Last update January 17th, 2025 at 06:04 pm
If you’re planning to install a solar panel system in 2025, you’ve likely noticed that solar batteries remain a significant investment. While solar panel prices continue to decline, battery costs are still relatively high. Many homeowners explore available solar battery incentives to help offset the expense.
Solar panels are more affordable than ever, and you will even get a federal solar rebate. But what about solar batteries? Are there any rebates that will help cover your battery costs? In this article, you will find the answer.
First of all: Do you really need a battery?
No, in most cases solar panel systems do not have a battery. Only one-fifth of all Australian households with solar systems have a system with battery storage.
Most Australians choose a grid-connected solar system without battery storage. If the solar system produces more electricity than is needed, the surplus energy will be transferred to the grid.
If your system produces too small amounts of energy, you can import energy from the grid. In other words, you do not necessarily need a solar battery for energy storage.
However, for Australians who choose a stand-alone solar panel system without a grid connection, a battery is an essential part of the system. This way you will be able to store energy that can be used when the solar panels do not produce enough electricity,
PS: It is also possible to choose a hybrid solar panel system, which means that the system is grid-connected while also having a battery.
Can I get a federal solar battery rebate?
Currently, there are no national solar battery rebate schemes in Australia. In other words, you will not be able to get a financial rebate from the federal government when investing in solar batteries.
If you install a solar system with a battery, your solar panels and inverter will usually be covered by the national solar rebate, but not the battery.
Are there any state battery incentives in Australia?
Yes, in some Australian states, you will be able to get a solar battery incentive! However, incentives like this are only offered in a few states. The support can vary greatly from state to state.
Let’s take a closer look at the rebate schemes available!
Victoria
Solar battery loans – In 2024-2025, 4,500 interest-free loans of up to $8,800 are available for battery storage systems. Find out more here.
Northern Territory
Home and business battery scheme – Eligible homeowners and businesses can access a grant of $400 per kilowatt hour of useable battery system capacity, up to a maximum grant of $12,000, for eligible battery systems. For example, a 13.5kWh Tesla Powerwall qualifies for the full $5,000 grant. More details are available here.
Queensland
Queensland’s Battery Booster program, which offered up to $4,000 in subsidies for home batteries, ended on 8 May 2024. Currently, no battery subsidy is available in Queensland.
New South Wales
Peak Demand Reduction Scheme – Starting 1 November 2024, a NSW battery subsidy will offer between $1,600 and $2,400 towards installation costs. Additionally, you can earn $250 to $450 for joining a Virtual Power Plant (VPP), with another payment available after three years. Find out more here.
What about other states?
If located in South Australia, Tasmania, Victoria and the Australian Capital Territory, there are currently no available solar battery incentives. However, you will be able to get the national solar panel rebate which might cover a great deal of your total solar costs.
What do they cost?
As of January 2025, the cost of residential solar batteries in Australia varies based on factors such as brand, capacity, and location. On average, prices range from $1,000 to $1,200 per kilowatt-hour (kWh) of storage capacity. For instance, a 10 kWh battery system might cost between $10,000 and $12,000, excluding installation and any applicable rebates.
Specific battery models and their approximate prices include:
- Tesla Powerwall 3: 13.5 kWh capacity, priced around $15,500.
- Sungrow: 12.8 kWh capacity, approximately $11,400.
- SolarEdge: 10.0 kWh capacity, about $13,400.
It’s important to note that these prices are indicative and can fluctuate based on market conditions and supplier pricing. Additionally, various state-based incentives can significantly reduce the upfront cost of solar batteries.
Is a solar battery worth it?
If you don’t have access to a battery incentive scheme in 2025, the upfront cost of a solar battery remains high. While battery technology is improving, the typical lifespan ranges from 7 to 15 years, and the payback period can still be long.
Because of this, a solar battery may not always be the best financial choice. However, with a high-quality battery and smart energy management, it can provide long-term savings, energy independence, and protection from rising electricity costs.
Do you consider getting a solar panel system with a battery included? If so, we recommend you consult a solar installer for recommendations and a price quest. The installer will help find the best solar system for your needs.