The federal government has just announced a $2.3 billion Cheaper Home Batteries Program – This could be the biggest thing for renewables at your home or business since the beginning of solar rebates back in 2011.

Here’s what we know so far:

• If elected, Labor have announced they will reduce the cost of batteries by approximately 30 per cent ($370 per kwH). This will cut around $4,000 from the upfront cost of an 11.5 kWh battery.
• The discounts will be backdated from today April 6th 2025. Any batteries installed will be eligible for the discount from July 1 provided Labor are elected.
• The minimum eligible battery size is 5kwH, which will incur a $1,850 discount.
• The maximum eligible battery size is 50kwH, which will incur a $18,500 discount (batteries up to 100kwH are eligible, but you will only receive the incentive based on the maximum of 50kwH).
• The discount will be applied on installing virtual power plant (VPP)-ready battery systems installed alongside new or existing rooftop solar until 2030. It will reduce over time in line with expected battery costs.
• Households or Commercial businesses who already have batteries are still eligible to purchase an additional battery and receive the discount.
• Each household is limited to only one battery incentive claim.
• This incentive applies to both on-grid and off-grid battery installations, provided they are approved battery types and installed by accredited installers.
• The scheme will be delivered under the same Small-scale Renewable Energy Scheme that currently delivers rooftop solar panel incentives (STC scheme).
• The discount can be combined with existing state schemes and other federal Initiatives such as the NSW Battery Booster incentive.

Here’s what we don’t know:

• Whether or not the Liberal Party will support the program if elected.
• Currently, Solar Small-scale Technology Certificates (STCs) decrease in value from January 1 each year, typically by around 6-7%. We don’t yet know what this decrease value will be for batteries, or how often it will decrease.
• Whether incentive applies per building, or per electricity account (NMI) – some buildings and businesses have multiple tenancies and NMI accounts.
• Whether this incentive is per battery or battery system. We assume that if you use 3x 10kw batteries wired together to make a 30kwh battery system this would attract 30kwH battery of incentives.
• If there is a limit on the number of claims that will be made (we’ve heard rumours of 1 million claims).

How will this announcement impact you?

If you’ve been on the fence about buying a solar battery because of the cost, this incentive might be the perfect reason to reconsider.

• What does it mean if you’ve already purchased a solar and battery system but it has not yet been installed?
  – The incentives are able to be backdated from today, so any installations between now and July 1 will be eligible for the discount.
  – Installers can install your system but leave your battery un-commissioned (turned off) until July 1 so it retains it’s eligibility.
  – Installers can return and commission your system after July 1 and pass on the incentive to you in full (this may incur a small return visit cost depending on your location).

   

• I was about to purchase a solar and battery system, but should I hold off for the battery program?
• As above, the incentives are able to be backdated from today so you are not at risk of ineligibility under this proposed battery program. If you purchase a whole energy system now and it is installed, your installer can wait until after July 1 before commissioning your battery system so it remains eligible for the incentives (this may incur a small return visit cost depending on your location).
  – This is a good situation because now is likely to be the best price for your system as you secure low stock prices before demand is driven up significantly.
  – Installing now secures your place in the rebate scheme and secures you to receive the highest rebate claim percentage possible (no risk of waiting too long and having a 2026 installation and incentive percentage due to stock shortages or high installation demand).

Additional thoughts from us and things you should look out for: 

• We hope this incentive will apply to usable battery capacity not maximum (nameplate) battery capacity,
  • A battery’s total capacity might not be fully usable due to technical and safety limitations. Many lithium-ion batteries are only recommended to be discharged up to a certain level (often around 80-90% of their total capacity) to preserve battery life and efficiency. Some companies advertise their battery sizes based on usable battery capacity, but others advertise on maximum battery capacity.
  • We’ll be advocating for this scheme to apply incentives based on a battery’s usable capacity so that the benefit of the rebate is fairly distributed across all battery models. This way, a manufacturer is not motivated to mislead the consumer.

• When considering installers, you want to consider the after sales support that will be offered to you as a consumer.
  • There are two primary types of warranties that will be offered to you – manufacturers warranty, and workmanship warranty. These warranties are only as good as the companies who are meant to uphold them.
  • Manufacturers warranty is provided by the manufacturer but they will rarely do anything without liaison with an electrician representing the sales company making phone calls and providing evidence etc.
  • Workmanship warranty pertains to things not falling off etc. It’s important, as problems relating to sloppy workmanship often can void manufacturer warranties.
  • What has happened historically in our industry is that if you, a consumer, have a problem with your battery the manufacturer will in most cases instruct you to contact your installer. By installer, the manufacturer means the company you purchased the battery from. If that company is following the common practice of sales-only solar company, they often are hard to get a hold of for after sales support and then direct you to talk to the ‘installer’. The installer will be a subcontractor and they will direct you to talk to the sales company you brought the system from. This is the problematic circular finger pointing that many consumers find themselves in when purchasing a battery from a company that doesn’t employ their own technical field staff (ie. Installing electricians), such as Proven Energy.
  • The company you purchase the battery from should be helpful in providing technical support liasing with the manufacturer in the event of some hiccup or issue on your behalf.

• You should be aware that, as with any government incentive scheme, there will be an influx of dodgy battery providers trying to push out as many battery installations as possible in order to capitalise on the government incentive. Possible impacts this will have on you as a consumer are:
  • Inexperienced installers could install your battery system incorrectly and unsafely. We saw a lot of PV fires initially when the Small-Scale Renewable Energy Scheme was first introduced, and unfortunately there is a significant risk that similar incidents could happen again with batteries.
  • Your installer needs to be SAA (Solar Accreditation Australia) approved for not just solar installations, but battery installs also. Unlicensed installations are not only unsafe but will mean you may need to repay the discount to the government.

• We love this initiative as we expect that even people without solar and batteries are likely to benefit from lower electricity costs as a result of this program.
  • What we expect to see this program trigger is a considerable uptake of batteries to ‘help’ the main grid, which will mean electricity prices for everyone drawing energy from the grid will become cheaper.
  • The high cost of electricity is largely due to the expenses associated with supplying power during peak demand times. This scheme aims to mitigate these costs by reducing the demand for peak time energy, which is expected to subsequently lower the overall price of electricity.

• We don’t see why this incentive needs to be limited to people who have solar panels connected to batteries and encourage the government to review and amend to include standalone battery purchases also.
  • The current directive from the government is that you only eligible for this incentive if you already have, or plan to install, solar panels. There are practical reasons why someone may not be able to have solar panels but they can have a battery (ie. those living in apartment complexes). If this condition was lifted, these people could also install a battery, buy cheap energy during the day and distribute the energy back to the grid at night. We’ll be advocating for this.

• We would love to see greater incentive for Australian battery manufacturers.
  • We strongly advocate for enhanced incentives or bonuses under this scheme for Australian battery manufacturers. Alongside the government’s recent significant investment in domestically produced battery manufacturing, this program presents an excellent opportunity to boost the adoption of Australian-made batteries such as Redearth Energy Storage (Brisbane) and Remote Energy (Noosa). By doing so, we can strengthen our standing as a global leader in the renewable energy sector.

Proven Energy install quality, reliable solar and battery systems in Central, Western, Eastern and Southern Queensland. We have 13 years experience and a dedicated team of qualified and experienced installers. We offer 12 years workmanship warranty and have a complete service department for after sales and technical support – we’re not a ‘solar sales’ company and we don’t depend on subcontractors.  Contact us for a free quote.