Can I get a Federal Rebate to Add a Battery to my Existing Home?

As a property owner with an existing solar system, you’re already ahead of the curve in managing your energy costs. It’s natural to now look at battery storage as the next logical step to maximise your solar investment, and you’ll be pleased to know the federal government is introducing a significant incentive to help you do just that.

This new program is a landmark development for renewable energy in Australia, making battery ownership a realistic and financially viable option for many more households and small businesses. Let’s walk through how it works and what it means for you.

What is the new federal battery rebate?

The Australian Government is launching the Cheaper Home Batteries Program on 1 July 2025, though the commencement is subject to the necessary regulations being in place. It operates as an extension of the Small-scale Renewable Energy Scheme (SRES), which has been successfully helping Australians afford rooftop solar for years.

The program will provide an upfront discount of around 30% on the cost of purchasing and installing a small-scale battery storage system for eligible households, small businesses, and community organisations. The rebate is calculated based on the usable capacity of the battery, and its value will be reviewed at least annually, so acting sooner will likely yield a larger discount.

Am I eligible to add a battery to my current solar system?

Yes, the program is specifically designed to accommodate property owners just like you. To be eligible, the battery you install must be connected to an existing (or new) solar PV system.

Here are the key eligibility requirements for your new battery system:

• System Connection: It must be connected to your solar panels. Standalone batteries without a solar source are not eligible.
• Battery Size: To be eligible, a battery system must have a nominal (total) capacity of between 5 kWh and 100 kWh. The rebate itself, calculated via Small-scale Technology Certificates (STCs), is based on the battery’s usable capacity, and this discount applies only to the first 50 kWh of that usable capacity.
• Approved Products: The battery and inverter must be on the Clean Energy Council’s (CEC) list of approved products to ensure they meet Australian safety and quality standards.
• Accredited Installer: The installation must be carried out by an installer accredited by Solar Accreditation Australia (SAA).
• VPP Capability: If your property is connected to the grid, the battery must be ‘VPP-capable’, meaning it has the technical ability to connect to a Virtual Power Plant. However, you are not required to actually join a VPP to receive the rebate. Off-grid systems do not require VPP capability.

The good news is that you can also claim the rebate if you are adding more battery capacity to an existing battery system, provided that the system has not already received a rebate under this program and the new capacity is at least 5 kWh.

How does the rebate process work?

The process is designed to be simple for the consumer. Much like the existing solar panel rebate (based on STCs), the discount from the Cheaper Home Batteries Program will be applied upfront by your SAA-accredited installer.

This means you won’t have to pay the full price and then claim the money back later. The installer handles the paperwork for the Small-scale Technology Certificates (STCs) and includes the discount directly in your final quote. For example, a quality 10kWh hybrid system from a brand like Sungrow, which is well-regarded for its robust performance, would see its final installation cost significantly reduced by this upfront discount.

Can I combine the federal rebate with other state incentives?

This is a common and important question. The federal government has indicated its intention for the national rebate to work alongside state and territory schemes, but rules vary by jurisdiction.

Here is the status as of June 2025:

• Western Australia: The WA and federal schemes will complement each other. For Synergy customers, the state component is $130 per kWh, capped at $1,300, and when combined with the federal rebate, provides a total discount of approximately $4,741 for a 10kWh system. VPP participation is required to receive the state incentive.
• New South Wales: The state’s upfront installation rebate under the Peak Demand Reduction Scheme (PDRS) will be suspended from 30 June 2025 and cannot be combined with the federal program. However, from 1 July 2025, an enhanced NSW incentive for joining a Virtual Power Plant (VPP) will be available and can be combined with the federal rebate. This VPP incentive can be worth up to $1,500.
• Victoria: The state-run Solar Battery Loan program is now closed to new applicants. Therefore, the federal rebate is the primary incentive available in Victoria.
• Northern Territory: The Home and Business Battery Scheme has reached its funding cap and is now closed to new applications. Therefore, it cannot be combined with the federal rebate.

It is crucial to check the most current rules for your specific state, as these details can change.

What are the key benefits of adding a battery now?

With this new federal support, adding a battery to your existing solar system becomes a much more powerful financial and lifestyle decision. When considering the investment, it’s wise to evaluate the payback period and understand that participation in a VPP may involve allowing a third party to manage your battery’s charge and discharge.

The core benefits include:

• Maximising Solar Self-Consumption: Store the free, clean energy your panels generate during the day and use it during the evening peak, instead of selling it for a low feed-in tariff and buying expensive grid power later.
• Reducing Electricity Bills: By using more of your own solar power, you dramatically reduce your reliance on the grid and protect yourself from rising electricity prices. A household could save between $700 and $1,600 annually on electricity bills.
• Providing Backup Power: Many modern battery systems, such as the innovative modular Sigenergy SigenStor, offer excellent backup capabilities, keeping your lights and essential appliances running during a blackout.
• Supporting the Grid: By storing and discharging power, home batteries help stabilise the electricity grid for everyone, reducing strain during peak demand periods.

What should my next steps be?

With the 1 July 2025 start date approaching, demand for quality battery systems and accredited installers is already high.

• Do Your Research: Start by assessing your energy usage patterns to determine the right battery size for your needs.
• Seek Expert Advice: Engage with installers accredited by Solar Accreditation Australia (SAA). They can provide a detailed assessment of your existing system, recommend compliant and high-quality products, and provide a clear quote that includes the federal rebate.
• Get in the Queue: Many installers are taking deposits now to reserve systems and schedule installations for after the program officially begins.

Adding a battery is a significant upgrade to your home’s energy infrastructure. This new federal rebate makes it the perfect time to take that step, securing your energy independence and making a smart, sustainable investment for the future.