Solar home batteries discount: Everything you need to know

With the return of the Albanese Government, its commitment to support one million new battery installations by 2030 will help enable cheaper, cleaner and more reliable energy for households, small businesses and your local community.

The government has now announced the key details of its $2.3 billion Cheaper Home Batteries Program, launching on 1 July 2025.  

So, if you’re thinking about making the switch to a solar battery system or adding a battery to your existing solar system, now is the perfect time to start planning.

What is the Cheaper Home Batteries Program?

Here’s what the government has announced so far:

From 1 July 2025, households and small businesses will be able to access a federal government discount when they add a battery to a new or existing solar system. The discount is expected to reduce the installed cost of a typical battery by around 30%.  

While the discount applies to batteries installed from 1 July, demand for new batteries is already surging - so it’s a good idea to get in the queue now.  

When can I install solar batteries to get the discount?

The discount is expected to apply to battery systems that are installed on or after 1 July 2025 (with an existing or new solar system).  

The program won’t be means tested either, but the discount amounts will reduce over time. So, getting a battery sooner may save you more.

What are the benefits of a home battery?

Solar panels on your roof help you harness the sun’s energy when it’s shining, but without a battery you’ll need to rely on the grid once the sun sets. 

A home battery helps store the extra energy your solar panels collect, so you can use it at night or on cloudy days – reducing your reliance on the grid and lowering your bills.

The Federal Government estimates households and small businesses can save up to around $2,300 on their energy bill each year by installing solar and a battery for the first time. If you already have solar panels, the same analysis estimates adding a battery can save you an additional $1,100 annually.

See how much you could save by moving to solar.

Keep in mind, every circumstance is different so make sure you do your research to work out if a battery makes sense for you.

How much could I get back from the Cheaper Home Batteries Program and how do I apply?

Your discount amount will depend on the battery system you’re installing. 

Discounts will be provided for up to 50kWh of battery capacity, initially offering expected rebates of around $372 per kilowatt-hour (kWh) (minus admin fees).  

Compare batteries now – speak to our sales team to discuss your discount eligibility and final pricing.  

You don’t need to apply. If you meet the eligibility criteria, you’ll receive an automatic discount upfront through your installer. 

What are the eligibility criteria for the discount?

While the final eligibility rules have not been published yet, here is a summary of the initial government guidance:

• You must be a homeowner or small business owner
• Your battery must be Virtual Power Plant (VPP) ready – but it doesn’t have to be connected to a VPP
• The battery must be installed on or after 1 July 2025
• You must use a Solar Accreditation Australia (SAA) approved installer and Clean Energy Council (CEC) approved battery and inverter
• The battery must be paired with a new or existing solar system – stand-alone batteries will not be eligible
• The battery must be between 5kWh and 100kWh in nominal capacity (but the discount will be provided for up to 50kWh of the battery’s usable capacity)
• Only one battery installation per premises is eligible for the discount
• An eligible battery system could include a single battery unit, or a system of modular battery units connected to serve as one battery unit.  To be eligible, the combined capacity of the system needs to be at least 5kWh (even if the individual units are smaller) and not exceed 100kWh in nominal capacity.
• Battery capacity that is added to an existing battery system is also eligible for a discount for the additional capacity (provided the existing system has not previously received a discount under the system.) The additional capacity must be at least 5kWh nominal capacity and the total system size after the upgrade must not exceed 100kWh.

What about the current ​NSW rebate? Can I claim both?

It is uncertain whether you’ll be able to claim the NSW Government’s Peak Demand Reduction Scheme rebate and the Cheaper Home Batteries Program rebate together. The NSW government should release more information in the coming months. 

Take a look at other rebates available in your state now. 

Make the switch today

As an SAA-approved installer offering great deals on solar panels and eligible home batteries, at AGL we can help you reduce your energy costs and contribute to cleaner energy in Australia.