Federal Government incentives for battery storage

From 1 July 2025, the Federal Government put in place a formal battery incentive program that will provide a discount of 30% on the upfront cost of installing eligible battery systems. This represents a game-changing initiative for businesses with current solar systems to provide greater flexibility and control over energy usage.  It is the first time the Federal Government has supported battery installations at this scale.

Key take-outs from the new rules?

• Eligible battery installations up to 100kWh
• Batteries installed on or after 1 July 2025
• Organisations with solar already installed (or a new solar PV system)
• Battery system installed must be capable of participating in a VPP*

Why consider batteries now?

• You have existing solar or planning a new solar system and want to avoid solar export.
• 10-20% battery price reductions in the last few years and new government rebates make up front investment affordable.
•  Rising electricity network and peak demand charges (that cheap, stored solar energy can replace).
• For small solar system owners, a 50-100kWh battery could encourage the decision for a solar expansion with more efficient use of solar energy with the addition of battery storage.
• The subsidised investment in a small battery system, with a relatively small upfront cost can provide a worthwhile pilot to demonstrate the economic worth of batteries at a respective business site.  The experience may well encourage investment in more battery storage in the future.

* VPP = Virtual Power Plant
VPPs aggregate the energy from various individual battery units, both residential &  commercial and make it available to the grid when needed.