What is the Federal Government Rebate for Solar Battery?

The government’s new Cheaper Home Batteries Program will help make battery storage more affordable for millions of homes and small businesses. This will support the move to cleaner and more reliable energy. Here's a simple guide to the rules, who’s eligible, how much you can save, and helpful tips if you're thinking about getting a battery.

Official Rules of Federal Home Battery Rebate

Under the official 2025 rebate rules, a battery system is considered “installed” only when a valid Certificate of Electrical Compliance (CoC) is issued by a licensed electrician.

Important conditions:

• Pre-installation is allowed, but the system must remain switched off until 1 July 2025.
• The CoC cannot be signed before 1 July 2025 — even if the battery is physically installed earlier.
• No CoC = No Rebate — and you also can’t turn the battery on.

This requirement makes sure all battery installations meet current safety and technical standards to qualify for the federal rebate.

What Is the 2025 Federal Home Battery Rebate?

Starting 1 July 2025, the Cheaper Home Batteries Program will give Australians an upfront discount of up to 30% on new home battery installations. The rebate is provided through Small-scale Technology Certificates (STCs) under the expanded Small-scale Renewable Energy Scheme (SRES), the same system that helped drive Australia’s rooftop solar growth.

Key Features and Rebate Value

• Start Date: 1 July 2025
• Rebate Value: Up to $372 per usable kWh of battery capacity in 2025 (before admin fees), capped at 50 kWh per property
• How It Works: The rebate is applied as an upfront discount by your installer, who claims and processes the STCs on your behalf.
• Annual Decline: The rebate value will decrease each year until 2030, so early adopters receive the highest benefit.

Example: Installing a 10 kWh battery in 2025 could earn up to $3,720 in rebates, significantly lowering the upfront cost. By 2030, the same system would qualify for only around $1,880.

What is eligible for Federal Battery Rebate?

The program is designed to be widely accessible:

• Eligible Applicants: Homeowners (including landlords and owner-occupiers), small businesses, and community facilities (e.g., sports clubs, libraries)
• Means Testing: None—open to all eligible property owners
• Multiple Properties: Owners can claim the rebate for each property with its own electricity meter (NMI)

Battery System Requirements

To qualify for the rebate, your battery system must meet these criteria:

• Capacity: Nominal (total) capacity between 5 kWh and 100 kWh; rebate applies only to the first 50 kWh of usable capacity
• New Installations: Only new batteries are eligible (not second-hand or refurbished)
• Solar Connection: Must be installed with a new or existing rooftop solar PV system
• VPP Capability: On-grid batteries must be Virtual Power Plant (VPP) capable (joining a VPP is optional)
• Product Approval: Battery and inverter must be on the Clean Energy Council (CEC) approved product list
• Installer Accreditation: Installation must be by a Solar Accreditation Australia (SAA) accredited installer, with on-site supervision and compliance with all safety regulations.

Special Notes:

• Off-grid Installations: Eligible if the property is at least 1 km from the main grid or faces a grid connection cost of $30,000 or more.
• Additional Batteries: Adding capacity to an existing system may qualify if the system has not previously claimed the federal rebate, and the added capacity is at least 5 kWh.
• Electric Vehicle Batteries: Not eligible under this scheme.

How Is the Rebate Applied?

• Upfront Discount: Most homeowners will receive the rebate as an instant discount from their installer, who then processes the STCs.
• DIY Claim Option: You can opt to create and sell the STCs yourself, but this involves more paperwork and potential delays. Most people find the installer’s upfront discount more convenient, even if it’s slightly less than the maximum possible value.

Timing and Important Rules

• Commissioning Date: To qualify, your battery system’s Certificate of Electrical Compliance must be signed on or after 1 July 2025. You can install the system earlier, but it must not be commissioned or switched on before this date.
• Stacking Rebates: The federal rebate can be combined with eligible state battery rebates (e.g., in NSW, VIC, WA, NT), further reducing your out-of-pocket costs.
• One Rebate per Meter: Only one rebate per electricity meter (NMI), but multiple properties can each claim separately.

Why Act Early?

The rebate is highest in 2025 and will gradually decrease each year until 2030. Due to rising demand and possible supply limits, it's best to book your installation early and confirm your eligibility.

Practical Example: Homeowner Savings

Scenario:
A Sydney homeowner installs a 10 kWh battery in July 2025.

Federal rebate: $372 x 10 = $3,720 off the upfront cost

NSW state rebate (if eligible): Up to $2,400 extra

Total savings: Over $6,000 possible, depending on system and installer

How to Get Started

Get Quotes from Accredited Installers: Use trusted platforms or local recommendations to find SAA-accredited professionals.

• Check Product Lists: Ensure your chosen battery and inverter are CEC-approved.
• Plan for July 2025: Schedule installation and commissioning to align with the program’s official start date.
• Ask About State Rebates: Combine federal and state incentives for maximum savings.