Australia’s commitment to achieving net-zero emissions by 2050 has shifted from long-term aspiration to practical action. One of the most important tools driving this transition is the new national battery support scheme, commonly referred to as the Cheaper Home Batteries Program. By making battery storage more accessible to households and small businesses, this policy is accelerating renewable energy adoption, cutting emissions, and strengthening the electricity grid.
Understanding how the new battery scheme supports Australia’s net-zero goals helps homeowners see that installing a battery is no longer just a personal financial decision — it is a meaningful contribution to the country’s clean energy future.
Australia’s Net-Zero Target Explained
Australia has committed to reducing greenhouse gas emissions to net zero by 2050, with interim targets including a 43% reduction by 2030 (from 2005 levels). These targets are backed by national energy and climate policies focused on expanding renewable generation, electrifying homes and transport, and improving energy efficiency.
Electricity generation has historically been one of Australia’s largest sources of emissions. Replacing coal-fired power with renewable energy — and ensuring that renewable power is available when it is needed — is essential to meeting net-zero commitments.
This is where battery storage becomes critical.
What Is the New Battery Scheme?
The Cheaper Home Batteries Program is a federal initiative designed to reduce the upfront cost of installing small-scale battery systems for households and small businesses.
Key Features of the Scheme
- Around 30% upfront discount on eligible battery systems
- Delivered through the Small-scale Renewable Energy Scheme (SRES) using small-scale technology certificates (STCs)
- Available for new and existing solar systems
- Applies to battery systems typically ranging from 5 kWh up to 100 kWh
- Batteries must be installed by SAA-accredited installers using approved products
From May 2026, the scheme includes updated settings that gradually taper support over time and apply tiered incentives based on battery size. This ensures the program remains sustainable as battery prices continue to fall.
Why Batteries Are Essential for Net-Zero?
Solar Alone Is Not Enough
Rooftop solar has transformed Australia’s energy landscape, but solar generation peaks during the day — often when household demand is lowest. Without batteries, excess solar is exported to the grid, sometimes at low feed-in tariffs, and fossil fuels are still relied upon during evening peak demand.
Batteries solve this mismatch by storing clean solar energy for later use.
How the New Battery Scheme Supports Net-Zero Goals?
- Reducing Fossil Fuel Dependence
By encouraging battery adoption, the scheme enables households to use stored solar power during peak evening hours. This directly reduces reliance on coal- and gas-fired electricity generation — the largest source of emissions in the National Electricity Market.
At scale, widespread battery uptake reduces peak demand on fossil fuel power stations, allowing more of them to be retired earlier.
- Increasing Renewable Energy Utilisation
One of the biggest challenges with renewable energy is curtailment — when clean energy is generated but cannot be used or stored.
Home batteries:
- Increase self-consumption of rooftop solar
- Reduce wasted renewable generation
- Improve overall system efficiency
The new battery scheme accelerates this effect nationwide by making storage affordable for hundreds of thousands of homes.
- Strengthening Grid Stability
As coal generators retire, maintaining grid reliability becomes increasingly important. Distributed batteries play a vital role by:
- Reducing strain on the grid during peak demand
- Providing fast-responding energy support
- Enabling participation in Virtual Power Plants (VPPs)
When thousands of household batteries are coordinated, they act like a large power station — but without emissions. This supports Australia’s transition to a cleaner, more resilient grid.
- Supporting Electrification of Homes
Net-zero targets depend on electrifying homes — replacing gas appliances with electric alternatives such as:
- Heat-pump hot water systems
- Induction cooktops
- Reverse-cycle air conditioning
- Electric vehicles
Batteries make electrification more practical by ensuring households can power these systems with stored solar energy rather than grid electricity generated from fossil fuels.
The battery scheme therefore complements broader electrification policies and emissions reduction strategies.
- Driving Behaviour Change and Energy Awareness
Households with solar and batteries typically become more aware of their energy usage patterns. Smart inverters, monitoring apps, and smart meters help users:
- Shift energy use to low-emission periods
- Optimise charging and discharging cycles
- Reduce unnecessary consumption
These behavioural changes, multiplied across millions of households, contribute meaningfully to national emissions reduction.
Economic Benefits That Support Long-Term Climate Action
Lower Energy Bills Build Public Support
One reason the new battery scheme is so important is that it aligns climate goals with household savings. When people see tangible bill reductions, support for clean energy policies increases.
Lower bills:
- Reduce cost-of-living pressure
- Encourage further renewable investment
- Build long-term public confidence in net-zero strategies
This economic alignment is essential for sustained climate action.
Growing Australia’s Clean Energy Workforce
Battery incentives stimulate demand for:
- Accredited installers
- Electricians
- Engineers
- Energy consultants
This supports job creation in Australia’s clean energy sector and helps build the skills base required for a net-zero economy.
Smart Battery Sizing Matters for Net-Zero Impact
Under the updated scheme, incentives favour appropriately sized batteries rather than oversized systems. This approach:
- Maximises efficiency
- Reduces unnecessary material use
- Improves return on investment
- Encourages realistic energy planning
Choosing the right battery size ensures households contribute effectively to emissions reduction while receiving optimal financial benefits.
The Role of Virtual Power Plants
Virtual Power Plants are increasingly important to Australia’s net-zero roadmap. When household batteries join VPPs, they can:
- Export stored renewable energy during peak demand
- Reduce wholesale electricity prices
- Improve grid reliability
- Offset fossil fuel generation
The new battery scheme increases the pool of VPP-ready batteries, strengthening Australia’s ability to manage a renewable-dominated grid.
FAQ – New Battery Scheme and Net-Zero Goals
Q: How does the new battery scheme help reduce emissions?
A: It increases battery adoption, allowing more solar energy to be stored and used instead of fossil fuel electricity, directly lowering emissions.
Q: Is installing a battery really impactful at a household level?
A: Yes. When thousands of households adopt batteries, the combined effect significantly reduces peak demand and fossil fuel generation.
Q: Does the scheme only benefit solar households?
A: The primary incentive applies to batteries installed with solar, encouraging integrated renewable systems that deliver the greatest emissions reductions.
Q: Will battery incentives continue long-term?
A: Support is designed to gradually taper as battery prices fall, ensuring sustainable growth while maintaining momentum toward net-zero targets.
Conclusion
The new battery scheme supporting Australia’s net-zero goals is more than a rebate — it is a cornerstone policy driving cleaner energy, stronger grids, and meaningful emissions reductions. By making battery storage affordable, the scheme empowers households to play an active role in Australia’s climate transition while enjoying lower energy bills and greater energy independence.
For expert advice on choosing the right battery system, understanding eligibility, and maximising your contribution to a cleaner future, talk to our expert by calling 1300 181 191. Prosolar Global is ready to help you power your home — and Australia’s net-zero future — the smart way.
