What the rebate is

• It’s a national discount program launched by the Australian Government on 1 July 2025 to support uptake of home (and small-business/community) battery storage systems paired with solar.
• It is delivered via the existing Small‑scale Renewable Energy Scheme (SRES), by allowing battery systems to create Small-Scale Technology Certificates (STCs), similar to rooftop solar.
• The Government has allocated around A$2.3 billion to the program.

Key numbers & how much you can save

• The discount is roughly 30% off the upfront cost of a qualifying battery system.
• The rebate is calculated on the usable capacity of the battery, up to a cap: The first 50 kWh usable capacity is eligible.
• Maximum rebate value (2025): up to about A$372 per usable kWh. After accounting for admin fees, real savings closer to ~$330 per usable kWh.
  • Example: a 10kWh usable battery could get a rebate of ~10 × $330 = ~$3,300.
• The rebate will gradually decline each year through to 2030.

Who is eligible / key conditions

• Eligible for homeowners (owner-occupiers & landlords), small businesses and community facilities.
• The battery system must have a nominal capacity between 5 kWh and 100 kWh, but only first 50kWh of usable gets the rebate.
• Must be paired with a new or existing rooftop solar PV system (on-grid) to qualify.
• The system must use equipment approved by the Clean Energy Council (CEC) product list and installed by an installer accredited via Clean Energy Regulator
• For on-grid systems, the battery must be “VPP-capable” (Virtual Power Plant) though actual participation is optional.
• The rebate is not means-tested (income doesn’t restrict eligibility).
• Make sure commissioning (certificate of electrical compliance) happens on or after 1 July 2025 for eligibility – if battery was “switched on” before that, it may not qualify.
• The rebate can usually stack with state/territory battery incentives, depending on local scheme rules. So you should check what your state offers and how it interacts.

How the rebate is accessed

• Good news! Those wishing to access the rebate need not apply. This is all done through your accredited solar installer.
• You should ensure to select battery brands and systems that are CEC-approved, the installer accreditation (SAA) is in place, and you document everything properly (certificates, compliance, etc).

Further Considerations

• Because the rebate declines year-on-year, there is an incentive for consumers to act sooner rather than later.
• Sizing matters: If a customer has solar but small capacity, installing a too-large battery that won’t get fully utilised may reduce ROI.
• Ask your installer about compliance, safety standards (AS/NZS 5139, etc), and how they document installations. The regulatory regime expects traceability.

SolarQuotes has some really good information on this which helps existing solar owners decide what they can do that you can read here.

 Finn Peacock has a great video you can watch here.

How can it stack with other incentives?

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. 

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.