Fast read
Australia’s federal home battery rebate—the Cheaper Home Batteries Program—launches on 1 July 2025, offering upfront discounts for eligible battery storage systems connected to solar. Homeowners, small businesses, and community facilities can all apply, provided they have a new or existing solar PV system.
Batteries must meet technical criteria such as being VPP-compatible and Clean Energy Council (CEC) approved. The subsidy isn’t means-tested and can be combined with state rebates. You can even install your battery early, as long as it stays switched off until the program starts.
Am I Eligible for the Federal Home Battery Rebate in 2025?
The program is open to Australian homeowners, small businesses, and community facilities, provided they have a functioning solar PV system or plan to install one. Unlike some past schemes, there’s no income threshold—eligibility is not means-tested. Each property can receive the rebate once, but if you own multiple eligible properties, you can apply for each one separately.
What are the battery requirements?
To qualify, the battery must be connected to a solar panel system—either existing or newly installed —and have a usable capacity between 5 kWh and 50 kWh. Larger systems up to 100 kWh are permitted, but the rebate will only apply to the first 50 kWh.
All batteries must be Virtual Power Plant (VPP) compatible, meaning they have the capability to interact with a wider energy network. Participation in a VPP isn’t mandatory, but technical readiness is. This applies even to off-grid systems, which must still meet this requirement.
The battery model itself must be listed on the Clean Energy Council’s approved product list, and installation must be carried out by a CEC-accredited installer to ensure quality and compliance.
How much is the rebate?
The value of the subsidy depends on the battery’s usable capacity. In 2025, the rebate is set at approximately $372 per kilowatt-hour. That equates to a discount of around 30% for most home battery systems. For example, a typical 10 kWh to 13.5 kWh system could receive between $3,300 and $5,000 off the upfront cost.
The rebate amount will decrease slightly each year, so applying earlier in the program, before it concludes in 2030, will generally offer the most value.
Can I install a battery before July 2025?
Yes. If you’re ready to move ahead before the program’s launch, you can install a battery now and still qualify, as long as the system remains switched off until 1 July 2025. This allows for early planning and avoids potential installation bottlenecks closer to the start date.
If you’re installing a new solar PV system alongside your battery, the solar panels can be turned on and generating energy ahead of time.
Can the federal rebate be combined with other incentives?
One of the program’s biggest advantages is its compatibility with state-level battery incentives. For instance, it can be used alongside:
- Victoria’s Solar Homes battery loans
- ACT’s Next Gen Energy Storage program
- Any other local or regional initiatives still active in your area
This can lead to significant savings, sometimes covering more than half the total battery cost. Your installer can help check eligibility for stacking rebates.
What should you do now?
If you’re considering a battery, the best next step is to assess your energy usage and goals. A battery is most beneficial if you already have solar and want to store excess energy, protect against blackouts, or reduce grid reliance during peak times.
Next, start researching CEC-approved, VPP-compatible battery systems and get in touch with a CEC-accredited installer. They can design a compliant system, provide a quote, and help you plan for a July 2025 activation.
Final thoughts
The Cheaper Home Batteries Program represents a major step forward in making battery storage more accessible for Australian homes and businesses. With upfront rebates, no income limits, and the ability to combine with other schemes, it’s a compelling opportunity for anyone looking to boost their solar setup.
Planning now means you’ll be ready to act the moment the scheme opens. And if you’d like help finding experienced, CEC-accredited professionals near you, Your Energy Answers can connect you—for free.
