Battery Energy Storage: Safe Installation Checklist

18 July, 2025.

With the improvement in technology and decrease in costs, Territorians considering installing a solar PV system, or who already have a system installed are also considering Battery Energy Storage Systems (BESS) to store the energy generated.

This information bulletin has been developed to help home and business owners understand the safety requirements for installing BESS in order to reduce the risk of fires and other associated hazards.

What are the hazards?

Batteries are devices stores chemical energy that converts to electricity. A BESS installed incorrectly, malfunctioning or damaged can potentially cause:

Electric shock

Battery cells can deliver a severe electrical shock when interconnected as battery banks, reaching hazardous voltage levels. There will also be 240-volt rated parts or other components on the energy regulators and inverters that have hazardous voltages.

Fire and explosion

Most lead-acid batteries generate hydrogen and oxygen gases when charging and so need good ventilation to avoid an explosion or fire. Other battery types may also emit gases and need good ventilation.

Lithium-ion batteries do not produce any exhaust gases during normal operation, but they can produce flammable gases if there is a fault.

Fire and explosions can also result from excessive temperatures (either under normal operating conditions or due to an overload), component failure, short circuit or loose connections.

Flash burns

A battery has sufficient energy to cause an arc flash if it short circuits, or if a fault occurs. An arc flash can have temperatures above 12,000°C, capable of melting metal or causing fires and explosions, and cause arc flash injuries. Generally, higher battery energy storage capacities have a higher risk of arc flash.

Exposure to hazardous chemicals

Battery casings can degrade or be damaged from a variety of impacts. They can also rupture because of excessive temperatures generated from a change in chemical reaction from over-charging. If a battery casing is ruptured, the fluid or gel (electrolyte) inside can leak, resulting in toxic fumes, burns, corrosion or explosions.

Managing the risk

Installers licence and accreditation

Contractors installing Solar PV Systems, including BESS’s require :

• Clean Energy Council accreditation; and
• A valid electrical contractor’s licence

Only use contractors who have both accreditation and a valid licence to install your solar PV system and/or the BESS.

You can check a contractor’s accreditation on the Clean Energy Council Website, and the contractor’s licence on the Electrical Workers and Contractors Licensing Board Website.

Installation location

While it is tempting to install the BESS an out of sight location in your home or business, the installation location plays an important part in how safe your BESS is, and restrictions apply on where a BESS can be installed.

Before installation begins, read the BESS installation manual to know where and how your BESS can be installed. There are different battery types currently on the market with some batteries requiring wall mounting and some only floor mounted, some can only be installed indoors or outdoors.

Don’t just rely on your contractor to do the right thing, educate yourself so you know the location chosen is suitable before installation begins.

Restricted rooms in the home

For homeowners, a BESS cannot be installed in a room which you or your family uses for normal living activities (also known habitable room). These rooms include:

• Bedroom
• Living room
• Lounge room
• Kitchen
• Dining room
• Study
• Family room

Other restricted locations in the home and workplace :

• In ceiling spaces or wall cavities
• Under stairs ways, access walkways and floors of habitable rooms
• On top of roofs
• In areas with a switchboard or generation system and
• In an evacuation or escape route

BESS clearance zone

Your contractor is required to install your BESS with a clearance zone for safety reasons. The zone extends 600mm either side and to the front of the BESS, and 900mm above.

Your contractor cannot install the BESS in the location selected, if one of the following is in the clearance zone:

• any exit of the building, including garage doors
• windows, building ventilation or opening into a habitable room and
• an electrical appliance not associated with the BESS, such as a washing machine, air-conditioning unit or hot water system.

Fire protection barrier

Your contractor cannot install the BESS on or against a wall or structure that has a habitable room on the other side without a fire protection barrier, if the wall or structure is made of combustible material such as cladding, timber or gyprock plasterboard etc.

A fire protection barrier is to prevent potential fires from the BESS, burning through a wall or structure and spreading into the habitable room. The barrier needs to be installed between the BESS and the wall or structure.

The barrier needs to be the same dimensions as the BESS clearance zone, 600mm either side and 900mm above the BESS, and made from material considered non-combustible in accordance with the Australian Standard. Walls or structures made from brick or masonry block, concrete, compressed cement sheeting or tiled with ceramic or terracotta tiles are not considered combustible and do not require a fire protection barrier.

Other installation considerations

Choose an installation location which :

• Provides adequate access for electrical wiring
• Does not put the BESS in a location that can flood or be splashed with water.
• Keeps the BESS out of direct sunlight, which reduces the risk of overheating
• Is not mounted on the inside of an uninsulated wall that gets direct sunlight
• Is not next to a heat or ignition source (i.e. an in-built BBQ)
• Is not in an area used to store gas bottles or other combustible materials
• Does not put the BESS at risk of being hit by something and damaged (i.e. vehicles in a carport, or trollies or pallet jacks in storage rooms)

Conclusion

As battery energy storage systems (BESS) become an essential part of the renewable energy transition, ensuring a safe and compliant installation is no longer optional, it’s a necessity. From choosing a certified installer and following AS5139 standards to considering ventilation, fire safety, and proper system placement, every checklist item contributes to the long-term performance and safety of your energy investment.

By adhering to this safe installation checklist, homeowners and businesses can reduce potential hazards, extend the life of their battery system, and remain eligible for warranties, insurance, and government rebates. Ultimately, a well-installed battery system is not just about powering your home, it’s about doing it safely, efficiently, and responsibly. Take the time to do it right today and enjoy peace of mind for years to come.

Reach Out to SunSelect at 1300 867 353 for Expert Guidance and Money-Saving Options.
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