The Federal Government Battery Rebate: What We Know (And What You Can Do Now)
Last Updated: 6th Jun 2025
The Cheaper Home Batteries Program starts on July 1st 2025, and provides an up-front discount on the purchase and installation of home batteries. It’s expected to lower the cost to households by around 30%. The incentive is an expansion of the Small-scale Renewable Energy Scheme (SRES), which already provides the framework for the long-running and hugely popular national solar panel rebate. In addition to homes, the subsidy is also available to small businesses and community facilities.
The government battery rebate is uncapped, which means there’s no limit on the number of subsidies available. The official start date is July 1, 2025. However, the industry has been repeatedly assured solar batteries installed from now until then will also be eligible –but only if they are not switched on until July 1, which is the earliest a Certificate of Electrical Compliance or equivalent can be signed. But details on this aspect are still murky.
While they still have to iron out the finer details, here’s what we know so far based on comments from federal Climate Change and Energy Minister Chris Bowen and his departmental advisor during an industry briefing on the government battery rebate, and subsequent intended eligibility criteria that have been published. Remember: things could change.
How Much Will The Solar Battery Rebate Be?
In 2025 the subsidy will be a maximum of $372 per kilowatt-hour (kWh) of usable battery capacity. After administrative fees and charges, the actual battery price reduction is likely to be around $330 per usable kWh. As with the solar panel rebate, the subsidy amount will reduce each year until the end of 2030, when the subsidy finishes.
The rebate value could also vary over time in line with reviews of whether the discount remains appropriate.
So, for a home battery with a 10 kWh usable capacity, the incentive will be $3,720 in 2025 and, after fees and charges, is likely to lower the installation cost by around $3,300. If you want to estimate how much you could save, try our Federal Government Solar Battery Rebate Calculator.
The federal government’s intention is for the rebate to be compatible with existing state schemes. It can be combined with WA battery rebate, but we are waiting on confirmation for the NSW battery rebate.
Which Batteries Will Be Eligible?
Batteries will need to meet some requirements:
- The batteries (and inverters) will need to have been approved by the Clean Energy Council, and installers must have appropriate battery installation accreditation.
- The minimum amount of usable capacity covered under the scheme is expected to be 5 kWh.
- The maximum amount of usable capacity that can receive the rebate is expected to be 50 kWh – but you can install systems up to 100 kWh nominal capacity and still receive the rebate for a 50kWh system.
- Grid-connected solar batteries must be capable of connecting to a Virtual Power Plant (VPP), but there’s not expected to be any requirement to join a VPP.
Other Important Points
- The subsidy is not expected to be means-tested.
- Owners of existing battery systems should be eligible if they install a new battery, either in addition to the existing one or as a replacement.
- Additional capacity (minimum 5 kWh) can be added to an existing battery system that hasn’t received a rebate, assuming the total nominal capacity of the upgraded system doesn’t exceed 100 kWh.
- You need to connect the battery to a new or existing solar system.
- One federal government battery rebate per property. Owners of multiple properties can install a system at each assuming those other properties have solar panels.
- Despite the requirement to be VPP capable, off-grid installations can receive the rebate. Off-grid battery installations are exempt from the VPP compatibility requirement. An installation is considered “off-grid” if it is at least one kilometre from a mains grid line or where the cost to connect to the grid exceeds $30,000.
- Customers must be provided with technical details of the installation (including safety and installer accreditation details, along with potential energy savings and payback periods.
- The Clean Energy Regulator’s role in solar system inspections will be expanded to include inspections of battery installations.
Your Next Steps
A lot of pent-up demand exists for a federal government battery rebate in Australia. That is why we expect (good) installers to be very thin on the ground once the calendar flips over to July 1. And sadly, we’re already seeing some shonky advertising misrepresenting the Cheaper Home Batteries Program, confusing and misleading people.
It usually takes a few weeks between accepting a quote and having a battery installed. But now the federal battery rebate is available, installers are likely to be snowed under, so if you want a subsidised battery, there’s no point in waiting until July 1st to get the ball rolling. Get started by learning everything you need to know about home batteries. You can also do the following to get ahead of the pack:
- Get quotes for a solar and/or battery system now — although it’s possible to receive the rebate for installs before July 1, the specific requirements are yet to be finalised, so there is some risk in doing so until these are made clear.
- Get quotes, but stipulate that going ahead depends on no changes that affect your installation occurring to the scheme between now and July 1st.
- If you don’t yet have panels and aren’t certain you want a battery right away, get a quote now for a solar system. Talk to the installer about your intentions, and install solar immediately. This way, you’ve established a relationship with a company that may install your home battery down the track. You’ll also benefit from solar savings earlier than you otherwise would.
- Subscribe to the SolarQuotes weekly newsletter for updates.
If you want a good-quality home battery and professional installation at a reasonable price, we — of course — recommend getting quotes via SolarQuotes. We only allow verified installers into the SolarQuotes network who we know do quality work and who we would trust to install systems on our own homes. Another benefit of arranging a solar/battery installation through SolarQuotes is the peace of mind our unique Good Installer Guarantee offers.