Australia's clean energy landscape is being reshaped by the federal government's $2.3bn Cheaper Home Batteries program.
Australia's $2.3bn battery subsidy marks a turning point in the nation's transition to clean energy
Investment opportunities are opening up across a new value chain that spans manufacturing, financing, and grid management
Multiple ASX-listed small cap companies stand to benefit
By Jason Collins
Australia’s onboarding of solar is accelerating
The country’s clean energy landscape is being reshaped by Australia’s new $2.3bn Cheaper Home Batteries program.
This battery subsidy was launched on the 1st of July 2025 as part of the federal government’s push to stabilise the grid and cut household energy costs.
The scheme offers a significant -30% upfront discount on battery systems up to 50 kWh.
According to Con Hristodoulidis, a General Manager at Distributed Energy at the Clean Energy Council, the day the scheme was announced was a “defining moment in Australia’s clean-energy development.”
He went on to say, “Home batteries are no longer unaffordable. With the new rebates and no-interest loans, they are now within reach for everyday Australians, driving energy independence and lowering household costs.”
Perhaps unsurprisingly, since its launch, uptake has been extraordinary, with more than 11,500 applications being lodged within the first three weeks of the subsidy taking effect.
In addition, it’s estimated that around 19,000 home batteries were registered in the first month alone of the subsidy’s existence.
Considering it has been a few months since the battery subsidy took effect, analysts now expect more than 220,000 installations in the first year.
This figure is roughly triple 2024’s total, and by 2030, there might be more than a million battery installations.
This could represent about 10 GW of distributed storage capacity, roughly half of Australia’s coal-fired output. This wave of installations is doing far more than simply cutting power bills.
In today’s article, we’ve explored in more detail how the subsidy is transforming Australia’s energy market, what this means for investors, and which lesser-known ASX-listed companies stand to benefit as storage becomes the next growth engine of the clean-energy economy.
A Market Undergoing Structural Change
There has been a slow, unfolding shift from centralised generation to consumer-owned energy systems, as evidenced by the adoption rates of rooftop solar, smart meters, and behind-the-meter storage. The $2.3bn battery subsidy is accelerating this pace of evolution.
Now, decades of gradual change have been compressed into just a few years, as power is increasingly generated, stored, and managed at the household level with consumers acting more like micro-utilities.
Pre-subsidy households would average 10 to 12 kWh, whereas now, with households installing larger batteries, the average is 17 kWh. This move to store daytime solar for evening use eases grid strain and reduces exposure to volatile tariffs, which is a win for most households.
Additionally, early insights indicate the subsidy is reshaping capital flows across the ASX and forcing financiers, energy providers, and technology developers to adapt to a distributed model.
For investors, the change isn’t only about new hardware but also about a re-allocation of profit pools. It seems that growth is emerging in integration, financing, and software, which are undoubtedly the connective layers that turn thousands of small-scale consumer-owned energy assets into a cohesive network.
In the grand scheme of things, major utilities are adjusting business models to accommodate these market changes. Still, a growing number of smaller ASX-listed firms are now sitting at the centre of this decentralised momentum. We’ve discussed a few of these firms that are best positioned to capitalise on market changes with the subsidy in effect below:
1. HPP Group — Red Earth Energy Storage Ignites the Home Market
HPP Group is in the midst of transitioning from a packaged-food company to a clean-energy manufacturer.
On the 28th of August 2025, the company entered into a legally binding agreement to acquire Red Earth Energy Storage, a Brisbane-based producer of modular lithium battery systems.
Per an ASX filing, it’s confirmed the “merger”, in which HPP Group is offering a loan of up to $2.5m, is intended to help Red Earth meet demand created by the federal Cheaper Home Batteries Program.
Red Earth Energy’s hardware and software systems give it a pathway into virtual power plant (VPP) networks, which retailers across Australia are now expanding.
Red Earth assembles its systems locally and develops proprietary software for monitoring and market participation. It has also recently unveiled a ‘Microgrid-in-a-Box’ platform that cleverly integrates solar, storage, and EV charging.
Given these technologies, it shouldn’t be surprising that HPP Group has seen battery enquiries increase since July, positioning the company to benefit from the expected domestic-manufacturing preference of rebate-eligible customers.
