National household batteries rebate scheme set to happen
With Labor securing a second term in federal government, their promised national battery rebate is set to kick in. From 1 July 2025, eligible households, small businesses and community facilities will be able to access a new federal rebate to help cover the cost of installing a battery energy storage system.
Announced early last month, the Cheaper Home Batteries Program will leverage the Small Scale Renewable Energy Scheme (SRES) administered by the Clean Energy Regulator. The $2.3 billion (USD 1.49 billion) program will initially provide an up-front discount of about $370 per kWh useable capacity for eligible batteries attached to either new or existing solar installations.
Installation businesses reported significant drop-offs in battery orders following the rebate announcement as households delayed planned purchases in anticipation of accessing the rebate that will reduce the cost of a typical installed battery by about 30%.
That downturn is expected to be short-lived with the subsidy scheme now slated to begin in July with Labor aiming to get more than 1 million new batteries installed under the scheme by 2030.
This is likely to trigger huge demand over the coming months for battery products with retailers and installers urged to work with their distributors to secure stock. Distributors have in turn been encouraged to liaise with battery manufacturers to try and avoid stock shortages.
Labor said the scheme will operate from 1 July, but importantly early guidance suggests systems installed since the April announcement will still be eligible for the rebate as long as they are not switched on before the official start date of the scheme.
The rebate applies to batteries ranging from 5 kWh to 100 kWh at residential, small business or community facilities covering on and off-grid installations. For the larger systems, up to 50 kWh of storage capacity will be eligible per installation.
Batteries will need to be virtual power plant (VPP) enabled, but there is no obligation to VPP participation, and the subsidy can be utilised in addition to existing state and territory battery subsidies.
It is expected the scheme will support the installation of at least 6.2 GWh of battery energy storage.
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