Fast read
Battery rebates are a powerful tool in Australia’s clean energy transition. They reduce the cost of home and business battery systems, making it easier to store rooftop solar energy for later use— especially in the evening when demand peaks and fossil fuels usually fill the gap. This improves solar self-consumption, eases pressure on the grid, and helps cut carbon emissions.
Programs like the upcoming federal Cheaper Home Batteries Program, starting 1 July 2025, are expected to support over one million new battery installations by 2030. That’s key to hitting national targets of 82% renewable electricity by 2030 and net zero emissions by 2050.
How does the battery rebate program contribute to Australia’s renewable energy targets?
Australia has several interconnected targets for clean energy and emissions reduction:
- 82% renewable electricity by 2030: This applies to the National Electricity Market (NEM) and is crucial for decarbonising the power sector.
- Net zero emissions by 2050: A legislated target covering all sectors of the economy, including transport, agriculture, and heavy industry.
- 43% emissions reduction by 2030 (from 2005 levels): A key interim milestone to stay on track for net zero.
- State-level ambitions: Some states, like the ACT and Tasmania, already operate on 100% renewable electricity, while others have their own aggressive targets that often exceed federal goals.
How battery rebate programs support these targets
- They increase solar self-consumption
Australia leads the world in rooftop solar uptake, but much of that solar power is exported to the grid—often at low feed-in tariff rates. Batteries allow that energy to be stored and used when it’s actually needed: in the evening or on cloudy days. This reduces demand for grid electricity, which may still include fossil fuel generation. The federal government estimates that a battery paired with solar could cut household electricity bills by up to 90%.
- They reduce peak demand and stabilise the grid
Grid reliability is a major challenge as more variable renewable energy enters the system. Batteries help by absorbing solar or wind energy during the day and discharging it during peak demand periods, typically early evening. This reduces the need for fossil fuel “peaker” plants and flattens demand curves, which lowers wholesale electricity prices. Stabilising the grid is critical for enabling more large-scale wind and solar projects to connect.
- They cut renewable energy curtailment
When rooftop or large-scale solar produces more energy than the grid can accept, that energy may go to waste—a process known as curtailment. Batteries provide a buffer, storing this excess generation for later use. This ensures more of the clean energy Australia generates actually displaces fossil fuels.
- They accelerate adoption and lower costs over time
Upfront cost is a key barrier to battery adoption. Rebate programs—like the federal Cheaper Home Batteries Program, which will cover roughly 30% of battery system costs—make storage more affordable. This increased demand helps bring down costs through economies of scale in manufacturing, installation, and innovation. The rebate is expected to be around $370 per kWh, reducing to about $330 per kWh after administration, and tapering annually until 2030.
- They empower households and small businesses
By making batteries more accessible, rebates give everyday Australians a way to reduce their carbon footprint, cut power bills, and gain energy independence. The federal scheme will run through the Small-scale Renewable Energy Scheme (SRES), which successfully boosted rooftop solar. Eligible households may also be able to combine the federal rebate with state-based battery incentives, further improving affordability.
Why battery rebates are a strategic climate solution
Battery storage is a cornerstone of Australia’s clean energy future. By helping to shift solar energy into the evening peak, batteries cut fossil fuel reliance, make the grid more flexible, and ensure clean power isn’t wasted. Rebate programs directly support this transition by unlocking storage at scale.
The upcoming Cheaper Home Batteries Program, with a $2.3 billion federal investment, is expected to dramatically scale up home energy storage. That will make a meaningful dent in emissions, support the 2030 and 2050 targets, and help position Australia as a renewable energy leader.
Conclusion
Battery rebates aren’t just a financial incentive—they’re a strategic tool for decarbonising Australia’s energy system. By accelerating storage uptake, these programs help us use more solar, flatten demand peaks, and cut emissions. If you’re considering adding a battery to your solar system, now is a smart time to prepare.
Your Energy Answers can connect you with accredited local experts to explore your eligibility and design a future-ready energy system for your home or business.
