Battery Rebates in Australia: Current Offers by State and Territory
Last Updated: 5th Jun 2025 By Finn Peacock, Chartered Electrical Engineer, Fact Checked By Ronald Brakels
This page covers current rebates, grants, and interest-free loans available across Australian states and territories that make battery storage systems more affordable and improve payback times.
Federal Battery Rebates
The Cheaper Home Batteries Program is a $2.3 billion subsidy scheme designed to reduce home battery installation costs by around 30%. It begins on July 1, 2025 and applies to new battery systems between 5–50kWh usable capacity that are either connected to an existing solar system or installed with a new solar system.
The maximum possible subsidy in 2025 is ~$372 per usable kWh of battery storage. The subsidy amount will decrease at the end of each year until the end of 2030 when the scheme finishes. It’s similar to the existing Small-scale Renewable Energy Scheme (SRES) for solar. It’s not necessary to join a VPP to get the battery price reduction, but batteries must be VPP-capable. The federal rebate can be combined with the state rebate in WA and it should also be possible to combine it with the NSW rebate, but we’re waiting on confirmation. The rebate is available to homeowners, small businesses, and community facilities. Systems installed before July qualify, but only if they are switched on after the start date.
State/Territory Battery Rebates and Loans
Currently, state incentives that lower the cost of installing a battery are only offered by NSW. But WA will soon introduce one, starting on July 1st 2025 at the latest. WA will also offer zero-interest loans to help with the purchase of batteries. The ACT doesn’t have an incentive that lowers the cost of installing a battery, but they do offer a zero-interest loan that can be used to purchase them.
Here’s how they compare:
| State / Territory | Program Name | Type | Value |
|---|---|---|---|
| New South Wales | NSW Solar Battery “Rebate” | Rebate | Up to ~$4,470 (Varies by PRCs) |
| ACT | Sustainable Household Scheme | Zero-interest Loan | Up to $15,000 |
| Western Australia | WA Residential Battery Scheme | Rebate + Zero-interest Loan | Rebate: Up to $1,300 ($3,800 Horizon area) Loan: Up to $10,000 |
Image Credit: DJM Electrical
New South Wales
Program: NSW Solar Battery “Rebate” under the Peak Demand Reduction Scheme (PDRS)
Rebate Value: Varies based on the number of Peak Reduction Certificates (PRCs) received and their value. How many you get mainly depends on the battery’s usable capacity, but location also has a small effect. In postcode 2000, a battery with 10kWh of usable capacity will receive 798 PRCs. Over the past year the value of PRCs has varied from $1.90 to $2.65, but due to administration and compliance costs you won’t receive the full amount. If you receive $1.80 for each PRC then a 10kWh battery will have its price reduced by $1,437. You can also receive an additional payment equal to around 15% of that amount for joining a VPP. For a 10kWh battery receiving $1.80 per PRC it would be around $216. After three years a second VPP payment is available that will be around the same amount, depending on the effective value of PRCs.
Eligibility: The battery must be on the Clean Energy Council’s approved list, be VPP capable, have a minimum operating temperature range from -10 to 50 degrees, and have a 10 year warranty that promises it will retain at least 70% of its original capacity and provide a minimum of 2,800kWh of output per kWh of usable storage.
Process: Use the NSW Battery Rebate Calculator for estimates and work with installers registered as Accredited Certificate Suppliers (ACPs).
Important Notes: Only new batteries (not existing) qualify for PRCs, but existing batteries can get PRCs for joining a VPP, but only if they have at least six years left on their manufacturer’s warranty. To be eligible, most batteries would have to have been installed within the past four years.
Contact: Visit the NSW Government website or consult with SolarQuotes for details on VPP compatibility.
Example
Total Rebates: A Tesla Powerwall 2 or 3 has 13.5kWh of usable storage. If installed in Paramatta it could receive the following subsidies:
- An NSW state subsidy of around $1,958 (1,253 PRCs x ~1.80 = ~$1,958)
- A federal subsidy of around $3,643 (~$330 x 13.5kWh = ~$4,455)
In this example, the subsidies total $6,413. But the amounts can vary, especially for the NSW subsidy, so the actual amount could be higher or lower. If the installed price would have been $15,500 this will lower it to $9,087.
Payback Period: If the battery was used at a 70% capacity factor and discharged an average of 4.5kWh during the peak period on a time-of-use tariff and 5kWh during the shoulder period, then — provided it was mostly charged with solar power — it would reduce electricity bills by around $3.70 per day or $1,350 per year. This would give it a simple payback time of 6 years and 9 months. This is considerably shorter than the battery’s 10 year warranty.
If the battery was connected to VPP it would recieve a payment of $297 and lower its installed cost to $6,116. If the VPP provided $100 in savings or credit per year, then the simple payback time of the battery would drop to 4 years and 3 months.
Image Credit: Natural Solar.
Australian Capital Territory (ACT)
Program: Sustainable Household Scheme
Loan Value: Zero-interest loan from $2,000 to $15,000, repayable over up to 10 years.
Eligibility: Open to ACT residents for energy-efficient upgrades like battery storage, solar, and EV charging infrastructure.
Requirements: Loan capped at $15,000 for specific products. You may be required to attend an energy efficiency workshop.
Additional Rebates: Concession card holders may qualify for up to $5,000 in rebates through the Home Energy Support Program.
Process: Approved applicants receive a QR code for installation validation.
Contact: Call 13 22 81 or email [email protected].
Western Australia
Program: WA Residential Battery Scheme
Rebate Value: $1,300 for Synergy customers in the southwest of the state, and $3,800 for Horizon Power customers in regional WA.
Loan Option: Zero-interest loans from $2,000 to $10,000 will be available to help with the purchase of batteries. These loans can also be used to cover the cost of solar if it’s installed at the same times as a battery. Households must have a combined income of under $210,000 to be eligible. Loan repayments are made over 10 years.
Eligibility: Open to all residential properties in Western Australia, including those used for home businesses.
Conditions: The batteries must:
- Have a minimum capacity of 5 kWh
- Be VPP-ready and must join a VPP
Two new VPPs will be introduced to allow for the requirement to join one:
- Battery Rewards in the southwest Synergy area, and…
- Community Wave in the Horizon area.
The scheme will provide up to 100,000 rebates. The program is being rolled out in rounds, with the first commencing no later than 1 July 2025.
Example
Total Rebates: An SigenStor battery with 7.8kWh of usable capacity can receive the following subsidies in Perth or elsewhere in the Synergy area:
- A WA state subsidy of $1,300
- A federal subsidy of around $2,574 (~$330 x 7.8kWh = $2,574)
Together, these subsidies total $3,874. If the installed cost of the battery would have been $10,000 they will reduce its cost to $6,126.
Payback Period: If the battery is used at a capacity factor of 80% and provides an average of 4kWh during the peak period of Synergy’s Midday Saver time-of-use tariff and 2.24kWh during the shoulder period, then — provided it’s mostly charged with solar power — it would reduce electricity bills by $2.45 per day or $894 per year. This would result in a simple payback time of only 6 years and 10 months. This is an excellent payback time and well under the battery’s 10-year warranty.
If you’re unable to obtain a WA rebate due to fierce competition and only use the federal rebate, then the simple payback time would be 8 years and 4 months.
Generous subsidies plus high electricity prices make WA a very cost-effective location for batteries. Provided you can afford it, you may want to take advantage of this by installing one larger than in the example above.
Contact: Full details and updates can be found on the WA Government website.