{"id":"F2025L00807","name":"Industry Research and Development (Cheaper Home Batteries Program) Instrument 2025","slug":"industry-research-and-development-cheaper-home-batteries-program-instrument-2025","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442880,"registerId":"F2025L00807-fast-fetch-1775957801095","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Industry Research and Development (Cheaper Home Batteries Program) Instrument 2025","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nIndustry Research and Development (Cheaper Home Batteries Program) Instrument 2025\n\nI, Chris Bowen, Minister for Climate Change and Energy, as delegate of the Minister for Industry and Innovation, make the following instrument.\n\nDated  29 June 2025  \n\nChris Bowen\n\nMinister for Climate Change and Energy\n\n \n\n \n\n \n\nContents\n\n1  Name\n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\n5  Prescribed program\n\n6  Specified legislative power\n\n \n\n \n\n1  Name\n\n  This instrument is the Industry Research and Development (Cheaper Home Batteries Program) Instrument 2025.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under section 33 of the Industry Research and Development Act 1986.\n\n4  Definitions\n\n  In this instrument:\n\nAct means the Industry Research and Development Act 1986.\n\nbattery connected (solar PV) small generation unit has the meaning in regulation 3C of the Renewable Energy (Electricity) Regulations 2001. \n\nDepartment means the Department responsible for administering the Renewable Energy (Electricity) Act 2000.\n\nKyoto Protocol means the Kyoto Protocol to the United Nations Framework Convention on Climate Change, done at Kyoto on 11 December 1997, as in force for Australia from time to time.\n\nNote: The Protocol is in Australian Treaty Series 2008 No. 2 ([2008] ATS 2) and could in 2025 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\nProgram: see subsection 5(1).\n\nParis Agreement means the Paris Agreement, done at Paris on 12 December 2015, as in force for Australia from time to time.\n\nNote: The Agreement is in Australian Treaty Series 2016 No. 24 ([2016] ATS 24) and could in 2025 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\nRegulator has the meaning in section 5 of the Renewable Energy (Electricity) Act 2000.\n\nsmall-scale technology certificate has the meaning in section 5 of the Renewable Energy (Electricity) Act 2000.\n\nUnited Nations Framework Convention on Climate Change means the United Nations Framework Convention on Climate Change, done at New York on 9 May 1992, as in force for Australia from time to time.\n\nNote: The Convention is in Australian Treaty Series 1994 No. 2 ([1994] ATS 2) and could in 2025 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\n5  Prescribed program\n\n (1) For the purposes of subsection 33(1) of the Act, the Cheaper Home Batteries Program (the program) is prescribed.\n\n (2) The program provides for a discount on the cost of installing small-scale batteries which will be implemented through the creation of small-scale technology certificates for eligible battery-connected (solar PV) small generation units. The program will be funded by the Commonwealth purchasing small-scale technology certificates equivalent in volume to the number of certificates created for battery connected (solar PV) small generation units installed on or after 1 July 2025.\n\n               (3)  The objectives of the program are to reduce the upfront cost of installing a battery connected (solar PV) small generation unit and incentivise increased deployment of small-scale batteries to harness power generated by small-scale solar PV.\n\n6  Specified legislative power\n\n  For the purposes of subsection 33(3) of the Act, the power of the Parliament to make laws with respect to external affairs (within the meaning of paragraph 51(xxix) of the Constitution) is specified, as it relates to measures to give effect to Australia’s obligations under one or more of the following:\n\n1.                 the United Nations Framework Convention on Climate Change, particularly Article 4;\n2.                 the Kyoto Protocol, particularly Article 10;\n3.                 the Paris Agreement, particularly Article 4.\n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The instrument prescribes a specific program under section 33 of the Industry Research and Development Act 1986 and specifies reliance on the external affairs power to support measures giving effect to climate treaties (see s5 and s6). It does not amend other legislation or expand statutory definitions within the text. There is no text in the instrument indicating a change to the legal scope of the Act or to the underlying certificate regime beyond prescribing the Cheaper Home Batteries Program and its funding mechanism (see s3–s6)."