How Labor’s Battery Rebate Can Save Aussies Thousands

Australia’s federal government has rolled out a $2.3 billion Cheaper Home Batteries Program to help households install battery storage. Announced after Labor’s election win, the rebate scheme officially starts on July 1, 2025. In practice, you can even buy a battery now – just make sure it’s only switched on after July 1 – and still claim the rebate. The aim is to let homeowners “time-shift” their rooftop solar: storing sunshine by day and using it in the evening, reducing reliance on the grid and trimming power bills. ANU energy researcher Marnie Shaw calls it "a huge opportunity" – likening a battery to a rooftop rainwater tank that captures power for use later.

Who can get the rebate?

The scheme isn’t means-tested: any household (or small business/community centre) can qualify. It covers homes with existing solar PV or new solar-plus-battery installations. In other words, if you’re adding a battery to your solar system (or buying both together), you’re in. The government describes it as a 30% discount off the battery’s cost (capped by size, up to 50 kWh). For example, if a battery’s retail price is $10,000, the rebate could shave roughly $3,000 off. (Technically this sits on top of other rebates: many states offer their own battery incentives, so you can usually “double-dip” with state schemes.)

In short, the rebate is open to homeowners with solar (or planning to get solar) and even small businesses or community groups (sports clubs, town halls, etc.). However, there’s a catch for renters and lower-income households. So far the scheme targets those who can install panels and batteries on their own roof. As commentators note, many renters and low-income owners feel left out of this package. (The Greens did campaign for a special solar-battery deal for renters, but that isn’t in this program.)

Why install a home battery?

There are lots of upsides to a home battery if you have solar. First, it cuts power bills. By charging from your own solar panels during the day and using that energy in the evening, you avoid buying expensive peak-time electricity from the grid. In some cases the savings can be huge: government modelling suggests a household with solar and a new battery could slash its electricity bill by up to $2,300 a year. (Even without a new solar system, a battery and existing panels can save about $1,100 a year.)

Batteries also offer backup power. If the grid goes down, a battery can keep your lights on for hours or even days. As one expert puts it, having a home battery is “like putting a rainwater tank on your house to capture power and then have it on tap when you need it.” This was showcased in recent storms (like ex-Tropical Cyclone Alfred) when self-powered homes stayed lit even during multi-day outages.

Beyond your own roof, many experts highlight a nationwide benefit: household batteries help stabilise the grid. If millions of homes had batteries, they could cut peak demand and even feed power back into the grid during crunch times. One modelling study found that with a million home batteries installed, wholesale power prices could drop by about $1.3 billion per year. Lower peak demand also means we’d need fewer expensive grid upgrades. In fact, if battery systems and even electric cars are coordinated through virtual power plants (VPPs), we might require far less new infrastructure overall. The Smart Energy Council is bullish that unleashing these distributed batteries could even “displace coal” and accelerate Australia’s shift to renewables. In short, more home batteries can mean cheaper, cleaner power for everyone.

Top home battery brands and models

Which batteries are worth considering? A recent SolarQuotes survey of installers picked a few favourites. Here are some key models and what the rebate might do for you. I've included a button for each battery brand that links to more reviews of each battery, and if you want, you can get free online quotes for each battery brand:

These examples assume a 50% STC price – actual rebate can vary a bit with market prices. Also remember installation costs: installers say a battery job typically adds roughly $2,000 overhead. For context, a 13–14 kWh battery system might cost ~$12–$14K all up (installed) before rebates. With the 30% rebate knocking ~$4K off and maybe another $2K from your state, your net cost could easily land in the mid-$7K to mid-$10K range.

How much could you save?

In summary, Labor says the rebate will average about a $4,000 discount on a home battery. Add any state help and that’s even more. For example, with a $10,000 battery you’d pay only about $6,000 after the 30% rebate. Then factor in yearly bill savings: as noted, an average solar home with a new battery might shave around $1,100–$2,300 off its power bill each year, depending on your solar setup.

Of course, every home’s situation is different. The financial sense of a battery depends on how much power you use and when. For many Aussie households, though, even a small battery (6–7 kWh) can cover most evening needs. The Smart Energy Council found that a 6 kWh battery could handle the peak evening load for over 90% of homes, meaning you wouldn’t need to go “completely off-grid” with a huge system – just enough to let you sip your own solar rather than gulp from the grid.

Impact on the grid and bigger picture

It’s not just your own bill that benefits. If lots of homes add batteries, the national grid gets some breathing room. In the evening, when people come home and solar panels stop producing, a glut of batteries can supply energy without turning on peaker plants. This flattens those demand peaks. Analysts say this could cut wholesale price spikes: for instance, 1 million home batteries might save about $1.3 billion each year in wholesale power costs. Lower peaks also mean less need for expensive new poles and wires, and overall power prices could fall a bit because the market won’t have to cover such high-peak margins.

There’s also the growing trend of Virtual Power Plants (VPPs). Under the scheme, any subsidised battery must be VPP-ready. That means with the right software, your battery could in future push power back to the grid during a critical event. In fact, one expert points out that all our rooftop solar combined already exceeds the output of Australia’s coal fleet. If coordinated through VPPs, homes could supply power during blackouts – like sending power from your home’s battery into the grid if needed, adding resilience and maybe even earning you some credits in future networks.

By the government’s modelling, this battery rollout could see over 1 million new home batteries by 2030 (up from about 320,000 now). That’s a big jump – but industry is already gearing up, and demand has been reported as “unbelievably strong.”

Renters and community batteries

One obvious issue: What about renters or people who can’t afford a battery? The national rebate mostly helps homeowners who can install on their roof. Critics note that renters and low-income households risk being left out. Community batteries are one way to bridge that gap. These are bigger batteries placed in a neighbourhood or street. Local households (even renters) can draw from them, usually paying a small fee. The government has already funded some community battery projects in recent years. Experts stress these are crucial for fairness: you don’t need to own a home to participate in a community battery scheme. In other words, renting in an apartment or terrace wouldn’t stop you from accessing shared solar storage.

That said, details on expanding support for renters are still unfolding. Some policies may arrive later once the energy minister finalises the rules. For now, if you can’t install a home battery yourself, keep an eye on emerging community projects – and hope your state or local council offers something.

Bottom line

The Cheaper Home Batteries Program is designed to make it much more affordable for Australians to add storage to their solar setups. In practical terms, from July 1 you can cut roughly 30% off the upfront cost of a new battery, meaning a typical 13 kWh system might only cost $7–$9K plus install after rebates. The payoff comes in years of lower power bills, plus the security of backup power. If enough of us join in, it could even help tame electricity prices nationwide.

On the flip side, renters and low-income households might not see direct benefit from this scheme – a point flagged by advocates. It remains to be seen whether the government introduces extra measures for them. Meanwhile, community batteries offer one promising avenue for broader access.

In summary, the upcoming battery rebate could be a game-changer for Aussie homes with solar. It’s worth running the numbers for your own house: talk to a solar installer or use online solar and battery calculators to see how much a battery could save you. As one expert put it, this policy could “change Australia” by empowering everyday households to manage their energy smarter – and that’s a sunny prospect for everyone.

Article information source 1: What is the home battery subsidy? Who is eligible, when does it start and what are the benefits of a battery?

Article information source 2: The Best Batteries To Buy With Labor’s Rebate (And What You’ll Save)