Labor Reveals $2.3 Billion Cheaper Home Batteries Program

Labor has announced a $2.3 billion plan to reduce the upfront cost of home battery systems by approximately 30%, making solar battery storage more accessible to households and businesses across Australia. This initiative, dubbed the Cheaper Home Batteries Program, is a key part of Labor’s energy and cost-of-living agenda heading into the upcoming federal election.

If re-elected, Labor plans to roll out the scheme from 1 July 2025, providing direct support to Australians looking to pair home batteries with new or existing solar systems.

How Will the Cheaper Home Batteries Program Work?

The program will operate under the existing Small-scale Renewable Energy Scheme (SRES)—the same federal mechanism used to deliver rooftop solar subsidies. Battery systems eligible for the subsidy must meet the following criteria:

Battery size: Between 5kWh and 50kWh of useable capacity is eligible for subsidy.
Battery type: Must be VPP-capable (Virtual Power Plant ready), but participation in a VPP is not mandatory.
System pairing: Battery must be installed with a new or existing solar PV system.
Installation timeframe: Systems installed before July 1 will also qualify, provided they are not switched on until after July 1, and Labor is returned to office.
Property eligibility: One battery per household, but owners of multiple properties can install a battery at each location.
System capacity limits: While the subsidy applies to the first 50kWh of usable capacity, systems of up to 100kWh may be installed.
Subsidy rate: The maximum theoretical rebate is approximately $372 per kWh of useable capacity, before admin fees and subject to market factors.
Program duration: The rebate value will gradually reduce each year until 2030, similar to how the SRES operates for solar.
Uncapped program: There is no limit on the number of battery systems that can receive the subsidy.
Existing battery owners: If you already have one, you can install an additional battery and still qualify.

The scheme is designed to complement existing state incentives, meaning households in regions like NSW and Western Australia could combine state and federal subsidies to make batteries even more affordable. However, details on how the federal and state schemes will coordinate are still being finalised.

Who Can Apply?

The following groups can access the subsidy:

Residential households
Small businesses
Community facilities

This opens up the potential for broader energy savings and energy independence beyond households alone.

What Could You Save?

According to Labor, the scheme could reduce the upfront cost of a typical 11.5kWh battery by around $4,000. The exact savings will vary based on the size of the system installed and whether other incentives apply.

As a rough guide, households installing a 13.5kWh battery could save between $730 and $1,680 per year on electricity bills. Those at the higher end of this savings range typically participate in a Virtual Power Plant (VPP), which allows for greater energy trading and optimised battery usage.

Why This Matters Now?

Over 4 million rooftop solar systems have been installed across Australia, but the high cost of battery storage has made it out of reach for many households. At the same time, feed-in tariffs for solar exports have steadily declined, making self-consumption through batteries more attractive.

This program is designed not only to help households store excess solar energy for evening use but also to support grid reliability and lower energy prices across the board.

Broader Benefits of Home Batteries

Even Australians who don’t install batteries could see indirect benefits, such as:

Reduced peak demand on the electricity grid
Delaying or avoiding major grid infrastructure upgrades
Lower wholesale electricity prices, especially during peak hours
Grid support from VPPs, soaking up excess solar and releasing it when needed
Increased renewable storage capacity, helping Australia transition away from coal

As Minister for Climate Change and Energy Chris Bowen explained:

“Households and businesses having batteries means we can keep solar energy on tap and keep energy bills down consistently.”

Final Thoughts

Labor’s Cheaper Home Batteries Program could make battery storage more accessible for many Australians. By offering a subsidy that can be combined with existing state-level support, the initiative may help reduce upfront costs and encourage wider adoption of home and business energy storage.

However, the program depends on Labor being re-elected, and some details, including how it will work alongside other incentives, will become clearer if the party forms government.

If you’re thinking about installing a battery system, this may be a good opportunity to review your options and start preparing for what could be a more affordable path to energy storage.