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Australian Battery Rebate Scheme: What You Need to Know

Thinking about a solar home battery? The new Australian Battery Rebate Scheme could save you $365+ per usable kWh of battery capacity installed. This government initiative helps homeowners store excess solar energy, cut electricity bills, and support Australia’s renewable energy future. Find out how the rebate works, who’s eligible, and why now is the perfect time to act.

Quick Summary (TL;DR): The federal government is offering a battery rebate to help Australians store solar energy at home. This rebate is part of the existing SRES scheme (running since 2011) and gives you about $365+ per usable kilowatt-hour (kWh) of battery capacity installed. To qualify, your battery must be installed by a certified on-grid battery installer.

Why Does This Rebate Exist?

To understand this new battery rebate, it helps to know a little about how Australia got here.

Back in 2001, the government created the Renewable Energy Target (RET). Its goal was to encourage cleaner electricity by replacing coal and gas (our main sources of power) with renewable energy like solar, wind, and hydro.

At the time, renewables made up less than 5% of Australia’s electricity. To fix this, the government introduced a clever system:

  • Polluting energy producers (coal, gas, etc.) had to buy certificates to offset the CO₂ they created.

  • Renewable energy producers (like solar farms or rooftop solar owners) earned these certificates as a reward for clean energy generation.

This system made coal and gas a little more expensive while helping to fund renewable energy projects.

By 2015, Australia set a new goal: 33,000 gigawatt-hours (GWh) of renewable energy by 2020. We smashed that target two years early and by 2023, renewables were generating 95,000 GWh a year.

Why Batteries Are the Next Step

This massive growth in rooftop solar created a new challenge:

  • During the middle of the day, there’s now too much solar energy being pumped into the grid.

  • Coal power plants can’t easily shut down and restart quickly, so electricity prices sometimes drop below zero at midday.

The solution? Store excess solar energy in batteries during the day and use it at night when demand is higher.

That’s why the government introduced this battery rebate – to make home energy storage more affordable and speed up the transition to renewables.

How the Battery Rebate Works

Here’s what you need to know:

Rebate Amount: You’ll get about $365 or more per usable kWh of battery capacity installed. (For example, a battery with 10 usable kWh could mean a rebate of $3,650.)

Who’s Eligible:

  • Your battery and inverter must be on the Clean Energy Council (CEC) approved list.

  • The installation must be done by an SAA-approved battery installer.

  • The site must already have solar panels installed.

Important Rules:

  • You can only claim the rebate once per property (so make sure you install the right size battery upfront).

  • There’s a maximum rebate limit for batteries up to 50 kWh per property.

  • The battery system must be VPP-capable (Virtual Power Plant ready).

  • Off-grid homes are eligible if they’re over 1km from the grid or would cost $30,000+ to connect.

How Much Could You Save?

The rebate effectively cuts battery prices by 30–50%. For many households, this makes home batteries much more affordable than ever before.

For example:

  • A 10kWh usable battery that costs $12,000 before rebates could now cost closer to $8,500 after the rebate.

No wonder batteries are selling out fast!

How Long Will the Rebate Last?

The federal government has committed $2.3 billion to this scheme. But once that money runs out, the rebate may be reduced or replaced by a new program.

If you’re thinking about adding a battery to your solar system, it’s best to act sooner rather than later.

Why This Is a Big Deal

Australia already leads the world in rooftop solar, with over 30% of homes having panels. This battery rebate is the next big step in helping households use more of their own solar energy and rely less on the grid.

With cheaper batteries, you can:

  • Store excess solar energy for use at night.

  • Protect yourself against rising electricity prices.

  • Help Australia move faster toward 100% renewable energy.

Thinking About Adding a Battery?

Speak to a certified installer today and check if you’re eligible for the rebate before stock shortages ease later this year.

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