Battery storage represents an exciting opportunity for Australian energy markets, our abatement efforts and empowerment of Australian electricity consumers. Unlocking this opportunity can be accelerated by a collaborative partnership between the battery storage sector and governments throughout Australia.

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ACCELERATING THE UPTAKE
OF BATTERY STORAGE
CLEAN ENERGY COUNCIL
MARCH 2016

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ACCELERATING THE UPTAKE OF BATTERY STORAGE
Battery storage represents an exciting opportunity for Australian
energy markets, our abatement efforts and empowerment of
Australian electricity consumers.
Unlocking this opportunity can be accelerated by a collaborative partnership between
the battery storage sector and governments throughout Australia. This can be achieved
through the following initiatives:
Unlock the full value of storage: The commercial case for battery storage is
compelling, and does not therefore require a subsidy. Battery storage simply requires
tariffs that can allow consumers to realise the economic benefits of an investment in the
technology. Battery storage can reduce demand for electricity at peak times. This will
help to reduce the costs on the entire electricity system associated with generating and
distributing electricity for those peak periods. However, the current electricity tariff
structures do not allow those benefits to flow to the private householders who would be
investing in battery storage. Most critical is that network distribution tariffs are designed
in a way that allows customers to realise the full value of installing storage and that
future structural changes to tariffs are not at the detriment of these consumer
investments.
Integrity and safety: It is critical that householders and businesses who purchase
battery storage systems, have the confidence in the performance, quality and safety of
these systems. This requires a number of elements as follows:
• Ensuring battery system components meet minimum standards suitable for use in
Australia’s unique circumstances is vital to ensuring the safety and reliability of
systems. Battery storage technologies are not zero risk. New products on the
market can be compared to a barbeque gas bottle or a petrol can in a garden
shed. Current Australian Standards for battery installations are outdated and do
not cover these new devices. The Clean Energy Council is co-chair of Standards
Australia’s EL42 working group which is developing AS/NZS 5039 - Safety of
battery systems for use in inverter energy systems. This will take some time to
complete. The CEC currently administers a list of products (solar panels and
inverters) that meet the required standards for use in PV systems, and is
establishing a similar list for battery systems, to be put in place as soon as
possible and to be refined once AS/NZS 5039 is established. The CEC
commissioned CSIRO in 2015 to undertake Australia’s most comprehensive
research assessing storage safety and standards. This work will inform the

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development of standards, system installation and recycling practices for battery
products in Australia.
• The installation of battery storage should only be undertaken by persons with the
necessary competency and with products that meet an appropriate standard. The
CEC has established an endorsement for the installation of battery storage which
will allow installers to demonstrate they have the sufficient competency (agreed
training has been developed and is underway) to safely install storage.
• Careful consideration of the maintenance and operation of battery systems,
including how the systems should be transported, operated and maintained, how
to manage system faults or issues and procedures for the disposal of units at the
end of their operating life. Along with the CSIRO’s research the CEC has
established a working group to inform best practice on each of these issues, as
well as working with the Australian Battery Recycling Initiative on life-cycle
management for battery components.
While the building blocks for the above are under development, there is currently no
regulatory requirement for an installer to have such qualifications or to install product
that meets a given standard. There is a clear role for government to ensure that an
appropriate regulatory framework is established. A national framework for enforcing
these measures would be a useful initial step from government.
Consumer information: Understanding battery storage and supporting informed
decisions about systems and their installation relies on a level of information and
understanding. It is crucial that consumers have access to this information to empower
them to make decisions that best meet their circumstance, and to guide the appropriate
installation and ongoing operation of battery systems. Supported by CSIRO’s findings
the CEC is developing a consumer guide to inform households and small businesses. A
partnership with the Australian Government to publish and disseminate this information
would ensure consumers have access to the right information in respect to battery
storage.
Support demonstration projects: While the long term business case for battery
storage is compelling, doing anything for the first time is difficult, time-consuming and
often expensive. Government support for demonstration battery storage projects can be
critical in identifying barriers, growing confidence and familiarity with battery storage
solutions, finding innovative business and financing models, and building capability and
capacity within the industry. Demonstration projects can be facilitated by targeted
regulatory requirements (for example all new buildings in a particular precinct must
include some form of solar and battery solution) or by providing upfront financial
incentives.

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Ensure supportive regulations: There are a range of regulations relating to building
codes, planning regimes, fire and environmental safety or electrical and network
regulation that was designed long before battery storage was anticipated. There is a
clear role for policymakers and regulators – particularly at the state and territory level,
where responsibility for many of these matters rest – to identify and work with the
storage sector to overcome these barriers.
For more information on the Clean Energy Council’s work in storage, visit
www.cleanenergycouncil.org.au/storage or contact
storage@cleanenergycouncil.org.au