Australia is moving rapidly toward renewable energy, and the federal government is taking big steps to support this transition. One of the most significant developments in 2025 is Labor’s announcement of a $2.3 billion Cheaper Home Batteries Program aimed at making home battery storage more affordable and accessible for Australian households.
If you’re considering adding a solar battery to your home or upgrading your current system, this could be a game-changer. Let’s explore everything you need to know about the labor’s home battery promise, including eligibility, benefits, and how it ties into existing solar battery rebate schemes.
⚠️ Disclaimer: This information is based on preliminary insights from public interviews and is not official government policy. The Cheaper Home Batteries Program is a proposed policy by the Australian Labor Party and will only be implemented if Labor is re-elected at the next federal election. Please refer to official government sources for final scheme details.
What Is the Cheaper Home Batteries Program?
The Cheaper Home Batteries Program, introduced by the Albanese Labor government, is a federal initiative that aims to subsidise the cost of solar batteries for up to one million Australian homes. With a total investment of $2.3 billion, the program seeks to support households in storing clean solar energy and using it when the sun isn’t shining.
Key Highlights:
- Launch date: 1 July 2025 (pending election outcome)
- New SRES-style rebate based on battery capacity (similar to STCs)
- Rebate value: $370 per usable kWh of battery storage
- Covers battery systems between 5kWh and 50kWh per household
- Applies to usable capacity only, not total capacity
- Approved battery list required
- Labor claims a typical household could save roughly $4,000 on an 11.5 kWh battery.
- Installation must be done by an approved CEC-accredited installer
- Available to all Australians, with no income threshold
- On-grid systems must be VPP-capable (but not necessarily VPP-connected)
- Off-grid systems are also eligible
- Households can only claim once – no rebates for upgrades or second batteries
- Systems installed now but connected after July 1 still qualify
- Rebate will phase down over time, similar to STCs (likely until 2030)
Why Is the Government Investing in Home Battery Storage?
Labor’s focus on home battery storage aligns with their broader renewable energy policies. As rooftop solar becomes more widespread, battery storage helps households use more of their self-generated power instead of relying on the grid.
This program is not only about saving money but also about stabilising the grid during peak times and reducing our national reliance on fossil fuels. It also aims to accelerate the adoption of solar battery storage while helping reduce battery prices through increased market demand.
Eligibility Criteria: Who Can Claim the Solar Battery Rebate?
While the program details are still being finalised, here’s what we know:
Likely Eligibility Requirements:
- Must be an Australian homeowner or occupant of an eligible residence
- Must install an approved solar battery system
- Household income may be capped to prioritise low-to-middle income families
- May require existing solar panel installation to qualify
- Must use a CEC-accredited installer like Isolux Solar
- System must fall between 5kWh to 50kWh usable storage
- Only one rebate per household is allowed
- On-grid systems must be VPP-capable
- No income cap; available to all Australians
How Can This Battery Rebate Save You Money?
Adding a home battery to your solar system lets you store excess energy and use it when electricity rates are highest (like evenings), helping you:
- Slash your energy bills
- Avoid high feed-in tariff losses
- Reduce reliance on the grid
- Gain backup power during blackouts
Example:
If you install a 11.5 kWh battery, the rebate could be $370 x 11.5 = $4,255 in savings. This could bring your system cost down from ~$12,000 to under $8,000.
With electricity savings of $800-$1,000/year, the system may pay for itself in 6–8 years.
This rebate is also expected to help drive down overall battery costs by increasing demand and scale. For context, battery cell prices have dropped from $250/kWh in 2020 to $91/kWh in April 2025, and are expected to decline further.
Can You Claim State and Federal Rebates Together?
Yes, but be aware of potential restrictions. Some states already offer battery rebates. Combining them with the federal rebate (known as “double-dipping”) may be possible depending on how your state structures its programs.
Always consult your local government and your solar provider like Isolux Solar to ensure eligibility and maximise your savings.
Choosing the Right Battery System
There are many high-quality battery brands available in Australia, including Tesla Powerwall, AlphaESS, Sungrow, BYD, and more. When selecting a battery, consider:
- Storage capacity (kWh)
- Warranty period
- Compatibility with your current solar system
- Smart energy monitoring features
If you’re unsure, speak with our expert team at Isolux Solar for a tailored solar + battery package.
How to Get Started
If you’re interested in applying for the new solar battery rebate, here’s how to prepare:
- Install or confirm your existing solar panel system
- Choose a compatible battery system
- Request a quote from a CEC-accredited installer like Isolux Solar
- Track rollout updates before and after 1 July 2025 (pending Labor’s re-election)
Frequently Asked Questions (FAQs)
When will the Cheaper Home Batteries Program start?
The program is expected to start on 1 July 2025, pending Labor’s re-election.
Can renters access the battery rebate?
Details are still emerging, but most rebates will likely apply to homeowners.
Do I need solar panels to qualify for the battery rebate?
In most cases, yes, or you must install them simultaneously.
Final Thoughts
With Labor’s $2.3 billion subsidy, home battery storage is now more affordable than ever. This initiative not only helps you reduce your electricity bills but also gives you energy security, environmental benefits, and long-term financial returns.
Ready to Add a Battery to Your Solar System?
At Isolux Solar, we offer expert solar + battery solutions with $0 upfront cost, tailored for Australian homes and businesses. Our team of CEC-certified professionals can help you choose the best solar battery in Australia for 2025 and guide you through the rebate process.
Go solar. Store more. Save big with Isolux.
