Sick of watching your solar panels work overtime while the grid pockets your leftover power?
Or perhaps you've been considering a home battery, but you're concerned about big upfront costs?
Well, your solar SOS has finally been heard. The federal government launched its new rebate, the Cheaper Home Batteries Program, in July 2025.
It makes buying a battery easier and more affordable, with a hefty saving on the cost of a battery for your home, small business or community group space.
On this page:
- How much will the solar battery rebate save you?
- Battery costs after the rebate
- How long does a battery take to pay itself off?
- Electricity savings and payback periods with rebate
- Additional state and territory battery schemes
- How Virtual Power Plants can reduce your bills
How much will the solar battery rebate save you?
Commonly called the solar or home battery rebate, the new incentive translates to a discount of around 30% off the purchase and installation of a home battery system that pairs with solar panels.
The rebate is based on the battery's usable capacity (up to 50kWh) with a maximum saving of $372 per kWh. Once you subtract admin charges, that's more like $330 per usable kWh.
So, for a typical 10kWh battery, you'll score a handy $3300 upfront reduction on purchase and installation. Like the solar panel rebate, the battery discount decreases every year and is currently set to end in 2030.
Our solar partners SolarQuotes explain the government's new incentive.
Not surprisingly, the rebate has been running red-hot since its launch, with the government's Clean Energy Regulator reporting that over 40,000 batteries have been installed since 1 July this year.
To be eligible for the rebate, the battery must:
- be installed after 1 July 2025
- have a nominal capacity of 5–100 kWh, although the rebate only applies to the first 50 kWh of usable capacity
- be installed alongside new or existing rooftop solar
- be on the Clean Energy Council (CEC) approved list
- be fitted by an installer accredited by Solar Accreditation Australia
- be capable of joining a Virtual Power Plant (VPP) if it's an on-grid system (though actual participation is optional)
- be claimed once per property – however, if you own multiple properties, you can get separate discounts for each.
Note: The federal government's separate solar panel rebate only applies to the panels in the installed system, not the battery. However, you can apply for both discounts together, plus applicable state or territory incentives, to really supercharge your savings.
Battery costs after the rebate
Costs vary significantly for solar home batteries, but generally, the bigger the battery capacity, the more you can expect to pay.
Since the launch of the federal rebate, the 'average' size of batteries being installed has increased dramatically, with a battery closer to 20kWh quickly becoming the new norm.
Here are typical battery costs (after the federal rebate) for common sizes, including basic installation. Prices are based on information from our solar partners, SolarQuotes.
- 10 kWh storage: $7,000–$11,000 installed
- 15 kWh storage: $11,000–$15,000 installed
- 20 kWh storage: $14,000–$19,000 installed
- 30 kWh storage: $18,000–$22,000 installed
Keep in mind, a more complicated installation will bump up costs considerably, given architectural and technical factors can increase the time, work and components a job requires. See our guide to finding a good solar installer.
Why we partner with SolarQuotes
Since 2020, CHOICE has partnered with SolarQuotes, Australia's most-visited solar website, to help you find trusted installers. They provide high-quality quotes from vetted suppliers and back it with their 'good installer guarantee'. While we make money if you buy through them, 100% of it goes straight back into our nonprofit mission.
Why we partner with SolarQuotes
Since 2020, CHOICE has partnered with SolarQuotes, Australia's most-visited solar website, to help you find trusted installers. They provide high-quality quotes from vetted suppliers and back it with their 'good installer guarantee'. While we make money if you buy through them, 100% of it goes straight back into our nonprofit mission.
How long does a battery take to pay itself off?
It's a tricky question and one that depends on multiple factors including your solar/battery set-up, energy consumption and, most vitally, electricity costs and additional rebates in your state or territory, which can vary a lot.
For a long time, home batteries didn't make complete economic sense. They were relatively expensive and the payback time was often longer than the battery's warranty period, which is typically 10 years.
But with the new federal rebate promising a discount of around 30%, the maths is looking a lot more attractive, depending on the aforementioned factors.
The federal rebate offers a discount of around 30% off an installed battery. Credit: SolarQuotes.
