Australian businesses and households can now claim an upfront discount of about 30 percent on new battery-storage systems after the Albanese Government’s long-promised Cheaper Home Batteries Program opened on 1 July. The incentive is delivered by expanding the Small-scale Renewable Energy Scheme (SRES) so that accredited installers create tradeable small-scale technology certificates (STCs) for each kilowatt-hour of usable storage they commission.

How much is on offer?

The STC price fluctuates with market demand, but analysts expect this year’s effective rebate to land between $330 and $370 per kWh – roughly $17,000 off a 50 kWh commercial battery if installed in 2025. Because the number of STCs issued declines every January, systems installed sooner will attract the highest discounts until the scheme sunsets in 2030.

Who qualifies?

• Property types:Each electrical metering point—whether a small business, community facility or home—can claim once.
• System size:5 kWh to 100 kWh (rebate capped at 50 kWh).
• Installers:Must be NETCC-authorised and CEC-accredited.
• Timing:The battery must be certified on or after 1 July 2025 (systems installed earlier can still qualify if commissioning is delayed until after this date).
  Electric-vehicle batteries and chargers are excluded.

Victorian outlook: VEU expansion signals future battery credits

In May, the Victorian Parliament passed the Victorian Energy Efficiency Target Amendment (Energy Upgrades for the Future) Bill 2025, extending the popular Victorian Energy Upgrades (VEU) scheme by ten years to 2045 and giving regulators power to add new technologies. Policy watchers say that paves the way for batteries to start earning Victorian Energy Efficiency Certificates (VEECs) later this decade – a move that would stack state credits on top of the federal rebate and further shorten paybacks.

For now, VEU still subsidises electrification measures such as high-efficiency HVAC and fuel-switching from gas—upgrades that dovetail neatly with solar-plus-storage projects.

Financing: new options cut upfront cost to zero

Sustainability Victoria notes that businesses reluctant to outlay capital can structure projects through hire-purchase or capital-lease agreements that shift the asset to the balance sheet over time. Commercial lenders have also launched “green” equipment loans, while specialist providers are expanding Power Purchase Agreements (PPAs) that let firms host a solar-battery system and simply pay for the energy it produces.

Why act now?

With wholesale electricity prices volatile and network demand charges rising, behind-the-meter batteries let businesses:

• Capture more rooftop-solar output, pushing self-consumption close to 100%.
• Shave peak kVA demandand avoid costly tariff ratchets.
• Provide resilienceduring blackouts—an increasing concern for manufacturers and cold-chain operators.

A recent installation by Melbourne-based energy services company Quality Energy underscores the economics: a 13.2 kW solar array paired with battery storage helped facilities-management group Challenger Services cover almost its entire load in the first month, delivering a 71% return on investment. (Full case study in Quality Energy’s latest blog post.)

“Because the new federal rebate is applied as an up-front invoice discount there’s no lengthy paperwork for the customer—our team handles the certificates,” explained a Quality Energy spokesperson.

What happens next?

• STC price watch:Certificate values are published weekly; analysts expect modest softening as supply grows, so early adopters may pocket larger dollar savings.
• VEU rule-making:The Essential Services Commission will consult on battery eligibility later this year.
• Industry capacity:NETCC-authorised installers report order books filling fast for Q3 installations, prompting calls to schedule site assessments promptly.

Bottom line

The combination of a federal 30% battery rebate, imminent VEU reforms and flexible financing means Victorian businesses have a rare window to slash energy bills and emissions in one move. A detailed explainer of rebate mechanics, financing structures and real-world paybacks is available in Quality Energy’s in-depth guide to the 2025 battery incentives.