Labor’s Cheaper Home Battery Program Official from July 1

Following Labor's decisive victory in the 2025 federal election, the much-anticipated Cheaper Home Battery Program is now officially set to launch on July 1, 2025.

This $2.3 billion initiative aims to make home battery storage more affordable for Australian households, small businesses, and community facilities, marking a significant step towards the nation's renewable energy goals.

Launch Date: July 1, 2025
Total Funding: $2.3 billion
Administered Through: Small-scale Renewable Energy Scheme (SRES)
‍Eligibility: Households, small businesses, and community facilities
‍Battery Size Eligibility: 5 kWh to 50 kWh (up to 100 kWh for businesses, with rebates capped at 50 kWh)
Rebate Amount: Approximately $370 per usable kilowatt-hour, up to $18,500
‍Requirements: Batteries must be Virtual Power Plant (VPP) ready if grid-connected
Installation Timing: Batteries installed between April 6 and July 1, 2025, are eligible, provided they are not switched on before July 1

Potential Savings:

Upfront Cost Reduction: Approximately 30% off the installed cost of a typical home battery system, equating to around $4,000 in savings

Annual Energy Bill Savings: Up to $1,100 for households with existing solar panels; up to $2,300 for those installing both solar and battery systems, potentially reducing electricity bills by up to 90%

With only 1 in 40 Australian households currently equipped with battery storage, this program aims to significantly increase adoption rates. The government's goal is to facilitate the installation of over one million new batteries by 2030, enhancing energy independence and contributing to the national target of sourcing 82% of electricity from renewables by 2030.

In addition to the federal rebate, various states offer their own incentives:

• New South Wales (NSW): Incentives ranging from $1,600 to $2,400 off the upfront installation cost of a household battery, with additional incentives for connecting to a Virtual Power Plant (VPP)
• Western Australia (WA): Rebates of up to $5,000 for Synergy customers and up to $7,500 for Horizon Power customers, depending on battery size

With the program set to commence on July 1, 2025, interested parties should begin planning their battery installations now to take full advantage of the rebate. Ensuring that batteries are VPP-ready and coordinating with certified installers will be crucial for eligibility.

Other Important Details

• Virtual Power Plant (VPP) capability is required, but you don’t need to join a VPP program to be eligible.
  • A VPP allows your battery to send excess power to the grid — and in return, you may receive credits on your power bill from your energy provider (e.g. Origin, AGL).
• You can double dip if your state offers its own battery rebate (like NSW or WA).
  • Just remember: both rebates only apply to solar-connected batteries.
• Own multiple properties? You can claim the rebate for each one. There’s no cap on the number of batteries if they’re for different properties you own.

How to Beat the Rush:

With demand for batteries set to sky-rocket AusPac Solar highly recommends locking in your battery order sooner than later as competition for installers will be high between July 1 and December 31 2025. The sooner you lock in your battery, the sooner you can have an install date.

For more detailed information and assistance with the application process, visit the official government website or consult with accredited solar energy providers, such as AusPac Solar.

Note: This blog post is based on current information as of May 6, 2025. For the most up-to-date details, please refer to official government announcements and resources.
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Check out our video here, "Are Batteries Worth it?"
In this video, Josh, our Head Electrician takes you through the Pro's, Con's, safety concerns and history of Solar Batteries along with their applications for different homes and businesses: