2025 Federal Battery Rebate: What the $2.3B Cheaper Home Batteries Program Means for You
The Australian Government is launching a nationwide battery rebate scheme under its new Cheaper Home Batteries Program starting July 1, 2025. Backed by $2.3 billion in funding, the program will reduce the cost of home battery storage by up to 30% to make solar batteries more affordable than ever. This guide will help you understand who is eligible, how much you can save, and what to do now to prepare, whether you are a homeowner, landlord, or small business owner.
Key Takeaways:
Federal Government Solar Battery Rebate Launches July 1, 2025
The Cheaper Home Batteries Program kicks off in mid-2025 to reduce the upfront cost of home battery installations. It’s part of Australia’s broader plan to support cleaner and more reliable household energy.
Save Up to 30% on Battery Costs
The rebate offers about $370 per kWh of usable battery capacity, which could slash your battery cost by around 30%.Open to A Wide Range of Australians
This program isn’t just for homeowners. It also applies to small businesses, community facilities, and even landlords. As long as your property has (or is installing) a solar system and meets key criteria, you may qualify.Install Now, Switch On Later
You can install your battery before July 1 and still receive the rebate, as long as it’s not turned on until the program begins. Installing before July 1 gives you a head start and avoids the rush expected after the rebate officially launches.
What Is Australia’s New Cheaper Home Batteries Program (2025)?
The Cheaper Home Batteries Program is the Federal Government's newest plan to help more Australians participate in the clean energy transition, this time by making home batteries more affordable.
Starting from 1 July 2025, eligible households, small businesses, and community organisations can get massive discounts on approved battery systems. The program will be delivered through the Small-scale Renewable Energy Scheme (SRES), which is the same mechanism used for the solar panel rebate. The government will amend the Renewable Energy Regulations 2001 to include batteries in the scheme.
There's no fixed cap on how many rebates are available, at least for now. But, similar to how the STC (Small-scale Technology Certificate system works for solar, the rebate value will decline yearly until the program wraps up in 2030. So, if you're considering getting a battery, acting sooner could save you more.
In 2025, you'll receive 9.7 STCs per kWh of usable battery capacity at an estimated market value of $40 per STC, around $372 in rebate per kWh.
Here's what your solar rebate will look like in 2026 onwards:
| Year Installed | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|---|
| STC Factor | 9.3 | 8.4 | 7.4 | 6.5 | 5.6 | 4.7 |
| Approx. Value per kWh | $372 | $336 | $296 | $260 | $224 | $188 |
Source: dcceew.gov.au
The estimates are based on current STC market values, these figures may change over time depending on reviews or whether the discount rate remains appropriate as battery technology and demand evolve.
How Much Money Can You Save with the 2025 Federal Solar Battery Rebate?
The government's $2.3 billion initiative aims to cut the cost of home battery systems by around 30%. Under the program, eligible systems between 5 and 50 kWh can receive a rebate of approximately $370 per kilowatt-hour (kWh) of usable battery capacity.
For example, if you plan to install a total of 27 kWh of storage, with the rebate estimated at $370 per kWh, you could save as much as $9,990. However, this figure could be slightly lower due to administrative fees and other charges.
Can You Combine State Battery Incentives with the New Federal Solar Battery Rebate?
The new federal battery rebate can be stacked with certain state and local existing battery incentives. Below are some programs that can be used alongside the federal battery rebate:
New South Wales
Unfortunately, the upcoming federal solar battery rebate cannot be combined with the NSW Peak Demand Reduction Scheme. However, some NSW homeowners may still benefit from additional support through local council incentives.
For example, the North Sydney Council is offering up to a $2,000 battery rebate to households and up to $5,000, which could be submitted and processed only after the installation.
To find out if your council is offering additional rebates, speak with our team.
Estimated savings: Varies depending on available local council incentives.
Victoria
In Victoria, homeowners can combine the new federal solar battery rebate with Solar Victoria’s interest-free battery loan, making it easier and more affordable to invest in energy storage.
The loan offers up to $8,800, repayable over 4 years, helping to reduce your upfront costs and achieve a faster return on investment (ROI).
Estimated savings:
For a typical 10kWh battery priced around $15,000, the federal rebate of $3,700 lowers your out-of-pocket cost to approximately $11,300. With the interest-free loan, your monthly repayments could be as low as $236, making clean energy more accessible than ever.
Australian Capital Territory
If you live in the ACT, you are both eligible for the federal solar battery rebate and the interest-free loan through the Sustainable Household Scheme. This loan helps cover the cost of energy-saving home upgrades such as batteries and solar panels.
You can borrow between $2,000 and $15,000 and repay it over 10 years with no interest or upfront fees. Eligibility depends on meeting the scheme’s criteria as well as Brighte’s lending requirements.
Estimated savings:
For a 10kWh battery priced around $15,000, the federal rebate of $3,700 reduces your upfront cost to about $11,300. If you borrow this full amount through the ACT Household Scheme, your repayments could be as low as $95 per month for over 10 years, making clean energy upgrades more affordable.
Western Australia
From 1 July 2025, WA households can access battery rebates of up to $5,000 for Synergy customers and up to $7,500 for Horizon Power customers, based on $500–$750 per kilowatt-hour (kWh) for up to 10kWh. Batteries over 10kWh may still qualify for the full rebate if approved. Interest-free loans of up to $10,000 will also be available to help more households participate. This rebate can be combined with the upcoming federal battery rebate.
