is to cover retrofit installations of new batteries to existing solar PV systems, and with or without a new or additional inverter for the small generation unit.
3.      The Amendment Regulations do not prescribe a particular meaning or number to the term ‘statistically significant’. This is to provide the Regulator with flexibility in determining the number of inspections that occur each year, with levels likely to vary from year to year. For example, the Regulator could select a representative sample of inspections based on principles of statistical levels of confidence, as well as conducting additional inspections on the basis of other relevant sources of information available to the Regulator.
4.      This item also inserts new subregulation 30(1B) to clarify that subregulation (1) covers battery connected (solar PV) small generation units where the battery for the unit is installed at the same time as the unit. Subregulation 30(1) requires the Regulator to ensure that a statistically significant amount of small generation units are inspected each year to ensure compliance with Australian standards and other standards relevant to the creation of certificates.

Item 49 – After paragraph 39(f)

1.      This item adds new subregulations 39(fa) to (fe) in relation to the matters for which an inspector must check when performing an inspection of a battery connected (solar PV) small generation unit. The inspector is required to determine whether there is material or pervasive evidence that the following requirements have been met—
   • whether the battery is installed at the same premises as the small generation unit and is able to store electricity produced by the unit and deliver stored electricity;
   • whether all local and state or territory government requirements have been met for the installation of the battery for the small generation unit;
   • whether the installation of the battery for the small generation unit complies with the AS/NZS 5139 standard (as in force at the time the battery was installed);
   • whether the statements and documentation mentioned in subregulations 20ACA(12) and (13) have been obtained, and whether those statements and documentation contain false or misleading information or omission of a matter that would render the information misleading.

Item 50 – After subparagraph 40(1)(d)(i)

1.      This item adds new subparagraph 40(1)(d)(ia) which states that an inspector may, when conducting an inspection, request the occupier to answer any questions in relation to the design and installation of a battery connected (solar PV) small generation unit.

Item 51 – Subregulation 41(1)

1.      This item inserts “or from a battery for a battery connected (solar PV) small generation unit on the premises,” after “premises,”.

Item 52 – Subregulation 41(5) (at the end of the definition of interested parties)

1.      This item adds paragraph (f) to include the owner of the battery for the unit as an interested party if the unit is a battery connected (solar PV) small generation unit.

Item 53 – After subregulation 42(3)

1.      This item inserts new subregulation 42(3A) which requires a report produced by an inspector, in relation to a battery connected (solar PV) small generation unit, to include one of the following conclusions about the design and installation of the battery—
   • the inspection found no material or pervasive evidence that one or more of the requirements in paragraphs 39(fa) to (fe) were not satisfied;
   • the inspection found material or pervasive evidence that one or more of the requirements in paragraphs 39(fa) to (fe) were not satisfied and the non-compliance present an imminent risk to the safe operation of the small generation unit or the battery; or
   • the inspection found material or pervasive evidence that one or more of the requirements in paragraphs 39(fa) to (fe) were not satisfied but the non-compliance does not present an imminent risk to the safe operation of the small generation unit or the battery.

Item 54 – At the end of subregulation 43(1)

1.      This item adds new paragraphs 43(1)(d) and (e) which has the effect of requiring the inspector to provide a copy of a report, before finalisation, to the person who designed or installed the battery or the person who sold the battery to the battery owner if it is likely to contain an adverse finding in relation to the said person. The new paragraphs only apply if the unit is a battery connected (solar PV) small generation unit.

Item 55 – At the end of subregulation 44(1)

1.      This item adds new paragraphs 44(1)(f) to (i) which has the effect of requiring the Regulator to provide a copy of the inspector’s final report for a small generation unit, that is a battery connected (solar PV) small generation unit, to—
   • the owner of the battery for the unit;
   • the designer of the battery for the unit; and
   • the installer of the battery for the unit.

Item 56 – Regulation 45

1.      This item inserts “(1)” before “If”. This item is made as a result of item 57 of the Amendment Regulations which adds a new subregulation (2) to regulation 45.

Item 57 – At the end of regulation 45

1.      This item inserts new subregulation 46(2) which requires the Regulator to provide a copy of the inspector’s report to the accreditation scheme operator if the final report concludes that there is material or pervasive evidence that one or more requirements in paragraphs 39(fb) to (fe) have not been satisfied in relation to the design and installation of a batter for a small generation unit.

