Solar Battery Rebates 2025
Take the information from the Clean Energy Regulator as the only true information. I have found the retailers and installors will tell you what they want you to know so you buy their system.
Solar batteries and rebates
There have been amazing improvements in solar power since it began. With the battery rebate once again on offer, it is a time many are looking to take the next step and go completely off grid.
The Australian Federal Government is offering a rebate for installing solar batteries through the “Cheaper Home Batteries Program,” starting July 1, 2025. This program provides an upfront discount of around 30% on the cost of installing a battery, capped at $372 per usable kilowatt-hour (kWh). The rebate is part of an expansion to the existing Small-scale Renewable Energy Scheme (SRES) and is available to households and small businesses.
This rebate will reduce each year, so to get the most out of it people are upgrading at an amazing rate. This is great news but also brings downfalls and traps. My solar guy is so busy I have ordered my system now and paid a deposit to have it installed as soon as he is free. Currently about 3 months out. Whenever the government starts offering money you get unscrupulous people trying to cash in on it. Untrained installers, cheaper systems of less quality and of couorse by the time there is a problem they have shut up shop and gone. The cheapest quote is not always the best, you get what you pay for and I want a system that will still be around 30 years into the future. I look for long inclusive warranties, established companies and I like to use local people as word gets around fast if they do they wrong thing.
Looking for a new system
Improvements in solar panels, batteries and inverters means we can expect more for our money and a longer lifespan for these components than previously offered. Of course this has a lot to do with what system you buy, who installs it and the maintenance you carry out on your system.
I have spoken to people at our expo who have never cleaned their solar panels or had them checked to ensure they are all working to their capacity.
Just like a car or any complex equipment they do require care.
I have recently had several quotes to replace my old system with a new one. I requested a 10 kilowatt system with generator back up and the quotes varyied from $22,000 to $35,000. After a lot of investigating I found the price variance to be what the company thought they could charge. Same warranty, and sometimes even the same systems.
I was also given wrong and varying information regarding the Solar Battery Rebate. We will have local solar retailers and installers at this year’s expo talking about all the requirements of the rebate, but one thing I can tell you is, it depends on the system you are installing. It must be able to be connected to the grid to be eligible, even if you are not connecting at the time of installation, it just needs to have the capability to be connected in the future if it needs to be.
Key aspects of the solar battery rebate program:
- Target: The program aims to reduce the upfront cost of installing a
solar battery by around 30%. - Eligibility: It is available for new battery systems (5-50kWh usable capacity) installed with or connected to an existing solar system.
- Subsidy: The maximum subsidy is $372 per usable kWh, but after accounting for administrative costs, the actual discount is closer to $330 per usable kWh.
- Duration: The subsidy will decrease annually until the end of 2030 when the scheme concludes.
- Stackable: The federal rebate can be combined with state-level rebates, such as the Western Australian rebate, for even greater savings.
How the solar battery rebate works:
1. Install a Battery:
You need to install a solar battery system (5-50kWh usable capacity) with or connected to an existing solar system.
2. Rebate calculation:
The rebate amount is calculated based on the usable capacity of the battery and the STC value, which is currently around $37, after accounting for transaction and administration costs.
3. Claim the rebate:
The rebate is usually applied as an upfront discount at the point of sale by the installer.
Clean Energy Regulator
The Renewable Energy (Electricity) Regulations 2001 have been amended to expand eligibility of the Small-scale Renewable Energy Scheme (SRES) to include solar batteries.
Eligibility
Solar batteries must meet a range of requirements to be eligible under the program from 1 July 2025.
You don’t nned to provide written evidence if you choose a solar battery that is VPP capable, Sigenergy, Skybox, Red Earth, and Deye are all Vpp capable.
If the retailer or installor foes not use or sell these systems you may be told incorrect information. DO YOUR OWN RESEACH.
STC Calculation
STCs are based on the usable capacity of your battery. In 2025, the discount rate is 9.3 STCs per kWh. This equates to around a 30% discount on the upfront cost of installing small-scale solar batteries.
Only the first 50 kWh of usable capacity are eligible for STCs.
Table 1: STC factors per kWh by year
Research is important before making a purchase such as this, so is being realistic about what your needs are, and may be in the future, I know we would be fine with a 5 kilowatt system now, but that may not be the case in the next few years, so we opted to increase our capacity to allow for that. I was surprised that the change from 5 – 10kw was only $3000. I know that seems like a lot of money but I am choosing for my circumstances, and will save me money in the future as adding on can be costly.
Using experienced, qualified solar power installers is important, and there are many aspects people don’t look into when trying to cut costs by cutting corners.
Will my insurance company cover this system, is it on the approved list for the rebate, is the installer on the approved list?
I recently spoke to a man at a local event who informed me I was an idiot for spending that much on a system. He went on to explain he built his own for $3000. Important points to note. First he was an engineer, so he had the knowledge required for this task, second he built it on a shed well away from his house and third he doesn’t worry about insurance as he can just build another one. That’s great for his circumstances, which are completely different to mine. I am not an engineer, the panels are on the roof of my house and I do need insurance.
That is why it is important to do your own research and be wary of who you get information from. Check with your insurance company about the certification they need from the installer. What is the warranty, what does it cover, who do you contact if there is a problem. Will this company still be around in 5 – 10 years? It is a large investment, so treat it as such and do your research, get lots of quotes and visit events like the Off Grid Expo so you can speak to multiple vendors about your needs. Ask questions and if you don’t understand, ask again or ask someone else.
Event Organisers:
Dee White: dee@offgridexpo.com.au
0434 630 510
Di Woodstock: di@offgridexpo.com.au
0419 224 628
Event Organisers
Dee White
dee@offgridexpo.com.au
0434 630 510
Di Woodstock
di@offgridexpo.com.au
0419 224 628