For investors, HPP’s strategic shift signals an early-stage opportunity in domestic battery manufacturing, with exposure to one of the fastest-growing sectors of Australia’s clean-energy market.
Note: Health and Plant Protein Group Limited (ASX: HPP) was removed from the official list effective the close of trading on Thu, 28 Aug 2025 under Listing Rule 17.15 (non-payment of annual listing fees).
HPP later said it intended to merge with RedEarth Energy Storage and apply to re-list before end of Q1 2026, but as of today it remains delisted.
2. Plenti Group — Financing the Battery Uptake
The Plenti Group ((PLT)) is playing a significant role in helping Australia transition toward a more resilient energy system. The fintech lender, which focuses on renewable energy and EV finance, is at the helm of enabling households to adopt battery use.
This is in part thanks to the Western Australian Government appointing the Plenti Group as the administrator and financier of the state’s Residential Battery Scheme, which complements the federal $2.3bn battery subsidy.
It’s believed the initiative is offering rebates of up to $3,800 and interest-free loans of up to $10,000. According to Adam Bennett, the Chief Executive Officer at Plenti, they are “proud to support the Western Australian Government to deliver this landmark battery initiative.”
Bennett further went on to say, “With up to 100,000 rebates available, this is one of the most significant programs of its kind, and we’re excited to facilitate its impact. With our proven track record of running government funding programs that help Australian households decarbonise, we’re confident in our ability to support the successful rollout of this scheme and play our part in accelerating Australia’s transition to a smarter, more resilient energy system.”
Plenti Group’s involvement is crucial as battery installations increase and financing demand grows. Since systems often cost between $6,000 and $10,000, even after the rebate, Plenti, as a lender, is well-positioned to fill the financing gap.
With this in mind, Plenti’s clean-energy and EV loan portfolios are expanding rapidly. The company’s total loan book reached around $2.5bn in FY25 and is targeting $3bn by March 2026, with renewable-energy finance remaining one of its fastest-growing segments.
It’s important to note operational risks and bottlenecks remain with Western Australia’s rollout, resulting in payment delays.
Still, Plenti Group’s well-established systems and government partnerships position the ASX-listed company to capitalise on sustained federal demand.
What this means for investors is Plenti offers exposure to the financing backbone of Australia’s energy transition, a segment poised for long-term growth as clean-energy adoption accelerates nationwide.
3. Genex Power — Grid-Scale Storage for a Distributed Future
Although Genex Power’s ((GNX)) revenue isn’t directly tied to the household battery subsidy, the larger distributed-storage base is increasing the need for grid-scale stabilisation, and this is where Genex Power factors in and indirectly benefits, as it can provide large-scale balancing assets.
This ASX-listed company operates the 50 MW/100 MWh Bouldercombe Battery in Queensland, which is fully operational and grid-connected. It is also developing a 250 MW Kidstone Pumped Storage Hydro Project designed to provide renewable energy storage and peaking capacity.
These assets allow Genex to absorb surplus generation, particularly daytime solar, and release it during evening peaks. Additionally, since millions of small batteries will be in households thanks to the subsidy, this will reduce short-term volatility, making long-duration systems like Kidston more valuable for managing broader supply cycles.
Benefit-wise, Genex will be positioned to meet rising demand for grid-firming capacity, and investment-wise, investors stand to benefit from growing interest in assets that provide stable, infrastructure-like returns within Australia’s evolving energy mix.
The Wrap-Up On How The $2.3bn Battery Subsidy Is Reshaping Australia’s Energy Stocks
It’s evident that Australia’s $2.3bn battery subsidy marks a turning point in the nation’s transition to clean energy. Based on what we now know, it is creating investment opportunities across a new value chain that spans manufacturing, financing, and grid management.
However, beyond HPP, Plenti, and Genex Power, the ripple effects of the Cheaper Home Batteries program are extending across the broader battery value chain.
It’s also apparent that other lesser-known companies from component manufacturers like Novonix ((NVX)) to emerging vanadium flow-battery developers such as Australian Vanadium ((AVL)) are poised to benefit.
So, when you look at the big picture, these companies showcase how government policy is translating into a structural re-rating of Australia’s clean-energy sector.
Then, of course, for investors, the challenge is timing and execution.
However, the direction of things is clear; storage is moving from niche technology to core infrastructure, and the companies aligned with that reality are beginning to define the next phase of Australia’s energy investment story.
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