Cheaper Home Batteries Program: Your Guide to Affordable Energy Storage in Australia
Looking for ways to cut your electricity bills and make the most of your solar panels? The Cheaper Home Batteries Program, rolling out nationwide from July 2025, is set to make home battery storage far more accessible for Australians. This initiative promises a significant discount on battery systems, helping households, small businesses, and community groups store more clean energy and reduce their reliance on the grid. Here’s everything you need to know to get started, make smart choices, and maximise your savings.
What Is the Cheaper Home Batteries Program?
The Cheaper Home Batteries Program is a new government scheme designed to help Australians afford home battery systems. Backed by a $2.3 billion investment, the programme aims to support over one million new battery installations by 2030. If you’re considering adding a battery to your solar setup, this could be the perfect time.
The discount is applied directly through accredited installers, so you won’t need to fill out complicated forms or wait for a rebate. The idea is to make the process as straightforward as possible, encouraging more people to store their solar energy for use when the sun isn’t shining.
Why Consider a Home Battery?
Batteries are more than just a trendy addition to your home—they’re a practical way to save money and increase your energy independence. Here’s what you stand to gain:
- Significant savings: Households with existing solar can save up to $1,100 per year, while those installing both solar and a battery could see savings of up to $2,300 annually. That’s as much as 90% off a typical electricity bill.
- Greater self-sufficiency: Store excess solar power during the day and use it at night, reducing your reliance on the grid.
- Energy security: Batteries provide backup during blackouts and help keep your home running smoothly.
- Support for renewables: By storing clean energy, you’re helping Australia move closer to its target of 82% renewable electricity by 2030.
Solar batteries are becoming an essential part of the modern Australian home, especially as coal power stations retire and the grid becomes more reliant on renewables.
What Will a Battery Cost? How the Discount Works
Home battery systems have become more affordable in recent years, but they’re still a significant investment. The Cheaper Home Batteries Program aims to bring the price down by around 30%, making batteries accessible to many more Australians.
Here’s a look at typical battery prices and how much you could save:
| Battery System | Capacity (kWh) | Installed Cost (2025) | Cost per kWh | Warranty |
|---|---|---|---|---|
| BYD | 13.8 | $12,000 | $870 | 10yrs, 60% |
| Tesla Powerwall 2 | 13.5 | $15,500 | $1,150 | 10yrs, 70% |
| Sungrow | 12.8 | $11,200 | $875 | 10yrs, 60% |
| Enphase | 5.0 | $10,300 | $2,060 | 15yrs, 60% |
| Sigenergy | 8.0 | $8,800 | $1,100 | 10yrs, 70% |
With the new scheme, you’ll receive a discount of about $370 per kWh of usable battery capacity. For example, an 11.5 kWh battery would attract a discount of roughly $4,000. This discount is applied upfront, so you pay less from the start. The rebate will gradually reduce each year until 2030, reflecting expected drops in battery prices.
You can often combine this federal discount with state or territory incentives, which can make batteries even more affordable.
Who Is Eligible?
The program is open to a wide range of Australians, including homeowners, renters (with landlord approval), small businesses, and community facilities. Here are the main requirements:
- The battery must be between 5 kWh and 100 kWh in size (the rebate applies to the first 50 kWh).
- You need to have a solar PV system, either already installed or being installed at the same time.
- The installation must be carried out by a Clean Energy Council (CEC) accredited installer.
- Your battery must be capable of connecting to a Virtual Power Plant (VPP), but you’re not required to join one.
- Each property can claim one rebate, but you can claim for multiple properties if you own more than one.
There’s no means test, so the scheme is open to all eligible households and businesses.
How to Apply: Step-by-Step
Getting started is simple, but it pays to be organised. Here’s how to make sure you don’t miss out:
- Get quotes early: Contact CEC-accredited installers and request quotes for your battery system. Installer demand is expected to be high, so booking early is a smart move.
- Check your eligibility: Make sure your property, solar system, and chosen battery meet the criteria.
- Install solar if needed: If you don’t already have solar panels, consider installing them alongside your battery.
- Let your installer handle the paperwork: The installer will apply the rebate directly to your invoice, so you only pay the discounted price.
- Timing matters: If your battery is installed before 1 July 2025, it must not be switched on until after this date to qualify for the rebate.
State and Territory Incentives
Many states and territories offer their own battery incentives, which can be combined with the federal rebate for even bigger savings. Here’s a quick overview:
| State/Territory | Incentive Type | Typical Value | Notes |
|---|---|---|---|
| Victoria | Interest-free loans | Up to $8,800 | Repaid over 4 years |
| NSW | Upfront discount + VPP | Up to $2,400 + $400 | For VPP connection |
| Tasmania | Interest-free loans | $500–$10,000 | Repaid over 3 years |
| ACT | Interest-free loans | $2,000–$15,000 | For eligible households |
Check with your local government or energy authority for the latest details, as incentives can change.
Tips for Making the Most of Your Battery
Choosing the right battery and setup can make a big difference to your savings and satisfaction. Here are some practical tips:
- Pick the right size: Match your battery size to your household’s energy use and solar generation to avoid over- or under-sizing.
- Quality matters: Stick with CEC-approved products and installers to ensure safety, performance, and warranty protection.
- Consider joining a VPP: Virtual Power Plants can offer extra savings and payments for sharing stored energy with the grid.
- Book early: With demand set to surge, securing your installer and installation date as soon as possible is wise.
- Monitor your system: Use apps or monitoring tools to keep an eye on your battery’s performance and savings.
Frequently Asked Questions
Can I add a battery to my existing solar system?
Yes, as long as your system and battery meet the eligibility criteria.
Is the rebate means-tested?
No, it’s open to all eligible households and businesses.
Can I combine this with state rebates or loans?
Yes, in most cases you can stack federal and state incentives.
What if I install before July 2025?
You’ll need to wait until after 1 July 2025 to switch the battery on to qualify for the rebate.
How long will the program run?
The rebate will gradually reduce each year and is set to finish in 2030.
Key Takeaways
- The Cheaper Home Batteries Program starts in July 2025 and offers around 30% off the installed cost of eligible home batteries.
- Households with solar and a battery could save up to $2,300 per year on electricity bills.
- The scheme is open to all eligible households, small businesses, and community groups—no means test required.
- Batteries must be installed by CEC-accredited installers and be VPP-ready.
- Federal and state incentives can often be combined for even greater savings.
- Early action is recommended, as installer demand will be high.
- Batteries help you use more of your solar power, provide backup in blackouts, and support Australia’s renewable energy future.
About Us
Class A Energy Solutions is a successful industry leader in solar sales, design and installation. Based in Glenunga in the Eastern foothills of Adelaide, Class A has completed thousands of solar installations across Australia, especially here in our local South Australia.
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