Growing interest in home battery storage in homes and businesses around Australia has prompted the federal government to support households and companies with a battery rebate worth billions of dollars. It's designed to encourage more people to install such systems so they have power backup in a range of situations that could leave them without electricity for prolonged periods.
The popularity of home battery storage is partly driven by a rise in volatile -- and oftentimes catastrophic -- weather events around Australia that scientists say is caused by climate change. And when fierce storms, bushfires and floods strike, they can take down the grid and leave households and businesses in the dark.
The federal government solar battery rebate is primarily aimed has ended as applications for an interest‑free loan of up to $8,800 are closed due to demand exceeding capacity.
at solar batteries and is part of its commitment to sustainability and environmental protection, helping to slash carbon emissions and turn Australia into a net zero, green economy. In this guide, we'll tell you all you need to know about the federal government solar battery rebate so you can see how you can play your part in the renewable energy revolution, power your home or business and save money in the process.
What Is a Battery Rebate and How Does It Work?
A solar battery rebate is a financial incentive from the federal government designed to encourage people to install home battery storage and become more energy independent. At the same time, Australians benefit from free and abundant energy, from the sun, while reducing their carbon footprint.
A rebate typically helps with the cost of installing solar batteries or home battery storage and can be in the form of discounts, direct cash-back, a claim after installation or low-interest financing.
These kinds of rebates are usually offered at state or territory level and reduce the cost of Australians' purchase of their own home battery storage setup. But now, a federal government solar battery rebate is due to come into effect.
Launching on July 1, 2025, the federal government's Cheaper Home Batteries Program is a $2.3 billion national scheme. It provides:
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A 30% discount on eligible battery systems that's applied at point of sale.
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A discount based on usable battery capacity, but it's capped at 50kWh.
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An incentive via Small-scale Technology Certificates (STCs), which is calculated by battery size and the year of installation.
The federal government says its aim with the Cheaper Home Batteries Program is to:
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“help households to make the most of cheap and clean solar power by storing it for when it is needed”
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“reduce costs for everyone -- not just those who install a battery -- because it means less expensive gas power generation, poles and wires.”
This solar battery rebate is only available through accredited retailers/installers and batteries must be:
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Between 5kWh and 100kWh
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Installed by an SAA-accredited installer
Here's a quick look at home battery storage rebates around Australia that are accepting applications and those that have ended.
Victoria
The Solar Victoria battery rebate
Queensland
The Battery Booster rebate is also closed and no new applications are being accepted.
South Australia
The Home Battery Scheme ended in 2022 but some retailers may still offer virtual power plant (VPP) discounts.
New South Wales
The NSW rebate program concludes and the end of June this year and a new VPP payment scheme offers up to $1,500 for joining after July 1, 2025.
Western Australia
Up to $1,300 in subsidies in Synergy areas and $3,800 via Horizon Power, and zero-interest loans, from June 2025.
Australian Capital Territory
No direct battery rebates. But the Sustainable Household Scheme offers zero-interest loans up to $15,000 that include home battery storage systems.
Northern Territory
The state battery subsidy ended in early June 2025, as the $6 million funding allocation was reached, and there is nothing currently in place.
Tasmania
No direct battery rebates, but zero-interest loans of up to $10,000 are available from the Energy Saver Loan Scheme and includes solar batteries
So while most states that had been offering cashback or loans for home battery storage have now closed their applications as funding limits were reached, people around Australia can apply for a federal government solar battery rebate from the start of July this year.
Who Is Eligible for a Solar Battery Rebate?
The federal government solar battery rebate, as well as the various state schemes for solar batteries, is a generous program but it aims to be fair. That's why it has a set of rules to ensure these billions of dollars in public funds are spent effectively and also help to reduce reliance on the electricity grid.
These are the general eligibility criteria:
Homeowners and Small Businesses
The solar battery rebate is only for:
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Residential homeowners who are owner-occupiers
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Small businesses that typically have low to moderate electricity requirements
If you're renting a property, you may still be eligible for a solar battery rebate, but the owner will have to make the application and carry out the installation.
Solar PV System
The federal government's solar battery rebate is offered on the basis that a solar PV system, which are solar panels and other components that capture the sun's energy, will be installed on a property. It can be an existing solar PV system or a new setup, and it ensures the batteries will only be used to store the power generated from the sun.
Battery System Requirements
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Battery systems have to be between 5 kWh and 100 kWh
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Only the first 50 kWh of usable capacity will be considered as eligibility for the rebate
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Home battery storage systems must be listed on the Clean Energy Council approved list
VPP Capability
The solar batteries must be able to join a Virtual Power Plant (VPP), meaning they can connect to the electricity grid and respond via the internet to third party signals from an energy provider
You don't have to enrol in a VPP, just have that functionality, and off-grid homes are exempt.
