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Home batteries and rebates: What you need to know

June 20, 2025 by Anne Delaney Leave a Comment

From July 1, Australian households can finally tap into the federal government’s long-awaited battery rebate—offering up to 30% off the upfront cost of installing a home battery.

It’s a big win for anyone looking to cut power bills, reduce reliance on fossil fuels, and back a smarter, more flexible energy grid. But with so many battery types, features, and fine print to wade through, it’s easy to feel overwhelmed.

That’s why we invited Brendan Lang, the EV-driving electrician behind Get Off Gas onto the SwitchedOn Australia podcast to break it all down. He shares clear, practical advice on choosing the right battery, why VPP (Virtual Power Plant) compatibility matters, what the rebate covers, and how to avoid common mistakes. He also explains why it pays to get your house energy-efficient before splashing out on shiny new tech.

Here’s a Q&A is based on Brendan’s insights.

Why install a home battery?

Q: What are the main reasons households should consider installing a home battery?

A: There are several motivations:

  • Store excess solar: Maximise the use of your solar system by charging the battery during the day and using the stored energy at night.
  • Backup power: Keep essential appliances running during a blackout—especially useful in areas with unreliable supply.
  • Join a virtual power plant (VPP): Use your battery to trade energy—buying low and selling high—and potentially earn revenue or rewards.

Choosing the right battery

Q: How do I choose the best battery for my home?

A: Start by considering:

  • Compatibility: Can it work with your existing solar inverter? Some homes have hybrid inverters ready to go.
  • Scalability: Can you add more battery storage in future?
  • Use case: Are you trying to cover just night-time use, or power the whole house during outages?

Q: Are there brands or models you recommend?

A: Batteries must be VPP-compatible to qualify for the federal rebate. The federal government’s Cheaper Home Batteries rebate is based on the Clean Energy Council (CEC) approved product list and reliable brands include:

  • Tesla Powerwall 3 – Great for single-phase homes, includes integrated inverter.
  • BYD – World leader in battery tech, modular and stackable.
  • Sigenergy – New to market but offers three-phase backup protection.
  • Enphase IQ – compact, modular units ideal for smaller homes.

Understanding your energy use

Q: How much do I need to know about my power usage before I buy a battery?

A: Having a good grasp of your energy consumption is key. Your installer will typically assess this via your smart meter or data from your solar inverter.

Q: Should I have a smart meter and energy management system?

A: Absolutely. Smart meters give you essential data to size your battery appropriately. Victoria is already over 90% covered.

The new federal battery rebate

Q: What is the rebate and who is eligible?

A: From July 1, 2025:

  • Rebate covers ~30% or up to ~$4,000 off a home battery system.
  • Must use an accredited installer and an approved, VPP-ready product.
  • Storage must be between 5kWh and 100kWh (rebate only applies to the first 50kWh).
  • Systems must not be turned on before July 1.
  • Both on-grid and off-grid homes are eligible (off-grid homes must meet certain distance criteria).

Q: Can I stack state and federal rebates?

A: In most cases, no. Some state schemes are being phased out now that the federal rebate is launching.

Q: Should I rush to install a battery from July 1?

A: No need to rush. Prices are expected to continue falling. Take time to improve home efficiency and gather quotes.

Virtual Power Plants (VPPs)

Q: What is a virtual power plant?

A: A VPP is a network of home batteries that are aggregated and managed to support the grid. Households can trade stored energy based on market signals.

Q: Do I have to join a VPP to get the rebate?

A: No. Batteries only need to be VPP-ready.

Q: What’s in it for me if I join a VPP?

A: Potential benefits include:

  • Earn revenue by discharging into the grid when prices are high
  • Get paid for helping during peak demand events
  • More efficient use of your battery

Q: Are there risks? Can I still control my battery?

A: Yes, you maintain control. Modern VPPs (e.g. Amber, OVO) let you:

  • Set reserve limits
  • Opt out of specific discharge events
  • Exit the VPP entirely (check contract terms)

Q: What should I watch for in the fine print?
A:

  • Curtailment rules – Can you limit how much solar you send to the grid?
  • Discharge settings – Can you configure charge/discharge times?
  • Exit fees or lock-in contracts

Operating and configuring your battery

Q: What can my battery do?

A:

  • Charge from solar or the grid
  • Power your home in peak periods
  • Discharge power to the grid
  • (Limited) Charge an EV

Q: Can I charge my EV with my home battery?

A: Technically yes—but home batteries are small compared to EV batteries so it’s not the most economical way of charging your battery. A 13 kilowatt hour Tesla Powerwall, for instance, is only going to go part of the way of charging a 65 or 75 kilowatt hour EV battery. Better to use your home battery for household loads.

Q: Can I eventually use my EV battery to power my home?

A: Not yet. Vehicle-to-home (V2H) systems are coming, but most manufacturers haven’t unlocked this functionality due to warranty concerns.

Q: What about setting up time-of-use schedules?

A: Most batteries allow you to program charge/discharge times—either through the app or via installer portals.

Q: What if my battery loses Wi-Fi?

A: Most will reconnect automatically. Others may need manual reconnection via their app.

Safety and installation

Q: Are home batteries a fire risk?

A: Not if installed correctly. Australia’s safety standard (AS/NZS 5139) is strict:

  • Batteries must be installed away from habitable rooms or behind fireproof barriers
  • Installers must be accredited and licensed

Q: Where should a battery be located?

A:

  • Best: Garage, laundry, shaded outdoor walls (not facing north or west)
  • Avoid: Close to gas meters, windows, doors, or direct sunlight, and not on walls that connect ‘liveable’ rooms (bedrooms, living rooms)
  • Additional protections (e.g. bollards in garages) may be required

Q: How do I shut down my system in a storm or cyclone?

A:

  • Learn the isolation switches for your solar, battery, and meter
  • Test these in advance, including what happens if your Wi-Fi goes down
  • Your installer should walk you through all this at commissioning

Finding the right installer

Q: What makes a good installer?

A:

  • Check if they’ve been in business for 5+ years
  • Look for real customer reviews and referrals
  • Make sure they explain system configuration and safety steps
  • Use Clean Energy Council accredited professionals

The big picture

Q: What excites you most about where the energy system is heading?

A: The potential for batteries to stabilise the grid and reduce energy costs—especially for lower-income households. As home batteries proliferate, we’ll rely less on gas and coal and more on clean, distributed energy.

Q: Final advice?

A: Don’t let the rebate rush or cloud your judgment. Focus first on energy efficiency—seal drafts, insulate, upgrade appliances—then choose a quality battery and installer. Smart decisions now will pay off for years.

You can hear the full interview with Brendan Lang on the SwitchedOn Australia podcast.

SwitchedOn Australia · The Tesla driving sparkie’s guide to home batteries, rebates and VPPs
Anne Delaney
Anne Delaney

Anne Delaney is the host of the SwitchedOn podcast and our Electrification Editor, She has had a successful career in journalism (the ABC and SBS), as a documentary film maker, and as an artist and sculptor.

Filed Under: Battery/Storage, Electrification, Featured

About Anne Delaney

Anne Delaney is the host of the SwitchedOn podcast and our Electrification Editor, She has had a successful career in journalism (the ABC and SBS), as a documentary film maker, and as an artist and sculptor.

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