Australian households have embraced batteries. The Cheaper Home Batteries Program is nearing 500,000 installations and will cost $7.2 billion over four years. It is open to small business but only up to 100kWh.

Momentum is now building to look beyond homes to commercial and industrial rooftops.

C&I customers have been called the missing middle. They miss out on subsidies at both ends of the market and face barriers that households do not. A new report from Nexa Advisory makes the case for a dedicated $2 billion government incentive for C&I batteries. The modelling finds the investment would be paid back almost 20 times over in system benefits.

The numbers are significant. Based on uptake of 29GW of PV and 3.16GW / 8.67GWh of batteries, well below the 63.3GW that usable roof area could accommodate, the portfolio would deliver $39.2 billion in annual wholesale market benefits and $500 million in annual network peak reduction value. It would also reduce grid supplied electricity by 35.31TWh each year. As Nexa Advisory CEO Stephanie Bashir notes, unblocking investment would benefit every energy consumer, not just the businesses installing the systems.

A separate Unlocking the Missing Middle report from the Smart Energy Council is pushing for reform of the Small scale Renewable Energy Scheme to extend rebate caps from 100kW to 1 megawatt, alongside network reforms to strictly enforce connection timeframes and incentivise investment. Its member survey found only 2 per cent believe current tariffs support C&I investment in flexibility and storage.

Network challenges were also highlighted in recent Institute for Energy Economics and Financial Analysis research, which argued C&I solar and storage will be needed alongside utility scale projects to meet the 2030 renewable energy target.

The contrast with households is telling. Less than one in four households with batteries participate in a virtual power plant, and the market operator has revised down its VPP forecasts. For C&I, only 21.7 per cent commonly adopt VPP participation. But C&I has a natural advantage. Unlike households, business energy use skews heavily to daytime solar hours, so solar directly offsets expensive grid power.

At MetroElectro we solve the barriers holding back the missing middle. We fund the entire solar and battery system, manage tariffs and grid connection end to end, and deliver energy as a service. No capex, no disruption, lower bills and a stronger sustainability position from day one. Reach out to us in case you want to know more.

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