Major Battery Savings Are Coming—Here’s What You Need to Know
The Federal Government has officially released the first written eligibility guidelines for its Cheaper Home Batteries program, kicking off on 1 July 2025. If you’re planning to install a home or business battery system, this rebate could save you thousands.
Let’s unpack the key details you need to know.
What Counts as an “Installed” Battery?
Under the new rules:
A battery is considered “installed” only when a Certificate of Electrical Compliance (CoC) is issued.
Pre-installation is allowed, but the battery must remain switched off until July 1, and the CoC cannot be signed before that date.
No CoC? No rebate—and you can’t turn the system on either.
This ensures all installations meet current safety standards before qualifying for the rebate.
Going Off-Grid? You’re Still Covered
Yes, off-grid battery systems qualify—but only if:
The site is 1km or more from the mains grid, or
Grid connection would cost more than $30,000.
Unlike grid-tied systems, VPP compatibility isn’t required for off-grid setups.
Already Have a Battery? You Might Still Qualify
Thinking of upgrading your battery?
You can claim the rebate if your original system didn’t already receive this federal discount.
The added capacity must be at least 5 kWh usable.
After the upgrade, the total capacity can’t exceed 100 kWh nominal.
How Much Is the 2025 Battery Rebate Worth?
The rebate is delivered through Small-scale Technology Certificates (STCs)—a mechanism that’s been used for years in solar subsidies.
In 2025, that works out to about $372 per kWh of usable battery capacity, before admin fees.
Estimated Rebate Value Per Year
| Year | Rebate (Per kWh) | STC Factor |
|---|---|---|
| 2025 | $372 | 9.3 |
| 2026 | $336 | 8.4 |
| 2027 | $296 | 7.4 |
| 2028 | $260 | 6.5 |
| 2029 | $224 | 5.6 |
| 2030 | $188 | 4.7 |
These figures are based on an STC price of $40. Actual values may change based on market conditions or government reviews.
Can You Combine It with State Rebates?
Short answer: Maybe.
While the federal scheme was designed to be stackable with state rebates (like those in NSW or SA), compatibility depends on how each state’s rules are written. Some may need adjustments before both incentives can be claimed together.
For example, NSW is working on tweaking its rebate to align with federal rules.
What Are the Consumer Protections?
To protect consumers, the program includes strict requirements:
Installers must provide:
Full system specs
Expected savings
Estimated payback times
All installations must follow the Best Practice Guide: Battery Storage Equipment
The Clean Energy Regulator will oversee inspections of battery installations, expanding its current role in solar audits.
What’s Next?
Want to take advantage of this rebate? Here’s what you can do now:
Plan your system—but don’t complete the installation before July 1, 2025.
Choose an accredited installer who understands the new rebate rules.
Stay informed as more program updates roll out.
