You’re not alone if you’ve felt the pinch every time your power bill lands in the mailbox. With rising energy prices and the cost of living biting harder than ever, many Australians are looking for ways to cut costs and future-proof their homes.
Enter the federal government’s new solar battery rebate—a game-changer for households keen to save money, boost their home’s value, and do their bit for the planet.
This rebate, announced as part of the 2025 federal budget, is significant in Australia’s journey towards net-zero emissions by 2050.
While a whopping one in three Australian homes already has solar panels, only a tiny fraction—about one in 40—have installed a battery. That’s about to change dramatically.
From 1 July, eligible households can score a 30 per cent upfront discount on the cost of a solar battery. That’s not just a few dollars off—it’s a significant saving that could put thousands back in your pocket over the years.
And it’s not just about your wallet: by storing your solar energy, you’ll help ease pressure on the grid and support Australia’s clean energy goals.
How much could you save?
Let’s get down to brass tacks. According to James Hetherington, chief executive officer of Solar Battery Group, the savings are nothing to sneeze at.
If you’ve got a five-kilowatt solar system and add a 10-kilowatt battery, you could slash your reliance on the grid by 60–80 per cent. Today’s electricity prices in your bank account are around $2,300 yearly.
And the best part? The savings start showing up from your first bill—no need to wait months to see the benefits.
Lower energy costs also mean more disposable income, a welcome relief in these tough economic times. Research shows that even a $100 drop in annual energy costs can reduce mortgage default risk by over 2 per cent.
Unlike state-based schemes that make you jump through hoops or wait for a rebate after installation, the federal scheme is refreshingly simple. From 1 July 2025, your accredited installer will apply the 30 per cent discount right at the point of sale.
You’ll see the savings on your invoice, and the installer will claim the rebate from the government later. There will be no paperwork nightmares or waiting for a cheque in the mail.
The scheme is national, uncapped, and percentage-based, with one battery per household limit. It’s also not means-tested, so it’s open to many Australians—owner-occupiers, landlords, and even small businesses connected to the grid.
Can you double-dip with state incentives?
Here’s some good news: the federal rebate is designed to be ‘stackable’ with existing state incentives.
So, if you live in Victoria, New South Wales, or Western Australia, you can combine the 30 per cent federal discount with your state’s rebate or loan, just as long as the total support doesn’t exceed the installed cost of your battery.
Who’s eligible—and what should you watch out for?
Eligibility is broad, but there are a few key points to remember. You’ll need to install an approved battery (between 5 and 100 kilowatts) through a Clean Energy Council-accredited installer.
Retrospective claims on existing batteries aren’t allowed, so you must install a new system to qualify.
And don’t worry—taking the federal rebate won’t cancel out your state incentive. However, as with any new government scheme, it pays to read the fine print and ask questions.
What should you ask before you buy?
With interest in solar batteries surging, focusing on price alone is tempting. But Hetherington suggests asking more thoughtful questions: What’s your evening energy usage? What’s the warranty on the battery? Can your system join a virtual power plant (VPP)?
If you’re new to VPPs, here’s the scoop: a VPP connects household batteries into a network, allowing you to share surplus energy with your community and even get paid for it.
It’s a win-win—balancing supply and demand on the grid, and putting a few extra dollars in your pocket.
What size system do you need?
The right battery size depends on your nighttime energy use and the capacity of your solar panels. Most families will need a 10-kilowatt battery, which, after the rebate, could cost as little as $5,000.
The key is ensuring your battery can store all the energy your panels generate, so nothing goes to waste.
Thanks to the new rebate, the payback period for a solar battery has shrunk dramatically.
Most households can expect to recoup their investment in three to four years, well within the typical 10-year product warranty and long before the battery’s expected 15-year lifespan.
As with any big purchase, it pays to do your homework. Start by understanding your power usage and current solar generation.
Check the Clean Energy Council’s approved suppliers and products list, and always use a certified installer. The government’s energy website is a treasure trove of guides and resources to help you confidently make the switch.
Beyond the bills: What else can a battery do for you?
The benefits of a solar battery go well beyond saving money. You’ll enjoy blackout resilience, the ability to join a VPP and earn credits, readiness for electric vehicle charging, a higher property value, and a lower carbon footprint.
Energy-efficient homes also tend to fetch higher prices when it’s time to sell—a nice bonus for any property owner.
And let’s not forget the lifestyle perks: sustainable homes often feature better ventilation, smarter orientation, and improved comfort all year round.
Is now the right time to act?
Australia has set an ambitious goal of net-zero carbon emissions by 2050, and every household has a part to play.
Residential buildings account for nearly a quarter of all electricity use and over 10 per cent of total carbon emissions in Australia.
By switching to solar and battery storage, you’re not just saving money—you’re helping protect our beautiful country from the worst impacts of climate change.
Plus, the full 30 per cent rebate won’t last forever—it will taper down each year until 2030. With winter bills looming and demand for installers set to spike, now’s the time to get your ducks in a row and make the most of this generous incentive.
Have you already switched to solar or installed a battery? Are you considering taking advantage of the new rebate? We’d love to hear your experiences, tips, and questions in the comments below!
Also read: Electric, gas, or solar hot water systems—what’s best for your home?
