Australia Finalizes $2.3bn Home Battery Rebate Program Ahead of July 1 Deadline
Key Insights
The Australian government has amended regulations to include solar batteries under the Small-scale Renewable Energy Scheme, enabling a $2.3bn rebate program to start July 1.
The rebate offers up to $372 per kWh, reducing battery costs by 30%, with eligibility requiring households to have or install solar systems.
Battery rebate values will decline slower than solar rebates, at 9.7% annually, encouraging long-term adoption without immediate price pressure.
The program aims to install one million batteries by 2030, boosting household energy storage in a market where only 1 in 40 homes currently have batteries.
The Australian federal government has finalized regulations for its $2.3bn Cheaper Home Batteries Program, just days before its July 1 launch. The amendments integrate solar batteries into the existing Small-scale Renewable Energy Scheme (SRES), avoiding the need for new legislation. The rebate, worth up to $372 per kWh, is expected to reduce battery costs by approximately 30%, with eligibility contingent on households having or installing solar systems.
Governor-General Sam Mostyn signed off on the Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025, ensuring the program's timely implementation. The rebate will decline at a slower rate than solar incentives—9.7% annually—to encourage steady adoption. "This means there’s less of a rush to get a battery installed this year," says SolarQuotes analyst Ronald Brakels, noting that prices may rise only 3% annually, with potential further supplier reductions.
Eligibility requirements include a battery capacity of 5–100 kWh, with only the first 50 kWh of usable capacity discounted. Systems must be VPP-capable if grid-connected, and installers must hold Solar Accreditation Australia credentials. Batteries must also be listed on the Clean Energy Council-approved product list, currently limited to lithium technologies.
The program targets a significant expansion of Australia’s household energy storage, where only 2.5% of homes with solar currently have batteries. By 2030, the government aims to deploy one million batteries, reshaping the energy grid. Retroactive claims are allowed for systems tested after July 1, though strict compliance is required.
State rebates, like Western Australia’s, may stack with the federal program, though most have scaled back since the federal announcement. Installers will handle rebate applications, deducting the amount from system costs, with submissions possible from July 1 via the Renewable Energy Certificates Registry.