The Federal Government Battery Rebate: What We Know (And What You Can Do Now)
Last Updated: 15th Apr 2025
In the lead-up to Australia’s 2025 federal election, Labor announced it would introduce a government rebate for home batteries. This would cover an up-front discount on the purchase and installation of home batteries – if Labor wins the election.
The Cheaper Home Batteries Program would exist as an expansion of the Small-scale Renewable Energy Scheme (SRES). This already provides the framework for the long-running and hugely popular national solar panel rebate. As well as households, small businesses and community facilities would also be able to take advantage of the subsidy.
The government battery rebate would be uncapped in terms of the number of subsidies available. The official start date is July 1, 2025, however solar batteries installed from now until then would also be eligible. However, they cannot be switched on until July 1 (although attached new solar systems can be).
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?
Initially, the subsidy will be around $372 per kilowatt-hour (kWh) useable capacity (theoretical maximum), before administrative fees and charges. As with the solar panel rebate, it will reduce each year until 2030; after which it will cease.
So, for a home battery with a 10 kWh usable capacity, the incentive will be approximately $3,720 minus admin fees for an installation in 2025. If you want to estimate how much you could save, try our Federal Government Solar Battery Rebate Calculator.
By the way, the discount should work alongside any existing state schemes. This means it allows “double-dipping”. However, there are some potential complications.
Which Batteries Will Be Eligible?
- The Clean Energy Council needs to approve systems and installers must have the appropriate accreditation.
- The minimum amount of useable capacity covered under the scheme is 5 kWh.
- The maximum amount of useable capacity is 50 kWh – but you can install systems up to 100 kWh.
- Solar batteries must be capable of connecting to a Virtual Power Plant (VPP), but there’s no requirement for VPP participation.
Other Important Points
- The subsidy is not means-tested.
- Owners of existing battery systems can install another and 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.
- Labor is aiming to have off-grid battery installations incorporated as well.
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 if Labor returns to power 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.
At the moment, it usually takes a few weeks between quoting to installation. We should know if Labor returns to office in early May – that’s not far off. Get started by learning everything you need to know about home batteries. You could also get ahead of the pack by either:
- Getting quotes for a solar and/or battery system now, installing as soon as possible, and crossing your fingers Labor wins the election (risky!).
- Getting quotes now, but make it clear acceptance hinges on the election outcome.
- Getting quotes, but stipulate proceeding will depend on any changes between now and July 1 to the nature of the scheme.
- If you don’t yet have panels, getting 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 who may install your home battery down the track. You’ll benefit from solar savings earlier than you otherwise would.
- Subscribing to the SolarQuotes weekly newsletter for updates.
If you want a good-quality home battery and professional installation at a reasonable price, we of course recommend getting quotes via SolarQuotes. We only allow verified installers into the SolarQuotes network who we would trust to install systems on our own homes, and that have your best interests at heart. Another benefit of arranging a solar/battery installation via SolarQuotes is the additional peace of mind our unique Good Installer Guarantee offers.