Big Savings Ahead: Everything You Need to Know About the New Federal Battery Rebates for Australian Homes and Businesses
Starting 1 July 2025, Australians will gain access to generous battery rebates under the $2.3 billion Cheaper Home Batteries Program. Backed by the Australian Government, this federal battery rebate initiative will make energy storage more affordable and accessible for households and small businesses across the country.
What Is the Cheaper Home Batteries Program?
The Cheaper Home Batteries Program is a new national battery rebate scheme designed to help Australians:
- Take full advantage of solar power by storing excess energy for use when the sun isn’t shining
- Reduce energy costs across the grid, including for households that don’t install batteries
- Accelerate the transition to cleaner and cheaper energy by reducing reliance on gas and infrastructure upgrades
How Much Is the Federal Battery Rebate?
From July 2025, eligible battery installations will receive an upfront discount of around 30% off the cost of installation. This discount is based on the battery’s usable capacity, capped at 50 kWh.
The federal government will deliver this rebate through solar and battery retailers under the Small-scale Renewable Energy Scheme (SRES), managed by the Clean Energy Regulator.
Battery Rebate Value Over Time
The rebate will be linked to the number of Small-scale Technology Certificates (STCs) generated per battery installation. The rebate amount will reduce over time:
Year | STC Factor | Approx. Rebate per kWh |
---|---|---|
2025 | 9.3 | $372 |
2026 | 8.4 | $336 |
2027 | 7.4 | $296 |
2028 | 6.5 | $260 |
2029 | 5.6 | $224 |
2030 | 4.7 | $188 |
Who Is Eligible for the National Battery Rebate?
Battery System Requirements
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Battery size must range from 5 kWh to 100 kWh (nominal capacity)
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Rebates apply only to the first 50 kWh of usable capacity
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Electric vehicles are not eligible
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Batteries must be Clean Energy Council (CEC) approved
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Systems must be installed on or off-grid
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On-grid batteries must be VPP-capable (Virtual Power Plant), but participation is not required
Installer Requirements
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Batteries must be installed by an accredited installer with Solar Accreditation Australia (SAA)
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Installations must comply with the Best Practice Guide: Battery Storage Equipment
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A certificate of electrical compliance must be issued after installation
Additional Eligibility Notes
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Systems installed after 1 July 2025 will qualify
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Batteries must be paired with a new or existing solar PV system
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Systems previously claiming a rebate are not eligible for additional rebates
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Households can only claim the rebate once per premises
Federal Battery Rebates & State Programs
While this is a national rebate, it may stack with existing or future state-based battery incentives. Always check with your local authority to see if you're eligible for additional battery subsidies on top of the federal program.
Consumer Protection and Safety
The federal battery rebate includes strong consumer protections, such as:
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Written statements from retailers and installers outlining system details and compliance
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Mandatory inspections by the Clean Energy Regulator
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Compliance with all state and territory safety laws
Why This Federal Battery Rebate Matters
This federal battery subsidy is a game-changer for Australian energy consumers. It will:
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Lower the upfront cost of installing battery systems
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Enable more Australians to maximise solar savings
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Contribute to a cleaner, more resilient national energy system
Why This Federal Battery Rebate Matters
If you’re planning to install a battery system after 1 July 2025, now is the time to start researching and preparing. Speak to an accredited installer and check that your system will meet all the program’s requirements.
Read more
- Renewable Energy Target scheme
- Cheaper Home Batteries Program – Clean Energy Regulator
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Solar Consumer Guide
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