Federal Labor has vowed to slash the cost of purchasing and installing a new home battery by 30%, under a $2.3 billion plan that forms a key part of its re-election pitch.
The Cheaper Home Batteries Program offers support for “Virtual Power Plant (VPP) ready battery systems” installed alongside new or existing solar panels, capped at one battery per household.
Labor intends for the subsidy scheme to begin from July this year should the party win the federal election, with batteries between 5-50kWh in capacity eligible for support.
How Will Labor’s Home Batteries Program Work?
The program would be delivered under the longstanding Small-scale Renewable Energy Scheme (SRES), which already offers subsidies for rooftop solar.
Depending on uptake, the rate of subsidy can be adjusted annually, with the discount to progressively decline until 2030.
In addition to residential households, small businesses and community facilities would also be able to access the subsidy.
Labor claims the discount will work alongside any state schemes, although how exactly the proposed program will interact with battery subsidies such as those offered by the NSW and WA governments is not yet clear.
Solar battery incentives exist in some states/territories, but the absence of federal support means home batteries have remained out of reach for many Australians due to their current cost.
Pitching the plan as offering cost-of-living relief, Prime Minister Anthony Albanese said:
“We want to make sure Australians have access to cheaper, cleaner energy. This is good for power bills and good for the environment.”
Minister for Climate Change and Energy Chris Bowen said:
“Households and businesses having batteries means we can keep solar energy on tap and keep energy bills down consistently.”
Update 9:45 AM: A special industry briefing was held by the Smart Energy Council with Minister for Climate Change and Energy Chris Bowen this morning. Here’s a very quick summary of what we learned.
- Batteries installed from now to July 1 will also be eligible (assuming Labor is returned to power), but cannot be switched on until July 1.
- While the subsidy will be available for eligible battery systems 5kWh – 50kWh capacity (useable), a system up to 100kWh can be installed.
- Batteries will need to be VPP-capable, but there’s no requirement for VPP participation.
- The subsidy will be *approximately* $370 per kilowatt-hour useable capacity, *minus* any admin fees and charges. And as with the SRES (national solar rebate), the subsidy will decrease over time.
- You can “double-dip” – meaning this will be in addition to battery incentives in other states.
- Owners of existing battery systems can install another/additional system and be eligible.
- The battery must be attached to a new/existing solar system. To extend it to those without solar systems would have required a change in legislation rather than just regulations.
- For owners of multiple properties, a system can be installed at each.
- The scheme will be uncapped in terms of the number of subsidies.
- The Government will buy the certificates created under the SRES. It says this means no upward pressure on power prices.
Again, bear in mind this scheme hinges on Labor being returned to power. And at the time of updating this article, the Coalition hadn’t really commented one way or another on the initiative; nor its own plans.
We’ll have more details, clarification and commentary on this subsidy as further information becomes available, so stay tuned.
What Savings Could The Program Deliver?
Labor claims the scheme could net savings of roughly $4,000 for a “typical” 11.5 kWh battery.
More than 4 million rooftop solar power systems have been installed in Australia to date and many owners are eager to add a home battery, particularly given feed-in tariffs aren’t as generous as they once were.
The Cheaper Home Batteries Program looks like it would make residential energy storage an achievable reality for many more Australian households. But just because you can do something, it doesn’t always mean you should.
To get an idea of how much solar panels and a battery storage system could save your household and estimated simple payback time, try SolarQuotes’ solar and battery calculator.
For owners of existing solar systems, our add battery calculator is the tool for you – it will provide a more accurate estimate of savings based on your previous 12 months’ electricity usage.
If you want to include Labor’s promised 30% discount, factor that into your preferred system’s cost as you make your calculations.
Getting a home battery can, very generally speaking, deliver realistic annual electricity bill savings of $730 – $1,680 with a battery offering 13.5 kWh capacity. The upper end of that estimate applies when the battery is part of a Virtual Power Plant program. Added to those savings are the benefits of greater energy security and less dependence on the grid – while still having it there if/when needed.
