Significant changes to Western Australia’s upcoming home battery rebate were announced by the Cook Government late Tuesday afternoon – here’s what’s happening.
First, a very brief history of the evolution of the scheme to date.
That Was Then …
In February this year — a few weeks before Western Australia’s state election — Premier Roger Cook pledged WA Labor would roll out a $387 million program to provide one-off home battery rebates of up to $5,000 for Synergy customers ($500 per kWh of battery capacity up to 10 kWh) and up to $7,500 for Horizon Power customers ($750 per kWh of capacity up to 10 kWh).
In addition to the rebate, new, additional and replacement solar panels would also be eligible for no-interest loans of up to $10,000 where installation is occurring as part of a solar + storage package purchase. Loan eligibility would be based on household income, the details of which wasn’t provided at the time.
Moving ahead with the scheme hinged on WA Labor regaining power after the state election. And it did.
Then in March, further details about the WA Residential Battery Scheme were revealed, indicating the program would be initially launched on or before 1 July 2025.
At that point, the rebates were expected to benefit up to 19,000 Synergy and up to 1,000 Horizon Power customers.
But after federal Labor won the federal election in early May 2025 — helped along by its commitment to a national solar battery rebate — it wasn’t clear if the both the WA and federal rebates could claimed.
… And This Is Now
On Tuesday, the Cook Government revealed some substantial rejiggering to the state incentive. Among it:
Battery Rebate Reduction
The WA Residential Battery Scheme rebate will be reduced to up to $1,300 for Synergy customers ($130 per kWh of battery capacity up to 10 kWh) and up to $3,800 for Horizon Power customers ($380 per kWh of capacity up to 10 kWh). Approved batteries above 10 kWh capacity will only be eligible for the maximum WA rebate levels.
It’s a big drop that will no doubt anger some potential battery buyers who were budgeting based on the previous levels, and there are reports some had already put down deposits on systems.
Energy Policy WA and Consumer Protection issued a warning that companies who have taken deposits and promised specific equipment, delivery times, prices, or access to the rebate and are unable to fulfil these promises once details are confirmed may find themselves dealing with Consumer Protection.
Authorities added they are aware of information in ads, phone calls, and in person meetings that are not consistent with released information or best practices. Action has already been taken against companies and individuals in violations of Australian Consumer Law.
Number Of Rebates Boosted
While the state rebate has been slashed, the number of rebates will be expanded to provide support for up to 100,000 households; which is a huge jump. Not only does this mean many more households can benefit, as will the broader electricity system, but some of the potential chaos associated with the original limited numbers might be avoided.
Rebate ‘Stackability’ Confirmed
It’s also been confirmed the state and federal rebates will be stackable, the end result being the two combined would be around the same amount as the state incentive on its own for up to a 10- kWh battery prior to these changes.
VPP Participation *Compulsory*
Another major change is whereas previously eligible batteries would need to be Virtual Power Plant (VPP) *capable*, now beneficiaries will be *required* to participate in a VPP program. Among the VPP programs will be Horizon Power’s Community Wave for regional WA (details to come) and Synergy’s Battery Rewards program for Synergy customers.
While Horizon customers won’t have a choice of VPP programs, those with Synergy will be able to choose an alternative VPP product. According to the SolarQuotes VPP comparison table, the other choices are none; but there is another player we’ll need to add (along with Synergy): Plico — and hopefully more choices will become available as time goes on.
“With the Scheme now extended to support an estimated 100,000 batteries, it may contribute around 1GWh of storage to the grid,” states the WA Government. “For home batteries to reliably deliver benefits to the system they need to work together. This can only be achieved through VPPs, and this is how households receiving the rebate will help secure our clean energy future.”
This new VPP condition will no doubt see strong reactions as well. You can learn more about what a VPP is and the pros and cons of Virtual Power Plants here.
Interest-Free Loans
As for the no-interest loans aspect, up to $10,000 will still be available to households with a combined annual income of less than $210,000. Rather than just being for solar panels, the loans can be used for home batteries and inverters, or other new/ upgraded related equipment. The repayment period will be 10 years.
You can learn more in our WA Residential Battery Scheme rebate explainer, or by visiting the Western Australian Government’s official information pages here.
Commenting on the changes, Premier Cook stated:
“I’m thrilled to see the Albanese Labor Government work with my government to expand the WA Household Battery Rebate so it can now benefit around 100,000 households – ensuring it potentially reaches five times as many families than under the State-only scheme. “This will do more than lower emissions. It may also support local battery manufacturing, which is crucial to my vision for a future that’s Made in WA.”
Approved Sellers Only
Battery retailers will need to be an “Approved Seller” under the New Energy Tech Consumer Code, and have a Western Australian address for their business.
Retailers who are not an NETCC Approved Seller currently can apply if they commit to achieving NETCC Approved Seller status.
More Detail To Come
There’s still some important missing details regarding Western Australia’s scheme, and only a few weeks before it is meant to start. For example, approved equipment, battery suppliers/installers are yet to be confirmed.
What is clear for Western Australians considering jumping the starter’s gun is batteries installed before the scheme commences will *not* be eligible for state rebate or loan funding.
We’re keeping a close watch on developments — you can stay updated with what’s happening by subscribing to the SolarQuotes weekly newsletter. And while you’re here, check out our home battery guide for everything you need to know about residential energy storage.
About Michael Bloch
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So, the members of the Crook government will be pocketing the federal battery subsidy that was meant to assist householders to buy batteries.
Very disappointed with the WA government backflip. They seem to be claiming the combined state and commonwealth rebate will be capped at $5,000??? I’m looking at a 16kw Sigenergy system which using your calculator should receive at least $5220 from the federal rebate alone. So instead of the $10220 combined rebate I was expecting, now unsure if it is going to be $5000 or maybe now $6520 if $1300 State rebate can still be combined with the expected federal $5220????? Any help greatly appreciated.
