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Australia’s new Cheaper Home Batteries Program launches on 1 July 2025, offering a significant federal rebate to make home battery systems more affordable. The scheme provides an upfront discount of up to $372 per usable kilowatt-hour (kWh) of battery capacity, equating to a 30% saving for many homes and small businesses.
This new rebate can be combined with state-based battery incentives, potentially leading to thousands in additional savings.
New Federal Home Battery Rebate 2025 – Save Big on Solar Storage
With electricity prices rising and climate action accelerating, many Australians are asking: “Is now the right time to add a battery to my solar system?” The Federal Government’s new Cheaper Home Batteries Program is a game-changing policy designed to make that decision easier. It reduces upfront costs for batteries, encourages energy independence, and supports the national transition to clean energy.
Let’s unpack how the rebate works—and how you can make the most of it.
What is the Cheaper Home Batteries Program?
Announced as part of the 2024–25 Federal Budget, this $2.3 billion initiative aims to drive battery uptake across more than one million Australian homes and businesses by 2030.
It builds on the success of the Small-scale Renewable Energy Scheme (SRES), which has helped millions install rooftop solar. The new battery rebate operates under the same framework, providing upfront discounts via accredited installers.
Rather than providing a flat rebate, the scheme is based on battery capacity, ensuring larger systems receive proportionally more support.
How much is the rebate worth?
In the program’s first year (from 1 July 2025), the rebate offers up to $372 per usable kWh of battery storage. However, after accounting for admin and processing costs, homeowners can expect a real-world discount closer to $330 per usable kWh.
That means:
- A 10 kWh battery could attract a rebate of around $3,300
- An 11.5 kWh battery might receive up to $4,000
The rebate value will decrease each financial year until the scheme ends in 2030, so earlier adoption may offer greater savings.
When does the rebate start?
The official launch is 1 July 2025. However, there’s an important catch:
If you install a battery before this date, it must not be commissioned or switched on until 1 July 2025 to qualify for the rebate.
This provision allows for early physical installation (e.g., during a new solar setup), but your installer must delay battery activation until the program begins. This makes careful planning and communication with your installer essential.
Who is eligible?
The rebate is available to a broad range of energy users:
- Homeowners
- Small businesses
- Community facilities
You can apply whether your solar system is new or already installed, and there’s no income testing. Each property is eligible for one rebate, but if you own multiple qualifying sites, each may receive support.
What battery systems qualify?
To receive the rebate, your system must meet strict quality and compliance requirements:
- CEC Approval: The battery must be listed on the Clean Energy Council’s approved product list.
- Accredited Installation: Installation must be completed by a CEC-accredited battery installer.
- Size Limits: The rebate applies to usable battery capacities between 5 kWh and 50 kWh. Larger systems (up to 100 kWh) are allowed, but only the first 50 kWh receive the rebate.
- VPP-Capable: Your battery must be capable of connecting to a Virtual Power Plant (VPP). However, you’re not required to enrol in a VPP to access the rebate.
This future-proofs your system for potential grid support while leaving you free to opt in or out.
Can this be combined with state-based battery incentives?
Yes—and this is one of the program’s standout features. The federal rebate can be layered on top of existing state or territory incentives, where available.
For example:
- NSW and NT already offer battery support.
- WA is expected to launch its own scheme soon.
- In SA and VIC, interest-free battery loans and virtual power plant programs may offer further value.
Combined, these could reduce your battery system costs by thousands more, especially in regions with multiple overlapping incentives.
How will the rebate be applied?
The rebate is expected to function like the current SRES solar panel rebate: Your installer applies the discount upfront, and then claims reimbursement from the government.
This means you won’t need to lodge rebate paperwork yourself—just ensure your chosen installer is familiar with the process and accredited to claim on your behalf.
What are the expected benefits for households?
Installing a solar battery has several key advantages:
- Lower electricity bills: Storing your solar energy can cut your grid reliance by up to 90%, depending on usage patterns.
- Greater energy independence: Use your own power at night or during blackouts (if your system includes backup capability).
- Environmental impact: Batteries enable more self-consumption of solar, reducing fossil fuel reliance.
- Support for the grid: VPP-ready batteries contribute to grid stability and may open future revenue streams for participants.
Over time, batteries can pay for themselves, not just through bill savings, but also by increasing energy resilience and home value.
What should you do next?
Even though the rebate doesn’t kick in until mid-2025, it’s smart to begin preparing now:
- Understand your needs: Review your solar generation and energy use to decide what battery size is appropriate.
- Speak to accredited installers: They can guide you on timing, eligibility, and pricing strategies to maximise your rebate.
- Plan your timing: If you’re installing before July 2025, make sure your installer understands the commissioning restriction.
- Monitor updates: Some program details are still being finalised. Stay informed by checking the Clean Energy Regulator or Clean Energy Council websites.
Conclusion: A major step forward for solar households
The Federal Home Battery Rebate marks a bold step toward wider energy independence and storage uptake in Australia. By offering generous, upfront support—and allowing it to be combined with state programs—the government is making battery systems more accessible and attractive than ever.
If you’re solar-powered or planning to be, this rebate could significantly improve your return on investment. To explore your options and find CEC-accredited professionals in your area, Your Energy Answers offers a free service to connect you with trusted local experts.