Installed by Accredited Professional
In order to claim a solar battery rebate, the setup has to be installed by a professional who is accredited by Solar Accreditation Australia (SAA). The installation can also be supervised by this person. And the system must be in compliance with local and national electricity safety legislation.
Why Install Solar Batteries at Home?
Amid the ongoing cost-of-living crisis and the cost of energy that keeps driving bills up, more people are looking into ways to save money on their electricity needs. They're also the real threat of blackouts and brownouts -- a reduction in the amount of available power -- when the electricity grid goes down during storms, bushfires and floods.
Solar batteries are therefore fast becoming a necessity across Australia, not a smart home upgrade or even a luxury. Here's why you should consider them for your household or small business.
Maximise Your Solar Setup
The most amount of power you can expect during the day is when the sun is highest in the sky, which is around midday. Households typically don't use much electricity at this time, and so if you don't have solar batteries, all that power will be lost as it's sent off to the grid. Having home battery storage, on the other hand, allows you to:
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Store surplus solar so you can use it later in the day, particularly in the evenings and at night.
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Wean your household or small business off reliance on the electricity grid in the evenings, as you'll be self-sufficient due to power stored in your solar batteries.
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Cut your power bills and increase your green energy consumption.
Power During Outages
Parts of Australia are being hit by an increasing number of power cuts, due to storms, heatwaves and bushfires. Having solar batteries in your home or business lets you keep everything running, from fridges to WiFi and lots more, and gives you peace of mind that you won't be left in the dark.
Remote or Off-Grid Living
If you're living in a remote area of Australia where the grid supply is not reliable or expensive, a solar panel setup with solar batteries is the answer to your power needs. It will let you:
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Run your home using solar power and battery storage.
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Get off the grid and also do away with expensive connection fees.
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Save on electricity bills while giving you off-grid power independence.
Helping the Environment
Australia plans to reach net zero greenhouse gas emissions by 2050 and the federal government solar battery rebate is part of that program. Solar batteries help by dramatically slashing the carbon footprint of households across the country in the transition to green and sustainable energy.
With home battery storage growing in popularity and sure to become even more popular with the billions of dollars available from the federal government solar battery rebate, it's important to choose solar batteries wisely.
That's because they're not all the same and you need home battery storage that's right for the power requirements of your home or small business. Here's what to consider:
Usable Capacity (kWh)
The amount of energy that batteries can store is referred to as kilowatt-hours (kWh), and the higher it is, the more appliances and devices you'll be able to run.
The average household needs between 5 kWh and 15 kWh, although it depends on the size of the property and how much electricity is typically used. Smaller homes, like apartments, might need around 2-4 kW. As mentioned, the solar battery rebate from the federal government is applicable to systems of up to 50 kWh.
As an example, the market-leading BLUETTI EP760 has a maximum capacity of 19.8 kWh, and this gives you flexibility when taking into account additional household and business needs. It lets you keep running what you need whether it's for an evening power outage or a longer cut.
AC vs DC Coupling
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AC-coupled batteries allow for direct connection to your property's existing electrical wiring, making them easy to fit with solar panels.
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DC-coupled batteries are typically more efficient than AC but are often installed in a new solar and battery system setup.
Battery Chemistry
Batteries for home systems in Australia usually use:
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Lithium iron phosphate (LiFePO₄): These are safer, more stable, last longer and there's less of a risk of fire. The BLUETTI EP760 uses LiFePO₄ battery cells.
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Lithium nickel manganese cobalt (NMC): This type can store more energy but there are concerns about safety.
Inverter Compatibility
You may find that some of the solar batteries you're looking at have an integrated inverter to deliver power. But others might not and may need a standalone inverter. If you need to get one, first check that it's compatible with your setup -- the solar panel and batteries.
Certifications and Warranty
Also look out for relevant certifications that are required for the federal government solar battery rebate, such as
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Clean Energy Council-approved
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Installation by an SAA-accredited professional
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Compliance with AS/NZS 5139:2019 electrical standards
FAQs
What Is the Solar Battery Rebate in Australia?
The federal government solar battery rebate is a $2.3 billion program designed to assist homeowners and small businesses with the cost of installing home battery storage and reducing their reliance on the electricity grid. It's available from July 1, 2025.
How Much Is a 10kW Solar Battery in Australia?
The average cost of 10kW solar battery systems around Australia is between $8,000 to $15,500, but it can be more depending on the brand.
Is It Worth Getting a Solar Battery in Australia?
If you want some energy independence, so you're not entirely reliant on the electricity grid, and would also like lower power bills while giving you peace of mind during power cuts, solar batteries are the answer.
