How to Manage Battery Storage and Fire Risk in Australian Apartments: A 2026 Strata Committee Safety Checklist

Battery storage systems are appearing in Australian apartment buildings faster than safety frameworks can keep up. Here's a practical checklist for strata committees to approve, inspect, and insure them correctly in 2026.

Battery storage fire risk is one of the most pressing safety challenges facing Australian strata schemes in 2026. As lithium-ion battery systems — from rooftop solar storage to e-bikes and e-scooters — become increasingly common in apartment buildings, strata committees are being asked to make decisions they were never originally equipped to handle. Get it wrong and the consequences range from voided building insurance to catastrophic fire events.

This checklist gives strata managers, owners corporation committees, and building managers a structured, practical framework for approving, inspecting, and insuring battery systems within their schemes.

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Why Battery Storage Fire Risk Is a Strata Priority Right Now

Battery fires in residential buildings have increased significantly across Australia in recent years, with fire services in multiple states issuing formal safety warnings. Lithium-ion batteries — found in home energy storage systems (HESS), e-mobility devices, and power tools — can undergo a process called thermal runaway: a self-sustaining chain reaction that produces intense heat, toxic gases, and fire that is extremely difficult to suppress.

In a strata context, this risk is amplified because:

Batteries are often stored in enclosed common areas (car parks, storage cages, corridors)
Individual lot owners may install systems without committee approval
Buildings may lack appropriate fire suppression or ventilation for battery-specific fires
Insurance policies are evolving rapidly and exclusions are being added for non-compliant installations

Committees cannot afford to take a passive approach. A clear policy and regular inspection regime is now a baseline expectation — not a nice-to-have.

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Part 1: Approval Checklist — Before Any Battery System Is Installed

Does your scheme have a battery storage by-law or policy in place?

A by-law or formal policy is your first line of defence. Without one, lot owners can argue they had an implied right to install a battery system. A well-drafted by-law should:

Define what types and capacities of battery systems require committee approval
Set minimum standards for installation (licensed electrician, compliant equipment, manufacturer specifications)
Specify approved installation locations (e.g., no enclosed car park spaces without active ventilation)
Require owners to notify the committee prior to installation and provide documentation

Some states and territories have updated their model by-laws to address this — check with your strata lawyer for jurisdiction-specific advice.

What to require in an owner's approval application

Before granting approval, committees should request:

Equipment specifications — brand, model, battery chemistry (LFP is generally lower risk than NMC or NCA), energy capacity (kWh), and certifications (look for compliance with AS/NZS standards and Clean Energy Council approval where applicable)
Installer credentials — a licensed electrician and, for larger systems, a Clean Energy Council-accredited installer
Installation location plan — where exactly the battery will be housed, including ventilation and clearance details
Evidence of product certification — does it carry a relevant safety mark? Has it been recalled?
Owner's confirmation of insurance — confirmation that their contents or lot insurance covers the system, and that the strata insurer has been notified

When should the committee refuse or defer approval?

Refusal or deferral is appropriate when:

The proposed location is a high-risk area (enclosed basement, under a stairwell)
The battery chemistry or brand has active recall notices
The installer is not appropriately licensed
The strata building insurer advises that approval would affect cover

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Part 2: Inspection Checklist — Ongoing Safety Assurance

What does a compliant battery installation look like?

Once installed, battery systems should be inspected at least annually as part of your essential safety measures (ESM) review. A compliant installation typically includes:

Battery management system (BMS) with automatic shutdown on fault
Appropriate clearance from combustible materials (check manufacturer specs)
No visible damage, swelling, or corrosion on battery cells or cabling
Operational fire detection in the immediate area
Emergency isolation switch accessible to building management
Storage location not blocking egress paths or fire equipment

Who should carry out inspections?

For common property systems (e.g., a building-wide HESS connected to rooftop solar), engage a qualified electrical contractor or the system's service provider. For lot-owner-installed systems, require owners to provide an annual electrical safety certificate or equivalent documentation. Building managers can conduct basic visual checks between formal inspections, but should not be expected to assess electrical safety independently.

