5 May 2025 — Alastair McDowell
New Federal Rebates for Small-Scale Solar Battery Systems
The Cheaper Home Batteries Program will be introduced by 1 July 2025. This $2.3 billion scheme will subsidise small-scale batteries installed alongside rooftop solar.
The program will be delivered through the Small-scale Renewable Energy Scheme (SRES) and be overseen by the Clean Energy Regulator (CER).
When Does the Scheme Come Into Effect?
The Cheaper Home Batteries Program will come into effect on or before 1 July 2025, according to Energy Minister Chris Bowen. Batteries installed from 6 April 2025 are still eligible but won’t be able to apply for the rebate until 1 July.
Rebate Amount
The exact rebate amount is yet to be finalised, but it will be approximately $372 per usable kilowatt-hour of capacity, before admin fees and charges.
This will cover approximately 30% of the cost of installing a home battery system, with the average Australian home saving around $4,000 on the cost of installation of an 11.5 kWh battery.
As with all SRES programs, the subsidy will decrease over time. The exact yearly decrease for batteries is uncertain at present.
Eligibility
Battery Requirements
Eligible batteries shall be approved by the Clean Energy Regulator and listed on the Approved Products List. The current proposed battery requirements are:
- Usable capacity between 5 kWh and 50 kWh (systems up to 100 kWh can be installed)
- Batteries shall be VPP-capable, but participation in a VPP is not required
- You will be able to apply to have your battery on the Clean Energy Regulator list once the program is launched
System Requirements
The battery shall be integrated with either a newly installed or pre-existing solar PV system.
Installation Requirements
Installations shall be conducted by licensed electricians who have undergone certified battery installation training.
Property Requirements
The system shall be installed at a residential home, small business, or community facility. Only one battery system per premises is eligible for the rebate.
Can This Be Combined With State Schemes?
Yes — this subsidy can be combined with state battery incentives, such as the NSW Battery Booster incentive under the NSW Peak Demand Reduction Scheme.
The Western Australian government will also launch the WA Residential Battery Scheme on 1 July 2025.
How EnergyAE Can Help
Get in touch with EnergyAE if you would like more information about battery rebates. We can assist with rebate calculations and registering your battery to the approved battery lists for all Australian incentive schemes (Federal, NSW, and WA).