I attended the Clean Energy Regulator’s public webinar on the “Cheaper Home Batteries” scheme on 27 May 2025. Before that session, much of the program felt like guess‑work, but now we have the answers most of our questions. The CER has since published the recording on YouTube for anyone to review.
The guide below distils the webinar’s key clarifications along with the official policy paper and my own market research into a single, no‑fluff reference for homeowners planning a solar‑plus‑battery installation.
Why call it a “rebate” if it isn’t one?
Installers and the media keep saying battery rebate because it shows up as a chunky upfront discount just like cash back. Technically, though, the discount is delivered through Small‑scale Technology Certificates (STCs) issued under the Renewable Energy Target.
The end result feels like a rebate, so we keep using that word but now you know why it isn’t strictly correct.
How big is the discount?
STCs work like vouchers: each usable kilowatt‑hour of battery storage earns a fixed number of certificates. The larger the battery, the more the certificates, and every certificate can be sold to the Government for $40.
Multiply the certificates by $40 and you have the dollar value that comes straight off your invoice. In practice though, unless you trade the certificates yourself, you will get a little less than $40. The certificate trader will need to charge fees that will ultimately be passed on to you, the consumer.
Because the certificate rate steps down on 1 July each year, the discount shrinks over time install sooner and you lock in a bigger per‑kilowatt‑hour saving.
The table above follows the May 2025 Policy Paper. Final numbers will be locked in when the amended Renewable Energy (Electricity) Regulations are published later in 2025.
Worked 2025 examples
STCs are always rounded down to the nearest whole certificate.
*Mid‑market turnkey prices, May 2025.
How battery STCs differ from solar STCs
Even though both solar panels and batteries earn Small‑scale Technology Certificates under the same Renewable Energy Target legislation, the money trail is different.
The Commonwealth will buy every battery-STC placed in the Clearing House at the fixed $40 price, so obligated electricity retailers don’t fund the discount. By contrast solar generation STCs are sold to electricity retailers who must surrender them each year to meet their legal obligations.
Furthermore, solar STCs increase the further north you are (roughly speaking), this is because solar accelerates rooftop generation, therefore the certificates scale with production potential. Battery efficiencies on the other hand do not change by location, so the only variable for the amount of STCs you get is the size of the battery.
How do you actually get the money?
- Standard path (recommended) – Sign the STC‑assignment form supplied by your retailer. They create the certificates and deduct their face‑value from your invoice nothing else for you to do. You won’t get the full $40 per certificate through this method, likely ~$38.
- DIY path (rare) – Retain the certificates, open a REC Registry account, create the STCs yourself and sell them into the Clearing House. Expect paperwork, a modest processing fee, and several weeks’ wait before settlement.
Who and what is eligible?
Below are the five hurdles every installation must clear, each with the supporting knowledge a first‑time battery buyer needs.
1. Must be smaller than 100kWh nominal (50kWh usable)
Your battery must fall between 5kWh and 100kWh of nominal capacity. Only the first 50kWh of usable capacity earns STCs.
Usable capacity vs nominal capacity
The rebate is calculated only on usable capacity, and only on the first 50kWh of it, even though batteries up to 100kWh nominal are eligible.
- Nominal capacity is the total energy stored in the cells at 100% charge think of it as the “litres” stamped on a fuel tank.
- Usable capacity is the energy you can actually draw before the system shuts down to protect the battery chemistry; manufacturers keep this safety buffer out of reach.
Example: A battery advertised as 12kWh (nominal), 11kWh usable will earn STCs on 11kWh. If you install two of them (22kWh usable) you still stay under the 50kWh cap.
2. Must be paired with solar
The battery must be coupled to new or existing rooftop solar no larger than 100kW. A battery that charges only from the grid cannot claim the rebate.
3. One rebate per premises
Each street address can receive the battery rebate once only. If the previous owner has already claimed, the entitlement is exhausted unless you add new capacity that has never received STCs.
What counts as a “premises”?
Under the Renewable Energy (Electricity) Act 2000 a premises can be “a structure, building, place, or a part of any of those”.
The implication is an individual apartment (or townhouse, retirement village unit, etc.) is treated as its own premises even when the street address is shared with other dwellings.
One battery rebate per premises, not per street address
The Cheaper Home Batteries Program allows the discount to be claimed only once for any given premises. After a battery at that premises has received the federal discount, no further batteries at that same premises can be subsidised, although additional capacity can later be added if the first battery never received the discount.
Apartments & embedded networks
During the webinar, the question of apartments was raised multiple times, the answer given is below:
“If an apartment is considered to be a premises under the Act, it is eligible for support provided it has solar PV. Where there are several owners of separate premises residing in their own unit or townhouse in a communal environment, each of those individual premises will be eligible for support under the program.”
Strata lots count as individual premises under the Renewable Energy (Electricity) Act. That means each apartment owner can submit their own claim provided the body corporate signs off on wiring and metering changes.
4. Hardware should be VPP‑capable
On‑grid installs must use equipment marked “Virtual Power Plant‑capable.” This certification simply proves the inverter‑battery combo can talk to a remote aggregator via the internet; you don’t have to enrol in a VPP programme to qualify.
What does “VPP-capable” actually mean?
