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.
It offers an upfront discount of around 30%. We expect this to work out to be around $335 per usable kilowatt-hour based on a $36 Small-scale Technology Certificate (STC) value after accounting for transaction and administration costs of selling the certificates. The rebate will decline annually until the scheme ends in 2030. It will be 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
Some details are yet to be confirmed, but this guide is an up to date overview of what to expect.
Key Takeaways: Australia’s Solar Battery Rebate
- Start date: 1 July 2025
- Rebate value: Up to 9.3 STCs per usable kWh ($335 per kWh assuming a STC price of $36)
- Expected savings: Approximately $4,000 off a standard 11.5–13.5 kWh battery
- Eligibility: Homeowners, small businesses, and community facilities
- Stackable: Yes — can be combined with eligible state battery rebates
- Means-tested: No — open to all eligible property owners
- Timing: Installations must be certified (Certificate of Electrical Compliance) on or after 1 July 2025
- Battery size: 5–100 kWh nominal capacity (rebate applies to the first 50 kWh of usable capacity)
- Solar connection: Must be paired with existing or new rooftop solar
- Rebate limit: One per electricity meter (multiple properties may qualify separately)
⚠️ Important Note: The rebate officially starts July 1, but installer demand is already surging. Eligible batteries installed between now and the 1st of July will still be able to claim the rebate as long as the battery is not turned on until the 1st of July.
If you want to avoid installation delays and potential battery supply shortages, we advise you get quotes & an installation planned now.
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
Federal Battery Rebate Eligibility Criteria
To qualify for the Cheaper Home Batteries Program, battery systems must meet specific technical, installation, and property criteria. These rules have now been outlined by the Australian Government ahead of the program launch on 1 July 2025.
Who Is Eligible?
The federal battery rebate is available to:
- Homeowners (including landlords and owner-occupiers)
- Small businesses
- Community facilities (e.g. sports clubs, libraries, community centres)
There is no means test, and rebates are available per property. Owners of multiple eligible properties may apply for a separate rebate at each location, as long as each has its own electricity meter (NMI).
Battery System Requirements
To be eligible, your battery system must:
- Have a nominal capacity between 5–100 kWh
- Receive a rebate on up to 50 kWh of usable capacity
- Be new (not second-hand or refurbished)
- Be installed on-grid or off-grid
- Off-grid systems must be at least 1 km from a main grid line or possibly face a grid connection cost of $30,000+
- Be Virtual Power Plant (VPP) capable (on-grid systems only)
- Be connected to new or existing rooftop solar
- Include a battery and inverter listed on the Clean Energy Council (CEC) approved product list
Additional batteries added to existing systems may qualify if:
- The system has not previously claimed the federal rebate
- The added capacity is at least 5 kWh and the total does not exceed 100 kWh nominal
Notes:
- Electric vehicle batteries and EV charging systems are not eligible under this program.
- Nominal capacity refers to the battery’s total storage. Usable capacity is the amount that can actually be discharged. The rebate is calculated on usable capacity, but systems must meet the nominal size range to qualify.
Installer & Compliance Requirements
- Systems must be installed by an installer accredited by Solar Accreditation Australia (SAA)
- Installation must be supervised on-site by the accredited installer
- The install must comply with the Best Practice Guide: Battery Storage Equipment and all state/territory electrical safety regulations
- Internet connection confirmation for VPP-capable systems (does not need to be connected to VPP)
- The Certificate of Electrical Compliance (CoC) must be signed on or after 1 July 2025
Compare solar and battery quotes from local installers now.
How Much Is the Federal Battery Rebate Worth?
In 2025, eligible batteries will generate 9.3 STCs per usable kWh, with each certificate expected to be value at around $36 after factoring in transaction and administration costs. That puts the expected rebate at $335 per usable kWh, although the STC market price for batteries will be established after 1st of July.
