Federal Labor Unveils $2.3 Billion ‘Cheaper Home Batteries Program’ to Supercharge Energy Independence
In a move that’s being hailed as a game-changer for Australia’s clean energy future, the Albanese government has announced a bold $2.3 billion national initiative aimed at dramatically increasing the uptake of home battery storage. The Cheaper Home Batteries Program, officially revealed on Sunday, is being described by some industry insiders as “the most important development in consumer energy since rooftop solar.”
So, what’s the big deal? Let’s break it down.
What Is the Cheaper Home Batteries Program?
This new federal scheme is the first of its kind in Australia—a nationwide policy designed specifically to make battery storage more accessible and affordable for homes, businesses, and even off-grid properties. The program will provide significant rebates to help reduce the upfront costs of installing a battery system, potentially saving thousands of dollars per installation.
How Much Can You Save?
The rebate will be calculated at $370 per kilowatt-hour (kWh) of battery capacity. For example:
- Tesla Powerwall 2 (13.5 kWh) → Up to $4,995 rebate
- 5 kWh battery → Around $1,850 rebate
- 50 kWh battery (for businesses/community groups) → Up to $18,500 rebate
These rebates apply to battery systems installed alongside solar panels, whether you already have solar or are installing both at the same time.
Who’s Eligible?
Good news—this program is not means-tested. That means every household, regardless of income, can apply. Each household can claim the rebate once, and the scheme also extends to small businesses and community organisations with a higher capacity limit (up to 50kWh rebate, on systems up to 100kWh).
Already have a battery? No problem. You can still claim the rebate if you’re adding more storage. Planning to install soon? If you hold off until July 1, you can also qualify—just make sure your installer is Solar Accreditation Australia certified and your battery is both CEC-accredited and VPP-ready.
Off-Grid? You’re In Too
In a welcome move, the program includes off-grid households. This is a major step forward for regional and remote Australians relying on standalone systems.
Off-grid expert Nic Stone praised the move, calling it “a good time to build a decent Aussie-made off-grid storage and PV system… and a good time to ease that diesel gen set into a gentle retirement.”
What Are the Rules?
To qualify for the rebate:
- The battery must be installed with solar—either already existing or installed concurrently.
- The battery must be VPP-compatible to participate in grid services.
- Products and installers must meet strict Australian standards and be accredited by the Clean Energy Council.
There’s no minimum size requirement, but rebates max out at 50kWh per application. Businesses can install larger systems—up to 100kWh total—while still receiving the rebate for the first 50kWh.
When Does It Start?
The program is set to launch on July 1 and will be integrated into the Small-scale Renewable Energy Scheme (SRES)—the same successful framework that has helped over 4 million Australian homes install rooftop solar. Like solar rebates, the battery rebate will gradually decrease through to 2030, in line with expected reductions in battery costs.
Final Thoughts
This program marks a significant step toward empowering Australians to take control of their energy use and costs. With solar and battery storage becoming more accessible, homes and businesses can look forward to lower power bills, greater energy independence, and a cleaner, more resilient grid.
Ready to go solar + battery? Now is the time to explore your options before the July 1 launch.