The Australian Labor Party has committed to an AU$2.3 billion home battery subsidy if re-elected

11 April, 2025.

Anthony Albanese, Australia’s current Prime Minister and leader of the Australian Labor Party, has pledged to introduce an AU$2.3 billion (US$1.41 billion) battery subsidy scheme if re-elected. This scheme would reduce the upfront cost of home batteries by 30% via a rebate.

Albanese, who will face outspoken climate sceptic Peter Dutton’s Liberal-National Coalition in the upcoming election on 3 May, said the rebate scheme, which would be introduced from 1st July 2025, could save around AU$4,000 on a residential battery storage system.

The Cheaper Home Batteries Program would be offered via the existing Small-scale Renewable Energy Scheme. Small businesses and community facilities would also be able to access the subsidy, with support for up to 50kWh of batteries sized up to 100kWh eligible. Any batteries installed from 6th April to 1st July would be eligible for the subsidy, depending on Labor’s re-election, as long as they are not switched on.

Under the scheme, Labor predicts it could help Australia install around one million new home batteries by 2030.

In a statement released by Albanese and Australia’s minister for climate change and energy, Chris Bowen, the two ministers emphasised the Labour Party’s support for renewables and cutting energy bills, highlighting their commitment to reducing energy bills by up to 90% if re-elected.

Other energy-related pledges the Labor Party have made include an additional AU$150 direct energy bill relief for households and small businesses from 1st July 2025, an AU$1 billion household energy upgrades fund, an AU$800 million social housing energy performance initiative, and an AU$100 million community energy upgrades fund.

KEY BENEFITS OF THE PROGRAM

• Save up to $2,300 annually on energy bills with a new solar + battery system
• Up to 90% reduction in household electricity bills for eligible homes
• 30% discount on installed battery cost
• One battery system per household
• Support for VPP-ready battery systems (Virtual Power Plant capable)
• Applies to existing and new rooftop solar systems
• Small businesses and community facilities eligible (batteries up to 50 kWh subsidised, total system size up to 100 kWh)

ELIGIBILITY CRITERIA

To be eligible for the rebate:

• The battery system must be between 5–50 kWh useable capacity
• It must be VPP-ready (though participation in a VPP is not mandatory)
• It must be installed alongside new or existing rooftop solar
• The system must be installed at a residential home, small business, or community facility
• Only one battery system per household can receive the rebate

Note: The rebate applies to each property, so landlords or owners of multiple properties can apply for multiple installations. Systems must be new and previously claimed battery rebates do not disqualify additional batteries at new sites.

WHAT SAVINGS COULD THE PROGRAM DELIVER?

Labor claims the scheme could net savings of roughly $4,000 for a typical 11.5 kWh battery.

More than 4 million rooftop solar power systems have been installed in Australia to date, and many owners are eager to add a home battery, particularly given feed-in tariffs aren’t as generous as they once were.

The Cheaper Home Batteries Program looks like it would make residential energy storage an achievable reality for many more Australian households. But just because you can do something, it doesn’t always mean you should.

If you want to include Labor’s promised 30% discount, factor that into your preferred system’s cost as you make your calculations.

Getting a home battery can, very generally speaking, deliver realistic annual electricity bill savings of $730 – $1,680 with a battery offering 13.5 kWh capacity. The upper end of that estimate applies when the battery is part of a Virtual Power Plant program. Added to those savings are the benefits of greater energy security and less dependence on the grid – while still having it there if/when needed.

THE SCHEME WOULD PUSH DOWN PEAK ELECTRICITY DEMAND AND CUT PRICES FOR EVERYONE

Independent MP Helen Haines, who could become a kingmaker in the event of a hung parliament and has advocated for a similar scheme, welcomed Labor’s announcement.

The Clean Energy Council labelled it a significant and welcome cost of living measure.

A national battery scheme will ensure more households will be empowered to turbocharge their energy independence and save on their bills, said the council’s general manager of distributed energy, Con Hristodoulidis.

It’s good news for everybody’s wallets, and the long-term future of Australia’s modern energy system – built on the cheapest form of renewable energy backed by storage.

Despite the subsidy, buying a battery will still be out of reach for many households, with up-front costs currently averaging around $14,000.

Opposition housing spokesman Andrew Sukkar refused to confirm whether the coalition would match the policy, labelling the subsidy “an admission of failure”.

“What Anthony Albanese seems to be saying is, because energy prices are going to be so high, we will give some people who can afford $10,000 for a battery, allow them to get off the grid, presumably,” he told Sky News.