The Broader Benefits Of Home Batteries
Those still unable to install a battery for whatever reason, or not interested in doing so should still benefit from schemes incentivising their rollout.
Among the broader community benefits of home batteries:
- Enhancing grid stability.
- Decreasing grid demand during peak, helping to avoid or defer infrastructure upgrades.
- Putting downward pressure on wholesale electricity prices – particularly during peak when prices are at their highest.
- The ability to orchestrate home batteries participating in Virtual Power Plants to better support the grid and soak up excess solar energy in the middle of the day.
- Helping build Australia’s renewable storage capacity as coal power plants cough their last.
The results of SolarQuotes’ 2025 Installers Choice Awards for Best Home Batteries.
Choosing The Right Solar Battery
As with solar systems, we’re now spoiled for choice in Australia with residential energy storage options. But as with other components such as solar panels and inverters, some home batteries are better than others. Besides brand general quality and support issues, the right solution for one household may not be the best solution for another. And there’s always the challenge of cutting through vendor spin and avoiding aggressive sales tactics.
To learn everything you need to know to make an informed decision, see our up-to-date home battery guide. It includes a comparison table where you can view estimated pricing (before incentives) and specifications of residential energy storage solutions side-by-side.
Additional reporting by SolarQuotes Editor Max Opray.
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I know details are probably still sketchy, but I wonder if the one battery per household limit includes those who already have a battery, and wanted a second under the program?
Hi Nick,
I sat thru a webinar with the minister at 9am Sunday… word is that any legacy battery will be ignored.
You can get incentives for up to 50kWh of new storage (and a total cap of 100kWh installed)
Right! Thanks. Be interested to see the VPP requirements…
If this scheme goes ahead.. When you say you can double dip, does this mean in Victoria that someone can apply for the interest free loan for a battery on top of this new battery scheme?
Hi Tash,
The new scheme is part of the existing SYC incentive on solar, so yes it will run in parallel with any other state incentive like the PDRS in NSW, battery subsidy in WA & NT or other loan schemes.
Could might are always the words they use, I have never meet anyone that has ever found those savings
Hi John,
Plug some details in here and you’ll find the savings are tailored to your own bill with your own data.
https://www.solarquotes.com.au/battery-storage/calculator/
“capped at one battery per household”
I wonder what this could mean.
1 battery “system”, 1 battery module [>5kwhs]?
By the way congratulations to SQ for revising the details of Sungrow battery in the table, to note the ACTUAL “usable storage capacity” despite Sungrow’s fraudulent data sheet and marketing, though the figure quoted is what can be used from the energy stored. The latter might well be what’s nominated. It’s just that it ALL can’t be used.
I wonder how other manufacturers attain 100% usable storage capacity or usable energy. I wouldn’t be surprised if these are overstated too.
I suppose the only other question is, how many people will likely need new inverters, and what will that cost?
Only those who want a DC coupled battery and don’t have a compatible hybrid inverter. I believe SolarEdge has an upgrade path for their older inverters when you buy a SolarEdge Home Battery and Backup Interface. Which begs the question, would the cost of the Backup Interface be included in the rebate calculation?
https://www.solaredge.com/aus/trade-up
Could yoy get a battery like a SigenStor from Sigenergy that also includes an Inverter and a DC Charger. You still get the approx $370 per KWH for the battery component.
Not sure if they are on the vic solar VPP capable list
Hi Stephen,
Most likely yes. All batteries have to have some sort of inverter attached.
I keep hearing the Govt rhetoric that batteries are coming down – they’re not. And now how many retailers and installers are going to jack their prices up in anticipation of the Gove being re-elected and this rebate being effective from July 2025.
3 years ago the 10kw battery installed was $16000.
My last quote 14 days ago was $16000.
Hi John,
Those numbers are a bit meaningless without the context as to why you’re over the $1000/kWh installed price benchmark.
Is yours a difficult installation?
What models are you using?
Well, they need something attractive to wriggle back in power.
