Understanding the new Australian Government Cheaper Home Batteries Program (2025 Battery Grant)
- Electrical Sensations
- Jun 4
- 5 min read
Updated: 7 days ago
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
The battery system must have a capacity between 5 kWh and 100 kWh
The battery and inverter must be on the Clean Energy Council list of approved products
What about off-grid systems?
Single units or multiple batteries can be installed
Must be installed by a Solar Accreditation Australia (SAA) accredited battery installer
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
Environmental Benefits
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.
Comments