50 kWh Home Battery Systems Strain Cheaper Batteries Rebate Budget
Recent data indicates that Australia’s home battery rebate is primarily benefiting larger systems, specifically those sized at 50 kWh and above. This development has sparked discussions around potential adjustments to the policy by the federal Labor government, as the financial resources allocated for the scheme appear to be depleting rapidly.
The Cheaper Home Batteries initiative, launched by the Albanese government, has exceeded expectations significantly. The Clean Energy Regulator recently projected that valid applications for the rebate could reach 175,000 by the close of 2025.
Concerns About Budget Exhaustion
Despite its success, these rising application numbers are causing concerns within the industry. Analysts suggest that the current $2.3 billion budget for this four-year programme may be fully consumed as soon as June 2026. Chris Zondanos, Origin Energy’s general manager of Electrify and New Connections, estimated that the rebate could be depleted much sooner, potentially by mid-next year based on the current uptake rate.
According to insiders from Renew Economy, there’s increasing speculation regarding possible changes to the scheme, such as an early termination—a scenario deemed unlikely—or modifications in the eligibility criteria to temper the surge in applications, thus ensuring long-term sustainability.
Current Rebate Structure
At present, the Cheaper Home Batteries rebate offers subsidies for systems ranging from 5 kWh to a maximum capacity of 50 kWh, with discounts reaching approximately £18,500. Interestingly, systems with a total installed size up to 100 kWh also qualify for this maximum discount, an initiative designed to encourage participation from small and medium-sized enterprises.
Most industry speculation suggests that Minister Bowen will collaborate with stakeholders to implement several adjustments, a proactive approach that was hinted at when the programme was first introduced.
The government’s website states that the rebate provides a discount of around 30% on the upfront costs of smaller-scale battery installations (5 kWh to 100 kWh), and that this will be reviewed annually, gradually reducing until 2030, corresponding with the expected decline in battery prices.
Market Trends and Data Insights
It remains to be seen if any policy changes will include a reduction in the maximum capacity for eligible battery systems. Such an adjustment might be prudent given the latest data on home battery adoption. Statistics from industry experts SunWiz reveal that the segments for battery systems sized between 50-75 kWh and 30-50 kWh witnessed remarkable growth over the past month, expanding by 71% and 58% respectively.
SunWiz managing director Warwick Johnston noted that smaller systems showed slower growth in November. Overall, November saw the national small-scale energy storage market increase by 42%, rebounding after a growth slowdown of 17% in October.
The report indicates that small-scale battery registrations reached a monumental 1,024 megawatt-hours (MWh) in November, marking the first instance of Small-scale Technology Certificates (STC) battery volumes exceeding 1 gigawatt-hour (GWh).
In terms of regional performance, Queensland led the way with a 45% increase in registrations from the previous month, closely followed by New South Wales, which experienced a 44% rise in market activity.
