Lots of good news for Australian homes and businesses: the Australian Government is launching the cheaper home batteries program on July 1, 2025. This huge new rebate cuts the starting cost of installing home batteries by around 30% upfront.

This incentive could save you thousands of dollars and help you store solar energy for later use, whether you are a homeowner, a small business, or a community centre. Are you interested in finding out if you can save money and how much? Here, we discuss all the key details you need to know.

A Revolutionary Battery Storage Incentive

The cheaper home batteries program is the biggest thing the federal government is doing to get more people nationwide to use solar battery systems. The Small-scale Renewable Energy Scheme (SRES) has backed the national solar panel rebate for a long time.

This program gives a maximum subsidy of $372 per kilowatt-hour (kWh) of usable battery capacity. After administration costs are considered, the discount should be around $330 per kWh.

For example, if you use Solar Masters to install a 10 kWh battery, you could save around $3,300 on the starting cost, that is approximately 30% off the current price of the battery.

Who Can Apply?

A lot of people can get the refund, such as:

• Residential homeowners
• Small businesses
• Community facilities (e.g., libraries, sports clubs)

It is important to know that the rebate is not based on income, so all eligible Australians can get it. Property investors with multiple homes can apply for one rebate per solar-equipped home. 

Eligibility Criteria

A few things must be true to get the rebate:

• The Clean Energy Council must approve the battery.
• CEC-certified battery installers are required.
• Only new 5–50 kWh batteries are eligible.
• The battery must be VPP-ready (Virtual Power Plant capable), although joining a VPP is optional.
• The battery must be linked to a new or existing solar system on the roof.
• Off-grid solutions are acceptable as long as the battery can work with VPP.

Some systems can hold up to 100 kWh, but you will only get a 50-kWh refund.

Timing

The program officially starts on July 1, 2025, but batteries that were put in before that date will still be qualified if they are not turned on until that date. Homeowners and businesses can get ready ahead of time this way and still get the refund.

How Much Can You Save?

Here is a list of possible savings:

• 10 kWh system: Save around $3,300
• 5 kWh system: Save up to $4,000

Annual savings on energy:

• Up to $1,000/year for homes with existing solar
• Up to $2,500/year when installing solar and battery together
• 5 kWh systems can deliver annual savings of $700–$1,500

These numbers get even better if your battery is part of a VPP that gives points for sending extra energy to other places.

Combining with State Rebates

For even bigger savings, you can use the federal rebate and state-based schemes already in place. As an example:

• NSW - Empowering Homes
• VIC - Interest-Free Solar Battery Loans
• WA - Home Battery Scheme

This "double-dipping" can cut your out-of-pocket costs by a huge amount.

The Significance of VPP-Ready

Linking your battery to a Virtual Power Plant (VPP) can share power with the grid. Even though batteries do not have to join, they must be able to. Batteries that are ready for VPP can be controlled from afar and offer:

• Extra energy export revenue
• Improved battery performance
• Maintaining grid stability at peak periods

Why this rebate is very important

Over 4 million homes in Australia have solar panels, but only 1 in 40 has a battery. This scheme aims to close that gap by making batteries more affordable. It also helps reach bigger national goals:

• Peak demand reduced; grid stability improved.
• Lower the cost of buying electricity.
• Increased renewable energy (82% by 2030)

Key Takeaways

Feed-in tariffs are decreasing while energy prices are increasing, making solar batteries more appealing than ever. Considering that energy bills and battery prices are decreasing, the 30% discount up front makes the economics more appealing than ever.

Whether you are a homeowner, small business operator, or manage a community centre, Solar Masters sees this rebate as a smart, future-focused way to lower energy bills, make your building more sustainable, and become more energy independent.