{"id":93416,"date":"2025-07-29T10:07:18","date_gmt":"2025-07-29T00:37:18","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=93416"},"modified":"2025-07-29T10:07:18","modified_gmt":"2025-07-29T00:37:18","slug":"federal-battery-rebate-on-track-to-run-out-of-funding","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/federal-battery-rebate-on-track-to-run-out-of-funding\/","title":{"rendered":"Federal Battery Rebate On Track To Run Out Of Funding"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignnone wp-image-93476 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/07\/battery-rebate-funding-2.jpg\" alt=\"Installation of a home battery\" width=\"1200\" height=\"627\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/07\/battery-rebate-funding-2.jpg 1200w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/07\/battery-rebate-funding-2-300x157.jpg 300w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/07\/battery-rebate-funding-2-1024x535.jpg 1024w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/07\/battery-rebate-funding-2-768x401.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/> Extraordinary uptake in response to the federal battery rebate means the scheme is likely to chew through its announced $2.3bn funding pool well ahead of schedule. SolarQuotes can reveal that the Albanese government has earmarked additional funding, but this still doesn&#8217;t make up the projected shortfall.<\/p>\n<p><!--more-->Since the July 1 start date of the Cheaper Home Batteries Program, homeowners have installed batteries at a blistering pace. Last week, the Clean Energy Regulator (CER) reported 11,536 batteries already completed, at a pace of over 1,000 a day.<\/p>\n<p>The average size of the batteries has also grown to 17 kWh, well up on long-term averages of 10-12 kWh, according to data from solar consultancy SunWiz.<\/p>\n<p>With such a massive response, SolarQuotes analysis indicates that the $2.3bn in announced rebate funding is on track to be exhausted well before the program&#8217;s planned 2030 end date.<\/p>\n<h2>Battery Rebate Funds Likely To Run Out By 2028<\/h2>\n<p>Ronald Brakels, SolarQuotes&#8217; resident fact checker, has crunched the numbers and found that the scheme could run out of money by early 2028 unless adjustments are made.<\/p>\n<blockquote><p>&#8220;If the average usable battery size is 17 kWh and 75,000 are installed over six months with the federal rebate this year, and installations over a year increase by a third so there&#8217;s 133,000 in 2026, and then 177,000 in 2027, then funding runs out early in 2028. While the increase in installs I&#8217;ve used is generally faster than for solar in high-growth years. there were a couple of years that were just nuts,&#8221; he says.<\/p><\/blockquote>\n<p>Ronald adds that if the rate of increase in installs isn&#8217;t as extreme, the funding won&#8217;t run out until towards the end of 2028.<\/p>\n<blockquote><p>&#8220;Last year, in 2024, battery installs were 74,582. In 2025 we have half a year of federal battery rebate. If 50,000 are installed this year with the federal incentive, and the number installs over a year increases by just 25% in 2026 to 125,000, and then by 20% to 150,000 in 2027 and holds steady, and the average installation has 17kWh of usable capacity, the funding will run out towards the end of October in 2028. This assumes all money goes towards batteries. As there are probably other costs, it&#8217;s likely to end before then,&#8221; he says.<\/p><\/blockquote>\n<h2>Solar Rebate Also Saw Demand Spikes<\/h2>\n<div id=\"attachment_93468\" style=\"width: 716px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-93468\" class=\"size-full wp-image-93468\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/07\/solar-installs-per-month.jpg\" alt=\"A graph showing solar installs.\" width=\"706\" height=\"564\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/07\/solar-installs-per-month.jpg 706w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/07\/solar-installs-per-month-300x240.jpg 300w\" sizes=\"(max-width: 706px) 100vw, 706px\" \/><p id=\"caption-attachment-93468\" class=\"wp-caption-text\">Australian rooftop solar installations per calendar month dramatically spiked in the early 2010s in a couple of instances before settling down, according to the Australian PV Institute. Time will tell whether the response to the battery rebate will follow a similar trend.<\/p><\/div>\n<p>Ronald says that the pace of solar panel installs under the <a href=\"https:\/\/www.solarquotes.com.au\/panels\/rebate\/\">solar rebate<\/a> is instructive.<\/p>\n<blockquote><p>&#8220;If we ignore the first few years after big incentives were introduced for solar and look at what was achieved when things settled down and only STCs and modest feed-in tariffs were available, solar could still manage ~25% growth in installations in a some years. Based on that, an end to funding before the end of 2029 seems likely. If the average system size ends up being over 17kWh usable, it will end even sooner,&#8221; he says.<\/p><\/blockquote>\n<p>Even if demand turns out to be &#8220;nuts&#8221;, Ronald doubts the scheme will exhaust its funding much earlier than 2028, as he notes there&#8217;s a limit to how fast new installers can be trained and qualified.<\/p>\n<div id=\"attachment_91691\" style=\"width: 1090px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-91691\" class=\"wp-image-91691 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/04\/Mark-Dreyfus-battery-rebate-e1753748693306.jpg\" alt=\"Politician Mark Dreyfus promotes Labor's battery rebate\" width=\"1080\" height=\"893\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/04\/Mark-Dreyfus-battery-rebate-e1753748693306.jpg 1080w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/04\/Mark-Dreyfus-battery-rebate-e1753748693306-300x248.jpg 300w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/04\/Mark-Dreyfus-battery-rebate-e1753748693306-1024x847.jpg 1024w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/04\/Mark-Dreyfus-battery-rebate-e1753748693306-768x635.jpg 768w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><p id=\"caption-attachment-91691\" class=\"wp-caption-text\">Labor politicians like Mark Dreyfus (pictured) campaigned hard on its Cheaper Home Batteries Program during the federal election campaign, so the Albanese government would be keen to ensure one of its flagship election promises doesn&#8217;t wrap up earlier than planned.