Understanding the new Australian Government Cheaper Home Batteries Program (2025 Battery Grant)
- Electrical Sensations
- Jun 4
- 5 min read
Updated: Jun 9
If you've been thinking about getting a home battery to store your excess solar power, we've got some very exciting news! The Australian Government has officially announced the release of the Cheaper Home Batteries Program (CHBP), which will offer a substantial discount on the upfront cost of home battery systems starting 1 July 2025.
Savings Breakdown
How much is the 2025 battery rebate/grant/incentive?
The discounts are calculated through something called Small-scale Technology Certificates, or STCs. Don't worry about the technical name - what's important is that these certificates translate into tangible savings. When you install an eligible battery system, you automatically earn these certificates based on how much energy your battery can store. The government then buys these certificates from you (technically from the STC broker), which creates your discount. Here's how it works:
For every kWh of battery storage you install, you earn 9.3 certificates (as of May 2025)
Each certificate is worth about $40 (as of May 2025). That's roughly $372 in savings per kWh of usable battery storage - less STC broker admin fees.
Battery system usable capacity | Approximate discount (2025) | Number of certificates (2025) |
10 kWh | $3,700 | 93 |
15 kWh | $5,500 | 139.5 |
25 kWh | $9,300 | 232.5 |
50 kWh | $18,600 | 465 |
PLEASE NOTE: These figures are estimates only and will vary. The Australian Government has made it clear that this discount rate is only for 2025 and will gradually reduce until the scheme ends in 2030. STC broker admin fees will be deducted from the grant amount.
Your installer will subtract the discount amount directly from your bill, so you pay less money upfront.
Why?
What's the point of the Cheaper Home Batteries Program (AKA the 2025 Battery Grant)?
The government wants to encourage more Australian families and small businesses to install home batteries by making them cheaper to buy. Rather than creating a completely new system, they've decided to expand the existing Small-scale Renewable Energy Scheme (SRES).
This approach makes sense because the SRES has a proven track record. It's been helping Australian families and businesses install solar for years, and now it will do the same thing for batteries. The main goal is to remove the biggest barrier to getting a home battery, which is the high upfront cost.
The program also supports bigger picture goals like using more clean energy, making our electricity grid more stable, and helping families become more energy independent.
Eligibility & Requirements
Who Can Get This Discount? The program is designed for regular Australian households and small businesses. The rules are fairly straightforward, but there are some important things to know.
You must have solar panels (new or existing)
This can be solar panels you already own, or new solar panels installed at the same time as your battery. The solar system needs to be under 100kW, which covers virtually all home systems and many small businesses.
One battery system per premises
Each home or business can only get the discount/grant once. This means you need to think carefully about what size battery system will work best for your family's needs now and into the future as well, because you won't get a second chance at the discount if you want to upgrade later.
The battery system must have a capacity between 5 kWh and 100 kWh
The program supports battery systems ranging from small (5 kWh) to very large (100 kWh). However, the government discount only applies to the first 50 kWh of storage capacity.
The battery and inverter must be on the Clean Energy Council list of approved products
Both your battery and its inverter must appear on the Clean Energy Council's approved product lists at the time of installation. The CEC lists ensure all equipment meets strict Australian safety and performance standards, protecting you from substandard products that might be unsafe or unreliable. The lists are regularly updated, so it's important to verify your chosen equipment is still approved when you're ready to install.
What about off-grid systems?
Both on-grid (connected to the electricity grid) and off-grid systems (not connected to the electricity grid) are eligible for the battery grant. There are specific requirements that apply to off-grid systems to be eligible.
Single units or multiple batteries can be installed
You can install one large battery, or several smaller batteries that work together as a system. Some families prefer multiple smaller units because they can be installed in different locations or added to over time (though remember, you only get the CHBP grant once).
Must be installed by a Solar Accreditation Australia (SAA) accredited battery installer
Your battery system must be installed by professionals who are accredited by both the Clean Energy Council and Solar Accreditation Australia. This ensures your installer has the proper training, qualifications, and insurance to safely install battery systems. The installation must also comply with all relevant Australian standards and local safety regulations.
Important Dates and Timeline
1 July 2025 - Program officially starts
You can't fully install a battery and claim the discount before this date. You can start planning and getting quotes now and even have the installation started prior to 1 July. The battery just can't be fully installed/commissioned before 1 July to get the grant.
2030 - Program end date
At this stage, the program is scheduled to continue until 2030. However, like the existing solar rebate program, the discount amount will gradually decrease each year on 1 January.
This means the earlier you install your battery system, the bigger your discount will be. If you're thinking about getting a battery, it makes financial sense to do it sooner rather than later.
Long-Term Benefits Beyond the Discount
While the upfront discount is significant, there are other benefits to consider when considering investing in a home battery.
Energy Independence
A home battery reduces your reliance on electricity from the grid, particularly during expensive peak pricing periods. Many Australians find this gives them more control over their electricity costs, greater energy security and certainty of supply.
Backup Power
Home batteries can provide backup electricity during power outages, which is particularly valuable if you work from home, have medical equipment that requires power, or simply want to keep your family comfortable during blackouts. Not all battery set ups can provide power in a blackout though, so if that's something that is important to you, make sure you mention that to the designer at the quote stage.
Environmental Benefits
By storing and using more of your solar power at home, you're reducing your family's carbon footprint and supporting Australia's transition to cleaner energy.
Making Your Decision
The Cheaper Home Batteries Program presents a valuable opportunity for Australian families to invest in energy storage with significant government support. While batteries remain a substantial investment, it’s important to consider both the immediate savings and long-term financial benefits. The key to making the most of this grant is partnering with a trusted, local installer who can guide you through the process, helping you choose the right system size, equipment, and installation approach based on your home and goals.
Now is the time to start planning. Reach out to local installers and assess the warranty, quality and reputation of the equipment and the company's customer service and reputation. Investing in a high-quality system upfront will ensure longevity and better returns over time.
Think of it like buying a good pair of boots - a well-made pair may cost more initially, but they last for years, while cheaper ones wear out quickly, costing you more in the long run. The same principle applies to your battery investment.
Finally, beware of pressure tactics in the solar industry claiming that the program is 'ending soon'. While the incentive will reduce gradually each year, the program is in place until 2030, so there’s no need to rush decisions.
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