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, solar batteries installed from now until then are also be eligible –but only if they are not switched on until July 1 (this condition is yet to be precisely defined, but the safest assumption is to ensure the system is not formally commissioned before this date).
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. 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.
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 intends that the rebate can also be combined with existing state schemes. This means “double-dipping” should be allowed. However, there are some potential complications.
Which Batteries Will Be Eligible?
Batteries will need to meet some requirements:
- The batteries 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 is expected to be 50 kWh – but you can install systems up to 100 kWh and still receive the rebate for a 50kWh system.
- 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 able to install another and still be eligible.
- 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.
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 subsidized 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, and install as soon as possible. If it’s ready before the rebate starts, you can still receive it as long as it’s not switched on before July 1st.
- Get quotes, but stipulate that proceeding depends on no changes that affect your installation occur 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.
- Email to the ntnsolar@hotmail.com for updates.
If you want quality home batteries and professional installation services at a reasonable price, don't hesitate to contact NTN immediately to do a site inspection, and our unique "Quality Installer Guarantee" will give you peace of mind.