Your Guide to the Federal Government’s Home Battery Rebate

Thinking about adding a battery to your solar power system? The Australian Federal Government’s Cheaper Home Batteries Program could make it a much more affordable reality. This program, an extension of the successful Small-scale Renewable Energy Scheme (SRES), offers a significant upfront discount on the purchase and installation of a home battery. It’s an uncapped, non-means-tested initiative available to homeowners, small businesses, and community facilities.

How Much Can You Save?

As of 2025, the federal battery rebate offers a discount of up to $372 per kilowatt-hour (kWh) of usable battery capacity. After administrative fees, you can expect a price reduction of around $330 per usable kWh.

For a typical 10kWh home battery, that’s a saving of approximately $3,300 off the installation cost. The rebate can also be combined with other state-based incentives, like the one in Western Australia.

It’s important to note that the subsidy amount will decrease each year until the program ends in 2030. However, the reduction is gradual, starting with a 9.7% drop at the end of 2025.

Is Your Battery Eligible?

To qualify for the rebate, your battery system must meet the following criteria:

Approved Products: The battery and any new inverters must be on the Clean Energy Council’s approved product list.
Capacity: The system must have a nominal capacity between 5kWh and 100kWh. The discount is applied to the first 50kWh of usable capacity.
Existing Systems: You can expand an existing battery system, as long as it hasn’t already received the rebate, the new capacity is at least 5kWh, and the total capacity doesn’t exceed 100kWh.
One Per Property: The rebate can only be claimed once per property.
Grid Connection: Both off-grid and grid-connected batteries are eligible. Grid-connected systems must be Virtual Power Plant (VPP) capable, though you are not required to join a VPP.
Accredited Installer: The installation must be carried out by an installer accredited for battery installation by Solar Accreditation Australia.

How to Claim Your Rebate

Claiming the rebate is simple. Your installer will handle the application process and deduct the rebate amount directly from your invoice, so you don’t have to worry about any paperwork.

Is a Battery Right for You?

While the federal rebate makes batteries a more attractive financial proposition for many Australians, whether it’s the right choice for you depends on several factors, including your electricity consumption, your energy plan, and your location. The higher your electricity usage, the more likely a battery is to pay for itself.

To get a personalized assessment, it’s a good idea to use an online solar and battery calculator.

Do You Need to Upgrade Your Solar System?

Not all existing solar systems are “battery-ready.” You may need to upgrade your system to add a battery. A qualified installer can assess your current setup and advise you on the best course of action.

Your Next Steps

The federal battery rebate has generated a lot of interest, so good installers are in high demand. If you’re considering a battery, now is a great time to start your research and get quotes from reputable installers.

Even if you’re not ready to commit to a battery right away, you can get a quote for a “battery-ready” solar system. This will allow you to start saving with solar now and easily add a battery later.

To ensure you get a quality system and a professional installation at a fair price, we recommend getting multiple quotes from vetted installers.