},"complexity_factors":["Cross-references to multiple external statutes and regulations (Industry Research and Development Act 1986; Renewable Energy (Electricity) Act 2000; regulation 3C), requiring reading across instruments (see s3, s4).","Economic mechanism relies on market instruments (small-scale technology certificates) whose valuation and transfer rules are governed outside this instrument (see s5(2) and s4).","Operational and procurement details (how the Commonwealth purchases certificates, pricing, timing, caps) are not specified, leaving implementation discretion to administering bodies (see s5(2)).","Program depends on installation timing (applies to units installed on or after 1 July 2025) and on certificate creation processes, adding administrative timing complexity (see s5(2)).","Interaction with international obligations is invoked (external affairs power tied to UNFCCC/Kyoto/Paris), which raises constitutional framing issues even though the instrument itself is procedural (see s6).","Potential fiscal exposure is open-ended because total purchases depend on uptake; estimating cost requires external market and deployment data not in the instrument (see s5(2))."],"plain_english_summary":"What this instrument does (mechanically)\n\n- It prescribes a new program called the Cheaper Home Batteries Program under the Industry Research and Development Act 1986 (the Act) (see s5(1)).\n- The program works by creating small-scale technology certificates for eligible battery-connected (solar PV) small generation units, and the Commonwealth will fund the program by purchasing small-scale technology certificates in a volume equal to the number created for battery-connected units installed on or after 1 July 2025 (see s5(2)).\n- The stated objectives are to reduce the upfront cost of installing a battery-connected (solar PV) small generation unit and to incentivise increased deployment of small-scale batteries to harness power from small-scale solar PV (see s5(3)).\n- The instrument takes effect the day after it is registered (see s2). It is made under section 33 of the Industry Research and Development Act 1986 (see s3).\n- The instrument relies explicitly on Australia’s external affairs legislative power to support measures giving effect to the UNFCCC, the Kyoto Protocol and the Paris Agreement (see s6). It incorporates definitions and cross-references to the Renewable Energy (Electricity) Act 2000 and its regulations for terms such as ‘Regulator’, ‘small-scale technology certificate’ and ‘battery connected (solar PV) small generation unit’ (see s4).\n\nWho is affected and who decides\n\n- Directly affected: owners or installers of battery-connected (solar PV) small generation units who can create small-scale technology certificates under the existing Renewable Energy (Electricity) Act framework (see s4 and s5(2)).\n- Who pays: the Commonwealth (federal government) funds the program by purchasing small-scale technology certificates in the same volume as those created for eligible battery installations (see s5(2)). That purchase is the explicit funding mechanism in the instrument.\n- Who administers: the Department responsible for administering the Renewable Energy (Electricity) Act is identified in the instrument (see s4). The relevant Regulator and existing certificate rules under the Renewable Energy (Electricity) Act and its regulations determine eligibility and certificate creation (see s4).\n\nHow behaviour and markets are affected (incentives and mechanics)\n\n- The instrument creates a financial incentive tied to certificate creation: eligible battery-connected installations generate small-scale technology certificates; because the Commonwealth is committing to purchase an equivalent volume of certificates, those certificates are given market value that can be realised by whoever is entitled to them under the existing certificate rules (see s5(2)).\n- The stated aim is to reduce upfront consumer cost and encourage more households to install battery systems (see s5(3)). Mechanically, that aim is pursued by making certificates available for eligible installations and having the Commonwealth act as a purchaser in the certificate market (see s5(2)).\n- The mechanism changes the flow of payments: purchasers of certificates (here the Commonwealth) will pay for certificate volume, and the benefit will accrue to the parties that create and sell those certificates under the existing statutory regime (see s5(2)).\n\nCompliance, administrative discretion and implementation risk\n\n- Eligibility and technical definitions are not set out in detail in this instrument; instead it cross-references existing definitions and the Renewable Energy (Electricity) Act/regulations (see s4). That means administrative actors (the Regulator and Department) must apply existing rules to determine who can create certificates and how many are created.\n- The instrument does not set price, timing or procurement rules for the Commonwealth’s certificate purchases. Those operational details and procurement processes will determine how fast subsidies flow, how much each certificate is worth in practice, and how the program interacts with the existing certificate market (see s5(2)). This creates implementation risk and leaves discretion to the administering bodies.\n- The Commonwealth’s commitment to purchase certificates creates a fiscal exposure linked to the number of eligible installations and certificates created after 1 July 2025 (see s5(2)). The instrument does not include budget caps or per-installation limits within its text.