A solar battery can be a godsend for generating your own electricity and slashing your bills, but it doesn’t come cheap. Installation can cost many thousands of dollars and take years to pay off.
The federal government’s current battery rebate, which cuts the price of installation by around 30%, definitely makes the idea of installing a battery more appealing, but the complex question of whether it suits your home, power usage and budget can still cause your brain to blow a fuse or two.
Six reasons to consider buying a battery now
To weigh up the big price tag versus the benefits, the pros versus cons, we spoke to industry experts about the key factors at play – from free electricity hours to falling feed-in tariffs and more – and why now might be the best time to jump on the battery bandwagon.
1. The government rebate has reduced battery prices
Launched in July 2025, the federal government’s rebate – officially known as the Cheaper Home Batteries Program – has substantially cut the cost of installing a battery in your home or small business.
The rebate is based on the battery’s usable capacity up to 50 kilowatt hours (kWh) and currently offers a maximum discount of $336 per kWh. Once you subtract admin charges, that’s around $300 per kWh.
I’d be surprised if there’s ever going to be a rebate that’s this generous ever again
Finn Peacock, SolarQuotes founder
So, on a typical 10kWh battery, you’ll score a handy $3000 upfront reduction, which is more than 30% off the usual price. Go even bigger with a 40–50kWh battery system and with economies of scale, the discount gets closer to 40–50%.
“I’d be surprised if there’s ever going to be a rebate that’s this generous ever again,” says Finn Peacock, founder of SolarQuotes, Australia’s most-visited solar website. Since 2020, CHOICE has partnered with SolarQuotes, a service that provides high-quality quotes for you from vetted installers.
SolarQuotes founder Finn Peacock. Image: SolarQuotes.
“Obviously battery retail prices will come down every year, just like solar panels have, but the value for money on a good battery system right now [with the rebate] is phenomenal.”
To learn more about the rebate and estimated battery payback periods by state, check out our guide.
.
Why we've partnered with SolarQuotes
We've partnered with SolarQuotes to help you find and buy the right solar, battery, heat pump and EV charger. While we make money if you use SolarQuotes to find an installer, this doesn't influence our ratings. 100% of the money we make goes directly back into our nonprofit mission.
2. The rebate decreases every six months
Not surprisingly, the rebate’s been running red-hot since launch, with the government reporting that over 160,000 home batteries have been installed across Australia since July.
To cope with demand, the government announced in December 2025 that the program’s initial estimated budget of $2.3 billion would increase to $7.2 billion across the next four years.
But to make it last, the government has introduced new rebate rates and conditions, effective from 1 May 2026.
The changes will see the rebate’s value (measured in Small-scale Technology Certificates, aka STCs, which are the same ‘credits’ applied to solar panels) now decrease every six months rather than annually, and at a higher rate than initially planned.
According to our friends at SolarQuotes who’ve done the maths, the estimated ‘per kWh’ rebate rate will now be:
Jan–April 2026: $336 per kWh
May–Dec 2026: $272 per kWh
Jan–Jun 2027: $228 per kWh
Jul–Dec 2027: $208 per kWh
Jan–Jun 2028: $184 per kWh
Jul–Dec 2028: $164 per kWh
Jan–Jun 2029: $144 per kWh
Jul–Dec 2029: $124 per kWh
Jan–Jun 2030: $104 per kWh
Jul–Dec 2030: $84 per kWh
From 1 May, the rebate amount will also depend on the battery size you choose, switching from a flat discount per kWh to a tiered rate system. The new rebate rates are:
Small battery: 0–14 kWh capacity: Rate applied at 100%.
Medium: 14–28 kWh capacity: Rate applied at 60%.
Large: 28–50 kWh capacity: Rate applied at 15%.
As you can see, there’s plenty of reasons (aka dollars) to get a battery now or at least start talking to installers about quotes.
3. Solar panel feed-in tariffs (FiT) are dropping fast
In the past, many people didn’t consider home batteries because firstly, they were very expensive, and secondly, electricity retailers still paid decent feed-in tariffs per kWh for any surplus solar power exported back to the grid.
