Federal Government Solar Battery Rebate Explained 2025

Battery rebates exist to stimulate the uptake of cleaner electricity produced during hours of low-cost energy abundance while reducing grid demand at peak times. Solar battery rebates proposed for Western Australia are a positive initiative to strengthen the energy grid and ensure the network remains energised during periods of less stability. The Cheaper Home Batteries Program, commencing 1 July 2025, offers Australians a substantial upfront discount—up to 30%—on the cost of installing a new home battery system. The rebate is delivered as Small-scale Technology Certificates (STCs) under the expanded Small-scale Renewable Energy Scheme (SRES), the same mechanism that fueled Australia’s rooftop solar boom. Receiving a solar battery grant offers several important benefits grants for home battery storage to homeowners and businesses. This equates to around a 30% discount on the upfront cost of installing small-scale solar batteries.
It’s estimated that each household can save up to $1,500 per year by installing a solar battery. This battery scheme aims to help WA homeowners purchase a solar battery for their solar system, allowing households long-term cost of living relief. Starting July 1, 2025, eligible homeowners can receive a substantial rebate on installing approved battery systems.

70% of battery purchasers in Perth, Western Australia, will consider a solar battery for the primary purpose of peak shaving. With such a sparse difference in battery investment outlay ranging from $5,000 to $20,000+, it’s necessary to normalise energy density value on a cost-per-unit level before buying. Sometimes, what appears to be the cheapest upfront cost battery will often be calculated as the most expensive solution on a cost-per-kWh value. Consider this method similar to buying comparable items at the supermarket on a cost-per-gram level. We expect demand for batteries to be high during the roll-out of the program.
Applicants can still choose to install batteries at their own cost, but only installations with formal HBBS grant approval will receive funding. If work is carried out without prior approval, applicants will need to cover all costs themselves. From 1 July 2025, the Sustainable Household Scheme has introduced changes. Solar panels are no longer covered by Scheme loans, though eligible concession card holders can still access zero-interest loans for solar through the Home Energy Support Program. Any installations approved before 30 June 2025 must be completed by 1 November 2025, or the loan may be reviewed.
The finance options each company offers require monthly instalments, with interest rates and repayment periods that vary. Prices will also vary depending on the amount of panels required, if your roof is in full sun or partial shade, and what type of solar panels you want to have. What’s more, as of 1 February, homeowners will also pay 0% VAT on solar batteries. This is a strong move from the government to ensure homeowners are able to save and store as much electricity as possible.

The solar battery rebate will be delivered through the Small-scale Renewable Energy Scheme (SRES). The scheme was a victim of its success; it boosted the UK’s solar capacity by 2019 – and with cheaper panels available, solar installations made economic sense even without big incentives. As of 1st May 2023, solar panels are now available with 0% VAT, resulting in a saving of approximately £1,000 on installation and a yearly saving of £500 on electricity bills. Some councils around the UK are also offering to install solar panels onto council houses for a discounted price – but this depends on the amount of funding the borough has. Of course, affordability will differ per household, but financing solar panels can be a good way of getting the savings that solar panels offer, while spreading the cost. Most banks will offer personal loans to cover home improvements, with many saying they can be used for renewable energy developments.
However, some states may have additional battery incentives that you can stack with the federal rebate. Waiting too long to apply may result in missing out on the rebate if the program reaches its funding limit. Only the federal rebate applies for eligible systems installed after this.

A 10 panel installation and a 5kWh battery (our most popular system) costs £8,477 with an essential battery of £10,193 with a smart battery. With a battery you'll get access to Octopus smart tariffs that maximise savings, and can even eliminate electricity bills. Our high-performance PV solar panels are roof-mounted and come with a whopping 25 year product warranty that guarantees your system's performance over time. For a 13.5 kWh battery, the federal rebate could reduce costs by up to $4,000, depending on system specs and installer pricing. The Community Solar Bank program is geared towards apartment owners, renters and low-income households.
Labor claims the discount will work alongside any state schemes, although how exactly  the proposed program will interact with battery subsidies such as those offered by the NSW and WA governments is not yet clear. The program would be delivered under the longstanding Small-scale Renewable Energy Scheme (SRES), which already offers subsidies for rooftop solar. Your solar panel system and installer must be certified under the MCS or equivalent, and your energy supplier may require an MCS certificate. The 0% VAT also applies to other energy-saving materials besides solar panels, such as heat pumps, biomass boilers, insulation, and more. The application process and eligibility criteria for each of these are different, so let’s go over each policy. The NSW Government has confirmed that batteries cannot receive rebates from both programs.

In 2020, the then-Territory Labor NT Government launched its Home and Business Battery Scheme. It originally offered a straight-up grant of $6,000 for batteries with a minimum 7kWh capacity, then it changed to $400 per kWh of usable battery capacity, up to a maximum $5,000. By providing your details, you agree that we can contact you to discuss installation of our solar and battery products, as well as electricity plans from selected retailers over the phone or at your home. If you’re one of the ~2/3 million people who live in the Hunter region in NSW, you may be eligible for the pilot scheme. The purpose of the scheme is to aid the transition to a green, clean, renewable economy.
While the state’s solar battery rebate (a direct cash rebate) has ended, it has been replaced with a generous interest-free loan to reduce your upfront costs. Eligible Victorian homeowners can access interest-free loans of up to $8,800 for installing a home battery system, with the loan repaid over four years. This zero-interest financing effectively acts as a Victorian solar battery subsidy, making battery storage more accessible than ever.