A major announcement from the Labor Government in the lead up to the election was the $2.3 Billion ‘Cheaper Home Batteries Program’, starting 01 July 2025. Some more detail about the program came through after our recent webinar, providing further clarity. Here are some key questions and answers to help you understand how your business can benefit. 

• Is my business eligible for a rebate on batteries? 

Yes, it looks as though any business is eligible as long as the battery size and other criteria are met. This was one of the big unanswered questions, which has now been clarified by the Department of Climate Change, Energy, Environment & Water.  No business size or other ‘small business’ criteria have been stipulated, suggesting everyone is eligible. 

• How much will the rebate decline over time 

It is anticipated that the rebate will decline by approximately $36/kWh p.a. out to 2030, after which the program ends. This is better than expected and gives you more time to plan out your battery and/or solar project.

• Additional Key Information Released on 22 May 

• If you already have a battery installed, you can install additional capacity. This additional capacity is eligible for the Cheaper Home Batteries incentive, so long as it meets the other criteria.

• ‘VPP-ready’ means “a battery system must be able to connect to the electricity grid and respond to signals from third party VPP operators”.

• Off-Grid batteries are eligible and don’t need to meet the ‘VPP-ready’ criteria.

• Electric vehicles are not eligible under the scheme.

• Can I still receive other subsidies? 

So far, yes. If you’re in NSW you could also be eligible for the PDRS scheme for batteries up to 26 kWh. 

• Do I need to have solar already or can I run both projects at the same time? 

To be eligible for the rebate, you must already have solar or you are installing it with the battery. 

• When do the rebates come into effect? 

01 Jul 2025. However, a battery can be installed now and not ‘switched on’ until 01 Jul, and still receive the rebate. The install date is defined as the date of the ‘Certificate of Electrical Safety’.

• How do I claim the rebate? 

You don’t need to do anything. Like the solar STC, the Vendor will discount it from the out-of-pocket price and claim it separately. 

• What if I want a bigger battery or I’m not eligible? 

There are other ways to save/earn. The 100 kWh limit means it’s not suitable for large sites, however there are other ways to save/earn, including Demand Response, Peak Lopping and Virtual Power Plant. 

• Do I have to do anything to participate in Demand Response, Peak Lopping or Virtual Powerplant or is the battery already configured?  

Almost all batteries have Internet connectivity and ‘smart’ features so it is largely ‘set-and-forget’. The battery will monitor your usage and adjust accordingly, and you will receive your additional revenue with each billing cycle. The only exception to this is Backup Power, where you will have to configure your on-site generator to work alongside your battery. 

• Can running a Virtual Power Plant be detrimental to your own use (restricted use of power) or is your usual usage level guaranteed? 

Site usage will always be prioritised first. Larger sites with a VPP will typically put the battery on a separate ‘child’ meter, which will not override your site usage and the battery will only be charged with whatever remains after your site demand.

• Is there any indication of battery incentives for large market sites? And when will eligibility be defined for small market? 

We are yet to see any commitments for large market sites, however due to the cost of large batteries coming down they are starting to stack up without subsidies.

• Once we get past procurement, what’s the process of applications and installation and the time frames around that?

Your battery vendor will sort all of this out for you. Smaller sites will typically receive approval within 30 days. For bigger batteries, there are other factors and it varies regionally. NSW and VIC can have relatively quick turnaround, while QLD and WA could take up to a year for a bigger project.

• Are STCs or LGCs calculated when the system is commissioned or when the quote is provided and costed? 

STC is time of install. LGC and VEEC is generation-based, and the claim is made on the reduction of load from your site. 

• What is the risk of fire for batteries? 

Really low. Most batteries now use lithium-iron phosphate (LFP) instead of nickel-manganese-cobalt (NMC), so the fire risk is much less. However, building codes still generally require batteries to be installed outside. 

To find out how our team of energy experts can help your business navigate the post-Election energy landscape, fill out our contact form or call us on (02) 9371 4153. 

*Disclaimer: This article is general information only and does not constitute financial advice. Electricity and gas commodities are volatile markets and prices vary daily.