A battery system (battery + inverter) must be able to:
- Connect to the grid (via the inverter’s grid-tie functions).
- Maintain an always-on internet connection (Wi-Fi, Ethernet or cellular).
- Receive and act on external control signals from a third-party VPP operator (retailer, aggregator, DNSP, etc.).
Typical signals include charge/discharge commands, power limit set points, or emergency curtailment.
⚠️ Participation is optional. Households do not have to enroll in a VPP; the hardware must simply be ready for it.
How are off-grid installations treated?
Off-grid installations remain eligible for the Cheaper Home Batteries discount, but because they have no physical connection to an electricity network they cannot participate in a virtual power plant, so the program waives the “VPP-capable” requirement.
To prevent abuse, an installation must satisfy the established “off-grid small generation unit” definition adopted from the Renewable Energy (Electricity) Act:
The premises is either at least 1 km from the nearest main grid line or the owner supplies written evidence such as a formal quote or letter from the local distribution network service provider showing that a connection would cost more than $30 000 and is therefore uneconomic.
Installers must retain that distance map or DNSP cost statement for Clean Energy Regulator audits, ensuring only genuinely off-grid systems receive the exemption.
5. Use accredited products & installers
Both the battery and its inverter must appear on the Clean Energy Council’s approved‑products lists, and the installer must hold a Solar Accreditation Australia battery endorsement. Using non‑listed gear or an unaccredited installer risks losing the rebate.
Solar + Battery ROI – before vs after the battery rebate
Previously, my advice has been not to get a battery, as they are just to expensive to get a substantial return. Obviously with the rebate, things have changed.
The quickest way to see the value of the new scheme is to stack two scenarios side‑by‑side:
- Scenario A – No battery rebate: what a consumer would have paid in early 2025 if the STC discount did not apply to batteries.
- Scenario B – With battery rebate: the price landscape from 1 July 2025 onward, once battery STCs are live.
All other assumptions stay identical, so the only variable is the existence of the battery discount.
Assumptions
- Solar array: 6.6kW, turnkey cost A$6,500 after solar STCs (Solar Quotes Price Index, May 2025).
- Battery price before incentives: A$1,350 per usable kWh (Solar Choice Battery Price Index, Apr 2025).
- Battery STC discount (Scenario B only): 9.3 STCs per usable kWh, rounded down, paid at the $40 Clearing‑House rate.
- Tariffs: 28c/kWh flat import; 8c/kWh feed‑in (Energy Made Easy NSW median, Q2 2025).
- Performance: battery cycles once per day at 90% round‑trip efficiency; PV produces 9000kWh/yr, with 30% self‑consumed without a battery.
Up‑front capital cost
Annual bill savings (both scenarios)
For every kilowatt-hour that the battery stores during the day we assume it displaces one kilowatt-hour that would otherwise have been bought from the grid that night.
So if grid power costs 28c/kWh and the feed-in credit is 8c/kWh, then 20c is the spread. At a 90% round‑trip efficiency this is 18c.
I also assume the battery completes one full charge–discharge cycle per day, which is typical for a 6.6kW solar array producing a daytime surplus.
Because every home’s usage profile is different, treat the resulting dollar figure as an illustrative average rather than a personalised forecast.
The solar component (self‑consumption + export) is unaffected by the battery rebate, so it stays identical in both scenarios.
Simple pay‑back comparison
Headline takeaway: the battery rebate trims $2200 – $5560 from up‑front costs and knocks 1–2.5years off the pay‑back period, depending on battery size. The bigger the battery, the larger the absolute discount and the greater the time saved.
FAQ
Can I stack this rebate with other state incentives?
The federal battery rebate can, in principle, sit alongside state schemes (for example, NSW Peak Demand Reduction or SA Home Battery Scheme). Each state is updating its rules; confirm with your installer before assuming you can “double‑dip”.
Can I expand an existing battery that never got STCs?
Yes, as long as the added nominal capacity keeps the total ≤100kWh; STCs are issued on the new usable capacity only.
Can I move my battery to a new house and claim again?
No. The rebate is tied to the first installation address and cannot be claimed a second time, even if you relocate the hardware.
What if I buy a house where the previous owner claimed the rebate?
You inherit the battery but cannot claim the rebate again unless you add new capacity that has never received STCs.
Are two 10kWh cabinets on one inverter eligible?
Yes, provided total nominal capacity ≤100kWh and usable capacity up to 50kWh is claimed.
Do I need the internet connected now for VPP‑capable?
The product merely has to support remote dispatch; an active internet link is only mandatory if you later enroll in a VPP.
What’s still in flux?
At the time of writing (May 2025) the Government’s Policy Paper and webinar give solid direction, but the draft regulations have not yet been tabled.
Final law will settle:
- The precise VPP‑capability test method.
- Administrative timelines for Clearing House payments.
- Any product stewardship or recycling obligations.
Check the Clean Energy Regulator’s website or subscribe to its mailing list for updates before you sign your contract.
Conclusion
The 2025 battery rebate slices roughly 30% off the installed cost of the first 50kWh of usable storage. Payback periods are still longer than for rooftop solar panels, but if you value evening self sufficiency and especially if you’re on a time of use tariff the economics may finally stack up.