<\/p><\/div>\n<h2>Labor Earmarks Additional $1.2bn For Battery Rebate<\/h2>\n<p>SolarQuotes has confirmed that the program&#8217;s budgeted $2.3bn is to cover the forward estimates period, which covers the budget year and the following three years through to mid-2029. We can reveal that an additional $1.2bn has been earmarked to see the program through to 2030-31.<\/p>\n<p>However, given that the initial $2.3bn worth of funding is on track to be exhausted by 2028, it looks set to fall short even if just factoring in the forward estimates period.<\/p>\n<p>The federal government is understood to be taking a flexible mindset going forward, viewing the program and expenditure as demand-driven by the uptake under the scheme.<\/p>\n<p>Ronald speculates that reducing the currently generous capacity limit of batteries eligible for the rebate could give the funding a bit more staying power, suggesting that &#8220;reducing the number of kWh that can receive the incentive is a fairly obvious way of getting costs under control&#8221;.<\/p>\n<p>A solar battery system with a nominal (total) capacity of 5 kWh to 100 kWh is <a href=\"https:\/\/www.solarquotes.com.au\/battery-storage\/federal-rebate\/\">currently eligible under the scheme<\/a>, but only the first 50 kWh of usable capacity is discounted (read about the difference\u00a0between usable and nominal capacity <a href=\"https:\/\/www.solarquotes.com.au\/blog\/battery-storage-capacity-mb3234\/\">here<\/a>).<\/p>\n<p>The large capacity limit has helped fuel <a href=\"https:\/\/www.solarquotes.com.au\/blog\/dont-blow-rebate-on-big-battery\/\">a barrage of deals encouraging people<\/a> to install batteries bigger than they need or can actually fully charge in the first place.<\/p>\n<h2>NSW, Queensland and SA Leading The Way<\/h2>\n<p>SunWiz reports that the rebate has so shifted the dial on batteries that for the first time more battery systems had been registered than stand-alone solar systems on some days, up from a ratio of one home battery for about six solar systems.<\/p>\n<p>According to SunWiz data, of the new installations since the launch of the scheme, 40% were in NSW, 20% in Queensland, 17% in SA, 12% in Victoria and 5% in WA.<\/p>\n<p>For more on the federal battery rebate, <a href=\"https:\/\/www.solarquotes.com.au\/battery-storage\/federal-rebate\/\">read our dedicated explainer page,<\/a> and to get regular updates on the latest on batteries and home electrification subscribe to <a href=\"https:\/\/www.solarquotes.com.au\/weekly-newsletter.html\">our free weekly newsletter<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Extraordinary uptake in response to the federal battery rebate means the scheme is likely to chew through its announced $2.3bn funding pool well ahead of schedule. SolarQuotes can reveal that the Albanese government has earmarked additional funding, but this still doesn&#8217;t make up the projected shortfall.<\/p>\n","protected":false},"author":39,"featured_media":93476,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[551],"tags":[],"class_list":["post-93416","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-battery-storage","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Federal Battery Rebate On Track To Run Out Of Funding<\/title>\n<meta name=\"description\" content=\"Federal battery rebate demand is so strong that its $2.3bn funding pool is on track to run out years before the scheduled end date.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solarquotes.com.au\/blog\/federal-battery-rebate-on-track-to-run-out-of-funding\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Federal Battery Rebate On Track To Run Out Of Funding\" \/>\n<meta property=\"og:description\" content=\"Federal battery rebate demand is so strong that its $2.3bn funding pool is on track to run out years before the scheduled end date.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.solarquotes.com.au\/blog\/federal-battery-rebate-on-track-to-run-out-of-funding\/\" \/>\n<meta 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At a press conference yesterday morning in Canberra, Federal Minister for Climate Change and Energy Chris Bowen said 40,004 batteries\u2026","rel":"","context":"In &quot;Battery Storage&quot;","block_context":{"text":"Battery Storage","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/battery-storage\/"},"img":{"alt_text":"Home battery installation numbers.","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/08\/august-battery-installations.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/08\/august-battery-installations.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/08\/august-battery-installations.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/08\/august-battery-installations.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/08\/august-battery-installations.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":96616,"url":"https:\/\/www.solarquotes.com.au\/blog\/battery-rebate-values-mb3334\/","url_meta":{"origin":93416,"position":3},"title":"Home Battery Rebate Reduction: See The Impact\u00a0","author":"Michael Bloch","date":"December 15, 2025","format":false,"excerpt":"Subsidies for Australia's Cheaper Home Batteries Program (CHBP) are being adjusted to ensure the program's ongoing viability out to the intended finish date. 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