The best rebates for solar batteries will soon begin to shrink, and with one expert warning electricity prices prices could rise again, households considering installing one may want to act sooner rather than later.
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The federal government’s Cheaper Home Batteries Program has been adjusted to deliver more rebates overall – but the discount for larger systems will be reduced from May 1.
Solar batteries allow households with rooftop panels to store excess solar energy instead of sending it back to the grid, meaning it can be used at night or on cloudy days.
They may also help households avoid new penalties being introduced by some energy retailers.
A solar battery can save even more money now some retailers have a “sun tax”, said Compare the Market’s Henry Man.
“We’ve seen electricity retailers lower their feed-in tariffs and the introduction of the ‘sun tax’, where some plans could penalise Aussies for exporting energy back into the grid at certain times,” he said.
Which could have contributed to the solar battery rebate scheme being popular – forcing the government to introduce the rebate reduction earlier, he said.
Under the changes, a full discount will still be available after May 1 for batteries between zero and 14 kilowatt-hours (kWh), although it will still represent a reduction from the current rebate.
For larger systems, the incentives drop further.
Batteries between 14 and 28 kWh will receive 60 per cent of the rebate, while systems between 28 and 50 kWh will only be eligible for 15 per cent.
The rebates will then reduce every six months from January 2027.
The changes come as electricity prices are tipped to rise again later this year.
And it might be a good opportunity to save money, with Compare the Market‘s economic director David Koch warning electricity prices are set to soar from July 1.
“Australians shouldn’t expect major bill reductions any time soon,” he said.
Australia’s energy regulators will release draft pricing proposals in March for the 2026-27 financial year.
The conflict in the Middle East, Koch said, could put pressure on global energy resources – one of several factors regulators will consider when setting prices.
“Factor in our dated infrastructure, transformation plans, network costs and big operating outlays, and it’s a much murkier situation,” he said.
While increased use of solar energy should eventually help reduce retail electricity costs, Koch said households should still prepare for potential bill shock.
“The reality is we shouldn’t be lured into a false sense of security just yet,” he said.
Consumers can still reduce costs by reviewing their electricity plans.
But people can be proactive, Koch said, by shopping around for a better deal.
“Prices vary – even with the same retailer,” he said.
Koch said it pays to shop around, especially if you have been with your provider long-term.
“If you haven’t switched in three years or more, the ACCC says you’re spending an average of $221 more than new customers,” he said.
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Hello, I’m Lisa, a journalist at The Senior. I have a strong interest in property and housing, cost of living and money stories. Got a tip? Email me – lisa.edser@austcommunitymedia.com.au
Hello, I’m Lisa, a journalist at The Senior. I have a strong interest in property and housing, cost of living and money stories. Got a tip? Email me – lisa.edser@austcommunitymedia.com.au
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