Solar and solar batteries are on everyone's radar at the moment. It's no exaggeration that more and more Australians are choosing to invest in solar power as energy costs rise and environmental concerns caused by traditional energy generation grow. By installing solar panels—and pairing them with a home battery—you can enjoy financial rewards and long-term environmental benefits.
The kicker - thanks to generous federal and state rebates, solar systems are more affordable than ever, making 2025 the perfect time to make the switch. Read on to learn more about how you can benefit from a solar system and view a summary of the rebates available.
Environmental Benefits
1. Lower Greenhouse Gas Emissions
Traditional electricity in Australia is still largely generated from coal and gas. By producing your own solar energy, you’re cutting down on fossil fuel use and reducing carbon emissions. A typical home solar system offsets several tonnes of CO₂ emissions every year.
2. Cleaner Energy Around the Clock
With solar panels alone, you generate and use energy from your panels as the energy is being generated (ie in daylight hours when it is sunny). With a battery, your household doesn’t just go green during daylight hours—you can use stored solar power at night. This reduces the need to pull electricity from the grid when demand (and fossil fuel generation) is highest.
3. Supporting Renewable Growth and Cleaner Air
Every solar installation helps Australia transition to a cleaner grid. More distributed renewable energy reduces the pressure on coal-fired plants and accelerates the shift toward sustainable power sources. By reducing reliance on coal and gas plants, solar energy helps cut air pollution. Cleaner air means healthier communities, fewer respiratory illnesses, and less damage to Australia’s unique ecosystems.
4. Reducing Strain on the Grid
Solar batteries can ease pressure on the national grid during peak demand. By storing energy during the day and using it later, you’re helping reduce the risk of blackouts and supporting grid stability.
Financial Benefits
1. Slash Your Power Bills
A well-sized solar system can generate most of the electricity your home needs during the day, dramatically reducing the amount of power you buy from the grid. When combined with a battery, you can store excess energy for use at night or during cloudy periods. This means you rely less on costly grid electricity, saving hundreds (or even thousands) of dollars each year.
2. Protection From Rising Energy Prices
Electricity prices in Australia have been volatile, and many experts expect them to remain high. Solar panels provide “free fuel” from the sun, while a battery lets you tap into your own stored energy instead of paying peak evening rates. This shields your household budget from future price hikes.
3. Higher Property Value
Homes with solar and battery systems are increasingly attractive to buyers, especially those looking for energy-efficient living. A home that can generate and store its own power is seen as modern, sustainable, and cost-effective—often commanding a higher sale price.
4. Emergency Backup Power
Some solar batteries include backup functionality. In the event of a blackout, you can keep essential appliances like lights, Wi-Fi, or the fridge running, providing comfort and security during outages.
5. Long-Term Return on Investment
While the upfront cost of solar and a battery can seem high, rebates (outlined below) combined with bill savings usually mean systems pay for themselves in 5–10 years. After that, your household enjoys near-free power for years to come.
Rebates & Incentives in 2025 — National & by State
*These rebates and incentives are correct at the time of publication. Please do not rely on this article and conduct your own research using government website sources.
Federal: Cheaper Home Batteries Program (from 1 July 2025)
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Offers an upfront discount of around 30% on battery installation or about $344 per usable kWh, based on STC value of ~$37. Rebate applies to the first 50 kWh of usable battery capacity. Energy.gov.auSolar ChoiceThe Guardian
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Covers battery sizes from 5 kWh to 100 kWh nominal capacity. Solar ChoiceSolar Calculator
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No means-testing required; available for homeowners, small businesses, and community facilities. Solar ChoiceThe Guardian
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Must be installed and certified on or after 1 July 2025 to qualify. Solar ChoiceClean Energy Regulator
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Average savings could be over $4,000 for a typical 11.5–13.5 kWh battery. Solar Choice
New South Wales (NSW)
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Peak Demand Reduction Scheme offers upfront discounts—approx. $2,000 off for a 13.5 kWh battery. Daily Telegraph
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Typical NSW households may save up to $1,500 per year on electricity with solar + battery. Daily Telegraph
Victoria
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Solar Victoria now provides interest-free loans up to $8,800 for battery purchases. Former direct rebates are no longer active. Luno ElectricalSunergy Solar & Batteries
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The federal Cheaper Home Batteries Program (30% discount) applies here too, stacking with the loan option. Solar ChoiceSunergy Solar & Batteries
Northern Territory (NT)
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The Home and Business Battery Scheme offers a $400 per kWh subsidy, up to $12,000 total, from December 2024. The Courier-Mail
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Additionally, a doubled peak feed-in tariff of 18.66 cents/kWh from July 2025 helps offset bills by around $150/year. The Courier-Mail
Other States & Territories
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Queensland, South Australia, Tasmania, and ACT currently rely primarily on the federal 30% battery rebate; state-specific programs are limited or not specified in current sources. SolarQuotes.com.ausunsolaraustralia.com.au
Installing solar panels with a battery in 2025 can be both financially savvy and environmentally responsible. If you take advantage of federal and state or territory incentives, you can cut energy bills and reduce your carbon footprint. It's a win-win!