In brief
- A new report has found that 60 per cent of installations under a popular government energy program are substandard.
- More than a quarter of a million small-scale battery systems have been installed under the program.
More than 60 per cent of battery system installation work inspected under a federal government green energy program is substandard and 1.2 per cent unsafe, according to a recent report by the Clean Energy Regulator.
The Cheaper Home Batteries Program has proved hugely popular. More than a quarter of a million small-scale battery systems have now been installed under it. This equates to 7.7 gigawatt hours of installed storage capacity.
Minister for Climate Change and Energy Chris Bowen, says this means "less pressure at peak times, more reliability, and a cleaner, more affordable energy system".
But the installation compliance and safety problems highlighted by the regulator's report risk not only battery storage growth and the credibility of the scheme, but also public safety.
Substandard and unsafe installations
The Cheaper Home Batteries program provides a discount of about 30 per cent of the cost of an installed battery. The program is designed to accelerate the move away from fossil fuels, with energy storage critical for reducing reliance on fossil fuel generation during evening peaks.
Recent amendments to the scheme design will address issues that have blown out the cost from original estimates of $2.3 billion to $7.2 billion.
Between July 2025 and April 2026, the Clean Energy Regulator carried out 1,278 compliance inspections on battery systems installed under the program.
Some 60.8 per cent of inspected system installations were found to be "substandard" and 1.2 per cent of installs were found to be "unsafe". The problems weren't about the batteries themselves, but the way they had been installed.
The sample size in the regulator’s report is small — 0.5 per cent of the total number of systems installed.
With such a small sample size, it is hard to extrapolate the level of installation non-compliance across all systems in Australia. But if similar trends continue in inspections over a larger sample size, there could be approximately 3,000 battery installs that are unsafe and a further 152,000 that are non-compliant.
From incorrect labelling to exposed wiring
Most non-compliance issues related to incorrect labelling.
Issues include missing or incorrect warning labels, unlabelled backup circuits, and missing or incorrectly positioned energy storage (ES) labels. These issues are comparatively low risk relative to issues such as loose wiring, exposed wiring, and substandard electrical work that could lead to overloading, poor battery performance or fires.
Wiring requirements for batteries are not all equal. Some battery systems come pre-assembled with all wiring and electronic equipment integrated into the battery enclosure. This reduces the electrical work required to install.
Other systems are not as integrated. They require additional wiring by the electrician to connect, and can be more challenging to install without experience. These were the systems where installations were deemed unsafe by the regulator, with reported issues such as loose connections and substandard wiring practices that pose an imminent risk.
Exposed wiring is also a common issue that needs to be addressed as a priority. If wiring is not enclosed, it can be damaged and increase the risk of a severe electric shock if touched. The independent solar energy website, SolarQuotes, highlights the exposed wiring issue well, showcasing several installations with non-compliant wiring.
For batteries, no amount of exposed cable is compliant. Cables need to be protected from mechanical damage for the full cable run, using electrical conduit or metal ducting.
Alarmingly, reports from experts in the field indicate that only 10 peer cent of installers are following these wiring practices correctly.
A quick scroll of social media groups that rate battery installation jobs visually confirms the issues. Posts of substandard installations show exposed cables, batteries placed in full sun, delicately anchored to a wall with standard masonry wall plugs or supported with loose bits of timber and pavers.
In February, the Clean Energy Regulator said it was ramping up inspections of solar battery installations as part of the Cheaper Home Batteries Program.
"I’m putting installers on notice that unsafe and non-compliant work will be identified, and we won’t hesitate to use our compliance powers," CER Executive General Manager, Carl Binning, said.
Battery installations are complex
Well-intentioned schemes have previously been compromised by bad actors — referred to as "rebate chasers".
The regulator sets rules limiting the number of battery installations that can be completed in one day. This is aimed at reducing the likelihood of this type of accreditation misuse.
Battery installations are complex, so there are likely to be a range of reasons why non-compliance is emerging.
Conversations colleagues and I have had with electricians operating in the industry highlight just how stretched they are trying to keep up with demand. The shortage of electricians nationally is a well-known issue exacerbating the pressure placed on current trades trying to deal with the volume of work available.
The sheer scale of demand pushes skilled trades to work to their limits. This is bound to result in things falling through the cracks in some cases.
In instances of fraud, negligence or repeat non-compliance, the Clean Energy Regulator has indicated the use of strong enforcement action. This includes stripping accreditation where necessary.
In the case where repeat non-compliance highlights gaps in knowledge across the industry, the regulator has signalled an intention to fill knowledge gaps with mandatory training.
Finding accredited installers
There is a well-defined accreditation pathway for battery installers that should be reviewed by accrediting body Solar Accreditation Australia, considering the issues identified.
In the meantime, consumers can arm themselves with the knowledge to avoid being caught out. They can reduce the risk of a non-compliant or unsafe install by engaging an accredited installer that has been pre-vetted.
Ask quoting installers for images of previous installations. A neat and tidy installation, without exposed cabling, can be a good marker for compliant installation practices.
And if you have the time and technical aptitude, familiarise yourself with the Clean Energy Regulator’s Solar Battery Inspections Checklist.
Rusty Langdon is a Senior Research Consultant, Institute for Sustainable Futures at University of Technology Sydney.
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