Are You Eligible for the Battery Rebate? What You Need to Know

The Federal Government’s Cheaper Home Batteries Program, launching on 1st July 2025, is a major push to help more Australians store their solar energy and reduce reliance on the grid. The program offers up to 30% upfront discount on the cost of installing a home battery system—making clean, reliable energy more affordable than ever. If you’re considering adding a battery to your solar setup, here’s a quick breakdown of the key eligibility criteria you’ll need to meet.

Battery size matters

To qualify, your battery must have a nominal capacity (that’s the maximum energy it can store at full charge) between 5 kWh and 100 kWh. Batteries with a nominal capacity greater than 100 kWh are not eligible.

Secondly, the discount applies for battery systems with usable capacity capped at 50kWh. The usable capacity is the actual energy you can use from that battery. It’s slightly less than nominal capacity because the battery limits how much of the charge can be used to help preserve the battery and extend its life.

For example: A battery might have a nominal capacity of 10 kWh. Its usable capacity could be about 9.5 kWh (the part you actually get to use). 

Electric vehicles don’t count

This rebate applies only to battery storage systems, not batteries in electric vehicles.

Think of it like this…

A typical residential small-scale battery system is usually well under 50 kWh. 1 kWh is the amount of energy something that uses 1 kilowatt (kW) of power would consume in 1 hour. For instance a 10kWh home battery can power:

• A 2 kW air conditioner for 5 hours (2 kW x 5 hrs = 10 kWh)

• A 1 kW pool pump for 10 hours

• A 10 kW electric oven for 1 hour

Basically it can power the average Aussie home for half to two-thirds of a day, depending on your energy use

It’s not about running everything all at once — it’s about smoothing out your usage, covering peak times, and making the most of your solar.

Battery system type

The system can be a single battery unit or modular battery cells working as one system. Adding to an existing battery is okay if:

• The system has not previously received the discount

• The added capacity is at least 5 kWh

• Total nominal capacity stays under 100 kWh

You can’t claim the incentive again on future upgrades.

Accreditation

• The battery and inverter must be on the Clean Energy Council (CEC)’s approved product list.

• The installer must be accredited with Solar Accreditation Australia (SAA)

On-grid & Off-grid systems

Both on-grid and off-grid systems are eligible. Off-grid means: At least 1 km from a main grid line, or connection cost exceeds $30,000.

VPP-ready (On-grid only)

Learn more about Virtual Power Plant (VPP) in this blog article

• Must be VPP-capable (able to connect to and respond to signals from a Virtual Power Plant).

• Internet connection required for VPP capability.

• No requirement to actually join a VPP.

• Off-grid systems are exempt from VPP capability.

How the battery discount is calculated

The government’s Cheaper Home Batteries Program isn’t a flat 30% discount — instead, the incentive is delivered through Small-scale Technology Certificates (STCs), based on your battery’s usable capacity.

Here’s how it breaks down:

• You receive 9.3 STCs for every 1 kWh of usable battery capacity installed in 2025

• The rebate is capped at 50 kWh of usable capacity

• Each STC is worth around $37 after admin fees (price may vary slightly depending on market rates)

Let’s do the math:

👉 If you install a home battery with 10 kWh of usable capacity, you’ll get:

• 9.3 x 10 = 93 STCs

• Total STCs x Price of 1 STC = 93 x $37 = $3,441 off your system

In short:

The more usable capacity you install, the more STCs you get — and the bigger your upfront discount.

It’s a smart way to cut your battery costs without the paperwork headache. And Wattle Powr takes care of the entire process — compliance, STC claim, install, and all.

Learn more about STCs in this blog article

Wattle Powr makes it easy

We handle everything — design, compliance, installation, documentation — and we’re fully accredited. Just get your quote and we’ll do the rest.

Want to know if your property qualifies? We’ll check all the boxes for you.