I have the exact same question, as I have ordered the same Sigenergy system. The National scheme appears to provide $372 per kwh.
STC calculation as per Government website today 5/6/25
“STCs will only be provided for the first 50 kWh of the usable capacity of a battery system.
The discount rate in 2025 would be represented as 9.3 STCs per kWh of usable capacity, equivalent to around $372 per kWh.”
So $5952 rebate on 16Kw system just from Government scheme. Does this mean if you purchase more than 10Kw system, the WA government are actually taking money away if we are only given a total $5000 rebate?
The $10k interest free loan is great for those families that need it.
The absolute reduction (to potentially $0) for anyone with a battery larger than 13kWh is a real kick in the teeth.
I’m hoping they change their mind.
Also, receiving $1300 (at best) to be forced to join a VPP is odd. Something doesn’t stack up.
So pretty much means no one will sign up for the state system?
They may as well just go with the federal system, get what size battery they can afford and not have to sign up to a VPP unless it suites them.
The maximum size battery the state system allows will likely not cover most users overnight needs anyway. But to then have the compulsory VPP drain down your battery in peak hours would be a nice bit of salt rubbed in that wound.
Legal Theft
Same situation and question.
I am one of the many who have signed up for the State & Federal Government subsidy for batteries and like many extremely disappointed in the WA Government back flip on their subsidy. It was purely an election stunt to get more votes and then reduce their offer by 75% and tie it to a VPP proposal is to top up their shortcomings in the electricity supply. At least the Federal Government has the decency to honour their election promise.
I will not be part of this State electricity subsidy and withdraw my plan to sign up for the scheme.
I too have withdrawn. I’m not handing over control over my 22kw battery for a paltry 1300.
Ha, I hadn’t thought about it like this yet but I think you’re right.
I’m looking to install a 16kWh battery. So, based on the latest update – when I ignore the WA rebate and solely use the federal one I’m actually better off by approx. $900. And no VPP requirement as you say!
A bit ridiculous to be in a situation in WA where not taking advantage of a WA scheme actually leaves me better off.
Totally aligned, the piddly $1300 from the watered down state rebate isn’t enough to cover the VPP downsides including losing control of your own battery meaning it could be empty when you actually want to use it and additional wear and tear through more cycles.
They want us to pay for a battery to sure up their network, and only offer $1300? Hard pass and a guarantee to lose my vote after an epic broken election promise.
Care to crunch the numbers and show the comparison for say stepped increases between 10kwh to 50kwh of battery, at which point the state subsidy would be zero? (as the federal subsidy has reached $7500)
This situation is very confusing and i think is very typical of governments trying to win election on very loose policys then when they need to be implemented they really haven’t thought it through properly, i think the media attention is going to be hard for them to avoid. I actually think the new rebates are more reasonable previously the price was almost to good to be true, which seems to be true in this instance. im almost certain there will be more changes or revisions to come.
The compulsory VPP thing is an egregious incursion behind the meter. Subsidies might get you to 12c or 15c/kWh LCoS, best case. That’s money you have paid up front for each cyclable kWh. All of these VPPs appear to cycle for less than this return at times – so you pay for them to use your battery. This is why VPPs remain unpopular. People in the know, know and the government is prepared to push people into it without adding protections.
There is no way Sanderson can sell this pup. People in good faith sought quotes in light of this incentive, and companies in good faith provided these quotes. This is such a punitive change and makes me wonder if it will now be fully subscribed as it is now such a paltry sum.
A disappointing about-face. Ms Sanderson can claim there’s no loss for those interested like myself. But Bureaucrats will be bureaucrats… Promise then cut the promise AND force VPP membership. Two negatives in one fell swoop.
The two reasons I intended to acquire a battery were to ride out long power failures and to provide a way to reduce our load on the grid in the evening. As someone who lives in an area prone to power failures lasting multiple days, I really don’t want a VPP to drain my batter, which would leave me no better off that I am without a battery, in the event of an evening grid power failure.
So, I’m keep to find out more about how the Synergy VPP will operate. Will it respect the battery owner’s chosen minimum power remaining for home use (and for battery longevity)?
I’m one of those who has already paid a deposit. I did so due to the state rebate originally only being available to the first 19000 applicants and I didn’t want to miss out knowing that these would likely be snapped up quickly. I also did it on the understanding that I would get both the state and federal rebates which would have made my purchase financially viable for me. With this major change it is now not financially viable for me (marginal at best) and I’m hoping that I can get my deposit back.
Of course no one has mentioned the really big elephant in the corner of the room.
Anyone relying on the Federal battery rebate scheme delivering as has been promised
– would have to have a very big chill going down their spine at this point
– seeing the variation between the promise and what has actually been delivered by the WA government.
I think it’s worth noting that the VPP from Synergy (Synergy Battery Rewards) is a pretty minimal disruption to your battery useage. It can only be activated 30 times per year, for a maximum of 6 hours each time. For every kWh they use, you get paid 70c. Quite reasonable, i think. In fact, I suspect many people will be asking them to take even more from them at that rate!
As for the decrease in subsidy – sure, it sucks that i now could get less money towards a battery. But, it does mean that more people will still get SOME assistance, and we should get more batteries on the grid as a result. That feels like a net positive.
I signed up to a $30K+ contract and have paid the deposit. I’ll still go ahead with it but will not sign up to a VPP for a measley $1,300, And I will never vote for this government again after this stunt.
Depending on your household income, you can apply for the new $10k interest free loan. Which is a no brainer to take, if you are eligible.
Your ROI is now longer than the battery life itself..