The Australian Government’s national battery rebate is officially happening. Following Labor’s election win, the Cheaper Home Batteries Program will launch on 1st July 2025, making battery storage more affordable than ever.

This is great news for homeowners and small businesses looking to maximise their solar investment, with eligible households 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. 

How the Rebate Works

• Only batteries commissioned from 1st July onwards will be eligible for the Cheaper Home Batteries Program. That means if you install a battery earlier, the system must remain uncommissioned until that date 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 program can also be combined with existing state-based schemes. If you're in NSW, you may be eligible for an extra rebate of up to $1,600 through the state's Peak Demand Reduction Scheme (PDRS). The Western Australian Residential Battery Scheme will also run concurrently with the Cheaper Home Batteries Program, saving you even more.
• The subsidy is not 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 Will Apply to:

• Batteries between 5kWh and 50kWh (You can install systems up to 100 kWh 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. Solahart has this accreditation.
• Have a minimum of 5kWh of usable capacity under the rebate program and a maximum amount of usable capacity of 100kWh (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.

What Can You Do Now? 

Here’s how to get prepared:

1. Book a Free Solar Assessment
   If you don’t have solar yet, now’s the time to get started. The rebate only applies to properties with existing solar.

2. Explore Battery Options
   Solahart offers a range of advanced battery systems, including options that are fully VPP-ready, helping you unlock even greater savings and energy independence.

3. Check State Rebates
   Depending on where you live, state-based rebates (like NSW’s Peak Demand Reduction Scheme or the WA Residential Battery Scheme) may stack with the federal rebate – increasing your savings.

4. Get in Early
   Installations between 6th April and 1st July 2025 may still be eligible if they remain uncommissioned until the rebate officially begins. Our local Solahart Experts can guide you through the best options to maximise your benefit.

Disclaimer

Information is based on Labor party’s Cheaper Home Batteries Program, announced on April 6, 2025 (https://alp.org.au/news/labor-to-deliver-one-million-energy-bill-busting-batteries/). Final terms, conditions, program eligibility criteria are subject to change, dependent on the government's implementation of the program.