What does the rebate cover?
Under the Cheaper Home Batteries Program, eligible Australian households and small businesses can receive a rebate of up to 50% of the cost of an approved home battery system, with a maximum rebate amount capped at $4,000. This initiative aims to make battery storage more affordable by reducing the upfront investment required to store excess solar energy for use during evenings or outages.
The rebate amount is calculated based on the net cost of the battery system, which includes GST and considers any contributions from Small-scale Technology Certificates (STCs) or Virtual Power Plant (VPP) participation.
The rebate will be whichever is lower: 50% of the net system cost or $4,000.
For example:
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If the total battery system cost is $12,000 (inc. GST and less STCs), the rebate will be capped at $4,000, not $6,000.
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If the system costs $6,000, the rebate will be $3,000 (50% of the cost).
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If the system costs $7,800, the rebate would be $3,900 (as it's under the $4,000 cap).
This rebate will apply to installations that occur on or after 1 July 2025, and may be adjusted in future phases of the program based on uptake and funding availability.
The battery system must meet eligibility criteria, including:
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Usable storage capacity between 5kWh and 50kWh
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Installed by a Clean Energy Council (CEC)-accredited installer
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Use of approved products
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Be VPP-capable to allow for future grid services participation
This program is available to all households and small businesses nationwide, with no income testing required. However, each property or business location is only eligible for one rebate under the program.
By combining this rebate with the ongoing benefits of solar energy, the Cheaper Home Batteries Program enables more Australians to take control of their energy usage, reduce power bills, and contribute to a more resilient, renewable-powered future.