A new era for home energy is about to begin. From July 1, 2025 (pending the outcome of the federal election), the Australian Government's Cheaper Home Batteries Program will offer a landmark federal rebate for battery storage.
Key Rebate Details
- Rebate Value: Approximately 30% of installed battery cost
- Rebate Rate: About $370 per usable kilowatt-hour (kWh)
- Example Savings: For a typical 10 kWh battery, that's on averaged $3,500 off upfront costs (details below)
The Battery System can be installed now and remain eligible, as long as it's not commissioned until 1st of July 2025.
Whether you already have solar or are planning to install it, this could be the ideal time to invest in energy storage. The rebate is available to all eligible homeowners, small businesses, and community groups, and can be combined ("stacked") with existing state-based incentives in NSW and the ACT for even greater savings.
Navigating the specifics of this new program – alongside a patchwork of state incentives – can be complex. In this guide, we break down what's known about the rebate, how it will work in your region, and the steps you should take to prepare for the battery revolution.
Understanding the Federal Solar Battery Rebate
The Cheaper Home Batteries Program is the most significant national support for home batteries to date.
Eligibility & Benefits
Under this scheme, eligible applicants can receive an upfront rebate worth around $350–$372 per usable kWh of battery storage, covering systems sized between 5 kWh and 50 kWh. This means:
- A 10 kWh battery would attract a rebate between $3,500-3,720
- An 11.5 kWh battery could receive up to $4,000 in savings
Important Requirements
- Not means-tested - can be claimed by homeowners, small businesses, and community groups
- Must be installed alongside new or existing rooftop solar
- VPP ready (although participation in a Virtual Power Plant is not mandatory)
- Installation must be performed by a Clean Energy Council-accredited provider
- One rebate per customer - important to size your system carefully from the outset
- Decreasing value - rebate will reduce each year until 2030 as battery prices fall
To understand the full scope of potential savings, it is important to understand how this scheme can be combined with state-based programs in NSW and the ACT. Let's take a look.
NSW vs ACT: Regional Differences That Matter
The benefits of the federal scheme will interact differently with local initiatives depending on where you live. Understanding these regional differences is crucial to maximising your potential savings.
For NSW Homeowners
While New South Wales does not offer a fixed, universal cash rebate for all households, there is a state-run battery incentive to all eligible residents through the Peak Demand Reduction Scheme. This provides an upfront discount – typically between $750-$2400 – on new battery installations, with an additional bonus for batteries connected to a Virtual Power Plant (VPP).
These targeted programs are designed to encourage shared energy storage that benefits both individual households and the broader electricity grid.
Key considerations for NSW residents:
- Participation in VPP-linked battery programs can provide significant cost savings
- The new federal low-interest loan program adds another layer of affordability, especially for those not currently eligible for the VPP offers
- Regional installation costs and electricity rates will influence your specific return on investment
For ACT Residents
ACT residents may now access zero-interest loans for battery storage and other upgrades through the Sustainable Household Scheme as well as additional rebates for eligible households under the Home Energy Support program (for solar panels and other energy upgrades beyond battery storage).
For ACT homeowners:
- You may be eligible for up to $15,000 in interest-free loans through the Sustainable Household Scheme
- Additionally, non-battery, energy upgrade rebates of up to $5,000 are available for eligible concession card holders
Why Battery Storage Makes Sense Now
Australia’s solar and battery market is experiencing record growth, not just because of rising energy costs and new incentives, but because the economics have fundamentally shifted.
Until recently, installing a battery was often see as a lifestyle choice: the payback period for most systems was close to, or even longer than, the typical 10-year battery warranty. That meant, for many, batteries were more about energy independence or backup than financial return.
Now that’s changed. Thanks to falling battery prices, higher electricity rates, and generous new rebates, that payback period for a well-matched battery is now often in line with the solar system it supports – sometimes as short as 5 to 8 years in NSW and the ACT, depending on your tariff and usage.