Exactly what I’ve been thinking any sort of Govco battery rebate offer should look like.
Tied to a VPP, so there is some return on the rebate offered.
The devil will be in the detail . . .
How long tied to a VPP offer ?
Will an Amber type supplier be acceptable, or does it have to be a retailer ?
Will the offer be stable, or subject to diminishing benefits, like solar with ever lowering FITs and penalties for productive hours (Sun tax) ?
How much of your battery will Govco want to take in part of a VPP ?
If it allows at least full coverage of the home it’s fitted to, and they leave say 20% minimum to create the best longevity of the battery, all ok.
Will those details remain the same, or be subject to mandatory changes / emergency use by Govco or power authorities at their whim ?
Time will tell, we probably won’t get details until after an election.
Many thanks for this prompt update. I am almost in the market for a battery.
However, a bit confused by the details for input.
I am with PowerShop, all day usage.
Block period is monthly (ie: bill period)
My last bill shows 179kWh for $0.2893/kWh
( c/kWh for remaining, I think I do not have this)
Supply charge: is the for the service to my property?
My feed in tariff : $0.052/kWh
And, do not have any discount ( this maybe concession)?
If I amhaving difficulty with this input, maybe others, have also.
You may refresh the input with definitions, that could be helpful.
You service is timely and am interested to know my cost.
Regards, David
I’ve got a BYD/ Fronius setup for about 6 months and haven’t paid a cent since installing it. 10kw battery, @15k solar panels in southern Vic. Very happy, might add another module to the battery (2kw) just in case for winter
The normal houses uses 22kw a day.
I wonder how you gt so much sun in Victoria currently
We cannot get solar panels (we planted too many trees 30 years ago). Does the battery subsidy apply to batteries that draw from the grid during the day and then power the house in the evening?
Hi David,
As I understand it, this subsidy is brought about by adjusting the existing STC solar incentive scheme using a change in regulation, so there must be solar installed.
Batteries for those without a roof is a massive missed opportunity here, but without new legislation there’s no option available to do that.
Is there information on whether this will be means tested like a lot of other subsidies?
The best way to entice battery take up and help solve the duck curve would’ve been to up the fit say in-between 4 and 7 and no export limit in those hours a lot of us have power were not allowed to send !!
I’ve got a 10kw system but export limited to 5 so heaps of power to put in a battery if I was gunna send it back for a profit in-between 4 and 7 !!
Thus is applicable to Hybrid Inverter / Battery Combinations yes such as BYD’s new upcoming Battery Box TH?
I assume this will make all in one battery solutions much more appealing as essentially you are getting w massive discount on the inverter part you otherwise wouldn’t get it buying a system with separate components right?
Apert from the obvious, what are advantages with a disconnected hybrid inverter and battery setup as opposed to an all in one for a new system?
With the Govt. paying and no doubt choosing the cheapest offer how do I know I won’t end up with a LG type battery that might catch fire as shonky solar panel dealers sprung up soon after that scheme started.
While the bribe from Labor seems tempting, will Bowen and Co. dictate the cheapest nasty battery be installed? Or is the customer free to choose what they can afford? I am still concerned about have a battery time bomb installed under my house roof. Also to give licence to the power companies to manipulate through software/hardware the, ability to drain my battery because it’s cheaper to do so rather than buy expensive megawatts on the open market. becausae the grid is unstable due to no sun or no wind.
My battery install is due later this month. How would this work? How do I make sure that I don’t turn the system ON until 1st July (or until after the election results) so I get this subsidy?
Hi RJ,
That’s likely at the moment, you’ll qualify but details are still being finalised.
If the FIT was $.05c during the day and ramped to $0.20 in the evening the battery uptake would be greater
Hi Anthony,
Quick couple of points, can I choose a quality battery not from a “retailer”? Or simply I build my own and have that subsidised?
I worry through, that with increased demand, retailers will simply jack up battery prices – so the real benefit to us is still pretty low.
Any thoughts on both items would be helpful.
