Labor’s Cheaper Home Batteries Program to Transform Australia’s Energy Landscape from July 1

Labor’s new Cheaper Home Batteries Program will slash upfront costs and power bills, making solar battery storage more affordable for Aussie households from July 1, with rebates backdated to April 6.
Cheaper Home Batteries program battery rebate

The Cheaper Home Batteries Program is a $2.3 billion initiative by the re-elected Albanese Labor Government, set to commence on July 1, 2025. It aims to reduce the upfront cost of home battery systems by approximately 30%, making solar battery storage more accessible to households and businesses across Australia.

The program offers rebates of around $370 per kilowatt-hour (kWh) for eligible battery installations, with systems ranging from 5kWh to 50kWh qualifying. This translates to potential savings of up to $18,500 on a 50kWh battery system.

Importantly, the rebates are backdated to April 6, 2025, meaning installations from that date onward may be eligible.

How much can Australians save?

Households with existing solar systems can expect to save up to $1,100 annually on their electricity bills by adding a battery. For those installing both solar panels and a battery, the savings could reach up to $2,300 per year, potentially reducing energy bills by up to 90%.

Beyond individual savings, the program is projected to benefit all Australians by reducing wholesale electricity costs, leading to an estimated $1.3 billion in national savings by 2030.

What does this mean for Australia’s energy future?

The Cheaper Home Batteries Program is a significant step towards Australia’s renewable energy goals. By facilitating the installation of over one million new batteries by 2030, the initiative supports the government’s target of achieving 82% renewable energy by the same year.

John Grimes, CEO of the Smart Energy Council, hailed the program as “the most important development in consumer energy since Australians first gained access to subsidised solar panels.”

By enabling households to store solar energy for use during peak times, the program not only reduces individual energy costs but also enhances grid stability and resilience.

Who is eligible and how long will the program run?

The program is open to a broad range of participants:

  • Homeowners with existing solar systems.
  • Individuals installing new solar panels and batteries concurrently.
  • Existing solar and battery owners looking to expand their storage capacity.
  • Small businesses and community facilities (specific details forthcoming).

To qualify, the battery systems must be Virtual Power Plant (VPP) ready, ensuring they can integrate seamlessly with the broader energy grid.

The program is designed to be gradually phased out by 2030, with the rebate value reviewed annually and expected to decrease as battery costs decline.

Can I receive other rebates and incentives?

Yes, you can stack the new federal battery rebate with existing state-level incentives in both New South Wales (NSW) and Victoria. This means eligible households can significantly reduce the upfront cost of installing a home battery system by combining multiple rebates*.

NSW: Combine federal and state rebates

In NSW, the Peak Demand Reduction Scheme offers a NSW battery rebate ranging from $1,600 to $2,400 off the upfront cost of a new battery installation. Additionally, there’s a Virtual Power Plant (VPP) incentive of $250 to $400, which can be claimed twice over a six-year period. These state incentives can be combined with the federal rebate, which provides approximately $370 per kilowatt-hour (kWh) of usable battery capacity, up to a maximum of 50kWh.

Victoria: Combine federal rebate with interest-free loan

In Victoria, the Solar Homes Program offers an interest-free loan of up to $8,800 for eligible households installing a solar battery system. This loan can be used in conjunction with the federal rebate, allowing homeowners to further reduce the financial burden of battery installation.

Eligibility and application

To take advantage of both federal and state incentives, ensure that:

  • Your battery system meets the eligibility criteria for each program.
  • You apply through accredited installers or providers participating in the respective schemes.

By combining these rebates, Australian households can make significant strides toward energy independence and cost savings.

With the Cheaper Home Batteries Program, Australians have a timely opportunity to invest in renewable energy solutions that offer both economic and environmental benefits. By acting now, households can take advantage of substantial rebates and contribute to a more sustainable energy future. Get FREE Quotes for solar + battery or for a battery only.

*Rebates and incentives, including eligibility and stacking of federal and state incentives, are subject to change. Refer to the NSW and VIC state program websites for further information.