Unlike the previous state-run energy-efficiency programs (such as Victorian Energy Upgrades), the Cheaper Home Batteries Program (CHBP) is fully funded by the federal government of Australia.
In state-run energy-efficiency programs, energy-efficient appliances and renewable energy systems (reverse cycle air conditioners, heat pump-powered hot water systems, and rooftop solar systems, etc.) are installed in homes and businesses.
After installation, the installer gets eligible to generate energy certificates (VEECs in case of VEU program) and sell them to energy retailers. The installer then offers a discount/rebate to a homeowner or business based on the prices of the energy certificate.
Discounts offered to homeowners or businesses are tied to the value of the energy certificates, but energy retailers ultimately pass the cost on to consumers through their electricity bills.
The Cheaper Home Batteries Program is a game-changer. Not only does it offer solar batteries at discounted prices (about 30 to 40 percent), but the cost of the offered discounts is not passed to the energy consumers, as the federal government fully funds the scheme.
Under the CHBP, the federal government buys energy certificates (Small-scale technology certificates or STCs in case of CHBP) and no cost is passed down to the energy consumers (whether businesses or homeowners).
The federal government has allocated $2.3 billion budget for the program, and it will run until 2030 as the rebates are linked to number of STCs assigned per kWh. In 2025, the installer will be entitled to 9.3 STCs per kWh of battery capacity. It will gradually decrease over the years and in 2030 will be decline to 4.7 STCs per kWh.
Over 1 million battery installations are projected nationwide by the of 2030.
Solar batteries are now in record demand all across the country. It is due to the huge rebates (over 30 percent) offered under the federal government run Cheaper Home Batteries Program and the inherent design of the CHBP scheme. The scheme is fully funded by the federal government, and federal battery rebates are stackable with state government schemes.
As we have scoured hundreds of articles about the CHBP scheme, we now have a ringside view of all aspects of the scheme.
In this article, we have condensed the information about the most important aspect of the scheme, applying for battery rebates.
How to apply for rebates under the Cheaper Home Batteries Program?
The battery rebates are only applicable to new or existing rooftop solar PV systems. So, only households or businesses that have installed rooftop solar PV or planning to install a new solar PV system and integrate it with a battery are eligible for battery rebates.
Here is the step-by-step process of applying for the federal government solar battery rebates:
Assess your energy usage
The first step is to get the energy usage and pattern assessment done from a professional. This is essential in finding the size of battery unit that will meet the energy usage of your home or workplace.
A rough calculation of energy usage and pattern can be done by analysing the utility bills, daily energy usage in kWh, identifying the most energy burning appliances (air conditioners, heat waters, and refrigerators) and calculating hours of their operation. It also involves analysing the time and pattern of peak energy demand.
We recommend employing a professional for this work and determining the right size of battery storage system for your solar PV system accordingly.
Consider the Virtual Power Plant (VPP) feature
The VPP feature of a battery unit allow it to participate in a network of distributed energy sources (such as solar batteries, solar PV systems, and batteries of electric vehicles) connected to the energy grid through a software algorithm and act as a single power plant.
If you participate in the VPP program of your energy retailer, the algorithm will be able to control charging and discharging your solar battery based on energy demands of the grid. It will also supply excess battery energy back to the grid during the events of peak energy demands or blackouts.
The VPP feature helps in grid stability, better battery utilisation and helps earn money or reduce energy bills through bill credits issue to battery owners participating in the VPP programs of the energy retailers.
Selecting a battery unit
Assessment of your energy usage and pattern will help you in determining the finding a right sized (measured in kilowatt-hours/kWh) battery unit. After finding the right kWh capacity battery, consider important factors like:
- Battery type: Lithium-ion battery offers the best performance as they offer high energy density, high depth of discharge, long lifespan (15-20 years), low maintenance, and better efficiency.
- Depth of discharge (DoD): The amount of usable energy, it is about 95% in case of lithium-ion batteries.
- Battery cycle: Number of complete charging and discharging cycles a battery can deliver before it falls below a threshold (80 percent of usable battery capacity).
- Battery efficiency: higher the efficiency, lower the energy loss.
- Safety: Lithium Iron Phosphate (LiFePO4) batteries are safe due to the battery chemistry and thermal management. Lead-acid batteries pose risks of acid spills.
- Cost
- Warranty
Find an accredited battery retailer and installer
This is the most decisive step that could decide the future of your energy storage for your solar PV system and lower energy bills. Due to a rush triggered by over 30 percent rebate for solar batteries, there is a sudden influx of dodgy installer and solar retailers in the market.
We have seen Facebook ads of offering 46 kWh of “Free” battery storage with solar PV unit. Battery installation and configuration is a serious business. We recommend installing CEC approved battery installed by a Solar Accreditation Australia (SAA) accredited installer. Try to find a local installer with good track record. A local installer will come handy if there is any issue with the battery storage unit.
Battery installation and configuration is a serious business. We recommend installing CEC approved battery installed by a Solar Accreditation Australia (SAA) accredited installer. Try to find a local installer with good track record. A local installer will come handy if there is any issue with the battery storage unit.
Get multiple written quotes from different battery retailers and check their accreditation here.
Read New Energy Tech’s Consumer Code and guide to know about your rights and battery retailer’s obligations.
Battery installation
After signing the contract with a battery retailer, an installer will visit your home/workplace for installation. Ask the accreditation and licence details from the installer.
After battery installation, check if the unit is running properly. Ask operation and maintenance manual/instructions from the installer and if you’re asked to sign a paper by the installer, read it carefully.