Labor’s 30% Battery Rebate Explained: How Australian Households Can Save on Energy Bills in 2025
Australia’s energy future is shifting rapidly — and with Labor’s new 30% battery rebate, thousands of households now have a real incentive to invest in smarter, cleaner, and more self-sufficient power solutions. The Cheaper Home Batteries Program, announced as part of a $2.3 billion energy reform package, could be a game-changer for anyone with rooftop solar or considering installing a home battery in 2025.
In this blog, we break down exactly how the rebate works, who qualifies, what battery size fits your needs, and how to maximise your savings while reducing reliance on the grid. Whether you already have solar or are exploring your first solar-and-battery setup, this guide answers your most important questions.
What Is Labor’s Battery Rebate and How Does It Work?
Labor’s Cheaper Home Batteries Program offers a 30% upfront discount on the cost of a home battery for eligible households, small businesses, and community facilities. This initiative is designed to accelerate battery adoption across Australia and improve the way energy is consumed and stored at the household level.
This federal battery rebate, valued at $2.3 billion, aims to encourage the installation of battery storage systems that can help shift solar energy use from the middle of the day to the evening peak demand period. In doing so, it reduces stress on the grid, helps households lower their power bills, and supports the broader renewable energy transition.
Why 2025 Is the Perfect Year to Install a Battery
Thanks to rising electricity prices and plummeting battery costs, 2025 presents the perfect storm of opportunity for energy-conscious Australians. With a battery rebate now available, installing a solar battery has never been more financially viable.
Households with existing rooftop solar can benefit most by adding a battery system to store excess solar power generated during the day. This stored energy can then be used during the evening, reducing dependence on the grid and slashing electricity costs.
For those installing new solar, combining it with a battery will lead to the highest possible savings and energy independence.
Who Is Eligible for the Cheaper Home Batteries Program?
The eligibility criteria for the Cheaper Home Batteries Program are fairly straightforward:
- The applicant must be an Australian household, small business, or community facility.
- The property must have new or existing rooftop solar.
- Only one battery rebate will be available per eligible property.
- The battery must be part of an approved list of models and installed by a certified installer.
Even if you’ve already installed solar panels, you can still claim the rebate when adding a compatible battery system.
What Battery Size Do You Need for Your Household?
You don’t need a massive battery to make a real difference. According to energy experts and data from the Smart Energy Council, a 6 to 7 kWh battery covers the evening energy needs of over 90% of Australian homes.
Larger households may consider a 10 to 11.5 kWh battery, especially if they use power-hungry appliances or want longer backup during outages. The goal is to size your battery storage so that it matches your daily usage and solar generation capacity.
Some systems even allow you to expand later with “stackable” battery modules, giving flexibility to grow as your energy needs change.
How Much Will a Home Battery Cost in 2025?
Thanks to increasing global adoption, battery costs continue to fall. In 2025, the cost of a typical installed battery system ranges from $4,000 to $10,000, depending on capacity and brand.
With the 30% upfront battery discount, that could mean a $3,000 rebate on a $10,000 system, significantly reducing the upfront cost. The absolute value of the discount will vary, but households can expect to see meaningful savings on high-quality systems.
Most packages also include a solar inverter, which manages energy flow between your solar panels, battery, and home. It’s important to get quotes from multiple installers and choose those accredited under the Small-scale Renewable Energy Scheme.
What Are the Benefits of Adding a Battery to Your Solar System?
Adding a home battery unlocks multiple benefits:
- Lower Power Bills: Store your own solar energy and use it at night, reducing grid usage.
- Greater Energy Independence: Protect your household from volatile electricity prices.
- Increased Resilience: Use your battery during blackouts or grid failures.
- Cleaner Energy Use: Maximise the impact of your solar power and reduce fossil fuel dependency.
- Participate in Virtual Power Plants: Some states offer programs that connect household batteries into a shared network that supports the grid.
Plus, as solar feed-in tariffs drop, it’s smarter to store your solar than sell it back at low rates.
How to Claim the Rebate and Get Started
Here’s a simple checklist to get the rebate:
- Check Eligibility: Make sure your home or business qualifies.
- Choose a Battery System: Select a compatible battery storage solution.
- Find a Certified Installer: Get quotes and installation plans from approved professionals.
- Apply for the Rebate: Submit your application through the official Cheaper Home Batteries Program portal.
- Install and Save: Once approved, your battery rebate is applied upfront, reducing the cost immediately.
Look for local incentives or battery incentives that might stack with this federal rebate for even more savings.
What This Policy Could Mean for the Grid and Power Prices
Experts believe the widespread adoption of household batteries could reshape Australia’s energy grid. By reducing peak demand, batteries alleviate the need for expensive infrastructure upgrades.
According to modelling by energy experts, one million new battery installations could save $1.3 billion in wholesale power prices annually. This means even Australians without batteries will benefit from a more stable and affordable energy market.
The policy is not just a cost-saving tool — it’s a climate resilience strategy and an infrastructure investment rolled into one.
Battery Rebate vs Solar Feed-in Tariffs: Which Offers Better Value?
As solar feed-in tariffs continue to decline, the economics increasingly favour storing energy instead of exporting it. With solar panels producing excess power during the day, a battery system ensures you get full value by using your own energy later.
The battery rebate offsets the cost of installing a battery, while feed-in tariffs are based on market conditions. In 2025, the battery strategy offers more control and predictability.
Can You Go Off-Grid with a Battery?
While most households won’t fully disconnect from the grid, it is possible with large battery storage systems and solar power setups. However, the primary benefit remains reducing your reliance on the grid and ensuring backup during outages.
With smart energy management, even a standard kWh battery system can keep your fridge, lighting, and internet running during a blackout.
Future Outlook: 1 Million Batteries by 2030
The goal of one million new battery installations by 2030 is ambitious but achievable. With cost trends, technology improvements, and stronger battery incentives, Australia is on track to become a world leader in energy storage.
This shift will not only empower households, but also support small businesses and community facilities, all while helping Australia meet its clean energy targets.
Key Takeaways
- The Cheaper Home Batteries Program offers a 30% upfront battery rebate to eligible households.
- In 2025, installing a home battery is more affordable than ever, with costs starting as low as $4,000.
- Adding a battery system improves energy independence, resilience, and savings on your power bill.
- The rebate applies to homes with new or existing rooftop solar.
- Battery storage plays a key role in reducing peak demand and stabilising the grid.
- Going off-grid is possible but not required to benefit from the federal battery rebate.
- By 2030, Australia aims to install one million new batteries, strengthening its renewable energy infrastructure.
Ready to claim the rebate and take control of your home energy future? Now’s the time to install a battery and invest in smart, clean, and cost-effective energy for years to come.
