What Is the Federal Battery Rebate?
The federal battery rebate is a new initiative from the Australian Government designed to make home battery storage more affordable. Starting from 1 July 2025, eligible households and businesses will be able to access an upfront discount of around 30% on approved battery systems. You can find all the information about Federal Battery Rebate in this page.
The goal is simple: help Australians reduce energy bills, improve grid reliability, and increase the use of clean, renewable power by making battery storage more accessible.
Can You Add or Replace a Battery Under the Rebate?
Yes, you can. Whether you’re installing a battery for the first time or replacing an older unit, the rebate is available—provided certain conditions are met.
Here’s what you need to know:
- If you’re adding a battery to an existing solar system that hasn’t previously received a battery rebate, you’re eligible.
- If you’re replacing a battery that wasn’t subsidised under the current federal rebate program, you’re also eligible.
- If you’re expanding your current system by adding more capacity (at least 5 kWh), and the existing system wasn’t subsidised under this rebate, you can apply.
Real-World Scenarios to Make It Clear
Let’s walk through a few simple examples to make it crystal clear:
Scenario A: Adding Too Little
You already have a 4 kWh battery and want to add a 4 kWh battery (total 8 kWh).
❌ Not eligible — the additional battery must be at least 5 kWh on its own.
Scenario B: Adding Enough Capacity
You have a 4 kWh battery and add a 6 kWh battery (total 10 kWh).
✅ Eligible — the new addition is more than the 5 kWh minimum.
Scenario C: Replacing Your Old Battery
You remove your 4 kWh battery and install a new 10 kWh battery.
✅ Eligible — you’re replacing the battery with a new, compliant system.
Scenario D: Going Over the Limit
You have a 4 kWh battery and want to add a 97 kWh battery (total 101 kWh).
❌ Not eligible — the total capacity exceeds the 100 kWh limit.
Scenario E: The Perfect Combo
You want to remove your old 4 kWh battery and replace it with a new 95 kWh battery.
✅ Eligible — total system is within the size limit, and you’re installing a new system that hasn’t received rebate support yet.
What Are the Federal Rebate Requirements?
To be eligible for the rebate:
- Your battery must be between 5 kWh and 100 kWh in total capacity.
- The battery and inverter must be approved and meet specific safety and performance standards.
- The installation must be done by a certified professional.
- Your battery must be connected to a rooftop solar system. Standalone batteries without solar are not eligible.
- For grid-connected systems, your battery must be capable of joining a Virtual Power Plant (VPP), although you don’t have to actually join one.
