What is the Cheaper Home Batteries Program?

This program is a $2.3 billion federal initiative that helps households and small businesses cut the cost of installing battery systems. If you already have solar, a battery allows you to store excess power and use it later, reducing your bills and easing pressure on the electricity grid. The program applies from 1 July 2025 and supports systems that meet safety and performance requirements.

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How much is the battery rebate?

In 2025, the rebate is expected to cover up to 30% of the battery cost. That’s based on $372 per kilowatt-hour (kWh) of usable capacity, capped at 50 kWh per system. The maximum saving in the first year could be as high as $18,600. This amount will reduce gradually each year until 2030. If you want the biggest rebate, it makes sense to act early.

Who’s eligible?

The rebate is open to homeowners, renters with permission, small businesses, and community groups. To be eligible, the system must:

  • Be installed on or after 1 July 2025
  • The rebate is calculated on usable capacity only and capped at the first 50kWh, even if the battery’s nominal capacity is up to 100kWh. This works out to a maximum rebate of around $18,600.
  • Be installed by an accredited installer
  • Use approved batteries and inverters
  • Be linked to a solar PV system (existing or new)
  • Be capable of joining a Virtual Power Plant (you don’t have to opt in)

Your existing solar system doesn’t need to be replaced unless it fails safety checks.

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Can this be combined with other rebates?

Yes. If your state or territory offers its own battery rebate, you may be able to claim both. This could reduce the cost of installation even further. Make sure to check the conditions of each scheme to confirm eligibility.

How do you claim the rebate?

You don’t need to lodge a claim yourself. The rebate is applied at the point of sale by your installer, so it comes straight off your final quote. Your installer will confirm eligibility, make sure the system meets the program’s requirements, and handle the paperwork.

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When should you get started?

Installations must happen on or after 1 July 2025 to qualify, but it pays to start planning now. The largest rebates will be available in the first year, and demand is expected to be high. Booking early gives you the best chance of securing your place and getting the full discount.

Why batteries are worth it in 2025

If you have solar panels, you’re probably sending unused power back to the grid for a low feed-in tariff. A battery lets you store that energy and use it later, when power from the grid is more expensive. That means lower bills and better use of your solar investment.

Batteries can also provide backup power during blackouts, which is especially useful in areas with an unreliable grid. And if you decide to join a Virtual Power Plant down the track, your system will already be ready.

Next steps

Australian Energy Upgrades can help you plan and install a compliant battery system and make sure you receive the rebate. We’ll guide you through the process, help you choose the right setup, and take care of the paperwork. Get in touch with us to register your interest now and be ready when the program launches.

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