Labor has announced a new $2.3bn national battery rebate program that will take effect if they are re-elected on 3rd May 2025.
From our analysis the battery rebate will likely move Battery Storage into the ‘financially viable’ status for a large number of Australians. We have tracked the financial viability of batteries for the last 10 years in our Are batteries worth it? article.
“The most important development in consumer energy since Australians first gained access to subsidised solar panels.”– Smart Energy Council CEO, John Grimes
This independent guide explains everything Australians need to know about the new federal incentive on offer.
What Is Labor’s Home Batteries Rebate Program?
Labor’s Cheaper Home Batteries Program is a federally funded rebate aimed at accelerating home battery adoption. It reduces the upfront cost of battery installation by up to 30%.
That equates to an average $4,000 saving on a standard 11.5 kWh battery system. The program is projected to support over one million new batteries by 2030 and help participating households reduce their electricity bills by up to 90%.
Delivered through the Small-scale Renewable Energy Scheme (SRES)—the same program that’s driven rooftop solar uptake since 2011—the rebate will help eligible Australians store solar energy for later use, reduce electricity bills, and lessen reliance on the grid.
Note: Batteries must be installed alongside existing or new rooftop solar because the rebate is administered under the Small-scale Renewable Energy Scheme.
See our comprehensive guide to all Australian solar & battery rebates.
What Is the Incentive Worth?
The battery rebate will reduce the upfront cost of a typical installed system by approximately 30%. For example, based on Solar Choice’s Battery Price Index the average cost of a 10kWh battery is $11,120, so the discount would be around $3,336. The rebate amount will gradually decrease each year in line with falling battery prices.
Key Benefits of the Program
- Save up to $2,300 annually on energy bills with a new solar + battery system
- Up to 90% reduction in household electricity bills for eligible homes
- 30% discount on installed battery cost.
- One battery system per household
- Support for VPP-ready battery systems (Virtual Power Plant capable)
- Applies to existing and new rooftop solar systems
- Small businesses and community facilities eligible (batteries up to 50 kWh subsidised, total system size up to 100 kWh)
Eligibility Criteria
To be eligible for the rebate:
- The battery system must be between 5–50 kWh useable capacity
- It must be VPP-ready (though participation in a VPP is not mandatory)
- It must be installed alongside new or existing rooftop solar.
- The system must be installed at a residential home, small business, or community facility
- Only one battery system per household can receive the rebate
Note: The rebate applies to each property, so landlords or owners of multiple properties can apply for multiple installations. Systems must be new, and previously claimed battery rebates do not disqualify additional batteries at new sites.
Compare solar and battery quotes from local installers now.
How Much Can You Save On Your Electricity Bill?
Depending on the system and usage profile, the program offers potential savings such as:
- Up to $1,000/year for homes with existing solar
- Up to $2,500/year for homes installing both solar and battery
- $3,336 off the upfront cost of a typical 10kWh battery
Annual savings for a 13.5 kWh battery system will typically range between $700 – $1,500, with additional savings possible when part of a VPP.
If you want to see the best solar batteries see our comprehensive reviews.
How the incentive Works
The rebate will be delivered through the Small-scale Renewable Energy Scheme (SRES), via tradable certificates. Accredited installers will apply the discount upfront and handle the certification process with the Clean Energy Regulator.
The government will buy back these certificates, ensuring no upward pressure on certificate prices.
The rebate is uncapped and will run until 2030. Subsidy amounts will be reviewed and adjusted annually in line with battery market prices.
Can the Rebate Be Combined with State Incentives?
Yes. The federal rebate can be combined with existing state-based battery schemes, including:
Check with your installer or state energy authority for the latest details and eligibility criteria. Stacking rebates can significantly reduce your out-of-pocket expenses.
Virtual Power Plant (VPP) Ready: What It Means
To qualify, batteries must be VPP-ready—meaning they can connect to a Virtual Power Plant platform that allows coordinated sharing of stored energy with the grid. To be VPP-ready a battery must be able to be remotely managed and controlled. Many batteries in Australia are VPP ready ‘off the shelf’, but some will require additional hardware to be installed.
Benefits of joining a VPP include:
- Additional credits or income from surplus energy exports
- Greater battery efficiency and optimised usage
- Grid support during peak demand periods
Why It Matters: Addressing the Battery Gap
While over four million Australian homes have rooftop solar, only one in forty has a battery. This rebate seeks to close that gap and make home energy storage more accessible and affordable.
Homeowner Benefits of the Battery Rebate:
- Increase household energy independence
- Allow solar energy use after sunset
- Reduce household exposure to electricity price fluctuations
Broader Benefits to All Australians:
- Help flatten peak demand and support grid stability helping avoid grid infrastructure upgrades
- Lower wholesale electricity costs
- Allow greater utilisation of existing solar generation that is currently being wasted or curtailed
- Advance the shift to 82% renewables by 2030
Community and Small Business Support
The program also supports small businesses and community facilities, such as:
- Sporting clubs
- Libraries
- Community centres
- Retail and hospitality venues
These groups can access the rebate for battery systems up to 100 kWh in total, with subsidy support up to 50 kWh. Reducing energy bills frees up resources for other essential operations.
Other Related Initiatives from the Labor Government
The Cheaper Home Batteries Program complements a broader suite of clean energy initiatives:
- $150 in direct energy bill relief for every household (from 1 July 2025)
- $1 billion Household Energy Upgrades Fund (low-cost financing for energy-efficient home improvements)
- $800 million Social Housing Energy Performance Initiative (targeted at improving comfort and lowering bills in social housing)
- $100 million Community Energy Upgrades Fund (supporting community infrastructure improvements such as lighting and battery systems)
Political Context
This initiative is part of Labor’s re-election policy platform and is funded in the 2025–26 Federal Budget. Labor contrasts this plan with the Coalition’s proposed $600 billion nuclear energy strategy, which it argues would raise power bills by up to $1,200 per household.
Final Thoughts – Are They Now Worth It?
Taking 30% off the upfront cost will likely move the financial case for installing a battery into an attractive range for many customers.
With electricity prices rising, solar feed in tariffs dropping and the overall cost of installing a battery trending downwards, the case for installing a battery has already improved in recent years prior to the announcement of this rebate.
If Labor are re-elected and their national battery rebate program is established, then we expect a large number of homeowners to take advantage.
Want help choosing the best solar battery for your needs? Visit our Home Battery Comparison Guide or get a free quote from vetted installers.
Compare solar and battery quotes from local installers now.
Frequently Asked Questions (FAQ)
What is the federal battery rebate and how does it work?
Is there a cap on how many households can apply?
Can I get the rebate if I already have solar?
What if I already have a battery?
Can landlords claim rebates on multiple properties?
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- From Passion to Purpose: Dave Watson on the Future of EV Charging in Australia - 16 April, 2025
