Australia’s new solar battery rebate begins: What you need to know

Knocking around 30 per cent off the price of a home battery as of July 1, the Cheaper Home Batteries Program’s solar battery rebate helps Australian homes keep running on solar after the sun goes down.

Why is Australia offering a solar battery rebate?

When Australians first started putting solar panels on their roofs, generous feed-in tariffs paid them handsomely for pumping their excess solar power back into the grid. Thanks to large solar panel installation rebates, around a third of Australian homes now run on their own solar power during the day.

While the solar boom helped reduce the country’s reliance on fossil fuels, the downside is that – in the middle of the day – Australia now has much more electricity than it needs. So much so that some electricity retailers even offer plans which provide completely free power between 11am and 2pm – which is great for those who work from home.

As a result, feed-in tariffs for selling excess solar back to the grid continue to fall and drop even further on July 1.

These changes make it much more attractive for Australians to hang on to their excess solar power rather than sell it back to the grid. Along with further reducing household power bills and the country’s reliance on fossil fuels, the take-up of home batteries will also help stabilise the grid and reduce spikes in demand during peak evening times after the sun sets.

How much is Australia’s solar battery rebate?

Home solar batteries have been prohibitively expensive, but that is changing thanks to falling battery prices, rising electricity costs, plunging feed-in tariffs and increasing government rebates.

Starting July 1, 2025, the $2.3 billion Cheaper Home Batteries Program offers around a 30% rebate on the cost of installing a battery. The rebate is available to Australian homes and small businesses, along with community facilities such as sports centres and town halls.

For batteries installed from July 1, the rebate is automatically deducted from the installation price, rather requiring people to pay the full price up front and then wait to receive the rebate.

Australians installing batteries before July 1 can still take advantage of the scheme. The catch is that they must pay the full amount upfront, leave the battery switched off until July 1 and then claim the rebate.

Solar tariffs may be much lower than before, but storing electricity generated by solar power has its benefits. Image: Vivint Solar on Unsplash

As part of the Small-scale Renewable Energy Scheme (SRES), which also offers solar panel rebates, the Cheaper Home Batteries Program is expected to save households approximately $4,000 on a typical 11.5 to 13.5 kWh home solar battery.

With installation, this brings the cost of such a battery down to between $10,000 and $14,000 depending on the brand and capacity. The discount is caculated based on the battery’s capacity and will gradually decrease until 2030, encouraging Australians to make the move sooner rather than later.

According to government modelling, households with existing rooftop solar could save up to $1,100 on their electricity bill each year by installing a battery. Those installing both solar panels and a battery could save up to $2,300 a year.

Who is eligible for Australia’s solar battery rebate?

The solar battery rebate is not means tested, meaning it is available to all Australian homeowners regardless of their household income.

To be eligible, the battery needs to be installed with a new or existing solar panel system. The battery’s capacity must be between 5 kWh and 100 kWh, plus it must be capable of connecting with a Virtual Power Plant (VPP) (although connecting to a VPP is not mandatory).

The Sungrow SBH series is included among the eligible batteries. Image: Sungrow.

A VPP connects solar batteries in an energy sharing network, allowing operators to pull power from home batteries to help meet peak demand such as in the evenings. This differs from traditional feed-in tariffs, which only buy excess solar power from homes during the day, when there is already a surplus of electricity.

Australia’s VPP providers offer various incentives such as discounts on batteries, reduced energy bills or regular compensation for taking part. This can further improve the return on investment for a solar battery, although the trade-off is that it increases wear and tear on the battery.

Can the rebate be combined with other government offers?

Yes, the Cheaper Home Batteries Program’s solar battery rebate can be stacked with some other rebates. That said, many of the state-based schemes are ending now that the federal scheme is in place.

For example, Solar Victoria’s interest-free loans for installing home batteries ended in May. Some Victorians managed to take advantage of both this and the Cheaper Home Batteries Program. The Victorian Energy Upgrades (VEU) scheme still offers discounts when upgrading old appliances like hot water systems.

Meanwhile, the NSW’s Peak Demand Reduction Scheme (PDRS) battery discount ends on June 30 and can not be combined with the federal scheme. Queensland and South Australia’s rebate schemes have also ended.

Tasmanians can still access interest-free loans for installing home batteries, while Western Australia’s Residential Battery Scheme launches on 1 July 2025, offering rebates and no-interest loans which can be combined with the federal scheme.

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