Battery Rebate News - Cheaper Home Battery Program

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9 May, 2025

Correct as of 21st Nov 2025

The Federal Labor Government’s $2.3 billion Cheaper Home Batteries Program, started on 1st July 2025 – allowing households to purchase a home battery with an estimated 30% discount on typical installed costs. This will help households reduce reliance on fossil fuels – and take back control of their power costs!

Here’s what we know:

The battery must be commissioned after 1st July 2025
Minimum 5kWh, max 100kWh (but only claimable up to 50kWh) of ‘useable’ storage capacity
The battery needs to be connected to a new or existing solar system
Can be a battery expansion, provided all existing equipment is CEC-listed, or has not been removed for safety concerns
If adding to an off-grid system that is not VPP-capable, written evidence from DNSP must be provided showing cost of connection over $30,000
Installation completed by an appropriately accredited installer
Components must be on the Clean Energy Council approved list
If grid-connected, or off-grid within 1km of the grid, the system must be VPP-capable
One rebate per property for grid-connected properties
One rebate per dwelling for off-grid properties (conditions and additional evidence apply for claims on additional dwellings)
Can receive this rebate together with other rebates (depending on the conditions of the other rebate – this is a quickly-moving area so best to double-check this at the time of purchase)

The subsidy is an extension of the Small-scale Renewable Energy Scheme, and the Government announced the rebate value at a maximum of $372.00 per kWh of usable battery capacity. However, the end value for homeowners will be less than this, for several reasons (lower certificate trading price, and trader fees/charges being the main two), and we estimate the value to be closer to $320-340 per kWh.

Recent changes will see the rebate value decline every 6 months, instead of the original 12 months. The first significant drop will happen for systems installed after 30th April 2026.

As well as more regular value deductions, from 1st May 2026, the rebate will also be tiered to reduce the amount of rebate received for larger battery sizes.

From 0 kWh up to 14 kWh (inclusive): 100% STC value
Every kWh greater than 14 and up to 28 kWh (inclusive): 60% STC value
Every kWh greater than 28 and up to 50 kWh (inclusive): 15% STC value

Given the expected popularity of this program and the price drop deadlines (especially for battery sizes over 28kWh), we would recommend getting in touch with one of our consultants ASAP to get your system design and quote.

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More details on the Cheaper Home Batteries Program can be found here;

https://cer.gov.au/schemes/renewable-energy-target/small-scale-renewable-energy-scheme/small-scale-renewable-energy-systems/solar-batteries

https://www.dcceew.gov.au/energy/programs/cheaper-home-batteries

Tags: economics, News, Battery rebates, Home Battery, cost of off-grid, battery storage, battery prices, lithium batteries, Rebates

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