Estimated savings: Varies depending on energy provider and battery size
2025 Federal Solar Battery Rebate Eligibility Checklist
The Cheaper Home Batteries Program applies to battery systems installed on or after 1 July 2025. Some finer details are still being finalised, and the information below reflects the current intended eligibility and requirements.
Australian homeowners with a new or existing solar panel system
Small businesses in Australia that want to reduce energy costs and improve energy reliability
Community facilities in Australia, such as schools, non-profits, or local halls, have solar systems in place
From any income level. The federal battery rebate is not means-tested, so it's open to all income levels.
Landlords and owners of multiple properties can claim one rebate per eligible property, considering each site has a solar system and meets the program requirements
Off-grid homes are eligible if the property is at least 1km from a grid line or the cost of connection to the grid exceeds $30,000.
Also, your battery must be:
Connected to a new or existing solar power system
Approved by the Clean Energy Council
Installed by an accredited installer
System is considered installed when a Certificate of Electrical Compliance (or state equivalent) is signed
The system must have between 5 kWh and 50 kWh of usable storage capacity (you can install a battery system of up to 100 kWh, but the rebate will only apply to the first 50 kWh of usable capacity)
For an on-grid system, the battery must be capable of connecting to a Virtual Power Plant (VPP). If the battery is installed in an off-grid home, it is not required to be VPP-ready.
Which Batteries are Eligible for the Rebate?
As mentioned above, your battery must be approved by the Clean Energy Council to qualify for the Cheaper Home Batteries Program. Here are some popular CEC-approved solar batteries available at 1KOMMA5°:
| Brand | Model | Capacity (kWh) | VPP Ready? | Expiry Date |
|---|---|---|---|---|
| Tesla | Tesla Powerwall 2 | 13.5 | Yes | 23-08-2025 |
| Tesla | Tesla Powerwall 3 | 13.5 | Yes | 17-10-2027 |
| Sungrow | SBR096 | 9.6 | Yes | 02-08-2026 |
| Sungrow | SBR160 | 16 | Yes | 02-08-2026 |
| Sungrow | SBR128 | 12.8 | Yes | 02-08-2026 |
| Sungrow | SBH200 | 20 | Yes | 04-01-2027 |
| Enphase | IQ BATTERY 5P | 4.96 | Yes | 02-05-2026 |
| SolarEdge | BAT-10K1P | 9.7 | Yes | 20-12-2027 |
Not sure how to proceed yet? Our battery experts can help you compare brands, check rebate eligibility, and tailor a system that suits your energy needs and budget. You can view the full list of CEC-approved battery brands and models here: https://cleanenergycouncil.org.au/industry-programs/products-program/batteries
Why Does Your Battery Need to Be VPP-Ready to Qualify for the Rebate?
One of the rebate criteria is that your battery system must be capable of connecting to a VPP. That doesn’t mean you have to join one, but your system must have the technical capability.
What is a VPP, and why does it matter?
So, VPPs allow home batteries to work together across the grid, sharing stored power when demand is high. It helps reduce pressure on the energy network and can create a more stable, reliable power supply.
By making VPP-readiness a condition of the rebate, the government is ensuring that today’s batteries are future-proof. The goal is to build a more flexible energy system that can respond quickly to demand without costly infrastructure upgrades.
When Should You Install a Home Battery to Qualify for the 2025 Rebate?
You don’t have to wait to get started.
If you install your battery now, you can still receive the rebate, provided that the battery remains switched off until July 1. Solar systems installed with a battery can be turned on earlier.
It allows homeowners to lock in installation dates with trusted installers, beat the post-July rush, and avoid potential installation delays by getting ahead of the expected rush.
To get the timing right and make the most of the rebate, it’s wise to speak with a trusted, accredited installer like 1KOMMA5°. We can help you explore your options for solar panels and home batteries that meet the rebate criteria.
Are you just starting your research or ready to explore your options? We are here to make the process easier. Contact our solar experts to receive a free, no-pressure quote.
How to Apply for the Cheaper Home Batteries Program?
Working with an accredited solar retailer and installer such as 1KOMMA5° will ensure your eligibility and make the process easier and hassle-free. Here's how:
Choose Your Battery
Our battery experts will introduce you to our range of CEC-approved and VPP-ready home batteries.
Schedule Your Installation
You can book your home battery installation anytime before July 1, 2025, to avoid long wait times and potential stock shortages. Just remember, the battery must stay switched off until the rebate officially begins.
Submit Your Rebate Claim
Once the program is available, our team will assist you in submitting your rebate application through the government’s online portal.
Enjoy Your Savings
The rebate will be applied as a discount on your upfront costs.
FAQs About the Rebate
Is the rebate means-tested?
No. The rebate is not based on income. Any eligible household or business can apply.
Can I get a rebate if I add a battery to an existing solar?
Yes, you can. As long as the solar system is already installed (and eligible), and the battery meets the new rebate requirements.
What if I live in a state that already offers a battery rebate?
You may be able to claim both federal and state rebates or loan programs, depending on the rules of your state program. Check with your local government or solar provider for details.
What if I already have a battery?
You can claim the rebate for adding at least 5 kWh of new capacity to your existing battery system, as long as the total battery size doesn’t exceed 100 kWh in nominal capacity.
However, you won’t be eligible for a rebate if you’re adding capacity to a battery that has already received this rebate. Only one rebate can be claimed per battery system under the program.
Do I have to be part of a Virtual Power Plant (VPP) to qualify?
No, you don't have to join a VPP. But if your system is on-grid, the battery must be VPP-capable.
Can I claim the rebate on more than one property?
Yes, but only one rebate per property is allowed. So landlords or property investors can claim for each address, provided each installation meets the requirements.
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