Energy News, Rebates & Concession

The Federal Government Battery Rebate is Coming: Here’s What You Need to Know

Eligible solar owners will receive a rebate on solar batteries. Read below to see if you qualify.

Last updated July 20, 2025 by Benjamin Tom

What Answers You’ll Get On This Page

Important Points

Starting 1 July 2025, eligible solar owners nationwide will receive a rebate of up to $372 per kWh of usable battery capacity.
The program is designed to help Australians lower their electricity bills and reduce emissions by making it easier to store and use affordable, clean solar energy.
The rebate applies to existing and new rooftop solar systems and is not means-tested, which means you will not have to fulfill any eligibility requirements based on your household’s income or financial situation.

Whether you’re a current solar owner or are planning on becoming one, the Cheaper Home Batteries Program is set to cover around 30% of the upfront cost, making battery storage a far more compelling investment for many households and small businesses. With electricity prices set to rise again this July, the economics of solar make sense, and this nationwide rebate could be the tipping point. Below, we’ll walk you through everything you need to know about the upcoming subsidy so you can make an informed decision.

How Does the Program Work?

The Cheaper Home Batteries Program is a federally funded subsidy designed to help Aussies slash their energy bills and reduce emissions. Starting on 1 July 2025, this rebate will offer up to $372 per kWh (the discount rate in 2025 would be represented as 9.3 STCs per kWh, depending on the market price) of usable battery capacity. After accounting for administrative fees and charges, the effective discount is expected to be around $330 per usable kWh.

This subsidy will decrease gradually each year. The rebate amount will be phased down annually until it ends in 2030.

Here’s what you could expect to save with a 13.5 kWh battery:

Battery usable capacity: 13.5 kWh
STCs* earned: About 125 STCs
STC price (at time of writing): $36 each
Estimated Federal rebate value: 125 STCs × $36 = $4,500

Did you know?

*STCs (Small-scale Technology Certificates) are part of Australia’s incentive system for renewable energy. When you install an eligible solar battery, the government issues you a set number of STCs based on the size and performance of your system. These certificates are then sold to energy retailers, and the value is typically passed on to you as an upfront discount on your battery.

How Do I Know If I Am Eligible for the Subsidy?

The program is open to the following:

Australian homeowners
Small businesses
Community facilities (e.g. sports clubs, libraries, community centers)

To qualify, applicants must have a functioning solar photovoltaic (PV) system or install one alongside the battery system.

Please note that the eligibility requirements listed below are still subject to the amendment of the Renewable Energy (Electricity) Regulations 2001. The requirements may change as the 1 July 2025 date draws closer.

Battery system specifications

Eligible battery systems must have a nominal capacity between 5 kWh and 100 kWh.
A single battery unit.
A system of modular battery cells connected to function as one battery unit.
A maximum of one federal rebate will be applied per electricity meter.
The rebate will be provided for up to 50 kWh of a battery system’s usable capacity. For someone purchasing a 100 kWh battery system, the discount will be applied to the first 50 kWh.
Electric vehicles are not eligible for this program.

Adding more capacity to an existing battery system must satisfy the following requirements:

The system has not previously received a discount under the program.
The additional capacity is at least 5 kWh, and the total upgraded capacity does not exceed 100 kWh in nominal capacity.
Additional capacity added to a system that has already received a discount under the program will not be eligible.

System requirements

The battery system must be installed with an existing or new solar photovoltaic (PV) system at the premises.
Battery systems can be installed either on-grid or off-grid.

On-grid systems are connected to the electricity grid.

Off-grid systems are not connected to the electricity network, defined as being at least one kilometre from a main grid line or where the cost to connect to the grid exceeds $30,000.

Installation standards

The battery must be installed by a person accredited for battery installations by Solar Accreditation Australia (SAA).
The installation must comply with the industry-developed Best Practice Guide: Battery Storage Equipment and relevant state and territory electrical safety regulations.
A battery system may be eligible for support if it is installed on or after 1 July 2025. The system is considered ‘installed’ when a certificate of electrical compliance or equivalent is signed, confirming that the system complies with relevant state and territory electrical safety regulations.

