Labor's Cheaper Home Battery Rebate: Who Can Cash In?

Thinking about home batteries but daunted by the price tag? The Albanese government's "Cheaper Home Batteries" initiative aims to change that. This blog breaks down the key aspects of the proposed program, giving you a clear picture of who qualifies, how much you could save, when it kicks in and whether you should wait before installing. We'll explore the financial incentives, eligibility requirements, and the broader impact of this plan on Australia's energy future.

The Program's Core Aims

The driving force behind this initiative is simple: to dramatically increase the adoption of home battery storage. The government's vision is to see over a million new batteries installed by 2030, a move designed to not only empower homeowners but also bolster the stability of our national grid. By promoting energy independence and reducing reliance on traditional power sources, the program aims to cushion households and small businesses against rising energy costs.

Eligibility and the Fine Print

This isn't a free-for-all; there are specific criteria to meet. The program is geared towards:

• Homeowners: Those looking to maximize their solar investment and achieve greater energy independence.

• Small Businesses: Businesses seeking to reduce operational costs and enhance their sustainability profile.

The batteries must be "Virtual Power Plant (VPP) ready," meaning they can be integrated into broader grid management systems but they don't necessarily have to be connected. The program targets battery systems with usable capacities between 5kWh and 50kWh and you must be connecting to either a new solar system or an existing system.

What's the Discount?

Now, for the bit everyone's keen to know: how much can you save? The program proposes a significant upfront discount, estimated to be around 30% off the installation cost. This discount is calculated based on a rate of $372 per kilowatt hour (kWh) of usable battery capacity, starting on July 1st. If this remains the case when the program is finalised, you could receive anywhere between $1860 - $18,600 off the price of your battery depending on the system size you install.

To give rough guidelines, a 6.6kW solar system with a 9.6kW sungrow battery is roughly about $19,000 installed after rebates. With the proposed cheaper home battery rebate, the same system would be around $15,429 installed.

If you have an existing solar system and wanted to add a 9.6kW battery system, post rebates the cost would be close to $7500 installed.

How much will I save?

To put that into perspective, Labor's calculations suggest that homeowners with existing solar could potentially save up to $1,100 annually on their energy bills. For those installing both solar and batteries, the potential savings could climb to a hefty $2,300 per year (We assume these calculations are based off a 6.6kW solar system paired with a 10kW battery).

When will it start?

The program is slated to kick off on July 1, 2025. However, there's a silver lining for early adopters. Batteries installed before this date could still qualify, provided they aren't activated until the official start (please note this may be subject to change as the policy is yet to be finalised).   

Stacking the Savings: Federal and State Synergy

One of the program's most appealing aspects is its potential to combine with existing state-based battery schemes. This means that in some regions, homeowners could potentially unlock even greater savings, making the prospect of home battery storage even more enticing. For e.g, in NSW you can combine the existing state battery rebate with the incoming federal rebate to maximise the savings.

Beyond Savings:

This initiative isn't just about reducing bills. It's about:

• Empowering consumers: Giving homeowners greater control over their energy consumption.

• Strengthening the grid: Contributing to a more stable and resilient energy network.

• Driving sustainability: Accelerating the transition to a cleaner, renewable energy future.

Albanese's proposed "Cheaper Home Batteries" scheme is a bold step towards a more sustainable and energy-independent Australia. While the finer details are still being ironed out, the potential benefits for homeowners, small businesses, and the environment are clear.

Should I wait until July 1st before installing a battery?

That depends, if you have an existing system with a very healthy export, waiting until July 1st is probably a good idea. We expect prices of batteries to go up slightly with the sudden increase in demand especially for good installers, however the price rise will be insignificant compared to the discount you receive from the rebate.

However if you don't have an existing system, or your existing system is too small to support charging a battery, we would recommend getting quotes to install a solar system/more solar ASAP. This will most likely save you on wait times as installers get booked out as well as savings you on any potential price hikes on the solar portion of the system. Another advantage is that you will have export data through generally the lower producing solar months (may & june) so you know exactly what size battery system you can install.