Item 58 – Subregulation 46(1)

1.      This item repeals the subregulation and substitutes a new subregulation.
2.      New subregulation 46(1) requires the Regulator to provide a copy of the report to the relevant state or territory Regulator if there is a material or persuasive evidence that—
   • one or more requirements in paragraphs 39(c) and (d) have not been satisfied in relation to the design and installation of a small generation unit; or
   • one or more of the requirements in paragraphs 39(fb) and (fc) have not been satisfied in relation to the design and installation of a battery for a battery connected (solar PV) small generation unit.
3.      Regulation 39 sets out various matters that an inspector is to determine when conducting an inspection of a small generation unit.

Item 59 – Regulation 47 (heading)

1.      This item inserts “or batteries” after “units”.

Item 60 – Subregulation 47(1)

1.      This item inserts “or subregulation 20ACA(6)” after “paragraph 20AC(2)(a), (b), (c) or (d)”.

Item 61 – At the end of subregulation 47(2)

1.      This item adds “or batteries for small generation units for the purposes of subregulation 20ACA(6)”.

Item 62 - Paragraph 47(3A)

1.      This item omits “A period” and substitutes “The period”.

Item 63 – Paragraph 47(3A)(a)

1.      This item omits “the requirement mentioned in paragraph 39(f)” and substitutes “a requirement mentioned in paragraph 39(f) or 39(fe) relating to”.

Item 64 – After subregulation 47(3A)

1.      This item inserts new heading “Publication of declarations”.

Item 65 – Subregulation 47(4)

1.      This item omits “the declaration” and substitutes “a declaration made under subregulation (2)”.

Item 66 - Subregulation 49(1) (cell at table item 2AB, column headed “Decision”)

1.      This item repeals the cell contents and inserts new text to make a decision under regulation 20AF – to declare that a model of inverter, battery or photovoltaic module is not eligible for use in the installation of, or connection to, small generation units – a reviewable decision.
2.      It remains the case that the manufacturer of the model (if made in Australia) or the person who imported the model into Australia (if the model was imported into Australia) may request the Regulator to reconsider the decision under regulation 20AF.
3.      This item and the following four items ensure that the right to merits review remains available for the same types of decisions that are ordinarily available with respect to other small generation units. These amendments facilitate review rights that align with the expansion of the SRES to batteries.

Item 67 - Subregulation 49(1) (at the end of the cell at table item 2AC, column headed “Decision”)

1.      This item adds “or design batteries for small generation units for the purposes of subregulation 20ACA(6)”.

Item 68 - Subregulation 49(1) (at the end of the cell at table item 2AD, column headed “Decision”)

1.      This item adds “or install batteries for small generation units for the purposes of subregulation 20ACA(6)”.

Item 69 – Subregulation 49(1) (at the end of the cell at table item 2AD, column headed “Decision”)

1.      This item adds “or in relation to batteries for small generation units for the purposes of subregulation 20ACA(13)”.

Item 70 – Subregulation 49(1) (at the end of the cell at table item 3, column headed “Decision”)

1.      This item adds “or batteries for small generation units”.

Item 71 – In the appropriate position in Part 9

1.      This item inserts a new regulation 58 to the Principal Regulations. Regulation 58 is titled ‘Amendments made by the Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025.
2.      Subregulation 58(1) states that the amendments to the Principal Regulations by the Amendment Regulations apply in relation to a battery connected (solar PV) small generation unit where the battery for the unit is certified as mentioned in paragraph 19D(4)(b) (as inserted by the amending regulations) on or after 1 July 2025.
3.      Subregulation 58(2) states that subregulation 58(1) applies regardless of whether the battery was installed, or installation of the battery began on or after 1 July 2025 or before 1 July 2025, but after 6 April 2025 (the date of the election commitment).
4.      Subregulation 58(3) clarifies that a person is considered to be accredited under an accreditation scheme mentioned in paragraph 20AC(2)(a) or (b) regardless of whether the accreditation occurs before, on or after the commencement of the Amendment Regulations.
5.      Subregulation 58(4) states that the amendments of 20AG made by the Amendment Regulations apply regardless of whether statements mentioned in subregulation 20AC(5) were given before, on, or after the commencement of the Amendment Regulations.
6.      Subregulation 58(5) states that the amendments of 20AH made by the Amendment Regulations apply regardless of whether statements mentioned in subregulation 20AC(5A) were given, or the small generation unit was sold, before, on, or after the commencement of the Amendment Regulations.
7.      The amendments in this item ensure that only batteries that are certified after 1 July 2025 are eligible for the STC entitlement under SRES. Certification means the date that the certificate of compliance is issued, in relation to the battery installation meeting safety and technical standards, pursuant to paragraph 19D(4)(b).
8.      However, the installation of the battery could have commenced from 6 April 2025, which was the date the Government announced the Cheaper Home Batteries Program. For subregulation 58(2), ‘installed’ and ‘installation’ means that works to physically place and fix the battery at a premises could have commenced on or after 6 April 2025.

ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025

This disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025 aim to give effect to the Cheaper Home Batteries Program (Program) by amending the Renewable Energy (Electricity) Regulations 2001 to—

• expand the Small-scale Renewable Energy Scheme (SRES) to enable the creation of small-scale technology certificates (STCs) from battery connected solar photovoltaic (PV) units;
• set out the method for calculating the number of STCs created from battery connected solar PV units;
• set the eligibility criteria for battery connected solar PV units to create STCs; and
• extend existing consumer safeguards, and other compliance requirements of the SRES to battery connected solar PV units.

The Program is intended to provide an upfront discount on the cost of installing a small-scale battery. A small-scale battery is an energy storage system that is typically installed at a home or commercial premises to provide back-up power and shift electricity that is generated from rooftop solar PV systems during the day to supply evening peak electricity demand. The Program is not intended to cover other types of batteries such as those contained within an electric vehicle.

The discount is to be delivered through the SRES using the same mechanism that acts to provide a discount on the cost of installing rooftop solar PV. The financial incentive is to be provided in the form of STCs for batteries installed from 1 July 2025 until the SRES ends on 31 December 2030.

Eligible batteries will include small battery storage systems (up to 100 kilowatt-hours in capacity) installed with new or existing solar PV systems (up to 100 kilowatts). As currently applies under the SRES, support would be provided in the form of STCs that are created when eligible systems are installed.

Generally, the cost of compliance under the SRES (the cost of purchasing STCs) is passed through to electricity consumers by electricity retailers who are liable entities under the scheme and are required to surrender STCs to the Clean Energy Regulator annually to acquit their liability. However, as part of expanding the SRES to include batteries, the government is committed to ensure that the compliance cost of STCs from battery connected (solar PV) small generation units will not be passed through to consumers. To give effect to that, the Commonwealth will purchase the STCs created as part of the Program.

Background

Australia has become a world leader in rooftop solar installations, reaching a milestone of four million rooftop solar PV systems in 2024. However, solar battery adoption remains low, with one in 40 households having installed batteries, in part because the upfront cost of batteries is out of reach for many households. Batteries are critical to achieving net zero as they help secure renewable energy resources (including solar and wind) and improve reliability in the energy system. Batteries also support energy self-reliance and protection against global fossil fuel price and supply shocks, including from traditional dispatchable energy sources such as gas.

To encourage rapid battery deployment and help ease cost-of-living pressures, the Australian Government will provide an upfront discount on the cost of installing small battery storage systems from 1 July 2025, which are installed with new or existing solar PV systems (less than 100 kilowatts). The discount will be reviewed over time to ensure it remains appropriate having regard to technology costs. The discount will represent around 30 percent of the cost of an installed battery in 2025 (for example, around $3,000 discount on the cost of installing an 8 kWh battery at $10,000). The discount rate will gradually decline each year and be reviewed at least annually. If battery technology costs continue to decline to an extent that the discount is greater than 30% for most batteries or particular sized batteries, it may be necessary to amend the STC calculations. Particular attention will be paid to batteries considered to be ‘large scale’ under the Program, as an emerging area of the market.

The government has decided to provide the discount through expanding the SRES, which is a tried and tested mechanism that has safely supported and incentivised households and businesses to install small-scale solar, wind, hydro, solar water heater and air source heat pumps to lower their electricity costs.

The existing incentive under the SRES is provided through a certificate mechanism where installations of eligible technologies are entitled to create STCs. These amendment regulations extend the existing SRES requirements to batteries in relation to product and installer accreditation, electrical safety requirements and the statements that are required to accompany a claim for STCs. Additional obligations have also been included in the battery retailer statement to strengthen consumer protections. Existing State and Territory regulatory frameworks which have supported the SRES to date, continue to operate to ensure electrical safety and fair trading under the Program. 

The number and value of STCs represent the upfront discount to the price of an installed battery; the consumer or system owner opts to relinquish their rights to create STCs in return for an upfront discount to the price of an installed battery, which are ordinarily sold to liable entities who have an obligation to surrender STCs annually. The cost to liable entities of buying STCs are usually passed onto consumers. For batteries, to prevent a cost-pass-through to consumers, the government has committed to purchasing STCs created from battery installations under the Program, from the STC Clearing House.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

The Hon. Chris Bowen MP

Minister for Climate Change and Energy