Over 60 Per Cent of Cheaper Home Batteries Program Installations Found Substandard
A recent regulatory audit has revealed that more than 60 per cent of installations under Australia’s Cheaper Home Batteries Program were found to be substandard, raising serious concerns about public safety and the long-term viability of the initiative. The findings, released by the Australian Energy Regulator (AER), indicate widespread issues with electrical wiring, inverter compatibility, and inadequate system grounding in residential battery storage units installed across Modern South Wales, Victoria, and Queensland. Officials warn that faulty installations could increase the risk of electrical fires, battery thermal runaway, and grid instability, particularly as household adoption of energy storage continues to grow.
The Cheaper Home Batteries Program, launched in 2022 as part of the federal government’s broader Powering Australia plan, aimed to reduce household energy costs by subsidising the installation of home battery systems paired with rooftop solar. With a target of supporting up to 100,000 installations over four years, the program offered rebates of up to $3,500 per household. However, the AER’s compliance review, conducted between January and March 2024, found that 62 per cent of the 1,200 randomly inspected systems failed to meet minimum safety and performance standards outlined in the AS/NZS 5139:2019 safety standard for battery installations.
“We are seeing a pattern of cut corners, particularly in regional and outer-metropolitan areas where oversight is more challenging,” said AER Commissioner Cheryl Cartwright during a press briefing in Canberra on April 10, 2024. “When installers skip critical steps like proper isolation procedures or fail to coordinate with network service providers, they’re not just voiding warranties — they’re putting homes and neighbours at risk.” The regulator has since issued improvement notices to 18 accredited installers and referred six cases to state electrical safety authorities for potential prosecution under the Electricity Safety Act 1998.
Safety Risks Linked to Poor Installation Practices
Technical failures identified in the audit included reversed polarity connections, undersized DC cabling, and missing arc-fault detection devices — all of which can lead to overheating, electrical faults, or fire hazards. In one case investigated by Energy Safe Victoria, a poorly terminated battery cable in a Melbourne suburb caused a smouldering fault that went undetected for 11 hours before triggering a circuit breaker. No injuries were reported, but the incident prompted a temporary suspension of the installer’s accreditation.
Lithium-ion battery systems, while generally safe when installed correctly, can enter a state of thermal runaway if subjected to overcharging, physical damage, or internal short circuits — conditions that are more likely when installation protocols are not followed. The Australasian Fire and Emergency Service Authorities Council (AFAC) has noted a gradual increase in residential battery-related incidents over the past 18 months, though it stresses that the absolute number remains low compared to other household electrical risks.
“The technology itself is not the problem,” said Dr. Lena Wu, a senior research fellow at the University of New South Wales’ School of Photovoltaic and Renewable Energy Engineering. “It’s the execution. When you scale a subsidy program rapidly without matching it with robust inspection regimes and installer accountability, you create conditions where safety can be compromised.” Dr. Wu emphasized that retrofitting faulty systems is often more expensive than installing them correctly the first place, undermining the program’s cost-saving intent.
Regulatory Response and Industry Pushback
In response to the findings, the AER has announced plans to increase random inspection rates from 5 per cent to 15 per cent of all subsidised installations beginning July 1, 2024. It will also require all participating installers to complete a mandatory refresher course on AS/NZS 5139 compliance by September 30, 2024, or risk suspension from the program. The Clean Energy Council, which administers the solar installer accreditation scheme, has pledged to perform with regulators to strengthen audit protocols but cautioned against overburdening compact businesses.
“We support higher standards, but we need clarity and consistency in how rules are applied,” said Kane Thornton, Chief Executive of the Clean Energy Council, in a statement to World Today Journal on April 12, 2024. “Many of our members are small operators trying to do the right thing. If compliance becomes overly complex or costly, we risk driving them out of the market — which could reduce access to clean energy, not improve it.” The council is advocating for a tiered inspection model that focuses resources on high-risk installers while reducing paperwork for those with proven track records.
Consumer advocacy groups, however, have urged faster action. The Total Environment Centre called for an immediate pause on new approvals until safety gaps are addressed, arguing that “householders should not be guinea pigs in a rushed rollout.” Others have called for greater transparency, including the publication of installer-specific compliance scores to help households make informed choices.
What Homeowners Should Know
For households that have already participated in the program, regulators recommend checking whether their installer was accredited under the Clean Energy Council’s Solar Accreditation Australia scheme and whether the installation was signed off by a licensed electrician. Homeowners can request a copy of the electrical compliance certificate and, if concerned, arrange an independent safety inspection through a Level 2 electrician — a service that typically costs between $250 and $500.
The Australian Competition and Consumer Commission (ACCC) has also reminded consumers that they are entitled to remedies under the Australian Consumer Law if a product or service fails to meet safety guarantees, including the right to repair, replacement, or refund. Complaints related to home battery installations have risen by 40 per cent year-on-year, according to ACCC data released in March 2024.
Moving forward, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) says it is reviewing the program’s design to better align subsidies with performance outcomes. A mid-term evaluation is expected by September 2024, which will assess not only installation quality but also actual energy savings and grid participation rates among participants.
As the transition to decentralized energy accelerates, ensuring the safety and reliability of home battery systems will be critical to maintaining public trust. For now, the message from regulators is clear: subsidies must come with safeguards, and innovation cannot outpace oversight.
Stay informed about updates to the Cheaper Home Batteries Program by visiting the Department of Climate Change, Energy, the Environment and Water’s official program page or contacting your state’s electrical safety regulator.
Have you had a home battery installed under this program? Share your experience in the comments below, and help others make informed decisions about home energy storage.