Five years ago, FiTs averaged around 10–15 cents per kWh, depending on your location and plan.
Not anymore. These days, with so many more people installing solar, FiTs have dropped dramatically.
“[On average], FiT rates have collapsed to 3–5 cents/kWh, with some plans now offering zero cents for daytime exports,” says Richard Foxworthy, CEO of Bill Hero, a savings service that compares utility bills across Australia.
Bill Hero CEO Richard Foxworthy. Image: Bill Hero.
With FiTs flatlining, keeping that surplus power in a home battery suddenly looks a lot more attractive.
“A battery allows you to capture and store the excess kWh that otherwise would be exported at very low FiT rates,” says Richard.
“You can then use that electricity later to avoid buying expensive peak-time grid power which will cost 35 cents or more. The financial opportunity for the battery is in the spread between the high price you avoid paying and the low FiT price that you forgo earning.”
4. Some electricity retailers now offer free day-time power
With electricity generation high and demand low during the day, several retailers are now giving customers free electricity during certain time periods around midday (note: supply charges still apply).
This means you can juice up a home battery for free during this window (in addition to storing your own solar power through the day) and use it later that night.
Free power might sound amazing, but Finn warns it does come with some serious provisos.
Some retailers now offer free electricity time periods during the day.
“The trade-off for the free electricity is that they usually charge you with a higher daily usage fee and certainly a higher evening peak rate,” says Finn.
“If you have a big battery, that’s okay as you can easily cruise through [night time without needing power from the grid]. But if you’ve got, say, a 10–15kWh battery, you may find that you’re emptying your battery fairly regularly and then paying those higher grid prices.”
Free power might sound amazing, but Finn warns it does come with some serious provisos.
Expect to see more of these free electricity windows soon when the government’s new Solar Sharer Scheme comes into play on 1 July. In a bid to lower power bills and ease peak demand in the evening, the scheme requires retailers to offer all residential customers at least three hours of free electricity during the day.
Initially, the scheme will be available in states covered by the Australian Energy Regulator’s Default Market Offer (DMO) price cap, so NSW, South Australia and South-East Queensland. Customers must opt in via their plan and have a smart meter installed.
With the rebate inspiring unprecedented demand, wait times for reputable solar installers can be quite lengthy, so if you’re keen, it’s best to join the queue sooner rather than later.
“A six-week to three-month backlog is not unusual at the moment,” says Finn.
“I would get a quote sooner rather than later and then expect it to get installed within like… three months would be reasonable. Get in the queue. You can do your research while you wait and then choose the system you want.”
Form an orderly queue… many solar installers currently have a backlog.
At the same time, he says it’s vital not to rush into things without doing your homework.
“If you’re treating it as super urgent and you do it in a hurry, you’re much more likely to make a bad decision and be tempted by the slick marketing and low prices. Don’t make price your only criteria.”
This one’s so obvious, we almost didn’t include it but solar needs sun to run and summer’s got plenty of it. If you can install a battery soon, you’ll get a head start in reducing your bills and paying it off.
Storing up some of that ample sunshine will also spare you from paying peak grid prices for power-hungry summer appliances, like air conditioning and pool/spa pumps, as well as the usual culprits like fridges, freezers, ovens and electric hot water systems.
Jason Treuen is a Content producer and editor at CHOICE. Previously at CHOICE, he worked as a Content specialist and Audience engagement editor.
Find Jason on LinkedIn.
Jason Treuen is a Content producer and editor at CHOICE. Previously at CHOICE, he worked as a Content specialist and Audience engagement editor.
Find Jason on LinkedIn.
For more than 60 years, we've been making a difference for Australian consumers. In that time, we've never taken ads or sponsorship.
Instead we're funded by members who value expert reviews and independent product testing.
With no self-interest behind our advice, you don't just buy smarter, you get the answers that you need.
You know without hesitation what's safe for you and your family. And our recent sunscreens test showed just how important it is to keep business claims in check.
So you'll never be alone when something goes wrong or a business treats you unfairly.
