Federal Government To Slash Home Battery Costs by 30%: What You Need to Know

Government Program to Make Home Batteries More Affordable

The Australian Federal Government is launching a bold new initiative to make home energy storage more accessible. Through the Cheaper Home Batteries Program, households may save up to 30% on the purchase and installation of eligible battery systems. These subsidies apply to VPP-ready (Virtual Power Plant-capable) batteries installed alongside either new or existing solar panels. To ensure fair access, each household is limited to one subsidised unit.

Beginning in July 2025, the program will support battery systems with 5–50kWh of usable capacity, opening the door to affordable energy independence for millions of Australians.

How Will the Cheaper Home Batteries Program Work?

This nationwide initiative operates under the Small-scale Renewable Energy Scheme (SRES), which already provides rebates for solar panel installations. Here’s a breakdown of how the new scheme functions:

• Annual Adjustments: Subsidy rates will gradually decrease and are expected to phase out by 2030.

• Eligibility: Residential homes, small businesses, and community facilities can all apply.

• State Integration: The federal subsidy complements state-level programs, though some coordination details are still pending.

• Retroactive Installations: Batteries installed before July 1 may still qualify—if they remain switched off until the program’s launch.

• System Size Limits: Supported systems must fall between 5–50kWh usable capacity, though households may install up to 100kWh if needed.

• VPP Capability: While batteries must be VPP-ready, joining a Virtual Power Plant remains optional.

• Off-Grid Support: The program is also expected to cover off-grid properties.

• Subsidy Value: Approximately $372 per usable kWh, minus any administrative costs.

• Multiple Properties: Property owners can claim subsidies for each eligible installation they own.

• Unlimited Participation: There’s no cap on the number of households that can receive support.

• Electricity Prices: Because the government will purchase SRES certificates, this scheme won’t raise energy prices.

What Can You Save?

Thanks to this program, installing an 11.5kWh battery could reduce upfront costs by around $4,000. Currently, more than 4 million Australian homes already have solar systems in place. As feed-in tariffs continue to decline, more homeowners are looking to battery storage to maximise their solar energy and reduce grid dependence. This program makes that transition significantly more affordable.

Expected Annual Savings

Adding a 13.5kWh battery to your home could reduce electricity bills by $730 to $1,680 per year, depending on your consumption and whether you join a VPP. Moreover, VPP participation can unlock even greater savings by sharing excess power during peak times. Beyond financial returns, batteries offer peace of mind by keeping essential appliances running during blackouts. They also give you more control over energy usage and reduce your reliance on grid power during expensive peak periods.

Broader Community Benefits

Even if you don’t install a battery, the wider adoption of storage systems offers big wins for everyone. Benefits include:

✅ Stabilising the electricity grid
✅ Reducing peak demand, delaying costly grid upgrades
✅ Lowering wholesale energy prices
✅ Absorbing excess solar generation
✅ Supporting renewable energy as coal plants retire

Choosing the Right Battery System

With demand surging, the battery market is full of options—but not all are created equal. Keep the following in mind:

🔹 Brand reputation and warranty coverage
🔹 Compatibility with your existing solar system
🔹 Avoiding high-pressure sales tactics
🔹 Selecting the right capacity based on your energy needs

Taking time to compare providers and read the fine print can help you avoid costly mistakes.

Final Thoughts

The Cheaper Home Batteries Program has the potential to transform how Australians use and store energy. With significant financial incentives and long-term savings, it’s a great time to consider battery storage. However, as with any major investment, doing your research is essential.

Stay tuned for more updates as the July 2025 rollout approaches. Want a free quote or expert advice? Call us today on 1300 054 488 and take the first step toward smarter, more resilient energy for your home.