Federal Government Battery Rebate | Save 30% on Solar Battery

Australia’s energy bills are climbing. In early 2025 the regulator has lifted power price caps by up to 8.9%. No wonder so many families are searching for long-term energy solutions that are both sustainable and affordable.

Here comes federal government’s federal rebate for home battery systems – the $2.3 billion Cheaper Home Batteries Program.

This program offers roughly a 30% discount on the upfront cost of a battery system in 2025. In other words, this new energy rebate works much like the existing solar PV rebate (STCs). It slashes the sticker price on storage by cutting your bills and helping tackle rising power costs.

In this blog, we’ll cover the essentials of the new federal rebate for solar battery storage; what it includes, how much you can save, who’s eligible, key installation requirements, and its role in Australia’s clean energy future. Plus, discover how Renostain can help you maximise your energy rebate and make the switch to smarter, sustainable power.

What Is the Federal Rebate for Home Battery Storage?

The Cheaper Home Batteries Program officially starts on 1 July 2025. Batteries installed before that date can still qualify. They simply must be switched on (with the electrical compliance certificate signed) on or after 1 July 2025. The discount is delivered via the Small-scale Renewable Energy Scheme (SRES) and handled through your solar retailer or installer.

There is no means testing. Households, small businesses and even community facilities (sports clubs, schools, etc.) with solar can apply. It’s essentially a government energy rebate on battery storage, funded by purchasing Small-scale Technology Certificates (STCs) so no cost is passed on to consumers.

How Much Can You Save with the Solar Power Storage Rebate?

In 2025, the federal solar battery rebate will offer a maximum of $372 per kilowatt-hour (kWh) of usable battery capacity. After factoring in admin fees, that translates to a real-world discount of about $330 per usable kWh.

What does that mean for you?

If you're installing a 10-kWh solar battery, you could be looking at a rebate of up to $3,720. And after fees, that's still a solid $3,300 knocked off your total bill.

Just like the solar panel rebate, this one won’t last forever. The grant will reduce gradually each year and is expected to phase out by the end of 2030. So, the earlier you act, the more you save.

Which Solar Batteries Are Eligible for the Rebate?

Final eligibility rules are still being confirmed, but the government has shared clear guidelines to help homeowners, businesses, and installers prepare:

Basic Requirements for Battery Eligibility

To be eligible for the solar battery rebate, your system will need to meet the following criteria:

• Your battery and inverter must be approved by the Clean Energy Council (CEC). This ensures your system is safe, reliable, and rebate-ready.
• The battery installer must hold the proper battery installation accreditation. So, be sure you’re working with a trusted professional (like us at Renostain).
• Your system must include at least 5 kWh of usable battery storage.
• The maximum rebate applies to up to 50 kWh of usable storage. Though systems up to 100 kWh nominal capacity are allowed, you’ll simply be rebated for the first 50 kWh.
• For grid-connected homes, the battery must be VPP-capable (able to connect to a Virtual Power Plant), although there’s no obligation to join one.

Other Key Eligibility Points You Should Know

Here are a few more details to keep in mind when planning your system:

• Already have a battery? You can still add another and claim the rebate, as long as the added capacity is at least 5 kWh and the total system stays under 100 kWh.
• You’ll need a solar system, either a new install or an existing one, since the rebate only applies to solar battery setups.
• Only one federal government rebate per property. But if you own multiple properties with solar systems, each may qualify.
• Off-grid systems can also claim the rebate, even though they’re exempt from the VPP requirement. To qualify as off-grid, your site must be at least 1 km from the nearest grid connection or cost over $30,000 to connect.
• To keep everything safe and transparent, customers will receive a breakdown of their system’s specs, safety info, installer accreditation, and projected energy savings and payback periods.
• The Clean Energy Regulator will inspect battery systems and installations to add another layer of trust.

Can Federal Rebate Be Combined with State Battery Incentives?

Absolutely! The federal rebate can be combined with state-based programs. So yes, "double-dipping" is on the table which means even more money back in your pocket. Some details are still being finalised, but the goal is to let you stack both federal and state solar power storage rebates for maximum value.

Here’s a quick snapshot by state:

Explore more about > Top 5 Solar Battery Rebates in WA - 2025 | Save Up to $8000

Why Install a Home Battery? Benefits for Your Household

Beyond saving upfront with the rebate, battery storage delivers major benefits for households:

• Big Bill Savings

A battery lets you use your solar power at home instead of exporting it for low returns. Modelling shows a standalone system can cut your annual bills by around $900 or more. If set up to respond to grid signals or a VPP, that can rise to about $1,150 per year for the owner. In practice, government analysis suggests solar homes could save up to $1,100 a year with existing panels or $2,300 if getting new solar battery. These savings add up fast.

