Money

Explained: How home batteries and the Cheaper Home Batteries rebate work

Explained: How home batteries and the Cheaper Home Batteries rebate work

Australia already leads the world in rooftop solar. Now home batteries are taking off, helped by a Federal Government discount. Here’s how they work, how the rebate works, and whether one makes sense for you.

Australia has the highest rate of rooftop solar in the world, with panels on more than a third of houses. But solar only produces power during the day, while many households use the most electricity in the evening.

A home battery stores excess solar power generated during the day, so it can be used after the sun goes down instead of buying electricity from the grid.

How they save money

Without a battery, excess solar is sent back to the grid, usually earning a small payment called a feed-in tariff, often just a few cents per kilowatt hour. Buying electricity back at night typically costs far more.

A battery lets households use more of their own solar power, cutting their bills. Some batteries also join “virtual power plants”, where an energy retailer can draw on many home batteries to support the grid at busy times, paying households in return.

Batteries can also provide backup power during blackouts, if they’re set up for it.

The Cheaper Home Batteries Program

The Federal Government’s Cheaper Home Batteries Program began on 1 July 2025. It works through the same system of certificates used for rooftop solar. Installers apply the discount upfront, so households don’t have to claim it themselves.

It was designed to cut the cost of an installed battery by around 30%, and it’s available to households, small businesses and community organisations, whether or not they already have solar.

Demand far exceeded expectations, and the Government increased funding to around $7.2 billion. From May 2026, it changed the rules to reduce support for very large batteries. The first 14 kilowatt hours of capacity attract the full discount, with lower support for capacity above that.

The value of the discount is also scheduled to fall each year until the program ends in 2030, on the expectation that battery prices will keep falling.

Some states and territories offer additional rebates or loans.

Does a battery pay off?

That depends on how much solar a household has, how much electricity it uses in the evening, electricity prices, and the cost of the battery.

Households with large solar systems, high evening use and high power prices are likely to save the most. For others, it may take many years for savings to cover the cost.

Consumer groups recommend getting several quotes from accredited installers, checking the battery’s warranty and expected lifespan, often around 10 years, and avoiding high-pressure sales tactics. The Clean Energy Council keeps a list of approved products and accredited installers.

Why the Government is backing them

Home batteries help reduce demand on the grid in the evening peak, when electricity is most expensive and the grid is most stretched, and help absorb excess solar in the middle of the day.

Up next
Media accountability and Trump’s political fallout put journalism under scrutiny

Media credibility and changing audience interests are putting journalism under the spotlight.

Read the story →
Ticker Today takes a daily view of the world of news, politics and business.With Ahron YoungWhisky & Suits explores law, property finance and business over fine whisky.With Imran Khan and Chris ChristofiThe Founders Method explores practical lessons and systems for entrepreneursWith Jonathan Byrt and Jesse LeeworthyThe Connector explores property and urban growth across Australia and the UK.With Belinda CoateThe Property Playbook delivers research-led insights for property investors.With Tim Graham and Terry RyderState of Hospitality explores the challenges facing Australia's hospitality.With Jeremy KoadlowBuying Power helps young professionals enter property and build lasting wealth.With Victor and Reshmi KumarThe Airport Economist explores global trade, business and economic outlooks.With Tim HarcourtMedia Movers explores the trends shaping Australia's media and global news.With James ManningBroker Business explores strategies to build, grow and sustain a business.With Rex AfrasiabiMoney Matters explores practical financial strategies to build lasting wealth.With Dr Steven EnticottBeyond Education explores the ideas and technology shaping future learning.With Greg CampitelliTicker Air explores the latest aviation news, travel trends and developments.With Ahron YoungEarly Years Dialogue explores the issues shaping Australia's early learning.With Paul MondoMarkets and Machines explores AI, regulation and trends shaping the markets.With Chris BergSocial Intelligence explores how social media and AI transform our daily lives.With Dr Karen SutherlandThe AI Edge explores how artificial intelligence reshapes the world economy.With Brad Gastwirth

More from Ticker

Watch

More in Money

View all →