Federal Cheaper Home Batteries Program — What It Means for Melbourne Homes
For many Australians, the dream of energy independence and lower power bills is becoming reality. The federal government’s long-awaited Federal Home Batteries Program Melbourne has officially been finalised and will launch on July 1, 2025, giving homeowners across Victoria a clear path to affordable battery storage.
This landmark $2.3 billion initiative aims to install one million batteries in Australian homes by 2030 — reducing the upfront cost of home battery systems by around 30%. For an average 10 kWh system, that’s a saving of up to $3,720 in 2025 alone.
At Climate Green Melbourne, we help homeowners take full advantage of this rebate — from understanding eligibility to delivering safe, compliant installations by accredited professionals.
How the Cheaper Home Batteries Rebate Works
The rebate operates through the Small-scale Renewable Energy Scheme (SRES) — the same mechanism that supports solar rebates. Rebates are issued as Small-scale Technology Certificates (STCs), based on the battery’s usable capacity.
In 2025, eligible batteries will generate 9.3 STCs per kilowatt-hour (kWh), valued at about $372 per kWh.
How it works:
- Your accredited installer (like Climate Green Melbourne) manages all paperwork and claims.
- The rebate is applied directly at the point of sale, reducing your upfront cost immediately.
- The decline in battery STC value will occur more gradually than solar rebates, ensuring longer-term affordability.
Rebate Value Snapshot — Estimated 2025 Savings
| Battery Size (Usable Capacity) | Approx. Installed Cost (Before Rebate) | Estimated Rebate Value (30%) | Final Cost After Rebate |
|---|---|---|---|
| 5 kWh | $4,000 – $7,000 | ~$1,200 – $2,100 | $2,800 – $4,900 |
| 10 kWh | $8,000 – $12,000 | ~$3,000 – $3,720 | $5,000 – $8,500 |
| 15 kWh | $12,000 – $18,000 | ~$4,500 – $5,580 | $7,500 – $12,420 |
| 20 kWh | $16,000 – $24,000 | ~$6,000 – $7,440 | $10,000 – $16,560 |
Estimates based on 2025 STC rate of $372/kWh and standard installation costs. Actual values may vary by brand and site conditions.
Who Benefits Most — Understanding High Energy Users
While most Melbourne homes consume around 15–20 kWh per day, the rebate provides even greater benefits for high energy users — covering up to 50 kWh of usable capacity.
You might be a high energy household if you:
Have a large family: Multi-generational or high-occupancy homes using more power for heating, cooling, and appliances.
Own Electric Vehicles (EVs): Charging one or more EVs can dramatically increase energy usage.
Use energy-heavy appliances: Pools, spas, ducted air conditioning, and home offices all contribute to higher demand.
Seek self-sufficiency: Homes aiming to minimise grid reliance or maintain backup power during outages.
Key Eligibility Criteria for Melbourne Homes
To qualify for the Cheaper Home Batteries Program, the following conditions must be met:
Solar Connection: The battery must be connected to a new or existing solar PV system (standalone batteries don’t qualify).
Capacity Range: Batteries must have a total capacity between 5 kWh and 100 kWh, with rebates capped at the first 50 kWh.
One Rebate per Property: Each property can only claim once under the program.
System Expansion: You can upgrade your existing system if the added capacity is at least 5 kWh and hasn’t already received a rebate.
Permanent Installation: The system must be fixed permanently, not portable.
VPP-Ready: For grid-connected systems, the battery must be Virtual Power Plant (VPP) compatible.
Installer and Product Requirements
To guarantee safety, quality, and compliance, the government mandates that:
- All installations are carried out by Solar Accreditation Australia (SAA)-accredited installers.
- Batteries and inverters are listed on the Clean Energy Council (CEC) approved product list.
- No recalled or non-compliant products can be used in eligible installations.
At Climate Green Melbourne, we install only approved battery systems from trusted brands like GoodWe, Growatt, and Dyness — all designed for efficiency, reliability, and rebate eligibility.
Official Legislation
This program is governed under the Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025, available on the Federal Register of Legislation:
https://www.legislation.gov.au/F2025L00765/asmade/text
While federal and state rebates may be combined in some cases, most state-based Victorian battery programs have concluded, making this new federal rebate the key support mechanism for households in 2025 and beyond.
Eligibility at a Glance — Quick Summary
| Requirement | Details |
|---|---|
| Program Start Date | July 1, 2025 |
| Eligible System | New or existing solar-connected battery |
| Battery Capacity | 5 kWh – 100 kWh (rebate capped at 50 kWh) |
| Installer Accreditation | Must be SAA-accredited |
| Product Standard | Must be CEC-approved |
| Rebate Mechanism | STCs applied as an upfront discount |
| VPP Capability | Required for grid-connected homes |
| Rebate Value (2025) | ~$372 per kWh of usable capacity |
What This Means for Your Home
For Melbourne homeowners, the Federal Home Batteries Program Melbourne represents an incredible opportunity to lower upfront costs, gain energy security, and make better use of your solar power.
By installing a battery, you can:
Use your solar power around the clock
Protect against energy price rises
Keep your home powered during blackouts
Boost your property’s value and sustainability
This program provides the financial clarity and confidence homeowners need to invest in clean energy solutions — and Climate Green Melbourne is here to make that process seamless.
Why Choose Climate Green Melbourne?
As a trusted VEU and Solar Victoria-accredited provider, Climate Green Melbourne delivers end-to-end support for your solar and battery journey.
We provide:
Expert consultation and energy assessment
Supply and installation of CEC-approved systems
Full rebate management and documentation
Reliable after-sales service and performance support
With Climate Green, you’re not just saving energy — you’re investing in your home’s future.
1300 001 690
info@climategreen.com.au
www.climategreen.com.au
Climate Green Melbourne – Powering Victoria’s Clean Energy Future.