The 2025 federal election is over. Voters have spoken.
Labor stays in government, and climate policy is staying on track for now. If you care about solar, batteries, EVs, or just your power bill, this election result matters more than you might realise.
A second term for the Albanese Government means big changes are coming, especially for people thinking about home electrification. There’s a lot to get excited about, starting with the long-awaited federal battery rebate.
At PSC Energy, we’re not political, but each party’s policies towards energy certainly gave us pause. A lot was at stake for customers trying to save money on solar batteries.
In this article, you’ll learn about the following:
- What Is the 2025 Federal Solar Battery Rebate?
- How the Federal Government Solar Battery Rebate Will Affect Your Payback Period
- What You Should Do Before July
- Jake’s Take on the Rebate
- FAQ: Federal Government Solar Battery Rebate
Let’s break down what’s on the table, what’s coming next, and what it all means for your home.
What Is the 2025 Federal Solar Battery Rebate?
The new rebate gives Australians an upfront discount of around $370 per kilowatt-hour of usable battery capacity. After fees, it should be around $350 per kWh industry-wide.
It applies to systems sized between 5kWh and 50kWh. That includes:
- Batteries added to existing solar systems.
- Batteries included in new solar installations.
- Batteries added onto existing solar and battery sites.
If you have solar with a battery and want more storage, you’ll receive a discount for that too.
The battery must be switched on or after 1 July 2025. We’ll install it for you and switch it on after July 1. We’ll explain why you’ll want to do this shortly.
This rebate is designed to reduce grid pressure, lower energy bills, and accelerate battery adoption nationwide.
It works like the solar STC rebate: installers apply it upfront and claim it on your behalf.
Key rules:
- You can only claim the rebate once. No additional batteries later.
- It only applies to VPP-ready batteries on the approved product list.
- Accredited providers must install batteries.
- The rebate reduces each year until 2030 and ends that year.
This rebate stacks with other incentives like the NSW Peak Demand Reduction Scheme (PDRS) and solar STCs. This is explained in the next section.
If you’re interested in learning a bit more about the NSW solar battery rebate, which is a different incentive from the state government, you might want to check out the following article titled, Everything You Need to Know About the Home Battery Rebate for NSW.
Power up your savings. Click here.
How the Federal Government Solar Battery Rebate Will Affect Your Payback Period
Before this rebate, solar batteries could take five to seven years to pay off. This new policy could slash that down to two or three years, especially if you can also claim the NSW PDRS and STCs on a new solar installation.
In New South Wales, you can stack:
- STCs for solar panels.
- NSW PDRS rebate for battery storage up to 28kWh.
- Federal battery rebate for storage between 5kWh and 50kWh.
Only the first 28kWh of battery storage gets the PDRS rebate. But the federal rebate covers up to 50kWh. If you go beyond 28kWh, you lose the PDRS portion but still get the federal rebate.
This rare overlap of rebates can reduce your payback period by years. That’s why the battery industry is bracing for a tidal wave of demand.
If you install a battery with 10kWh of usable storage, you’ll get about $3,500 off the upfront cost. The rebate is based on approximately $350 per kilowatt-hour. It will reduce each year until 2030. This is the same phase-down method used for solar panel rebates.
This rebate applies to both new solar and existing solar systems, as long as the battery is installed after the April 2025 announcement and switched on or after July 1. That’s a huge win for homeowners who were on the fence.
The rebate may also stack with state incentives. For example, if you live in NSW, you could combine the federal scheme with the Peak Demand Reduction Scheme.
Details are still being finalised, but stacking could mean an extra $1,000–$2,000 off in some cases.
Why This Rebate Will Matter for Everyone
More batteries in homes means less pressure on the electricity grid. That helps during the evening peak when demand is high and wholesale power prices spike.
With more households storing solar during the day and using it at night, the grid stays more stable, and prices stay lower for everyone.
Labor expects more than one million new batteries to be installed by 2030. That’s on top of the roughly 186,000 already in use as of the end of 2024. The change will be fast and noticeable.
If you’d like to learn a bit more about the cost of Australia’s top solar battery, the Sigenergy SigenStor, we recommend you check out the following article titled, How Much Does the Sigenergy SigenStor Cost?
