Federal Solar Battery Rebate Now Confirmed: Starts July 1, 2025
The Australian federal governments solar battery rebate the “Cheaper Home Batteries Program” has officially been confirmed to begin on July 1, 2025. Offering up to 30% off the cost of home battery systems, this government solar battery rebate aims to support over one million new battery installations across Australia by 2030 and is delivered through a $2.3 billion dollar expansion of the Small-scale Renewable Energy Scheme (SRES)—the same system that powered Australia’s rooftop solar boom.
From our analysis the federal solar battery rebate will likely move home battery storage into the ‘financially viable’ status for a large number of Australians. We have tracked the financial viability of batteries for the last 10 years in our Are batteries worth it? article.
“The most important development in consumer energy since Australians first gained access to subsidised solar panels.”– Smart Energy Council CEO, John Grimes
This independent guide explains everything Australians need to know about the new federal incentive on offer.
Key Facts: Australia’s National Battery Rebate
- Starts: July 1, 2025
- Max Rebate: $372 per usable kWh of battery storage
- Expected Savings: ~$4,000 saving on standard 11.5-13.5 kWh battery systems
- Eligibility: Homes, small businesses, community facilities
- Stackable: Can be combined with state battery rebates
- Not means-tested: Available to all eligible property owners
- Install now, claim later: Systems installed before July 1 are eligible—if switched on after the start date
Systems must be connected to new or existing rooftop solar, and the federal rebate applies to battery systems between 5 kWh and 50 kWh of usable capacity. Installers must be accredited, and only one rebate applies per eligible property (but multiple properties may qualify separately).
⚠️ Important Note: Batteries installed before July 1, 2025, can still qualify——as long as they are not switched on until the program begins. Rooftop solar systems connected to the battery can be activated earlier.
Estimate Your Rebate with the Federal Battery Calculator
Want to calculate how much you could save under the 2025 Federal Solar Battery Rebate? Use the free online calculator to estimate your rebate based on battery size and type.
Try the Federal Battery Rebate Calculator
This tool gives you a straightforward estimate—based on the size and type of battery system you’re looking at, and how the new “Cheaper Home Batteries” program is set to apply.
It’s quick, free, and based on the latest data available .
Compare battery quotes from your local installers now before July 1st
What Is the Australian Federal Solar Battery Rebate Program?
The Federal Solar Battery Rebate, officially known as the Cheaper Home Batteries Program, is a new nationwide solar battery incentive designed to accelerate battery adoption across Australia. It offers an upfront discount of around 30% on the installation cost of eligible battery storage systems.
That roughly equates to an average $4,000 saving on a standard 11.5 kWh battery system. The program is projected to support over one million new batteries by 2030 and help participating households reduce their electricity bills by up to 90%.
Delivered through the Small-scale Renewable Energy Scheme (SRES)—the same program that’s driven rooftop solar uptake since 2011—the rebate will help eligible Australians store solar energy for later use, reduce electricity bills, and lessen reliance on the grid.
The exact amount depends on the battery’s usable capacity, with the rebate scaling at a rate of around $370 per kilowatt-hour up to a maximum of 50 kWh. Note After accounting for administrative costs, the real-world price reduction is expected to be around $330 per usable kilowatt-hour. The subsidy will reduce annually until the program ends in 2030.
The goal is to make solar battery systems financially viable for more Australians—supporting over one million new battery installations and reducing household electricity bills by as much as 90% when paired with rooftop solar.
See our comprehensive guide to all available Australian rebates to explore the state based rebates this federal rebate stack with.
How much is the federal solar battery rebate worth?
The battery rebate will reduce the upfront cost of a typical installed system by approximately 30%. Eligible batteries will generate 9.7 Small-scale Technology Certificates (STCs) per usable kWh of battery capaciy. At current prices STCs can be sold for around $36, which means the rebate is expected to be around $350 per usable kWh.
For example, based on Solar Choice’s Battery Price Index the average cost of a typical 10kWh battery is $11,120. The discount on a 10kWh battery would be around $3,500, meaning the net price to the end customer would be around $7,700. Like the federal solar STC rebate the battery rebate will decline each year on 1st January until the program ends in 2030.
