2025 Battery Rebate: What Homeowners Should Know

May 14, 2025

From July 1st 2025, the Australian Government is launching a game-changing battery rebate designed to make energy storage more accessible and affordable for households and small businesses. Known as the Cheaper Home Batteries Program, this new initiative offers significant upfront discounts on approved battery systems—helping Australians reduce energy bills, increase their energy independence, and get more value from their solar investment.

With battery costs expected to drop by up to 30% under the scheme, now is the time to start planning if you're considering solar storage. At Platinum Solar Group, we're here to guide you through the rebate process, explain the eligibility criteria, and ensure you’re ready to take advantage of the savings from day one.

How the Rebate Works

The Cheaper Home Batteries Program offers a federal rebate of up to $372 per usable kilowatt-hour (kWh) of battery storage capacity, available from July 1st 2025. After factoring in administrative costs, most households and small businesses can expect to see an effective discount of approximately $330 per usable kWh off the total installed price.

To put that into perspective:

  • A 10 kWh battery system could attract a rebate of up to $3,720, likely reducing your out-of-pocket cost by around $3,300.
  • A 15 kWh system could see a rebate of up to $5,580, offering even greater savings for households with higher energy needs.

The rebate will follow a similar structure to the existing federal solar rebate (SRES), gradually reducing each year until it phases out completely at the end of 2030. That means the earlier you install, the more you save.

What sets this rebate apart is that it is uncapped—there is no set limit on how many people can access it. Unlike many state-level schemes that operate on a first-come, first-served basis with limited funding rounds, the federal battery rebate will remain available to all eligible participants while the scheme is active.

Another key point is that the rebate can be combined with existing state-based battery incentives, such as those offered in New South Wales, Victoria, or South Australia. This stacking of incentives could significantly reduce your upfront costs and improve your return on investment.

Whether you're upgrading an existing solar setup or installing a battery system for the first time, this rebate opens the door to affordable energy storage for thousands of Australians.

Who Is Eligible?

The Cheaper Home Batteries Program is set to open on 1 July 2025, offering generous federal government battery rebates on eligible home battery installations. The goal is to make energy storage more accessible to everyday Australians—whether you're a homeowner, business operator, or running a community facility. Below is a detailed breakdown of who qualifies and what systems are eligible.

Residential and Commercial Eligibility

Both residential and small commercial properties are eligible for the rebate under this program. If you’re a homeowner looking to enhance your solar setup with a solar battery installation or a small business owner aiming to reduce your power bills and protect against peak electricity rates, you can apply.

In addition to households and small businesses, community organisations—such as local clubs, neighbourhood centres, and not-for-profits—can also participate, provided they meet the technical requirements of the scheme.

Battery System Requirements

To qualify for the rebate, your battery must meet all of the following conditions:

  • Usable Capacity: The system must have between 5 kWh and 50 kWh of usable storage capacity. While larger systems can be installed (up to 100 kWh), the rebate will only apply to the first 50 kWh.
  • CEC Approval: The battery must be on the list of Clean Energy Council (CEC)-approved products, which ensures safety, performance, and regulatory compliance.
  • Installed by an Accredited Professional: Installation must be carried out by a CEC-accredited battery installer who is licensed to handle high-voltage systems.
  • VPP Capability: The system must be capable of connecting to a Virtual Power Plant (VPP). However, there is no requirement to actively participate in a VPP at this stage.

Solar System Integration

The rebate only applies to batteries that are connected to a new or existing rooftop solar PV system. If you do not currently have solar panels installed, you can still qualify—provided the battery is installed alongside a new solar system. Standalone battery-only systems are not eligible.

One Rebate Per Property

Each individual property is eligible for one battery rebate. However, if you own multiple homes or business premises with solar systems installed, you may claim the rebate for each property separately. This allows property investors and business owners with multiple locations to benefit across their portfolio.

No Income Restrictions

The program is not means-tested, meaning your income level or household earnings will not affect your eligibility. Whether you're a high-income earner or a retiree looking to improve your energy independence, you're entitled to apply.

Can the Federal Rebate Be Combined with State Rebates?

Yes—one of the most beneficial features of the Cheaper Home Batteries Program is that it can be used in conjunction with many existing state-based rebate schemes, allowing you to maximise your total savings. This means homeowners and small business owners in eligible regions can significantly reduce their upfront investment in battery storage by “stacking” federal and state incentives.

