Labor’s Home Solar Battery Rebate Explained
As part of its 2025 federal election campaign, the Labor Party has proposed a new rebate to help more Australians access solar battery storage. Known as the Cheaper Home Batteries Program, this $2.3 billion initiative would subsidies 30% of the cost to purchase and install a home battery system. If you’re considering a solar battery for your home or business, here’s how the rebate is expected to work, what it could save you, and what steps you can take now to prepare.
How the Cheaper Home Batteries Program Would Work
The rebate is set to launch on 1 July 2025, and would form part of the existing Small-scale Renewable Energy Scheme (SRES). The SRES already provides financial support for households that install renewable energy systems like solar panels or batteries.
Labor’s proposal goes a step further by expanding access to include community facilities and small businesses — not just homeowners. In addition, battery systems installed before 1 July would still be eligible for the rebate, provided they are not switched on until after the program begins.
This gives some flexibility for those looking to take advantage of early installation while still qualifying for support under the new rebate.
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How Much Could You Save?
The rebate is based on the amount of usable energy storage in your battery. Under the proposal, households would receive $372 per kilowatt-hour (kWh) of usable battery capacity, before any admin or processing fees are deducted.
For example, if you install a 10kWh battery system, the rebate would come to $3,720, helping significantly lower your upfront investment.
| Battery Brand (Capacity) | System Cost (Approx.) | Rebate Estimate |
|---|---|---|
| Enphase (5kWh) | $10,300 | $1,860 |
| Sigenergy (8kWh) | $8,800 | $2,976 |
| SolarEdge (9.7kWh) | $13,400 | $3,608 |
| Sungrow (12.8kWh) | $11,200 | $4,762 |
| Tesla Powerwall 2 (13.5kWh) | $15,500 | $5,022 |
Estimates are based on average installation costs as of June 2025. Actual savings may vary depending on your location, installer, and any additional fees.
Which Battery Systems Will Be Eligible?
To receive the rebate, your battery system and installer must both be approved by the Clean Energy Council (CEC). This ensures compliance with safety standards and eligibility for government-backed energy incentives.
The program will apply to batteries with a minimum usable capacity of 5kWh, with the rebate capped at 50kWh. However, you can still install a larger system — up to 100kWh — if you need more storage, though only the first 50kWh would be subsidized.
Another important requirement is that your battery must be capable of connecting to a Virtual Power Plant (VPP). While you won’t be required to participate in a VPP, your system must support the option.
What Should You Do If You’re Thinking About a Battery?
Although the rebate depends on Labor winning the election and won’t officially launch until July, there’s already growing interest among households looking to install batteries. Experts are expecting a surge in demand after the election, especially if the policy is implemented.
To avoid delays or the risk of using lower-quality installers during a busy period, now is a good time to start gathering quotes and comparing systems. Make sure you work with a Clean Energy Council-accredited installer, and choose a battery that suits your energy usage, household size, and long-term energy goals.
Labor’s Cheaper Home Batteries Program could make solar storage significantly more affordable for many Australians, reducing upfront costs and supporting the transition to renewable energy.
Whether or not the policy moves ahead, now is a smart time to do your research. With the right system and the right advice, you can take advantage of existing rebates — and potentially be well-placed to benefit from any new ones.
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