Great news for Sydney homeowners and businesses looking to upgrade their solar energy systems — the federal government has announced a bold new initiative aimed at making solar battery storage more affordable. As part of the 2025–26 Federal Budget, Prime Minister Anthony Albanese and Climate and Energy Minister Chris Bowen unveiled the Cheaper Home Batteries Program, committing $2.3 billion to cut the cost of battery installations by around 30%.
This initiative is expected to drive the installation of more than one million new solar batteries across Australia by 2030, providing a significant boost for clean energy uptake and offering long-term savings on energy bills.
What It Means for Sydney Residents
For those exploring solar panel installation in Sydney or considering adding a battery to an existing solar system, this program could drastically reduce the solar battery cost in Sydney — potentially saving homeowners up to $4,000 per installation. Whether you live in the city or surrounding suburbs, the program will make home battery storage much more accessible.
Eligible systems will receive a subsidy of $370 per kWh of usable battery capacity, with sizes ranging from 5 kWh to 50 kWh for residential properties. Small businesses and community facilities may also qualify, with systems up to 100 kWh eligible for support.
Key Highlights of the Program
- Target: Over one million battery installations by 2030
- Subsidy Rate: $370 per kWh of usable battery capacity
- Battery Sizes: 5–50 kWh for homes; up to 100 kWh for other properties
- Eligibility: Open to households with existing solar panels, no income testing
- Commissioning Deadline: Batteries must not be ‘switched on’ before 1 July 2025
- Connection Types: Applies to both grid-connected and off-grid setups
- VPP Compatibility: Batteries must be Virtual Power Plant (VPP) ready, though participation is optional
What to Consider Before You Install
While the Cheaper Home Batteries Program is still in the proposal phase, it signals strong government support for more affordable solar battery adoption. Once the newly elected government finalises appointments and confirms the rollout, we expect integration with the Small-scale Renewable Energy Scheme (SRES), making it even easier to claim benefits.
However, Sydney residents should be cautious about installing solar batteries before 1 July 2025, as early installations may not qualify for subsidies. Opera Solar Energy advises that you get a free solar quote and consult with accredited solar installers before making any decisions.
Ready to Save with Solar in Sydney?
At Opera Solar Energy, we help Sydney homeowners and businesses harness solar power more effectively. Our experts are here to guide you through battery upgrades, solar installation in Sydney, and available government incentives — including this new program as soon as it becomes available.
Get in touch today for a free solar quote and secure your energy savings future.
