Table of Contents
What is the Cheaper Home Batteries program?
The Labor government was recently re-elected and one of their campaign promises was the Cheaper Home Batteries program. The $2.3 billion program will come into effect on 1 July 2025 and run until it is phased out in 2030. As Australia transitions away from fossil fuels and to a renewable energy economy, one of the important pillars is home battery storage. The aim of the program is to create a balanced energy infrastructure, less reliance on the existing grid, and ensure a strong energy future.
How can I save with the battery rebate?
The federal battery rebate is not a traditional ‘rebate’. Rebates generally require the payment of the item in full, with reimbursement of some of the funds at a later date. The federal ‘rebate’ is actually an upfront discount, similar to the discount you receive for solar, heat pumps, solar hot water, small-scale wind, and small-scale hydro.
Your battery will be assigned certificates, which will have a monetary value. When you purchase your battery, your installer will deduct the value of the certificates. The installer will assign the certificates to themselves or another accredited person or organisation. They will sell these certificates on the market.
The federal rebate will ensure that the customer – you – benefits instantly from the program.
How much will I save?
The final details have not been delivered ahead of the impending 1 July commencement date, however, we do know that customers can expect up to $372 per kilowatt-hour (kWh). This means that a 10kWh battery would receive a maximum discount of $3,720. With the current cost of a battery sitting around $1,000 per kWh, you can expect significant savings of around 30%.
Am I eligible for the rebate?
While the eligibility criteria are, thankfully, limited, there are some important tidbits to note:
- The subsidy isn’t means-tested—everyone’s in, no matter your income.
- Already got a battery? You can add another and still qualify.
- Batteries must connect to either a new or existing solar system.
- It’s one federal rebate per property, but you can claim for multiple properties if each has solar.
- Off-grid? No worries. Even though VPP capability is required, off-grid setups are still eligible.
What batteries are eligible?
There are limitations on the type and size of the batteries eligible under the program.
- Batteries must be Clean Energy Council–approved, and installers need proper battery accreditation.
- The scheme covers batteries with at least 5kWh of usable capacity.
- The cap for the rebate is 50kWh, but you can install up to 100kWh and still claim the max rebate.
- Your battery must be VPP-capable, but joining a Virtual Power Plant isn’t mandatory.