• Backup Power (Outage Protection)

Many batteries can be configured to provide backup during blackouts. Basically, a battery is your own mini power plant. By storing extra solar energy produced in the day, you can keep essential lights/appliances running at night or during outages. This energy independence means you rely less on the grid’s peaks and avoid buying expensive peak-rate electricity.

• Grid Independence & Efficiency

A home battery lets you time-shift solar power. When the grid demand spikes in the evening, your solar panels may not produce power, but your battery can step in. Charging the battery midday and using it after dark avoids drawing from the grid at peak times.

• Participation in Renewables

Battery storage is a key part of Australia’s clean energy shift. By storing green solar power locally, batteries enable higher uptake of renewables. They allow homeowners to sell stored power back to the grid or join Virtual Power Plants. This increases your savings (getting paid to share stored energy) and helps the broader energy market run smoothly.

In short, batteries turn your rooftop solar into a 24/7 power system, saving you money, giving you peace of mind, and making the electricity system cleaner.

Alignment with Clean Energy & Climate Goals

This rebate isn’t just about household savings. It’s part of Australia’s broader clean energy strategy. The government aims for 82% renewable electricity by 2030. And home batteries play an important role in that vision.

By matching solar output to demand, batteries smooth out peaks and valleys in supply. This can reduce reliance on peaking gas plants, improve grid resilience, and keep overall power costs down.

Energy Ministers note that installing home batteries nationally will change Australia by unlocking the huge solar capacity already on our rooftops. In fact, modelling suggests the collective effect of residential storage can yield hundreds of millions in net savings system-wide.

Environmental Impact of Battery Storage

Of course, batteries involve materials like lithium, nickel and cobalt. So, their environmental impact must be managed. The good news is that batteries are built to be highly recyclable.

Industry analysis shows up to 95% of a lithium-ion battery’s components can be recovered and reused if properly recycled. As the number of batteries grows, Australia is improving recycling programs for solar and storage. Keeping materials in circulation reduces mining demand and waste.

Ultimately, replacing coal or gas power with stored solar yields a large net cut in emissions, and continued innovation (like second-life battery uses) is making storage even greener over time. In choosing a new battery, look for environmentally responsible options (many manufacturers now offer recycling take-back) and trust that the Clean Energy Council and regulators are tracking sustainability.

Certified Installers and the Clean Energy Council

Safety and quality are top priorities. The Clean Energy Council (CEC), Australia’s peak solar industry body, maintains an approved product list for all eligible batteries and inverters.

Only products on that list qualify for the rebate. Likewise, installations must be done by accredited professionals. The program requires that a battery installer with SAA accreditation (Solar Accreditation Australia) supervise every job. This ensures your system meets all electrical codes and best practices.

Renostain’s technicians are fully accredited under these schemes. By using CEC-endorsed equipment and certified installers, you safeguard your home and your rebate.

Now Is the Time to Act

If you’re thinking about getting a solar battery, here’s the reality. Installations take time, mostly a few weeks from quote to completion. With the federal rebate for home battery storage starting on 1 July 2025, demand is expected to skyrocket. That means installers will be busier than ever, and waiting until the last minute could cost you your chance to lock in the savings.

So, why wait? The earlier you start, the better your chances of securing a subsidised solar battery system and securing the benefits sooner.

Here are some smart moves to get ahead:

• Don’t have solar panels yet? Get a solar system installed now. Even if you’re not ready for a battery just yet, this lays the groundwork.
• Get quotes for your battery or solar system now. While the rebate covers some installs before July 1, the final details are still being confirmed. Starting the conversation early means you’ll be ready to act when everything’s official.
• Request quotes with a contingency. Let your installer know you’ll proceed only if the rebate rules don’t change before the launch date.

Ready to save big on your power bills and locking in a solar battery rebate?

Claim Your Federal Battery Rebate with Renostain Today

Our expert team can guide you through the federal rebate process, recommend the right battery system, and handle everything from paperwork to installation. We’ll handle the paperwork, install CEC-approved systems, and ensure your battery is rebate-ready.

Contact us today and let our solar experts provide a customised plan. Don’t miss out on this electricity rebate, take control of your energy now.

Get Your Solar Battery Quote Now