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.