Hi Neil,
Batteries in Australia are pretty heavily regulated so you will need to buy something that’s approved.
I fear the CEC will be involved in the process so that will make it slow and expansive to introduce more models, but there’s already something like 37 different batteries available so competition will be good I suspect.
Labor claims the scheme could net savings of roughly $4,000 for a “typical” 11.5 kWh battery.
30% discount should give $4,000 savings for a “typical” 11.5 kWh battery. That means the total price of the battery is assumed to be $13,000. Hence, the customer should pay $9,000 for a “typical” 11.5 kWh battery.
Two yeas ago I got 30 kWh of noname Chinese batteries for $9,000 (to add to my 20 kWh of Chinese batteries that I bought 9 years ago for $11,000). All batteries work fine. Today that would be even cheaper. Three times more energy for the same money, and without voting for Labor.
Hi Tim,
Is voting for Labor a bad thing?
They’re the ones who brought us a useful renewable energy target; which made the SRES and the associated STC incentives such a roaring success that even the troglodytes and reactionaries couldn’t bring themselves to curb rooftop solar.
Abbott managed some significant vandalism with his attacks on the RET, carbon tax hysteria, (anti) wind commissioner and general climate war stance that washed through for years afterwards.
Secondly, I’m all for a bit of innovation by those who know what they’re doing, but home made batteries aren’t something you’ll likely get home insurance to agree with.
How is yours set up? Best approach I’ve seen is a separate kiosk to the house… the proverbial brick sh!thouse is a great option.
I’m probably going to wait until non-flammable and cheaper sodium batteries are available. Any idea when that will be?
Hi Nicholas,
You could get some Zenarji lithium titanate batteries right now. They’re basically impossible to set on fire.
Might need a Deye inverter though?
Hi, I just signed a contract to get 10kw worth of panels and the powerwall 3 two weeks ago. After reading this article I am correct in thinking that we will still receive the rebate as long as we don’t turn it on till July?
Maybe a daft question, as the inventor is integrated does that mean I can’t use solar?
Hi Grant,
Not a dumb question but one I’ll have to guess at until clarified.
Firstly, yes, the battery needs to remain off until 1st July.
Second, probably… Powerwall wouldn’t function without the battery being activated. They may have a secret squirrel setting to isolate them but I wouldn’t hold my breath.
While I think the incentive is amazing, my own recent experience of trying to find an upgrade for my existing 10kwh Sungrow battery tells me the money will be wasted unless the ripoff prices we’re paying for batteries here in Australia right now are addressed.
In the last 2-3 years, the prices of the raw prismatic lithium cells that make up the batteries we buy have dropped by 80-90%. All the battery systems we buy contain cells make by only 3-4 Chinese manufacturers. And yet none of the existing batteries on the market here have dropped their prices by more than 5-10% over that period.
Yet if you look to China, you can find battery systems from major battery manufacturers for 50-75% less than we pay here. These are approved for sale and use in the US and Europe, but not here in Australia. The CEC makes it so difficult to get batteries approved here, and we’re such a small market that it’s just not worth the time for these major companies to bother.
That’s what needs fixing.
Just more of Labours alse promises like saving money on people’s power bills.
Every election labour plans on bribing us with delusional spending sprees on health, business and never delivering.
You don’t encourage business to this country
Your part lacks substance and integrity.
Labour has the spine of a jellyfish and a laughing stock to the world.
Hi Derek,
We like to keep the comments constructive and helpful, so I’ll offer some handy links for you.
https://www.mdavis.xyz/govlist/
https://www.thesaturdaypaper.com.au/post/max-opray/2023/02/10/taylor-hid-energy-hikes
https://www.solarquotes.com.au/battery-storage/calculator/
The maximum number of batteries that can be installed per household is “one”, does this mean that only one battery can be installed or is it a battery system, as a single battery will not be as large as 50kWh…
Hi Lui,
A battery system is made up of components, they’re not breaking it down to individual cells.
Most popular modular batteries are under 5kWh each and they’re not about to exclude them… you just stack them up.