Federal Battery Rebate: Cheaper Home Batteries Program

From 1 July 2025, the Australian Government is rolling out its Cheaper Home Batteries Program, helping households slash energy costs by making solar battery storage more affordable than ever. With generous rebates available—and even backdated to early April—there’s never been a better time to invest in home energy storage.

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About the program

The Cheaper Home Batteries Program is a $2.3 billion initiative from the Albanese Labor Government. Its goal? To accelerate the uptake of home battery systems, helping Aussies store their solar energy, reduce power bills, and take pressure off the grid.

  • Objective: Support the installation of up to 1 million home batteries by 2030

  • Program launch: 1 July 2025

  • Rebate backdating: Eligible from 6 April 2025

  • End date: Until 2030, with rebates reducing over time as costs fall

  • Funding: Australian Federal Government

The program is part of Labor’s broader plan to reach 82% renewable energy by 2030 and make energy cheaper, cleaner and more reliable.

Eligibility criteria

To be eligible for a rebate under the program, you must:

  • Be an Australian homeowner or small business

  • Install a battery system that is Virtual Power Plant (VPP) capable

  • Use a Solar Accreditation Australia (SAA) approved installer and Clean Energy Council (CEC) approved battery

  • Install a battery between 6 April 2025 and 2030

  • Install a battery of 5kWh to 50kWh storage capacity

Rebate amount

Eligible households and small businesses can claim around $370 per kilowatt-hour (kWh) of battery capacity.

That means:

  • A 10kWh battery could receive up to $3,700 off

  • A 13.5kWh battery (e.g. Tesla Powerwall) could get around $5,000

  • The maximum rebate is capped at 50kWh (up to $18,500 in savings)

Rebate values may reduce over time, so early uptake will likely deliver the greatest savings.

Who it's for and how to apply

This rebate is ideal for:

  • Households with existing solar looking to add a battery

  • Homeowners installing both solar and battery systems

  • Small businesses aiming to cut energy bills and boost sustainability

  • Those upgrading or replacing an old battery system

How to apply

  1. Choose a Solar Accreditation Australia (SAA) approved installer

  2. Select an eligible, VPP-ready battery system

  3. Apply for the rebate via the official government portal (launching before July)

  4. Your installer may help manage the application on your behalf

  5. Receive your rebate as a discount off the upfront cost

If you’ve installed a battery since 6 April 2025, you may still be eligible—check with your installer.

Frequently asked questions

Can I stack this rebate with other state or territory battery incentives?

Yes. The federal rebate can be combined with other programs:

  • In NSW, stack with the Peak Demand Reduction Scheme and VPP bonuses

  • In Victoria, combine with interest-free loans from the Solar Homes Program

  • Other states may have schemes or feed-in tariff bonuses that also apply

Always check with your installer to maximise your combined savings.

What is a Virtual Power Plant (VPP) and why does my battery need to be compatible?

A VPP is a network of connected batteries that can feed energy back into the grid when needed. It helps balance supply and demand, and often earns you extra credits or income. VPP-ready batteries can “talk” to the grid, helping lower costs for everyone.

What if I already installed a battery this year?

If your battery was installed on or after 6 April 2025, you can still apply once the rebate portal opens. Hang onto your invoice and chat with your installer about claiming.

Are renters eligible?

Not yet. At this stage, the program is limited to homeowners and small businesses. However, broader access may be considered down the track.

How long will the program last?

The rebate is available until 2030, but funding and rebate values will decline as battery prices fall. Don’t wait too long if you’re keen to get the best deal.

How do I get started?

Energy Matters works with a nation-wide network of installers who can provide you with up to 3 FREE Quotes for batteries. If you don’t already have solar, they can provide you with a solar + battery quote. Click the button below to begin today.