Anxious homeowners, installers, and retailers need not wait any longer for official details of the federal battery rebate. The Department of Climate Change, Energy, the Environment, and Water has provided key details about the Cheaper Home Batteries program, which will deliver $2.3 billion in incentives to relieve the cost of battery installation from 1 July 2025.
What is the Cheaper Home Batteries program?
Announced during Labor’s re-election campaign, the Cheaper Home Batteries program will support households and small businesses with the cost of adding small-scale batteries to an existing or new solar system.
The program’s aim is to:
- Reduce the upfront cost of installing a new battery for all eligible households and small businesses – no means test will be applicable
- Reduce the cost of electricity for all Australians, whether they install a battery or not
As Australia forges ahead with its net-zero goals, small-scale battery storage plays an integral role in reducing emissions and strengthening electricity infrastructure.
Official details of the federal battery rebate
From 1 July 2025, eligible Australians can receive a 30% discount on the upfront cost of installing a home battery system. The discount is delivered as Small-scale Technology Certificates (STCs) through the Clean Energy Regulator, under the expanded Small-scale Renewable Energy Scheme (SRES).
How STCs will work
Each eligible battery system will receive:
- 9.3 STCs per kWh of usable capacity (in 2025)
- Capped at 50kWh of usable capacity
- Valued at around $372 per kWh, assuming $40 per STC
So, a 10kWh system could receive an estimated $3,720 discount in 2025. The number of STCs, and their value, will decrease each year until the program wraps up in 2030. For example, a 10kWh system in 2030 will receive a discount of up to $1,880. The sooner you take advantage of the scheme, the greater the discount.
| Year | Estimated Value per kWh (kilowatt hour) | STC Factor |
| 2025 | $372 | 9.3 |
| 2026 | $336 | 8.4 |
| 2027 | $296 | 7.4 |
| 2028 | $260 | 6.5 |
| 2029 | $224 | 5.6 |
| 2030 | $188 | 4.7 |
It is important to note that the STCs are valued up to $40 each. Your installer may provide an upfront discount less than this value per STC. This might be due to:
- Market fluctuations: STCs vary in value
- Installer purchase price: Installers rarely sell the STCs on the open market, instead opting to sell their STCs to a broker or trader. This will mean that your installer will likely receive less per STC, thus reducing your discount.
Homeowners and small businesses can sell their own STCs instead of assigning them to an installer. However, it involves registering with the Clean Energy Regulator, creating the certificates, and finding a buyer, typically a broker or trader.
While selling independently could fetch up to $40 per STC, most people receive slightly less after brokerage fees. For example, a 10kWh battery (about 93 STCs) might return $3,255–$3,534 after costs, often less than the instant discount offered by your installer.
For most Australians, the admin and delays aren’t worth the marginal gain.
Who and what is eligible?
Battery systems must:
- Be between 5kWh and 100kWh in nominal capacity
- Be installed on or after 1 July 2025 (batteries installed from 6 April 2025 may still be eligible as long as the battery has not been commissioned)
- Be installed with existing or new solar PV
- Comply with AS/NZS 5139:2019 and the Best Practice Guide: Battery Storage Equipment
- Be installed by or supervised by SAA-accredited installers
- Be listed on the Clean Energy Council (CEC) approved product list
Consumers must also receive:
- Written statements on installation safety and expected energy savings
- Compliance documents to meet state/territory regulations
Extra notes worth knowing
- Only one battery rebate per premises is allowed under the program
- Batteries must be VPP-capable if installed on-grid (but you don’t have to join a VPP)
- Off-grid systems are eligible too, no VPP capability required
- Adding capacity later to a rebated battery system won’t attract another discount
What about businesses?
Small businesses are just as eligible as households, provided they install a compliant battery system and meet the same criteria.
State and territory programs
You can stack this rebate with other state incentives, where available. Each state has its own rules, so eligibility may vary.
A smart step towards cheaper, cleaner energy
The Cheaper Home Batteries Program is a game-changer for households and small businesses ready to store solar power and cut bills. With generous rebates, fewer upfront costs, and growing support for battery tech, now’s the time to get prepared.
Start talking to a trusted installer, check your solar setup, and get battery-ready before the program kicks off on 1 July 2025. Energy Matters can kick this process off for you; get up to 3 FREE quotes for batteries or solar and battery systems. Follow the link below and get started today.
