Federal Battery Rebate 2025
The Federal Government's "Cheaper Home Batteries Program" starts July 1st, 2025. Get up to $18,600 rebate on home battery storage systems.
$372 per kWh
Maximum rebate rate in 2025
July 1, 2025
Program launch date
Tesla Powerwall Ready
TMJ Electrical certified installer
Program Overview
Timeline and Duration
The program officially begins on July 1, 2025 and will decline annually until the scheme ends in 2030. It's a six-year run, which is reasonable for planning purposes.
⚠️ The rebate value drops each year, so there's a genuine incentive to move sooner rather than later.
How It Works
The program is delivered through a $2.3 billion expansion of the Small-scale Renewable Energy Scheme (SRES)—the same system that powered Australia's rooftop solar boom.
The rebate comes as an up-front discount on the purchase and installation of home batteries, not a refund you chase later.
Rebate Breakdown
Base Rebate
per kWh of usable capacity (2025)
Real-World Value
per kWh after fees and charges
Maximum Rebate
for 50kWh+ systems in 2025
💡 Practical Example
For a home battery with a 10 kWh usable capacity, the incentive will be $3,720 in 2025 and, after fees and charges, is likely to lower the installation cost by around $3,300. That's a solid chunk of change.
Tesla Powerwall 3 (13.5kWh)
~$4,455 rebate
After fees and charges
Tesla Powerwall 2 (13.5kWh)
~$4,455 rebate
After fees and charges
Capacity Limits and Sweet Spots
Capacity Range
- Minimum: 5 kWh nominal capacity
- Maximum: 100 kWh nominal capacity
- Rebate Cap: First 50 kWh of usable capacity
💡 Sweet Spot
The sweet spot seems to be around 10-15kWh systems for most households.
Going bigger than 50kWh usable capacity means you're paying full price for the excess, which changes the economics considerably.
Eligibility Requirements
Simple Requirements
The federal program is refreshingly simple compared to state schemes:
Property Types
Homes, small businesses, and community facilities qualify
Solar Requirement
Must be paired with existing or new rooftop solar
Rebate Limit
One per electricity meter (multiple properties may qualify separately)
No Means Test
Unlike many state programs, there's no income limit
Technical Requirements
Virtual Power Plant (VPP) Capable
On-grid systems must be VPP capable, meaning your battery needs to be able to participate in grid services.
Note: You don't have to actually join a VPP, just have the capability.
Off-Grid Exception
Off-grid systems must be at least 1 km from a main grid line or face a grid connection cost of $30,000+ and are exempt from the VPP requirement.
Installation Timing Strategy
Strategic Opportunity
Installations must be certified (Certificate of Electrical Compliance) on or after July 1, 2025. However, the industry has been repeatedly assured solar batteries installed from now until then will also be eligible—but only if they are not switched on until July 1.
This creates an opportunity to book your installation now, avoid the July rush, but keep the system offline until the official start date.
✅ Benefits of Early Booking
- • Avoid installer bottlenecks in July
- • Lock in current pricing
- • Secure preferred installation dates
- • Complete paperwork early
⚠️ Considerations
- • Specific requirements aren't finalised
- • Some risk if rules change
- • System can't be switched on until July 1
- • Worth discussing with your installer
Double-Dipping Opportunities
The federal government's intention is for the rebate to be compatible with existing state schemes. This means "double-dipping" should be allowed.
Since Victoria's battery rebate has ended, this doesn't help Victorians directly, but other states still have programs running.
For Victorian Customers
While Victoria's state rebate has ended, the federal program still provides excellent value for battery installations.
The Declining Value Reality
The subsidy amount will reduce each year until the end of 2030, when the subsidy finishes. Expect roughly 25% reductions annually.
Cost of Waiting
Waiting a year could cost you several thousand dollars in lost rebate value.
2025: $372/kWh
2026: ~$279/kWh
2027: ~$209/kWh
Strategic Considerations
Uncapped Program
The program is uncapped, which means there's no limit on the number of subsidies available. This removes the monthly allocation lottery that plagued state programs.
Industry Capacity
Expect installer capacity constraints and potential equipment shortages as demand surges. Getting quotes now makes sense, even if you're not ready to proceed immediately.
The Bottom Line
This federal program represents the most significant battery storage incentive Australia's seen. It's not perfect, but it's substantial enough to shift the economics for most households with solar systems.
The industry consensus: there's no point in waiting until July 1st to get the ball rolling given expected bottlenecks.
Official Government Sources
Department of Climate Change, Energy, the Environment and Water (DCCEEW)
Main department running the program. Contains core technical requirements and eligibility criteria.
dcceew.gov.au/energy/programs/cheaper-home-batteriesClean Energy Regulator
Administers the scheme once it launches. Covers practical implementation details.
cer.gov.au/batteriesCheaper Home Batteries Program Policy Paper
Policy framework document outlining the government's policy intent and eligibility details.
dcceew.gov.au/energy/publications/cheaper-home-batteries-program-policy-paperImportant Note
The information presented is subject to change. Implementation will require amendments to the Renewable Energy (Electricity) Regulations 2001, and technical requirements are still being developed.
Ready to Get Started?
Don't wait until July to start planning. Get your quote now and be ready when the federal rebate launches.
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