Key Benefits & Highlights of the Program
- Available nationwide from July 1, 2025
- Runs until 2030, with rebate values reducing over time
- Rebate expect to be around $350 per usable kWh or roughly 30% discount
- An average household might save around $2,300 p.a. on energy bills with a new solar + battery system
- Applies to existing and new rooftop solar systems
- Small businesses and community facilities eligible (batteries up to 50 kWh subsidised, total system size up to 100 kWh)
- Not means-tested—open to all eligible households and businesses
- Can be combined with state battery rebates for greater savings
Who Can Access The Rebate
The rebate is available for:
- Residential homes
- Small businesses
- Community facilities (e.g. sports clubs, libraries, community centres)
Eligibility Criteria
The eligibility criteria is yet to be officially confirmed and the rebate has not passed into legislation. The government have revealed a number of specifics of the rebate which we expect them to honour when full details are released.
Current eligibility criteria includes:
- Batteries must be approved by the Clean Energy Council
- Installed by a CEC-accredited installer
- Batteries between 5–100 kWh usable capacity (only the first 50kWh is subsidised)
- Can be installed alongside new or existing rooftop solar
- Must be Virtual Power Plant (VPP) capable battery
- No means-testing – available to all Australian households and businesses
- A maximum of one federal rebate per electricity meter
Note: The rebate applies to each property, so landlords or owners of multiple properties can apply for multiple installations. Systems must be new, and previously claimed battery rebates do not disqualify additional batteries at new sites.
Due to high demand and expected installer backlogs, it’s recommended to get quotes and book your system now—even if you’re planning installation closer to July. You can still claim the rebate if your battery is installed but not switched on until the program begins.
Compare solar and battery quotes from local installers now.
Battery Costs After Federal Rebate: Popular Brands Compared
The table below shows how the national battery incentive (starting 1 July 2025) could affect out-of-pocket costs for well–known models.
Under the program, accredited installers apply an up-front discount worth up to 30 % of the installed price or approximately $370 per usable kWh. Rebates are delivered as tradable certificates created through an expansion of the Small-scale Renewable Energy Scheme (SRES) based on the current price of $36 per STC, your rebate is expected to be as follows.
| Battery model | Estimated STCs ¹ | Average price ² | Federal rebate ³ | Net price |
| Tesla Powerwall 2 | 131 | $14,175 | $4,714 | $9,461 |
| Tesla Powerwall 3 | 131 | $14,175 | $4,714 | $9,461 |
| Sungrow SBR096 | 88 | $9,576 | $3,185 | $6,391 |
| Alpha ESS Smile 5 | 88 | $9,524 | $3,167 | $6,356 |
| BYD Battery-Box LVS 12 | 112 | $12,075 | $4,016 | $8,059 |
| LG Chem RESU 12 | 113 | $12,285 | $4,086 | $8,199 |
| Enphase IQ Battery 5P | 93 | $5,250 | $1,746 | $3,504 |
| Growatt ARK 10.2L-A1 | 89 | $9,671 | $3,216 | $6,454 |
| Goodwe Lynx Home F G2 S12.8 | 124 | $13,440 | $4,470 | $8,970 |
| SigenStor Single-Phase 13 | 105 | $13,650 | $4,540 | $9,110 |
¹ STCs (Small-scale Technology Certificates)
² Average price from the Solar Choice Battery Price Index (April 2025).
³ Estimated based on value of $36 per STC and the size of the battery
How Much Can You Save On Your Electricity Bill?
Depending on the system and usage profile, the program offers potential savings such as:
- Up to $1,000/year for homes with existing solar
- Up to $2,500/year for homes installing both solar and battery
- $3,336 off the upfront cost of a typical 10kWh battery
See our detailed breakdown of expected savings in 24 scenarios across each state of Australia.
Annual savings for a 13.5 kWh battery system will typically range between $700 – $1,500, with additional savings possible when part of a VPP.
If you want to see the best solar batteries see our comprehensive reviews.
