Federal Battery Subsidies

🌞 What Is the Federal Battery Subsidy?

The Cheaper Home Batteries Program is a national initiative rolled out by the Federal Government in mid‑2025. It’s designed to bring down the upfront cost of installing household battery storage systems by roughly 30%, making them now far more affordable. This federal support is claimed through your accredited installer, which lowers your upfront cost when the system is installed rather than requiring a later rebate claim.

Unlike traditional flat rebates, this federal program ties the discount to the usable capacity of the battery, which is measured in kilowatt‑hours. For example:

• In 2025, the subsidy was worth about $372 per usable kWh (capped at 50 kWh), meaning a typical 10 kWh battery could attract around $3,720 in savings.
  
  
• The exact value gradually steps down each year to reflect the program’s budget and market conditions.

How Federal Battery Subsidies Are Powering Energy Savings 

Australia is currently the world leader in rooftop solar, and before this program, only 1 in 40 households had installed batteries, due to the high upfront costs.  In recent years, Australia has taken a big step toward reducing household energy costs and boosting renewable electricity uptake by subsidising home battery storage. These subsidies, particularly the federal Cheaper Home Batteries Program, are reshaping how residents think about solar power and batteries. Since these subsidies were introduced, 1 in 24 households have a battery connected to their solar PV system. The benefits speak for themselves. Whether you’re on the fence about batteries or ready to install, these subsidies mean this could be the most cost‑effective time yet to invest in clean energy storage in Australia.

🏡Benefits of the Federal Battery Subsidy to Households

Lower energy bills - Batteries allow you to store excess solar power during the day and use it later when electricity from the grid is more expensive, reducing annual power costs.

Grid resilience - Broad uptake of batteries helps ease peak demand on the grid, which can reduce price spikes and improve reliability.

Faster payback - With combined federal and state incentives, the typical payback period on an installed battery system can be shortened significantly compared with doing so without support.

Environmental impact - More battery storage means smoother integration of renewable energy, helping Australia meet emissions and clean energy goals.

How to Access the Battery Discount

There are two ways to receive support under the Cheaper Home Batteries Program:

• Through government‑issued Small‑scale Technology Certificates (STC), used to reduce the upfront cost of a home battery system by turning part of the installation into a tradable certificate that has monetary value
• You can check how many STCs you are entitled to by using the CER’s Solar battery STC in the form calculator - See further guidance about the 1 May 2026 changes to STCs. 

✔️ Through accredited installers/retailers

• Contact your choice of an accredited installer and/or solar battery retailer for information about installing a battery system.
• The installer/retailer will either offer an upfront reduction on the cost of the battery or a rebate after installation.
• If you have concerns about receiving your discount, contact the Clean Energy Regulator

✔️ Directly through the REC Registry

• You can decide to forego the discount offered by retailers/installers and claim the discount directly by creating and trading STCs through the REC Registry.
• If you wish to claim STCs directly, make sure you do not assign the right to create STCs to the installer/retailer.
• Small-scale technology certificates can be traded via the Clearing House or the open market.
• The CER provides more information about creating and selling STCs

🤝 Upcoming Changes to the Program

On 13 December 2025, the Australian Government announced it would expand the Cheaper Home Batteries Program from its original estimates of $2.3 billion to an estimated $7.2 billion over the next four years. Subject to regulations being made, two adjustments will be made to the discount and will come into effect from 1 May 2026. It is expected to see more than 2 million Australians install a battery by 2030, delivering around 40 gigawatt hours of additional storage capacity. This change is accompanied by proposed program adjustments to ensure the discount remains appropriate for small, medium and larger battery systems.

The proposed changes will help ensure:

• The discount remains at around 30% for a range of batteries across battery sizes
• The discount aligns with falling battery costs over time
• The government can continue to support battery installations throughout the program's duration.

The Program Partners with Other Schemes

The program is a national scheme with broad eligibility. This is intended to complement other Commonwealth, state and territory incentives. Support under local programs will depend on the requirements set by state and territory governments.

This means people could be eligible for support under multiple schemes. Seek advice from the state or territory government to understand eligibility requirements and if they are compatible with the program. Households can also receive discounted finance for home upgrades under the Household Energy Upgrades Fund (HEUF).

Steps to Investing in a Battery

There are approximately 77 different battery systems available on the Australian market today, so it’s important to research both the company and the system to ensure you get the best deal. Every home has unique energy needs, and the capacity you require depends on several factors: whether you’re connected to the grid, if your area is prone to blackouts, whether you work from home, how many hours you use electricity, and whether you own an electric vehicle. All of these considerations should be taken into account when investing in a home battery.

1. Research what battery system would best suit your needs
2. Make sure the battery is the appropriate size
3. Ensure the retailer/installer provides relevant information
4. Select a reputable retailer and installer.

🔋 Get on board and take advantage of the Federal Battery Subsidies. Contact the team at Innovate Energy for professional solar battery installation on 1300 512 325  and see how easy it can be.

 

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