Virtual Power Plant (VPP)

On-grid battery systems must be VPP-capable to qualify for the rebate.
VPP-capable means the battery can connect to the electricity grid, can respond to signals from third-party VPP operators (such as a DNSP), and has an ongoing internet connection to allow this communication.
You are not required to join a VPP, only to have the capability.
Off-grid systems are exempt from this requirement and do not need VPP capability.

You Should Know

Batteries installed before 1 July 2025 may still be eligible for the rebate, provided they remain uncommissioned (e.g., not switched on) until the program officially starts.

Does the Subsidy Stack With Other Incentives?

Yes, you can stack this rebate with other state-based battery incentives, including:

State	Name	Value
Victoria	Victorian Solar Battery Loan Scheme	up to $8,800 for the installation of a solar battery system¹
New South Wales	NSW Solar Battery Incentive	between $1,600 and $2,400 off the up-front installation cost of a household battery²
ACT	Sustainable Household Scheme	zero-interest loan between $2,000 to $15,000 for solar-eligible products³
Western Australia	WA Residential Battery Scheme	up to $5,000 for Synergy customers and up to $7,500 for Horizon Power customers, with the value to be determined by the size of the battery⁴
Northern Territory	Home and Business Battery Scheme	grant of $400 per kilowatt hour of useable battery system capacity, up to a maximum grant of $12,000⁵

How Do I Claim the Subsidy?

The program will be delivered through the Small-scale Renewable Energy Scheme (SRES) – the same initiative that supports solar panel rebates. To make this possible, the Renewable Energy (Electricity) Regulations 2001 will be amended to expand SRES eligibility to include home battery systems. The government will review costs and uptake annually so the subsidy remains appropriately targeted and adjusted to reflect market conditions.

You won’t need to claim the discount yourself. The battery subsidy will typically be applied by solar and battery retailers or installers at the point of sale.

How Do I Choose the Right Battery?

With the federal rebate making battery systems a more realistic option, you might be wondering: What kind of battery should I get?

For some households, a small battery (around 5-10 kWh) might be all you need to store power and use it in the evening. For others, a larger battery could make more sense, especially if you have higher energy demands or want to keep your home powered during outages.

Here are a few things to think about:

When do you use electricity? Are you home during the day when your solar system is generating power? Or are you away from 9 to 5 and using energy mostly at night?
Do you own an electric vehicle? If you drive an EV, will it be parked at home during the day to charge?
What does your budget look like? Thanks to the rebate, you could save around $3,300 on a 10 kWh battery system. That said, it’s still a good idea to choose a model that aligns with your current budget but can also keep up with your energy usage and habits.

Keep in mind that there are more than 70 battery models on the Australian market, each with its pros and cons. Setting aside some time to research the different models that fit your preferences is a great way to secure a cost-effective, long-term investment.

Frequently Asked Questions

How Many Rebates Can Be Claimed?

A maximum of one federal rebate can be claimed per electricity meter.
What Battery Systems Are Eligible?

A battery system and the inverter must be listed on the Clean Energy Council (CEC) approved product list.
Can Any Installer Set Up My Battery System?

No. The battery must be installed by a person accredited for battery installations by Solar Accreditation Australia (SAA).

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Author

Benjamin Tom

Benjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.

Sources:

Information sourced from the Clean Energy Regulator’s official guide to the Cheaper Home Batteries Program: cer.gov.au/batteries

¹ Victorian Solar Battery Loan Scheme, Solar Victoria, Government of Victoria: https://www.solar.vic.gov.au/solar-battery-loan

² NSW Solar Battery Incentive, NSW Government: https://www.nsw.gov.au/media-releases/incentives-to-boost-rollout-of-household-batteries-nsw

³ Sustainable Household Scheme, ACT Government: https://www.climatechoices.act.gov.au/policy-programs/sustainable-household-scheme

⁴ WA Residential Battery Scheme, Government of Western Australia: https://www.wa.gov.au/organisation/energy-policy-wa/wa-residential-battery-scheme

⁵ Home and Business Battery Scheme, Northern Territory Government: https://nt.gov.au/industry/business-grants-funding/home-and-business-battery-scheme

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