How the incentive Works
The rebate will be delivered through the Small-scale Renewable Energy Scheme (SRES), via tradable certificates. Accredited installers will apply the discount upfront and handle the certification process with the Clean Energy Regulator.
The government will buy back these certificates, ensuring no upward pressure on certificate prices.
It is funded under the 2025–26 Federal Budget and will run until 2030, with annual adjustments.
Can the Rebate Be Combined with State Incentives?
Yes. The federal rebate can be stacked with existing state-based battery schemes, including:
- NSW Empowering Homes program
- WA Home Battery Scheme
- VIC Solar Battery Interest Free Loan
- NT Battery Scheme
Check with your installer or state energy authority for the latest details and eligibility criteria. Double-dipping on battery rebates can significantly reduce your out-of-pocket expenses.
Why It Matters: Addressing the Battery Gap
While over four million Australian homes have rooftop solar, only one in forty has a battery. This rebate seeks to close that gap and make home energy storage more accessible and affordable.
Homeowner Benefits of the Battery Rebate:
- Increase household energy independence
- Allow solar energy use after sunset
- Reduce household exposure to electricity price fluctuations
Broader Benefits to All Australians:
- Help flatten peak demand and support grid stability helping avoid grid infrastructure upgrades
- Lower wholesale electricity costs
- Allow greater utilisation of existing solar generation that is currently being wasted or curtailed
- Advance the shift to 82% renewables by 2030
Community and Small Business Support
The program also supports small businesses and community facilities, such as:
- Sporting clubs
- Libraries
- Community centres
- Retail and hospitality venues
These groups can access the rebate for battery systems up to 100 kWh in total, with subsidy support up to 50 kWh. Reducing energy bills frees up resources for other essential operations.
Final Thoughts – Will the Solar Battery Rebate be a gamechanger?
The Federal solar battery rebate takes 30% off the upfront cost and likely moves the financial case for installing a battery into an attractive range for many customers.
With electricity prices rising, solar feed in tariffs dropping and the overall cost of installing a battery trending downwards, the case for installing a battery has already improved in recent years prior to the announcement of this National battery rebate program.
Want help choosing the best solar battery for your needs? Visit our Home Battery Comparison Guide or get a free quote from vetted installers.
Compare solar and battery quotes from local installers now.
Frequently Asked Questions (FAQ)
What is the federal battery rebate and how does it work?
Is there a cap on how many households can apply?
Can I get the federal rebate if I already have solar?
What if I already have a battery?
Can landlords claim the federal rebates on multiple properties?
Is it a requirement that the battery be VPP capable and activated? I don’t want to charge my battery up during the day, go to use it in the evening, and find the Grid has significantly drained it “behind my back”, which would defeat my whole purpose in installing it? I’m not interested in earning any income from feeding battery power to the Grid!!
Hi Peter,
At present the eligibility requirement is that the battery is VPP-capable, but not necessarily connected to one. Usually in the scenario you mentioned where the grid draws down your battery, you would be paid a greater bonus feed in credit for the drawn energy than you could have earned by off-setting your evening energy use, although always important to read through the specific terms of each VPP.
Cheers
Jeff
Does the scheme apply if you want to add an additional battery to a home?
Hi Frank,
At this stage, yes it does appear that you can add a battery and receive the rebate (as long as you haven’t already received a battery rebate).
Cheers
SC
Is this availabke for offgrid people? I love offgrid and want to add rack mount lithium to my existing rack?
Hi Jocko,
Based on the information that the government has provided so far, it appears that Off-grid batteries will be eligible. We expect more granular details on eligibility to be released soon.
Keep an eye on this article as we will update as more information is released.
Thanks
SC
Can you buy a solar battery from a retailer, have it installed by an ACP and still claim the rebates? Also, could this course of action affect warranties?
Hi Lexie,
The main requirement is that the battery is installed by a Clean Energy Council accredited installer. The Authorised Certificate Provider (ACP) will be responsible for created the small-scale technology certificates (STCs) which facilitate the rebate and are usually not involved in the installation.
Hope that helps.
SC