The Federal Government has proposed a new solar battery rebate aiming to reduce household energy costs, promote renewable energy, and support climate goals. It’s important to note that this policy will only be put in place if the Labor Government is re-relected this May. Here’s everything you need to know:
When can the batteries be installed?
Batteries installed from today onwards will be eligible. You can install your battery now, and simply switch it on after July 1 to qualify.
Is the rebate available for off-grid installations?
Yes, off-grid installations qualify, and importantly, off-grid batteries do not need to be Virtual Power Plant (VPP)-enabled.
What if I've already got a battery?
You can expand your existing battery system; however, the rebate can only be claimed once per household.
How much is the rebate per kWh?
The rebate is approximately 9.3 Small-scale Technology Certificates (STCs) per kWh, decreasing slightly each year. For example, the maximum rebate for a 50kWh battery would be around $18,000.
How does the rebate scheme work?
The scheme is funded by the Federal Government, purchasing battery eligable STCs to stabilise battery prices. It requires your battery to be connected to solar and, if grid-connected, it must be VPP-compatible.
How do I know if I'm eligible?
All Australian households with solar are eligible. There’s no income means testing, and no cap on installations. Each household can claim only once, but you can install a battery up to 100kWh, with rebates covering between 5kWh and 50kWh.
What if the Labor government isn’t elected?
The rebate policy is already budgeted but is contingent on the election outcome. If Labor isn't elected, the policy may not proceed.
Should I be doing anything right now?
Yes—act swiftly. Install your battery now if you can. You can document the installation with photos, register the system, and simply switch it on after July 1. Chris Bowen has urged homeowners to contact installers soon, anticipating high demand. Just like the solar STCs the amount you can claim will reduce every year on January 1st.
Why should I act now rather than later?
Demand is expected to surge following the rebate announcement, potentially leading to supply chain delays. Securing your installation now and placing a deposit guarantees your spot and avoids delays. Plus the STCs will reduce each year.
Where will the bottleneck be?
The main bottleneck will likely be the supply chain, given increased demand. It's strongly advised to book your installation now, with a deposit, to ensure you don’t miss out.
Is it means-tested based on income?
No. There are no income restrictions or means-testing criteria attached to this rebate.
Can businesses benefit from this?
Yes. Businesses can install larger battery systems and benefit from the instant asset write-off before June 30, and then claim the battery rebate from July 1 onwards.
Are there specific battery requirements?
Batteries must be connected to a solar system. Grid-connected batteries must be VPP-enabled, but off-grid batteries have no VPP requirement. The rebate is based on usable battery capacity, not nominal capacity.
If I’m in NSW, can I claim both the NSW Government rebate and the Federal rebate?
Yes, you can claim both the NSW state rebate and the Federal rebate, as long as each program's criteria are met. Check specific details with your installer to confirm your eligibility for both rebates.
Will you still be eligible for the rebate if you buy one of our Off Grid Solar Dispatch systems?
Yes! All systems installed by certified installers with qualifying batteries are eligible. Note the offgrid qualification is additional to the solar and battery qualifications more common in our industry.
Regulatory information:
The solar battery industry is strictly regulated by the Clean Energy Regulator (CER), the Australian Competition and Consumer Commission (ACCC), and state energy providers, ensuring safety and quality.
Stay tuned for further updates following official announcements but we recommend giving us a call ASAP to get a quote and start the ball rolling!
Links for further information:
https://www.theguardian.com/australia-news/2025/apr/05/labor-targets-cost-of-living-and-climate-with-23bn-household-battery-pledge
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