Cheaper Home Batteries Program
- Paul
- May 28
- 3 min read
From 1 July 2025, households and small businesses may be eligible for around a 30% discount on the upfront cost of installing small-scale battery systems. The discount will be based on the solar battery’s usable capacity and will gradually decrease until 2030.
The program will be administered under the existing Small-scale Renewable Energy Scheme (SRES) once regulations are in place.
The Australian Government will fully fund the discount for solar batteries by purchasing small-scale technology certificates (STCs). This means no costs will be passed on to householders through energy retailers.
Household batteries will assist in balancing electricity supply and demand across the whole grid. This should reduce costs to all households over time.
Key Takeaways: Australia’s National Battery Rebate
Start date: 1 July 2025
Rebate value: Up to 9.3 STCs per usable kWh (≈$330–$370 per kWh, depends on STC market prices)
Expected savings: Approximately $4,000 off a standard 11.5–13.5 kWh battery
Eligibility: Homeowners, small businesses, and community facilities
Stackable: Yes — can be combined with eligible state battery rebates
Means-tested: No — open to all eligible property owners
Timing: Installations must be certified (Certificate of Electrical Compliance) on or after 1 July 2025
Battery size: 5–100 kWh nominal capacity (rebate applies to the first 50 kWh of usable capacity)
Solar connection: Must be paired with existing or new rooftop solar
Rebate limit: One per electricity meter (multiple properties may qualify separately)
Be Virtual Power Plant (VPP) capable (on-grid systems only)
Additional batteries added to existing systems may qualify if:
The system has not previously claimed the federal rebate
The added capacity is at least 5 kWh and the total does not exceed 100 kWh nominal
Proposed eligibility
Eligibility is still subject to amending the Renewable Energy (Electricity) Regulations 2001 and requirements may change. The proposed eligibility for the program includes:
A single solar battery system with a nominal (total) capacity of 5 kWh to 100 kWh will be eligible.
The solar battery system’s usable capacity will be used to calculate the number of STCs it will be eligible for STCs can only be claimed for the first 50 kWh of usable capacity.
The solar battery will need to be installed with a new or existing solar photovoltaic (PV) system.
The solar battery system is considered ‘installed’ when a certificate of electrical compliance or equivalent is signed, which confirms that the system complies with relevant state and territory electrical safety regulations.
STCs calculation
The discount is calculated in proportion to the size of the battery system (its usable capacity in kWh). The number of STCs that can be created per battery installation will be 9.3 STCs per kWh of usable capacity in 2025, to be applied at a flat rate for usable capacity of up to 50 kWh. In instances where usable capacity results in a partial STC total, STCs should be rounded down in line with the regulations for solar, wind, and SGU STC calculation.
It is assumed that each STC is worth $40, which is the price of STCs traded in the STC Clearing House, though this may not reflect the value of STCs paid to the consumer after administrative costs are included.
The number of STCs that a battery system would be entitled to would decline from 9.3 STCs (worth around $372 a kWh) in 2025 to 4.7 STCs in 2030 (worth around $188 a kWh), in line with expected decline in the cost of batteries over time. Batteries with a capacity larger than 50 kWh and up to 100 kWh can still receive STCs, up to and including 50 kWh of its usable capacity, but not beyond.
The estimated value per kWh is approximate and based on $40 per STC for a battery installed in the year. This could vary over time in line with reviews of whether the discount remains appropriate.
Year | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
Estimated value per kWh | $372 | $336 | $296 | $260 | $224 | $188 |
STC factor (number of STCs per kWh of usable capacity) | 9.3 | 8.4 | 7.4 | 6.5 | 5.6 | 4.7 |
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