Electricity savings and payback periods with rebate
Calculating your own possible payback period can be mind-boggling, but thankfully our friends at SolarQuotes have shared this helpful general guide comparing electricity savings and simple payback periods (with the rebate) by state and territory.
| Capital city | Annual electricity savings | Simple payback period |
|---|---|---|
| Adelaide | $1350 | 6.3 years |
| Brisbane | $1100 | 7.7 years |
| Canberra | $700 | 12.1 years |
| Darwin | $620 | 13.7 years |
| Hobart | $410 | 20.7 years |
| Melbourne | $610 | 13.9 years |
| Perth | $1120 | 7.6 years |
| Sydney | $1030 | 8.3 years |
*Using only federal rebate and $8500 installed cost. Based on estimated overnight electricity consumption of 7kWh.
Additional state and territory battery schemes
As well as the federal initiative, here are the current battery-focused rebates or loan schemes available by state and territory. These can be combined with the federal rebate for greater savings.
ACT: Sustainable Household Scheme
Canberra locals can access a low-interest loan (currently 3%) from $2000 to $15,000 for home energy improvements, including household batteries, electric heating and cooling systems, hot water heat pumps, EVs and more.
Over the scheme's lifespan, you can install one product or several products from the list of eligible products – together, these can be valued at up to $15,000. Zero-interest loans are available to eligible concession card holders under the Home Energy Support Program.
NSW: Virtual Power Plant (VPP) Incentive
From 1 July 2025, the NSW government has increased the incentive to up to $1500 to encourage more households and small businesses to install a battery and connect to a Virtual Power Plant. The incentive varies by the size of the battery and can be combined with the federal battery rebate.
Additional rebates may be available depending on your state.
Northern Territory: Home and Business Battery Scheme (closed)
NT homeowners, businesses and not-for-profit organisations can apply for a grant to buy and install batteries and inverters. Grants can be used to buy solar panels too, but must be paired with a battery.
Eligible applicants can access a grant of $450 per kilowatt hour of usable battery system capacity, up to a maximum grant of $6000. Homeowners that own a business can apply for both their home and business.
Note that the funding cap for this scheme has been reached and it is closed for new grants. Stay tuned for updates in case this changes.
South Australia: Home Battery Scheme (closed)
Offering up to $6000 off a battery, South Australia's HBS was one of the earliest and most successful battery programs, but sadly ceased in 2022. Instead, the state government has focused on its emPowering SA program, which employs 18 much-larger community batteries to lower residents' electricity bills.
Queensland and Tasmania: None
Tasmania and Queensland don't currently have their own dedicated battery rebate schemes. However, households can still claim the new federal rebate and benefit from VPP programs offered through energy retailers like Reposit, Amber and others.
Victoria: Solar Homes Program
This program is currently not taking applications, but keep an eye on it to see if more become available in future. Previously, it offered interest-free loans to purchase home batteries. If you're considering installing solar panels, rebates of up to $1400 plus interest-free loans for the same amount are still available.
Western Australia: Residential Battery Scheme
This incentive allows residents to get a rebate and no-interest loan to purchase and install a home battery.
On a 10kWh battery, applicants are eligible for a combined rebate of $5000 for Synergy customers and $7500 for Horizon Power customers. This is in addition to the federal rebate.
No-interest loans of up to $10,000 are also available to households with a combined annual income of less than $210,000. Loan repayment periods will be up to 10 years.
To receive a battery rebate and/or no-interest loan through the scheme, eligibility requirements apply, including participation in a Virtual Power Plant (VPP).
How Virtual Power Plants can reduce your bills
A Virtual Power Plant (VPP) is a network of solar and battery systems owned by homes and small businesses, centrally controlled by a computer system run by the VPP operator company.
By joining a VPP program, you agree to make the stored energy in your home battery available to the VPP operator, who can then use it to supply the grid in times of high demand.
In return, you're paid an ongoing subsidy, which might come in the form of reduced energy bills, a rebate towards buying the battery, or even free solar and battery installation.
In a wider sense, VPPs also reduce demand on the grid, which makes the state's energy supply more stable and less prone to outages, and it reduces the price of electricity for everyone (it's also better for the environment).
By joining a VPP program, you agree to make the stored energy in your home battery available to the VPP operator ... in return, you're paid an ongoing subsidy
Keep in mind, though, that joining a VPP program won't always guarantee that your battery pays for itself, and that not all battery types can connect to one.
Additionally, it can mean that your own battery runs low at night time when you need it the most, due to the VPP having taken some of the stored energy earlier that day.
There are various Virtual Power Plant programs in most states that can help reduce the cost of a battery. SolarQuotes maintains a list of current VPP programs.
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