What the Federal Government's solar rebates mean and how to cut your power bills

Canberra Times

02-06-2025

WATCH: Where Aussie Airbnb hosts earn THE MOST | view.com.au | 7NEWS
The Federal Government's new solar battery rebate, announced as part of the 2025 Budget, is an important piece of the puzzle that is Australia's energy transition and quest for Net Zero by 2050.
While one in three Australian homes currently have solar panels, shockingly, only one in forty is equipped with a battery. That's about to change.
Slimline batteries are unobtrusive and blend into your home. Pic Solar Battery Group
From 01 July, the new scheme gives eligible households across Australia a 30 per cent upfront discount on solar batteries, unlocking long-term power bill savings, helping to reduce grid pressure, and supporting the country's carbon-neutral mission.
But, what does the rebate really mean for Australian homeowners and how does the scheme fit into the bigger picture?
To find out, View reporter Jessica Agoston Cleary did a deep dive into the research and talked to the chief executive officer (CEO) of Solar Battery Group, James Hetherington.
As the man in charge of the largest solar battery provider in Australia, Hetherington is not only an expert on the topic, he's also firmly committed to making energy sustainable and affordable. Here's what you need to know.
How much could you save?
The new scheme "is a win for family budgets and for the country's energy transition," Mr Hetherington says.
"The savings are significant. A family with a 5kW solar system and a 10kWh battery can trim grid usage by about 60 to 80 per cent. At today's tariffs, that's roughly $2,300 a year."
What's equally as impressive is that the benefit appears from the very first quarterly bill - provided usage habits remain consistent.
These savings go beyond reductions in your power bill. Having lower energy costs translates into an increase in disposable income, which is always a good thing in today's economy. According to an LBL report, even a $100 drop in annual energy costs leads to a 2.3 per cent drop in mortgage default odds.
How does the rebate work?
Unlike state-based schemes, the Federal Government's rebate applies at the point of sale. .
"From 1 July 2025 the accredited installer applies the 30 per cent Federal discount; you see the price reduction on your invoice and the installer later redeems the value," Mr Hetherington says.
This makes it simpler and more immediate than many state incentives, which typically provide fixed rebates or interest-free loans after installation. The Federal solar scheme is national, uncapped, and percentage-based, with a one batter per household limit.
Can I combine it with state incentives?
The short answer that we all want to hear is yes!
"The Commonwealth has designed the new rebate to be 'stackable'," Mr Hetherington confirms.
"In Victoria, New South Wales or Western Australia, for example, you may add the 30 per cent discount to your state rebate or loan, provided the combined support does not exceed the installed cost."
It's important to note that while the battery rebate scheme is 'stackable', the other available incentives and schemes vary from state to state. To find out more about how to maximise your savings visit your state government website.
Against natural timber cladding the batteries may stand out more but theyre part of sustainable design choices. Pic Solar Battery Group
Who's eligible - and what are the common traps?
Eligibility for the scheme is broad, with owner-occupiers, landlords and small businesses connected to the grid able to access the rebate, as long as they install an approved battery between 5kWh and 100kWh with a Clean Energy Council-accredited installer.
As with any new government scheme, there are a few misconceptions floating around. "Retrospective claims on existing batteries are not allowed," Mr Hetherington cautions. He also points out that "taking the Federal rebate does not cancel your state incentive."
What are people asking - and what should they be asking?
Since the announcement, Solar Battery Group has seen inquiries triple.
Most callers want to know how cheap a battery can be.
But Hetherington says the better questions to ask are: "What is my evening usage profile? What is the warranty of batteries? Can the system join a virtual power plant?"
For those new to the solar conversation, a virtual power plant (VPP) probably sounds more like science fiction than reality.
However, there are numerous VPP's around the country.
In Victoria, for example, more than 700,000 households use solar energy. Essentially, a VPP creates a microgrid.
By connecting individual household batteries in an energy-sharing network, small amounts of surplus energy are fed back into the network for use by others in the community.
This not only helps balance out supply and demand on the electricity grid, it also reduces individual power bills as you can even be paid for your contribution.
WATCH: What is a Virtual Power Plant (VPP)? | Solar Victoria
Asking the questions Mr etherington suggested, together with finding out if your community has a VPP, will help to determine the real-world performance and revenue potential of your solar energy system.
What kind of system does a typical home need?
The right size depends on your night-time energy usage and the capacity of your solar panels.
The most important factor is that your battery is able to store every kilowatt of precious energy your solar panels generate so that none of it gets lost.
"Most families would require a 10kWh unit, which after the rebate, allows us to bring our prices down to $5,000," Mr Hetherington says.
Solar Battery Group's batteries feature integrated smart technology to monitor usage, and their team of dedicated agents are available to help homeowners understand and optimise their systems.
There are also a number of great resources and tips for optimising your solar energy system at energy.gov.au
Smaller batterys can be easily mounted to any external wall. Pic Solar Battery Group
When will I break even?
As with anything to do with property, return on investment (ROI) is always top of mind, and thanks to the rebate, payback periods have shortened dramatically.
"Most households can expect a return on investment in three to four years," Mr Hetherington says. "Well within the 10-year product warranty and well before the battery's 15-year expected lifespan."
How can I check I'm not being misled?
"Make sure you do your research," Mr Hetherington says.
"Start by understanding your power consumption and current solar generation. Then check the Clean Energy Council approved suppliers and products list and speak to a certified installer."
Once again, energy.gov.au has some excellent guides and resources about making the switch to solar. From installation, maintenance, figuring out what size system you need, to estimating your cost savings.
Beyond bills: what else can a battery do for me?
The benefits of having a solar battery storage system go well beyond cutting costs.
"Black-out resilience, the ability to join virtual power plants and earn credits, readiness for EV charging, higher property value, and a lower carbon footprint," Mr Hetherington says. "It also eases peak-demand pressure on the grid."
As already noted, energy-efficient homes command a premium sale price, which is music to any property owner's ears.
But, there are far greater benefits to owning and living in an energy efficient, sustainable home.
As noted on prefab modular home website Ecolive, "A sustainable energy efficient home provides lifestyle benefits, such as cross-ventilation, north-facing orientation, heat recovery ventilation, and solar panels."
Track usage and monitor savings digitally. Pic Solar Battery Group
Is now the right time to act?
There are two ways to look at answering this question.
On a larger, macro level, as part of the Paris Agreement, Australia has set itself the goal of being Net Zero by 2050. As stated by the Australian Government Department of Climate Change, Energy, the Environment and Water, "A strong Australian contribution to emissions reduction helps in the global effort to reduce major environmental, health and economic risks from the dangerous effects of climate change. This global effort is essential to protecting Australia from the worst climate impacts."
You might be thinking 'I'm all for playing my part, but what impact will transitioning to solar really have in the grand scheme of things?" You'd be surprised.
On a micro level, the impact of individual household choices has a significant part to play. "Residential buildings are responsible for around 24 per cent of overall electricity use and more than 10 per cent of total carbon emissions in Australia."
The time to act is now, and there is no time like the present - especially when it comes to climate change and taking full advantage of government incentives.
"Early adopters capture the full 30 per cent discount; the percentage tapers down each year to 2030," Mr Hetherington says.
With 2050 just 25 years away, winter bills looming and installer demand set to spike, getting your ducks in a row - such as working out your energy needs and doing your due diligence on installers - will put you in the perfect position to maximise savings and realise the multifaceted ROI benefits as soon as July first arrives.