Let’s talk solar savings. Click here.
What You Should Do Before July
Here’s how PSC Energy is helping customers prepare:
- Get a quote now. Lock in prices before demand spikes.
- Install before July. We’ll install the system ahead of time.
- Delay commissioning. We return after 1 July to turn it on, so it qualifies.
This is the only way to secure the rebate and get installed on time. We handle the timing and paperwork so you don’t miss out.
We started preparing as soon as Labor announced the policy. Now that the election has confirmed it, we’re ready.
We learned hard lessons from the NSW rebate in 2023. Delays, stock shortages, and missed cutoffs affected everyone.
If you want your solar battery installed soon, you must contact us as soon as possible. Slots are filling up fast, and we anticipate a backlog extending months beyond July.
What Happens If the Policy Changes?
It’s unlikely, but not impossible. If anything shifts, we’ll update you straight away.
We’ll be upfront about your options and keep you informed.
If you’d like to learn more about the price of one of our top-selling solar batteries, the Powerwall 3, you might want to check out the following article titled, How Much Does a Tesla Powerwall 3 Cost?
Ready to go solar? Click here.
Jake’s Take on the Rebate
Jake Warner, founder and director of PSC Energy, had some thoughts about the new federal solar battery rebate:
“I’ve worked in solar for over a decade. I’ve seen feed-in tariffs come and go. I’ve seen customers lose out by waiting too long for opportunities.
This is the biggest battery opportunity we’ve ever seen. We’re already installing systems under the new rules. We’re ready. We’re transparent. We’ve built this business to be ready for moments like this.
“I installed 96kWh of battery storage on my own property just before this was announced. I would have saved over $30,000 if I had waited. That’s how unpredictable this industry can be. And it’s why we’ve built PSC to be nimble and transparent.
“This rebate is one of the best battery opportunities we’ve seen in a decade. You don’t need to guess. You don’t need to rush. You need a partner who knows the system and can guide you through it.
“That’s what we do.”
Blue skies,
Jake Warner
Director, PSC Energy
If you’re interested in learning a bit more about one from our product line, the Enphase IQ Battery 5P, you might want to check out the following article titled, How Much Does an Enphase IQ Battery 5P Cost?
Get started with solar. Click here.
FAQ: Federal Government Solar Battery Rebate
Can I stack this rebate with others? Yes. It works with the NSW PDRS and the solar STC rebate.
Do I need a new solar system to qualify? No. You can add a battery to an existing solar system.
Can I install it early and commission it after? Yes. That’s our current strategy.
What batteries qualify? Any VPP-ready battery approved by the Clean Energy Council.
What if I wait too long? You risk missing out due to supply or install backlogs. And the rebate will be reduced every year until 2030.
Will this be available to renters? Yes, if the property owner agrees and a certified installer completes the job.
Do I need to connect to a Virtual Power Plant (VPP)? No. VPP-ready is required, but participation is optional.
Does this apply nationwide? Yes. However, only NSW residents get the PDRS on top.
We’re Ready. Are You?
The PSC team is already quoting, booking, and preparing for the July 1 rebate start date. If you’ve ever thought about getting a battery, this is the moment.
Don’t let it slip by.
If you’d like to learn a bit more about what solar batteries are on the market, you might want to check out the following article titled, 6 Best Solar Batteries on the Market.
Let’s go solar today. Click here.
One Last Thing About the Federal Government Battery Rebate for Australia
Like the solar rebate, this battery rebate will shrink each year on January 1. It ends completely in 2030. If you plan to get a battery, the sooner you move, the bigger the discount.
At PSC, we’ll keep tracking every update and explain what it means for your home. But for now, the message is simple: things are moving forward and they’re moving fast.
At PSC Energy, we know great value for customers. We make sure everyone who signs with us receives as much out of their solar system as possible. This rebate is a new frontier of savings. If you’ve ever considered adding a battery or solar with a battery, now is the time.
If you’re interested in learning a bit more about solar batteries, you might want to start with the following article titled, Adding a Battery to a Solar System.