E-bikes and e-scooters: a specific and growing hazard

Personal e-mobility devices deserve a separate mention. Fires caused by cheap, unbranded lithium-ion batteries in e-bikes and scooters have been responsible for numerous apartment building fires across Australia. Committees should:

Prohibit charging of e-mobility devices in common areas unless a purpose-built, fire-rated charging station is provided
Set a clear by-law position on storage of these devices within lots or on balconies
Consider signage and resident education as part of a broader fire safety communication plan
Coordinate with the building's fire safety adviser on any changes to essential safety measures

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Part 3: Insurance Checklist — Protecting the Scheme

Does your strata insurance policy cover battery-related fire events?

This is a critical question to ask your broker directly — and to ask annually, given how rapidly insurer positions are changing. Key questions include:

Does the policy exclude fire caused by non-compliant battery installations?
Is there a requirement to notify the insurer of any battery storage system above a certain capacity on common property or within individual lots?
Are there sub-limits or exclusions for lithium-ion battery fires?
Will an unapproved owner installation void the building policy for a related claim?

Steps to protect the scheme's insurance position

Notify your insurer proactively when a new system is approved or installed — get written confirmation that cover is unaffected
Document all approvals — keep a register of approved battery systems, their location, capacity, installer, and certification
Enforce your by-law — if an owner installs without approval, issue a notice to comply. An unenforced by-law weakens the scheme's position in a claim dispute
Review the policy at renewal — battery storage risk is a moving target; insurers are updating exclusions regularly

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Part 4: Building-Wide HESS — Additional Considerations for Common Property Systems

Some strata schemes are installing building-wide battery energy storage systems (BESS) on common property, often paired with solar PV to reduce common area energy costs. These larger systems carry a higher aggregate risk and require:

A formal risk assessment by a qualified engineer prior to installation
Compliance with Australian Standards relevant to stationary energy storage (check current applicable standards with your installer and certifier)
Integration into the building's fire safety and emergency evacuation plan
A maintenance contract with the system supplier or an accredited service provider
Specific insurer approval before installation proceeds

Platforms like Orveya can help building managers track maintenance schedules, compliance documentation, and inspection records for these systems alongside other essential safety measures.

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Putting It All Together: Committee Action Items for 2026

Use this summary to prioritise committee action:

Review or draft a battery storage by-law — if you don't have one, make it an agenda item at the next general meeting
Audit existing installations — identify any systems already installed in your building, whether or not they were formally approved
Check your insurance policy — request a written position from your broker on battery-related fire events
Establish an approval register — document every approved installation with supporting certifications
Include battery storage in your ESM review — ensure your annual essential safety measures inspection covers battery locations
Communicate with residents — issue a notice about e-bike and e-scooter charging rules and the scheme's battery storage policy

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Frequently Asked Questions

Can a strata committee ban battery storage systems outright?

A committee can restrict or regulate battery storage through a by-law, but an outright ban may be difficult to enforce where owners have a legitimate right to install solar or battery systems under state-specific legislation. Legal advice tailored to your jurisdiction is recommended before taking an absolute prohibition position.

What is thermal runaway and why does it matter for apartments?

Thermal runaway is a chain reaction within a lithium-ion battery cell where rising temperature causes further heat generation, potentially leading to fire, explosion, and the release of toxic gases. In an apartment building, it can spread rapidly through a floor or car park before sprinklers or fire services can respond effectively.

Are e-bike batteries covered under strata building insurance?

Generally, e-bikes and their batteries are personal property and fall under a lot owner's contents insurance, not the strata building policy. However, if an e-bike fire damages common property or other lots, the strata insurer may be involved — and coverage could be disputed if the device was stored or charged in breach of a by-law.

How often should battery storage systems be inspected in a strata scheme?

At a minimum, annually — ideally as part of your essential safety measures review cycle. High-capacity or commercial-grade systems may warrant more frequent inspections in line with manufacturer recommendations and your insurance policy requirements.

What should a strata committee do if an owner installs a battery system without approval?

Issue a formal notice to comply under your by-law as soon as possible. Request all installation documentation and have the system assessed by a qualified electrician. Notify your insurer of the situation. If the installation is found to be non-compliant or unsafe, seek legal advice about requiring its removal or rectification.

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