How Stacking Rebates Works

Combining the federal and state rebates typically involves claiming the federal rebate at the point of installation—your installer applies this discount upfront—while separately applying for any state-based support, which may come as a direct rebate, interest-free loan, or credit.

For example:

  • In Victoria, the Solar Homes program may offer a separate battery rebate of up to $2,950.
  • In New South Wales, the Peak Demand Reduction Scheme allows certain households and businesses to access battery subsidies through participating providers.
  • South Australia previously offered battery incentives and may allow federal stacking where programs overlap.

Your total savings will depend on the capacity of your battery, your location, and the specific terms of your state’s program. In many cases, a combined rebate could reduce the cost of a high-quality battery system by several thousand dollars.

What to Be Aware Of

While stacking rebates is permitted, it’s important to:

  • Check the fine print of your state program to ensure there are no conflicting conditions
  • Apply in the correct order if required (some state schemes need you to apply before installation)
  • Use an installer familiar with both schemes, as they’ll be able to handle the paperwork and ensure compliance

If you're unsure, the safest option is to speak with a qualified, CEC-accredited battery installer—like Platinum Solar Group—who can guide you through both applications and help you access the maximum eligible rebate.

Installing Before July 1st? Here's What You Need to Know

Although the Cheaper Home Batteries Program officially begins on 1 July 2025, you don't have to wait until then to begin preparing. In fact, installing a battery ahead of the start date may still make you eligible—provided the system is not commissioned before the rebate begins.

Installations Between 6 April and 30 June

Battery systems installed between 6 April and 30 June 2025 can qualify for the rebate as long as they remain inactive until 1 July or later. This means the battery can be physically installed, but not switched on, connected to the solar system, or configured for use until after the program starts.

Commissioning generally refers to:

  • Finalising electrical connections
  • Integrating the battery with the inverter and solar setup
  • Turning the system on for regular operation

Activating the system before 1 July is likely to make it ineligible for the rebate, so timing is important.

Why It’s Worth Planning Ahead

Demand for battery installations is expected to increase significantly once the rebate becomes available. Early planning can help you:

  • Avoid long wait times for quotes and installations
  • Secure your preferred equipment and installation timeline
  • Ensure your system is ready for activation on or after 1 July
  • Make informed decisions without time pressure

If you don't already have solar panels, now may also be a practical time to consider installing a solar PV system alongside your battery. Batteries must be connected to solar to qualify for the rebate.

What to Confirm with Your Installer

If you're planning to install a battery before 1 July, it’s important to confirm a few key details to protect your eligibility for the rebate:

  • Choose a battery that is listed as approved under the rebate scheme
  • Get written confirmation that the system will not be commissioned before 1 July 2025

Clear communication and proper documentation help ensure your installation complies with the program requirements and avoids missing out on the rebate due to technicalities.

Your Next Steps

With the Cheaper Home Batteries Program set to begin on 1 July 2025, now is a good time to start preparing—particularly if you’re considering upgrading your solar system or adding battery storage for the first time.

1. Review Your Current Solar Setup

Check whether your property already has a functioning rooftop solar system. If not, you’ll need to install one alongside your battery to qualify for the rebate. If you already have solar panels installed, confirm that your inverter and overall system design support battery integration, as not all setups are battery-ready.

2. Understand the Battery Requirements

Only certain systems are eligible under the rebate. Batteries must:

  • Have a usable capacity between 5 kWh and 50 kWh
  • Be approved by the Clean Energy Council (CEC)
  • Be capable of VPP integration

These technical criteria should guide your selection when comparing battery options.

3. Plan Installation Timing Carefully

If you're considering installing before 1 July, refer to the section above about timing to make sure your system isn’t commissioned too early. Early planning helps avoid installer bottlenecks and ensures you stay compliant with the program’s start date.

4. Stay Informed

The government may release additional updates or clarifications before the program begins. Staying in touch with a qualified installer or checking government sources will help you stay on track.

Battery storage is becoming a more practical option for a wider range of Australians, and the upcoming federal rebate provides a timely financial boost. Whether you're upgrading an existing system or planning your first installation, understanding the program's eligibility criteria, timing rules, and stacking opportunities with state rebates will help you make informed decisions. With clear guidelines in place and demand expected to rise, early preparation will ensure you’re ready to access the rebate when it becomes available.

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