For example, a 10 kWh battery (average price: ~$11,120) would attract a rebate of around $3,300, reducing the net cost to $7,400. The rebate will decrease each year from 2026 to 2030, as outlined in the official government cheaper home battery documentation.
It is funded under the 2025–26 Federal Budget and will run until 2030, with annual adjustments.
Government Battery Rebate Declines Each Year
| Year | STCs per kWh | Estimated Value per kWh (based on $36/STC) |
| 2025 | 9.3 | $335 |
| 2026 | 8.4 | $302 |
| 2027 | 7.4 | $266 |
| 2028 | 6.5 | $234 |
| 2029 | 5.6 | $202 |
| 2030 | 4.7 | $169 |
How Much Could A Battery Save You on Energy Bills?
Savings vary based on system size, usage, and location. A typical 10kWh battery can reduce electricity bills by $700–$1,500 per year, depending on your electricity usage and prices.
Work out the expecting savings in your scenario with our battery payback calculator.
Battery Costs After Federal Rebate: Popular Brands Compared
The table below shows how the government solar battery incentive (starting 1 July 2025) could affect out-of-pocket costs for well–known models.
| Battery model | Estimated STCs ¹ | Average price ² | Federal rebate ³ | Net price |
| Tesla Powerwall 2 | 126 | $14,175 | $4,520 | $9,655 |
| Tesla Powerwall 3 | 126 | $14,175 | $4,520 | $9,655 |
| Sungrow SBR096 | 85 | $9,576 | $3,185 | $6,523 |
| Alpha ESS Smile 5 | 84 | $9,524 | $3,037 | $6,487 |
| BYD Battery-Box LVS 12 | 107 | $12,075 | $4,016 | $8,225 |
| LG Chem RESU 12 | 109 | $12,285 | $3,917 | $8,368 |
| Enphase IQ Battery 5P | 47 | $5,250 | $1,674 | $3,576 |
| Growatt APX 10.0P | 84 | $9,450 | $3,013 | $6,437 |
| Goodwe Lynx Home F G2 S12.8 | 119 | $13,440 | $4,285 | $9,155 |
| SigenStor Single-Phase 13 | 121 | $13,650 | $4,352 | $9,298 |
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
Can the Rebate Be Combined with State Incentives?
Yes. The government’s announcement confirm their intent for the federal rebate to 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
However, it also requires the state rebates to permit their rebate to be stacked. As it currently stands in NSW, their rebate eligibility does not allow it to be claimed with other rebates, however they may change this prior to 1st of July.
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.
Based on the early evidence, we are expecting a large increase in the demand for battery storage in Australia. In the short run this may lead to supply shortages and installations delays as the market attempts to catch up with the step increase in demand.
It is permitted, to install a battery now to avoid the rush and still claim the rebate if the battery is not ‘turned on’ until the scheme begins on the 1st of July. Some batteries have capability to activate remotely.
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?
I’ve been reading that only ‘a single battery system installation’ is eligible under the program. Does this mean that if you install multiple batteries that only 1 will be eligible for the rebate?
Hi Tommy,
It is a single installation, not a single battery. That means you can install multiple batteries (if not stackable) as long as it meets the other requirements.
Once you make a claim under the rebate, you won’t be able to make another claim. Likely to be per electricity meter (NMI). So if your property has multiple NMIs then you might be able to claim the rebate on each meter.
Regards
SC
My installer is advising me the NSW legislation does not allow claiming both the State and Federal rebates, only the Federal or State rebate. Can you confirm is this correct, or who can be contacted within the State Goverment to confirm this is the case?
Hi Robert,
Yes that is the current state of play. The PDRS (NSW Gov Rebate) states it cannot be claimed in tandem with other rebates. The NSW government have not had time to respond to the federal government’s stated claim that their rebate could be ‘stackable’ with state schemes, so this ruling might change prior to the official commencement of the rebate on the 1st of July.
Keep an eye out for an announcement from the NSW Government soon, we will update our pages as soon as we hear anything.
Solar Choice Team
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