Battery Rebate Rules Locked In Days Before Deadline

The federal government has scrambled to the finish line just in time for its $2.3bn Cheaper Home Batteries Program, amending regulations to make official a plan to reshape Australia’s energy grid with the install of one million batteries by 2030.

Since securing reelection in May, the Albanese government has been racing to get the federal battery rebate in place for its promised start date of July 1, with expectations that the program will shave roughly 30% off the cost of a battery.

With just days left before the program was due to kick off, the Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025 have been signed off on by Governor‑General Sam Mostyn.

The amendment enables solar batteries to be eligible under the Small-scale Renewable Energy Scheme (SRES) that is already in place for solar, allowing Labor to avoid a messy fight in parliament to pass legislation that would have been needed for a totally separate battery program.

By attaching the battery rebate to the existing scheme however, it means that households will also need to already have or get a solar system to qualify – batteries installed in homes without solar will not be eligible for the rebate.

The scheme aims to radically ramp up household energy storage capacity – although there are more than 4 million rooftop solar PV systems in Australia, only one in 40 households have batteries.

How Much Is The Battery Rebate Worth?

The rebate is worth a maximum $372 per kWh in 2025, provided by 9.3 small-scale technology certificates (STCs) per kWh of usable capacity. This should shave roughly 30% off the cost of a battery.

One key detail is the rate at which the rebate value is expected to decline over time – the regulations reveal this will happen slower than for the solar rebate.

While solar small-scale technology certificates (STCs) will reduce by 16.7%, battery STCs will only fall by 9.7% at the end of this year and then by a roughly similar amount each year.

“This means there’s less of a rush to get a battery installed this year, because there will be a less than 10% fall in number of STCs provided next year … all else equal, batteries will only rise in price by around 3%. If suppliers further reduce battery prices as expected however, this means they could be cheaper next year. But if you are likely to save money by installing a battery, there’s little point in waiting,” says SolarQuotes resident fact-checker Ronald Brakels.

The value of the rebate will drop slower than for solar, starting with a 9.7% decline in 2026.

What Are The Eligibility Requirements For The Battery Rebate?

The amendments to the regulations lock in the following eligibility requirements for the Cheaper Home Batteries Program:

• A single solar battery system with a nominal (total) capacity of 5 kWh to 100 kWh will be eligible, but only the first 50 kWh of usable capacity will be discounted;
• Existing batteries can be expanded, provided that the battery system has not previously received a discount under the program, the additional capacity is at least 5 kWh, and the total upgraded capacity of the battery does not exceed 100 kWh in nominal capacity;
• Only one battery system is eligible for a property, and the rebate can only be claimed once per property – so someone with multiple properties could potentially install or upgrade multiple batteries;
• Retailers will need to provide assurance that they believe the battery will be installed for permanent use, and would not be moved or on-sold.
• Batteries can be off-grid or connected to the grid, but in the case of the latter, they must also be Virtual Power Plant (VPP) capable (this doesn’t mean battery owners must actually join a VPP).

One thing homeowners need to be sure of is that they choose hardware and an installer with the appropriate credentials to be eligible:

• Installers are required to be accredited for battery installation by Solar Accreditation Australia;
• Batteries must be listed on the Clean Energy Council-approved product list, which currently only includes lithium batteries, excluding other competing technology types;
• The same goes for new inverters, but you’re using an existing inverter it does not have to be on the approved list, but you do have to ensure it is not included in the product recall list.

Sungrow batteries were voted by SolarQuotes installers as the equal best brand for 2025 (in a tie with Tesla), offering the benefit of modular design which can be expanded in 3.2 kWh increments.

How Do You Claim The Battery Rebate?

Homeowners don’t actually need to do anything to claim the rebate – as has long been the case for solar, installers will apply for the rebate and deduct it from the total system price.

Applications to create small-scale technology certificates (STC) for solar batteries are now available in the Renewable Energy Certificates Registry, however applications cannot be submitted until the start date of July 1.

What About Batteries Installed Before July 1?

When Energy Minister Chris Bowen first announced the scheme as an election promise, he assured the clean energy industry that it would be made retrospective to avoid a “valley of death” where people held off on battery purchases until July 1, provided the batteries weren’t turned on until that date.

The rules for installations made before the start date have turned out to be quite strict. Solar battery systems must only have been tested as capable of storing or discharging energy after July 1, as shown on the state/territory certificate of electrical compliance. Solar batteries tested and certified before then won’t be eligible.

Does The Federal Rebate Stack With State Schemes?

In theory, yes. In practice however, most state incentives have wound up since the federal scheme was announced. The WA battery rebate, which also kicks off on July 1, is one exception, although it has been substantially watered down.

Do Your Homework Before The Rebate Launches

To get ready for the federal battery rebate launch on July 1, take a look through our comprehensive batteries guide, and sign up to our weekly newsletter for a special rundown on the scheme on the morning that it launches.