Understand Labor’s $2.3 Billion Home Battery Program

 


Australia is moving rapidly toward renewable energy, and the federal government is taking big steps to support this transition. One of the most significant developments in 2025 is Labor’s announcement of a $2.3 billion Cheaper Home Batteries Program aimed at making home battery storage more affordable and accessible for Australian households.

If you’re considering adding a solar battery to your home or upgrading your current system, this could be a game-changer. Let’s explore everything you need to know about the labor’s home battery promise, including eligibility, benefits, and how it ties into existing solar battery rebate schemes.

What Is the Cheaper Home Batteries Program?

The Cheaper Home Batteries Program, introduced by the Albanese Labor government, is a federal initiative that aims to subsidise the cost of solar batteries for up to one million Australian homes. With a total investment of $2.3 billion, the program seeks to support households in storing clean solar energy and using it when the sun isn’t shining.

Key Highlights:

  • Launch date: 1 July 2025 (pending election outcome)

  • New SRES-style rebate based on battery capacity (similar to STCs)

  • Rebate value: $370 per usable kWh of battery storage

  • Covers battery systems between 5kWh and 50kWh per household

  • Applies to usable capacity only, not total capacity

  • Approved battery list required

  • Labor claims a typical household could save roughly $4,000 on an 11.5 kWh battery.

  • Installation must be done by an approved CEC-accredited installer

  • Available to all Australians, with no income threshold

  • On-grid systems must be VPP-capable (but not necessarily VPP-connected)

  • Off-grid systems are also eligible

  • Households can only claim once – no rebates for upgrades or second batteries

  • Systems installed now but connected after July 1 still qualify

  • Rebate will phase down over time, similar to STCs (likely until 2030)

Read More: Understand Labor’s $2.3 Billion Home Battery Program

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