Meanwhile, the cost of the coalition’s nuclear energy plan is under the spotlight as Labor claims it will cost $5.7 billion a year in interest over the next decade.

The coalition claims its nuclear plan is 44 per cent cheaper than the Albanese government’s plan to shift the grid to renewables, backed up with storage and gas.

But Labor has put a $600 billion price tag on the opposition’s plan to build seven nuclear reactors across five states on the sites of coal-fired power stations.

CAN THE FEDERAL REBATE BE APPLIED ALONGSIDE EXISTING STATE REBATES?

Yes – well, at least that’s the idea from the federal side of the equation.

Federal energy minister Chris Bowen has told industry he has given fair warning of the impending rebate to his state counterparts, in anticipation that they will do what they can to make the SRES battery rebate stackable with their own offerings.

At this stage, Western Australia, New South Wales and the Northern Territory have their own battery rebate policies in place, while Queensland, Victoria and Tasmania offer a mix of low and zero interest loans that support home battery uptake.

In Western Australia, the recently re-elected Cook government is offering rebates of up to $5,000 per household, or $7,500 for households on the regional Horizon Power grid, alongside no-interest loans.

In NSW, the Peak Demand Reduction Scheme means eligible households can get a discount of between $770 and $1,150 when they install a new 6.5 kWh battery, but the discount jumps to between $1,600 and $2,400 with a new 13.5 kWh battery. The discount goes up further if households sign up to a VPP.

WA INTRODUCES ITS OWN BATTERY REBATE SCHEME

At the end of last month in March, the Western Australian government announced its own residential battery subsidy scheme that would see 20,000 rebates of up to AU$5,000 for Synergy customers and up to AU$7,500 for Horizon Power customers offered from 1st July 2025.

The battery rebate will be available for up to 19,000 Synergy customers, offering AU$500 per kWh for a minimum of 5kWh battery capacity and a maximum of 10kWh. Additionally, up to 1,000 Horizon Power customers can qualify for rebates of AU$750 per kWh.

A similar number of no-interest loans of up to AU$10,000 will also be made available to assist lower to middle-income households in participating in the scheme. The government confirmed that home business customers will also be eligible. The minimum loan amount will be AU$2,000.

The programme will be launched in multiple phases, starting on or before July 1st, 2025. A qualified third-party service provider will manage it. The battery systems will need to demonstrate virtual power plant readiness and show that they can connect to the electricity grid, the South-West Interconnected System (SWIS), and respond to signals.

WHY THIS PROGRAM IS A BIG DEAL?

1. Energy Costs Continue to Rise

Even with solar panels, most households still rely on the grid, especially in the evenings. With a battery, you can store your solar energy during the day and use it when electricity prices peak, slashing your power bill.

2. Feed-In Tariffs Are Falling

The days of earning significant credits for feeding solar back into the grid are over. Instead of exporting your energy for a few cents, a battery lets you store it for personal use, which is far more valuable.

3. Grid Independence Is Growing

Batteries give you more control over your power. In a blackout or during peak demand, you’ve got a backup which means no more worrying about power cuts.

TIME TO UPGRADE YOUR SOLAR SYSTEM

If your current solar setup is an older or smaller system, now is the perfect time to think about upgrading. A smaller system may not generate enough surplus energy to justify a battery, or it may be incompatible with newer battery technology. Adding more solar panels or upgrading your system to be battery-compatible can increase the amount of energy your system generates and store more of it for use when needed.

This upgrade could make you eligible for the rebate, allowing you to maximise your savings on both installation and energy bills. Plus, an upgraded system ensures that you are ready to take full advantage of future developments in energy storage technology.

By acting now, you can future proof your home’s energy needs, reduce your reliance on the grid, and make a meaningful contribution to Australia’s transition to clean energy.

GET A TAILORED QUOTE TODAY

With Labor’s proposed rebate plan, there has never been a better time to consider solar and battery storage for your home. If you’re thinking about upgrading your system, it’s important to get a personalised quote to find the best solution for your needs. Speak to a trusted provider like Sunselect about your options for adding more solar panels or upgrading to a battery-compatible system.

By investing in solar and battery storage, you’re not just cutting your energy bills, you’re also doing your part to help Australia achieve its renewable energy goals and reach net-zero emissions by 2050. The rebate makes it easier than ever to get started, so why wait? Contact Sunselect and choose us as your partner in creating a brighter and greener future.

Reach Out to SunSelect at 1300 867 353 for Expert Guidance and Money-Saving Options.
Explore the Reviews from Our Delighted Customers on ProductReview.com.au.