\n\nCosts, incentives and trade-offs (mechanics, not judgement)\n\n- Who pays: taxpayers via Commonwealth purchases of certificates (s5(2)).\n- Who benefits financially: the holders/creators of small-scale technology certificates arising from eligible battery-connected installations (s5(2)).\n- Incentive alignment: by giving value to certificates tied specifically to battery-connected (solar PV) small generation units, the program financially incentivises installations that meet the certificate rules (s5(2)–(3)).\n- Trade-offs and opportunity costs (mechanical implications): funds used to buy certificates cannot be used elsewhere; the degree of uptake will determine total fiscal cost; administrative and market effects (for example, how certificate prices adjust and which market participants capture revenue) depend on implementation details outside this instrument’s text (see s5(2) and s4).\n\nSummary of legal hooks and timing\n\n- Legal authority: made under s33 of the Industry Research and Development Act 1986 (see s3). The instrument also specifies reliance on Australia’s external affairs power as it relates to UNFCCC, Kyoto Protocol and the Paris Agreement (see s6).\n- Operational start: applies to certificates created for eligible battery-connected units installed on or after 1 July 2025 (see s5(2)); the instrument itself commences the day after registration (see s2).\n\nKey sections to consult in the instrument: s2 (commencement), s3 (authority), s4 (definitions and cross-references), s5(1)–(3) (program prescription, funding mechanism, objectives), and s6 (specified external affairs power)."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This is a new instrument with no prior version to compare against. The scope appears tightly aligned with its stated purpose — prescribing a specific program for battery subsidies. It does not appear to have expanded beyond its original intent as it is a fresh legislative creation establishing a discrete, narrow program."},"complexity_factors":["Very short instrument — only 6 sections spanning approximately 2 pages","Minimal defined terms (11 definitions, mostly referencing external legislation like the Renewable Energy (Electricity) Act 2000)","No nested exceptions or conditional logic — the operative provisions are straightforward declarations","Simple structure: name, commencement, authority, definitions, program prescription, and constitutional basis","Heavy reliance on incorporated definitions from other statutes rather than creating new complex regulatory frameworks","Single clear policy mechanism (certificate creation and purchase) with no alternative pathways or complicated eligibility tiers described in this instrument"],"plain_english_summary":"This legislation creates a government program to make home batteries cheaper for Australian households.\n\n**What it does:**\n- Establishes the \"Cheaper Home Batteries Program\" — a scheme that gives households a discount when they install a battery connected to their rooftop solar panels.\n- The discount works through the existing \"small-scale technology certificates\" system (a market-based mechanism where energy certificates are created when clean energy equipment is installed).\n- The government will buy these certificates to fund the discounts, meaning the program is essentially a rebate delivered through the existing renewable energy certificate market.\n\n**Who it affects:**\n- **Households** installing new batteries connected to solar panels on or after 1 July 2025 — they'll get cheaper upfront costs.\n- **The Clean Energy Regulator** — which administers the certificate system.\n- **Solar and battery retailers/installers** — who will process the certificates on behalf of customers.\n\n**Why it matters:**\nBatteries let households store solar power for use at night or during blackouts, but they're expensive. By reducing the upfront cost, the government aims to get more batteries into homes faster, which helps stabilise the electricity grid and supports Australia's climate change commitments under international treaties (the UN Framework Convention on Climate Change, Kyoto Protocol, and Paris Agreement).\n\n**The legal hook:**\nThis is made under the Industry Research and Development Act 1986, which lets the government support industry development. The legislation specifically relies on the Constitution's \"external affairs\" power — meaning it's justified because it helps Australia meet its international climate treaty obligations."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/industry-research-and-development-cheaper-home-batteries-program-instrument-2025","history":"/api/acts/industry-research-and-development-cheaper-home-batteries-program-instrument-2025/history","analysis":"/api/acts/industry-research-and-development-cheaper-home-batteries-program-instrument-2025/analysis","conflicts":"/api/acts/industry-research-and-development-cheaper-home-batteries-program-instrument-2025/conflicts","importantCases":"/api/acts/industry-research-and-development-cheaper-home-batteries-program-instrument-2025/important-cases","documents":"/api/acts/industry-research-and-development-cheaper-home-batteries-program-instrument-2025/documents"}}