How to Save on Solar Batteries with Australia’s New 2025 Home Battery Rebate Program

It’s the question everyone is asking: Will Solar Batteries Get Cheaper in Australia?

Australia leads the world in rooftop solar, with over 4 million homes - around 1 in 3 - now generating more power than our entire coal-fired fleet. 

However, just one in 40 households have a battery. But that’s about to change.

Reducing prices for residential solar batteries was a key $2.3 billion policy campaigned on by the Australian Labor Party (ALP) in the lead up to the federal election in early May 2025. Having won convincingly, the answer is yes, solar batteries will be substantially cheaper, and sooner than you might think! 

Here’s what we know so far about the Cheaper Home Batteries Program.

What is the home battery subsidy?

The Cheaper Home Batteries Program will be funded directly by the federal government via the existing Small-scale Renewable Energy Scheme (SRES) that has been providing panel subsidies. It will offer an approximately 30% discount on solar-connected batteries for households, businesses and community facilities.

As with the solar panels rebate, the amount of the rebate will decline annually, up until 2030. So, the sooner you get in, the more your rebate will be.

Who is eligible for the Cheaper Home Batteries Program?

Both those with existing solar adding a battery system, as well as those getting new solar-plus-battery, are eligible. Adding battery capacity to an existing battery system is also eligible, if the battery system has not previously received a discount under the program.

There is no means testing and no caps, with new batteries up to 50 kilowatt-hour (kWh) eligible for the discount. Batteries of up to 100kWh can still receive a rebate for the first 50kWh, which is good news for businesses.

The ALP is expecting to hit over 1 million new battery systems installed under the scheme by 2030.

There’s nothing specific for renters at this stage, however all households benefit from more batteries by the resulting reduction in demand during evening power spikes, which in turn reduces the wholesale cost of power.

According to the Smart Energy Council modelling, if there were 1 million batteries installed in Australia it would reduce wholesale power prices by $1.3 billion every year.

When will the Cheaper Home Batteries Program start?

The scheme officially kicks off at the start of the financial year, July 1. (It’s possible batteries purchased and installed now would be retrospectively eligible if they are connected after July 1. Confirm this with your installer.)

Australia's energy regulator has said electricity prices will also lift by up to almost 9% from July 1 this year, adding extra incentive for consumers to get solar power and storage.

How much does a solar battery cost in Australia?

Two of the most popular batteries currently in Australia are the 13 kWh batteries from BYD and Tesla. Both are made in China and currently cost around $12 - $14,000 installed, before subsidies. A 6kWh battery will set you back around $6 - $8,000.

According to energy.gov.au, the program could save a household around $4,000 off the upfront cost of installing an 11.5 kWh battery.

Bear in mind too, if adding battery to an existing system that is several years old, it may need substantial upgrading to accommodate the battery, says consumer group CHOICE. 

To make the most of the Cheaper Home Batteries Program, choose the biggest battery you can afford, as you only get to use the rebate once.

NSW and NT also offer state subsidies and WA says it’s introducing one soon. State schemes are additional to the federal scheme. Some states also offer zero-interest loans to purchase solar.

Are solar batteries worth it? What are the benefits of a solar battery?

Whether the return on investment is viable for you depends on your individual household situation and power consumption.

According to government modelling, households with existing rooftop solar could save up to $1,100 more off their power bill every year, and up to $2,300 a year for new solar-with-battery systems. Return on investment is on average 3 to 5 years for solar, and up to 8 years for a battery.

Batteries help shift excess solar to the evening peak, easing grid pressure and lowering wholesale prices. 

Having a home battery gives your home greater independence from the grid and resilience during blackouts.

Environmentally, the benefits include reducing or even eliminating coal from the grid entirely, reducing greenhouse gas emissions. The only down side right now is that, though batteries and panels are almost 100% recyclable, the infrastructure for recycling is lagging behind and will have some catching up to do.

What size solar battery do I need?

The best size battery for your household depends on your energy consumption and the capacity of your panels.

The average battery installation in Australia is around 13kWh, but a Smart Energy Council audit of 9,500 energy users found that a 6kWh battery would meet the needs of 90% of homes. 

Some battery systems are modular, or stackable, meaning they allow you to start with a smaller battery, with the option to expand with additional batteries at a later time. But the rebate will only apply for the first install.

What is the best solar battery on the market?

There are more than 70 home batteries currently on the market in Australia, making it a hard job to find the right one for you!

Lithium-ion batteries are the most common type being installed, similar to batteries used in smartphones, laptops and cars. Fortunately, fires are very rare in lithium-ion home storage batteries.

Lithium-ion batteries dominate the market for good reason: they're reliable, compact and proven. Flow batteries and other emerging options exist, but they’re not yet practical for most Aussie homes.

Typical battery warranties are for a period of 10 years. Lithium-Ion batteries are expected to last well beyond that, but with diminished energy storage capacity of typically 70 to 80% of new capacity.

Tesla Powerwall, BYD and Sungrow are all popular and well-recommended units. But do your own homework, check out reviews, and ensure the equipment you choose is suited to Australian Standards. The Clean Energy Council has an approved list of products that have been independently tested to confirm that they meet the necessary electrical safety and quality standards under the Clean Energy Council’s Battery Assurance Program.

So where do you start?

Find an accredited solar design and install company, who can model your options based on your needs and offer recommendations on equipment that you can research.

The Cheaper Home Batteries Program will be audited through the Clean Energy Regulator’s ongoing inspection program, to monitor and police safe installation practices. But, buyer beware. As always, with any new government subsidy, shonky operators will rise up to take advantage.

Here’s some tips to ensure your solar battery installer is ridgy didge.

- Only licensed electricians accredited by Solar Accreditation Australia (SAA) can install batteries - check their status online.

- Vet potential installers for workmanship by checking online reviews, and note how long they have been operating for. Some discredited installers will simply start again with a new company name.

- When getting quotes, make sure it's clear whether the cost of a new inverter and extra electrical work are factored in. Ask if they install themselves, or subcontract the work. If so, do they guarantee the work (on paper)? Ensure your installation will be supervised and signed off by a qualified electrician.

- Check that the chosen panels and the inverter meet Australian Standards and are accredited by the Clean Energy Council (CEC), the industry-funded accreditation body for solar panel system components. 

- Research the products and the batteries that you're looking to install and see what other users have to say about them.

We hoped this has helped you decide if solar battery storage is right for you, and given you a good overview to get the right system for your situation!

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