From 1 July, Australian homes and small businesses will have access to a new federal battery rebate that could significantly reduce the upfront cost of storage systems. 

Don’t let the name fool you, while it’s called the Cheaper Home Batteries Program, it’s available to eligible businesses too.

The rebate will be delivered through the existing Small-scale Renewable Energy Scheme (SRES), which is already familiar to many solar owners. It works through the creation and sale of small-scale technology certificates (STCs), with the government footing the bill. 

Importantly, that means no additional cost to consumers via energy retailers, and no confusing changes to energy bills.

Over and above sustainability, for small and medium businesses (SMEs), it’s a practical, well-structured incentive that can help cut power bills, improve energy reliability, and boost long-term competitiveness.

What’s on offer

The rebate offers around $372 per kilowatt-hour of storage capacity, capped at 50kWh, for battery systems between 5 and 100kWh. To be eligible, the battery must be installed by a Clean Energy Council (CEC) accredited installer and be Virtual Power Plant (VPP) compatible.

You can install a system before 1 July, but you won’t qualify unless it’s activated after that date. The rules are clear, so timing matters.

Why it matters to business owners

For SMEs that operate during the day (retailers, clinics, small manufacturers, hospitality) batteries help avoid those painful peak tariffs. You store solar when it’s plentiful and use it later, rather than drawing from the grid when prices spike.

We’ve worked with clients who’ve shaved thousands off their annual energy costs with the right setup. But the benefits go beyond bills. For businesses where a power outage means real disruption or lost income, battery storage can become like business continuity insurance; think food service, refrigeration, and medical clinics.

But don’t rush in

There are a few important things to consider. First, the upfront cost is still a hurdle, even with the rebate. Only eligible batteries and certified installers will qualify, so do your homework. And if you activate your system before 1 July, you’re out.

It’s also not the best fit for every business. If your power usage is low or mostly after hours, the return might not stack up.

How to work out if it’s worth it

Start with your power profile. When do you use the most electricity? How much solar do you already have? Is your usage consistent, or does it spike at certain times?

A good provider will help you model your expected savings, return on investment, and payback period. It’s also worth looking at finance options. There are green loans, asset write-offs, and lease arrangements that can ease the upfront pressure and make the switch more manageable.

Batteries are more than bill reducers

Battery storage also goes beyond dollars and cents. It can offer businesses more control. It builds independence from grid volatility, protects against price hikes, and opens the door to opportunities in the VPP space, where stored energy can be resold or used for bill credits.

There’s also the EV charging angle. If your business is moving towards electric fleets or wants to offer EV charging for staff or customers, battery systems can help reduce demand costs and avoid expensive infrastructure upgrades.

And let’s not forget sustainability. Whether you’re actively reporting on emissions or just trying to stay ahead of customer expectations, battery storage strengthens your ESG credentials. People notice when a business is walking the talk on energy.

Final thoughts

This scheme is a practical move by government. It doesn’t overcomplicate things, and it gives small businesses a real shot at future-proofing their energy. In our business, we see the benefits of battery storage every day; and we know how much of a difference the right system can make.

If you’re running a business with solar on your roof, or are planning to install solar, and have a decent daytime energy load, now’s the time to run the numbers. The support is there. The savings are real. And the sooner you start planning, the better your chances of locking in a smarter, more resilient setup.

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Through the program, small businesses will be able to purchase a typical battery with a 30 per cent discount on installation costs. The program would begin on 1 July 2025. Batteries installed from now to July 1 will also be eligible if Labor is reelected – but these can’t be switched on until July 1.

According to Labor, the measure will save small businesses and households around $4,000 in battery installation costs.

Those with existing solar could save up to $1,100 off their energy bill per year, while a household installing a new solar and a battery system could save up to $2,300 a year – up to 90 per cent of a typical family electricity bill.

Batteries with capacity of up 50 kWh would be eligible. However, a system up to 100kWh can be installed, according to Energy Minister Chris Bowen.

If you live in a state that already has discounts on battery installation, these would apply alongside the new Cheaper Home Batteries scheme.

The announcement comes just days after Labor promised to renew the $20,000 instant asset write-off for another year – again, if reelected. It seems the party is ramping up its efforts to court the small-business election vote.

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