The Australian Government’s national battery rebate is in the works. Following Federal Labor’s election win, the Cheaper Home Batteries Program is expected to launch on 1st July 2025, which would make battery storage more affordable than ever.

This would be great news for homeowners and small businesses looking to maximise their solar investment, with eligible households looking set to be able to access up to $372 per kilowatt-hour (kWh) of usable battery capacity (before administration fees and charges) – potentially saving thousands on upfront costs.

Labor has set aside $2.3 billion for the program, with the aim of supporting at least 6.2GWh of battery storage across Australian homes and small businesses. 

We’re keeping you in the loop on key government changes that could make battery storage more affordable than ever. Here's what it could mean for your home – and how Solahart can help you prepare.

How the Rebate Could Work*

Based on what has been flagged to date:

• Only batteries commissioned from 1st July 2025 onwards would be eligible for the Cheaper Home Batteries Program. That means if you install a battery earlier, the system must remain uncommissioned until 1 July 2025 to qualify.
• The program will offer a subsidy of up to $372 per kilowatt-hour (kWh) of usable battery capacity. After administrative fees and charges, the actual reduction is likely to be around $330 per usable kWh. On a 10kWh battery system that’s up to $3,720 and after fees and charges, could reduce the installation cost by around $3,300.
• The subsidy would not be means-tested.
• Owners of existing battery systems can install another battery and still be eligible.
• Batteries must be connected to a new or existing solar system.
• One federal government battery rebate per property.

The Rebate Would Apply to:

• Batteries between 5kWh and 50kWh (systems up to 100 kWh can be installed and still receive the rebate for a 50kWh system).
• Installed at homes, small businesses, or community buildings.
• Installations where solar is already present on the premises (new or existing solar).
• Off-grid installations can receive the rebate.

For a battery to be eligible, it must:

• Be approved by the Clean Energy Council and installers must have appropriate battery installation accreditation.
• Have a minimum of 5kWh of usable capacity under the rebate program and a maximum amount of usable capacity of 100kWh (however the rebate only applies to the first 50kWh of battery capacity).
• Solar batteries must be capable of connecting to a Virtual Power Plant (VPP), but there’s no requirement to join a VPP.

Disclaimer

* Federal Battery Incentives: The information set out above is indicative only and is based on the Australian Labor Party’s ‘Cheaper Home Batteries Program’ pre-election announcement on 6 April 2025 (see: https://alp.org.au/news/labor-to-deliver-one-million-energy-bill-busting-batteries). Eligible products, installations and incentive values are subject to the program being implemented by the Federal Government, which is expected to take place in time for the scheduled commencement date of 1 July 2025. These incentives, if implemented, will only be available for eligible battery systems commissioned from 1 July 2025, even if the installation date occurs on or after 6 April 2025. Federal incentives for home batteries will not be available until and unless the Federal Government enacts this program. NSW Battery Incentives: As at 18 May 2025, NSW Government incentives (under the Peak Demand Reduction Program) are not available if the battery also receives federal incentives from the Australian Government. We understand that this restriction is currently under review by the NSW Government and a decision is expected to be announced in due course. Until and unless the NSW Government removes this restriction, batteries will not be eligible to receive NSW Government incentives if they also receive Federal Government incentives. Other States: Please speak to your local Solahart dealer to find out whether any other incentives offered by State or Territory Governments can be stacked on top of the proposed Federal Battery Incentives. Solahart will endeavour to update the information on this page as soon as possible over the coming weeks as developments come to light.