The federal rebate for solar batteries commences in July this year. Photo: Huglo Solar.
Thinking about adding a battery to your home solar system? Now’s the time to do it.
Sizeable discounts are on their way through Labor’s multi-billion dollar Cheaper Home Batteries program, which powers up on 1 July.
The program aims to significantly reduce upfront costs for the purchase and installation of home batteries, but how much you save could depend on when you flip the switch.
While the number of granted subsidies is uncapped, the amount saved will reduce each year until the rebate ends in 2030.
For batteries bought and installed in 2025, buyers can expect a discount up to $372 per kilowatt hour (kWh) of storage capacity.
“After the usual administrative fees, this should equal around $350 saved per kWh,” according to Lee Hindley, co-director at Huglo Solar.
“If you bought a 10 kWh battery, for example, you’d receive a discount of approximately $3500.”
There are some requirements, of course.
Batteries must be approved by the Clean Energy Council, installed by an accredited technician, and have a storage capacity of at least 5 kWh.
They also need to be capable of connecting to a virtual power plant (VPP), but energy providers say it’s unlikely homeowners will be required to join one.
Depending on their usage, the upcoming rebate could make it far more worthwhile for first-time solar buyers to have a battery and panel system installed at the same time.
Not only will this maximise the upfront discount, but overall costs will also be reduced by consolidating installation, grid application and certification.
“We always recommend a hybrid inverter system for a new installation, meaning your solar and battery are both connected to the same inverter,” Lee says.
“This is the most cost-effective, modular and efficient way to have a battery installed in your home.”
Don’t fret if you have an installation booked ahead of 1 July. At this stage, batteries in situ are still covered, as long as they aren’t physically connected before the program’s start date.
As well as being essential for anyone looking to become independent power-wise, home batteries can also help on-grid solar systems manage export limits.
Most residential connections in Canberra can only send 5 kW per phase to the grid. Power produced over that limit is cut down to meet Evo Energy compliance.
“Having a battery gives your system a place to put excess power,” Lee says.
“If your system’s capacity is above 5kW, you can still enjoy the benefits of running a larger system by saving that excess for later, rather than having it curtailed to meet regulations.
“Long story short, a battery could increase your existing system’s daily generation, saving you even more.”
When 1 July rolls around, Lee says applying the rebate to technology that is safer, cheaper and more durable is the best way to save over time.
“We recently partnered with REA Power for the Canberra region. They are Australian-owned and engineered to exceptional standards, so we’re really proud to work with them,” Lee says.
“The REA system has an estimated lifespan of 10,000 cycles, which equals about 27 years with one cycle per day. Couple that efficiency with your $350 per kWh discount, and your overall savings will be huge.
“Based on our current estimates, we’ll be able to fully supply and install 20 kWh of battery storage for $10,000 once the rebate program comes into effect, which is wonderful.”
Lee notes that some details still need to be ironed out, so keep in mind that things could change in the coming weeks.
But overall, it looks like the Cheaper Home Batteries program will be a game changer across Canberra and the rest of the nation.
For more information, visit Huglo Solar.