This means a battery can pay for itself within its warranty period, making it a smart financial decision for many solar owners.
Shifting Energy Economics
Feed-in tariffs – the amount you're paid for excess solar energy exported to the grid –have dropped significantly in recent years. Meanwhile, retail electricity prices continue to rise, particularly during evening peak periods when most households consume the majority of their energy.
This creates a growing value gap for solar owners:
- Excess solar generated during the day earns minimal feed-in tariff revenue
- Evening consumption draws expensive grid power
- The financial disconnect between generation and consumption patterns grows wider
The Battery Solution
Adding storage to your existing solar system allows you to:
- Capture excess solar energy during the day instead of exporting it at low feed-in rates
- Use your stored solar energy during evening peak periods, avoiding high retail rates
- Increase your energy independence and resilience during grid outages
- Potentially participate in virtual power plant programs for additional income
Real-world impact: According to our experience, a typical 6.5kWh battery system paired with a 6.65kW solar array could save households approximately $1,789 annually.
Is Your Current System Battery-Ready?
Even if you're not planning to install a battery immediately, understanding your system's upgrade potential is valuable for future planning.
System Compatibility Checklist
To determine if your current solar system is ready for battery integration, consider these factors:
- Inverter compatibility: Does your system use a hybrid inverter or is it battery-ready? Some systems may require an inverter upgrade to accommodate storage.
- Excess generation capacity: Is your system producing enough excess energy to make storage worthwhile? Your solar production should exceed your daytime consumption to effectively charge a battery.
- Monitoring capabilities: Do you have smart energy monitoring tools in place (such as iSolarCloud) to track production and consumption patterns?
- Electrical infrastructure: Is your switchboard and electrical system capable of integrating battery storage, or will it require upgrades?
“We want to sit down and really understand their needs and what they are trying to achieve,” says Sam Friend, Stag Electrical’s Managing Director.
This customer-centric approach ensures our systems are designed with future expansion in mind.
Next Steps: Preparing for Battery Integration
You don't need to wait for the full rebate rollout to begin planning your battery integration. Here's a practical roadmap for solar owners:
1. Assess Your Current System
Book a Battery Readiness Assessment with a qualified provider. This evaluation should review:
- Your existing solar system specifications and compatibility
- Your household energy consumption patterns
- Potential battery sizes and configurations suited to your needs
- Estimated costs and savings with current and upcoming incentives
2. Understand Your Energy Usage
Before investing in battery storage, it's worth gaining a deeper understanding of when and how you use energy:
- Review your energy bills and solar production data
- Identify your peak consumption periods
- Consider whether usage patterns could be shifted to maximise self-consumption
- Evaluate whether your consumption justifies the investment in storage
3. Research Available Battery Options
The battery market continues to evolve rapidly, with improvements in technology, performance, and price. Key considerations include:
- Battery chemistry (lithium-ion, lithium iron phosphate, etc.)
- Cycle life and warranty terms
- Power output capabilities
- Expandability for future capacity increases
- Smart features and monitoring capabilities
4. Select a Qualified Installation Partner
Battery installation requires specific expertise beyond standard solar installation. When selecting a provider, look for:
- Clean Energy Council accreditation for battery installation
- Demonstrated experience with battery systems
- Knowledge of local rebate programs and requirements
- Strong after-sales support and warranty service
- Monitoring and maintenance capabilities
Ready to Start Your Energy Upgrade?
Choosing the right installer is just as important as choosing the right battery. With over 18 years of local experience and more than 10,000 installations across NSW and ACT, Stag Electrical is committed to helping you make an informed, confident decision.
Our team takes the time to understand your needs, design battery-ready systems for long-term value, and provide ongoing support so you are never left in the dark.
We are here to be your energy partner for life.
Book A Needs Assessment
Contact our team to schedule a no-obligation Battery Needs Assessment.
We'll help you understand your current system's capabilities, potential upgrade paths, and how the new federal incentives could work for your specific situation.
