Save on solar battery costs with the new government rebate

There's nothing like high power bills to get homeowners thinking about ways to save, and close to one in three Aussie homes now has rooftop solar.

Adding solar panels to your roof can save over $1,500 on annual energy costs. But going a step further and installing a battery can supersize the savings.

Why have a solar battery?

A solar battery stores surplus solar power - energy that can be used during periods of low sunshine, in the evenings or during power cuts.

In this way, a battery can cut annual power bills by around $1,100. Alternatively, installing a new solar and battery system could save up to $2,300 each year - about 90% of a typical family electricity bill.

Despite the hip pocket benefits, the Clean Energy Council says only 4.5% of the four million homes with rooftop solar have an accompanying battery.

It means that 3.8 million Aussies could be missing an opportunity to double their energy bill savings.

Why don't more homeowners install a battery? The simple answer is the cost. A 13.5 kWh battery (suitable for a large family) can set you back around $13,000.

The good news is that a new federal scheme is set to make solar batteries a lot more affordable. Even better, it's possible to stack the benefits - taking advantage of federal as well as state and territory government incentives - to further slash the cost.

The Cheaper Home Batteries federal rebate

At a federal level, the Labor government is offering the Cheaper Home Batteries Program (CHBP).

Up for grabs is a 30% subsidy on the cost of a solar battery - a potential saving of around $4,000 on a typical battery.

The CHBP starts on 1 July 2025, but you can buy now and claim after 1 July.

The federal rebate is in addition to state-based incentives, so double dipping is allowed.  

Subsidies available through state and territory governments

A few state and territory governments offer solar battery programs and they take a variety of forms, including rebates and zero-interest loans.

In New South Wales, for example, you may be able to get a discount on the installation cost of your battery. This is only offered through certain installers who work with this incentive - it's not directly available through the NSW government. The discount depends on the size of the battery -  the bigger the battery (in kWh), the bigger the discount - and can also vary between installers. As a guide, SolarQuotes estimates this could be up to around $4,470.

In the ACT, homeowners may be eligible to borrow up to $15,000 interest-free to be repaid over 10 years. 

Western Australia's Residential Battery Scheme is due to kick off by 1 July and includes one-off rebates and no interest loans. The rebate will be up to $1,300 for Synergy customers and up to $3,800 for Horizon Power customers. This is lower than the $5,000 and $7,500 maximums when it was originally announced.

Households earning under $210,000 may be able to take out a no-interest loan up to $10,000 and pay it back over 10 years. 

Rebate schemes are no longer available in South Australia, Queensland and the Northern Territory, and the Victorian government has closed applications for its solar battery loans.

The bigger picture

In today's environment of rising energy bills, it can be compelling to add solar power to your home.

The Albanese government has promised another $150 in power bill relief until the end of 2025. But it's a drop in the ocean, especially as power prices are set to rise in south-east Queensland (up as much as 3.7%), South Australia (3.2%) and New South Wales (9.7%). These hikes could add an extra $228 to household power bills, according to Canstar Blue.

Yes, installing solar is a big outlay - even with the benefit of federal and state schemes. Over time, though, the system will pay for itself. 

The icing on the cake is that solar power can boost your home's value. Domain's latest Sustainability Report shows energy-efficient houses are selling for 14.5% more than their less efficient counterparts - a price difference of $118,000. That sort of rise in value more than compensates for the cost of adding solar plus a battery to your home.