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Labor Battery Rebate for Commercial Solar

June 23, 2025

Labor's Home Battery Rebate is a Huge Opportunity for Commercial Solar

The reinstated Albanese Government’s $2.3 billion Cheaper Home Batteries Program is set to launch on July 1, 2025. This comprehensive guide explains how solar installers and energy consultants can model Small-scale Technology Certificates (STCs) for commercial battery projects and capitalise on this significant market opportunity.

Understanding the Labor Home Battery Rebate Program

The scheme offers a 30% rebate on the cost of installing VPP-ready batteries, with potential for significant savings per system for eligible battery installations. The rebate will be applied to the first 50kWh of useable capacity, with a cap on total battery size of 100kWh.

While designed to support homeowners, it also targets small businesses - both those who already have solar installed and those considering a solar + battery system.

This opens up a significant growth opportunity for solar installers, energy consultants, and service providers to:

  • Reconnect with solar-only clients and offer battery upgrades
  • Integrate VERY affordable storage options into new commercial solar proposals
  • Deliver compelling, rebate-backed financial models that speed up decision-making

With upfront costs slashed and batteries now more financially accessible, your small business clients can:

  • Receive substantial cost reduction through government incentives
  • Maximise their solar investment
  • Unlock new revenue streams by participating in VPPs
  • Achieve faster payback and a stronger overall ROI

View the key program details here.

Don't forget: You can only claim the Labor battery incentive if the battery is VPP (Virtual Power Plant) enabled

The good news? This isn't just a checkbox - it fundamentally changes your project economics.

VPP-enabled batteries generate ongoing revenue by selling energy back to the grid during peak demand (more on that here) but accurately modelling these complex revenue streams alongside government rebates requires sophisticated calculations that most tools simply can't handle.

This is where Orkestra becomes essential - it can accurately model the full spectrum of battery revenue, combining STC rebates, VPP participation income, and energy arbitrage savings into a single, comprehensive financial picture that gives your clients confidence to invest.

While your competitors are using spreadsheets and guesswork, you're delivering precise, comprehensive financial analysis that closes more deals.

Start a trial and get set up in Orkestra today so you’re ready to start modelling commercial opportunities as soon as your enquiries come in.

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Modelling your commercial solar opportunities in Orkestra

Orkestra is purpose-built for analysing the financial viability of commercial Solar & Battery projects, and helping you sell this to your customers.

All Orkestra users can now model Small-scale Technology Certificates (STCs) for battery systems, helping you capture the full financial benefit of the Battery Rebate and other Government incentives in your project analysis.

Orkestra enables you to model a wide range of government incentives for your solar and battery projects, including STCs (Small-scale Technology Certificates), LGCs (Large-scale Generation Certificates), and VEECs (Victorian Energy Efficiency Certificates).

The platform supports flexible combinations of these incentives across both solar and battery systems, ensuring you can accurately capture the full financial benefit available to your projects.

Orkestra ensures compliant solar battery financial modelling, while maximising your project's economic potential.

How to Model Battery STCs in Orkestra

  1. Navigate to your battery configuration in any scenario
  2. Scroll to the "Incentives" panel at the bottom of the page
  3. Toggle "STCs" to ON - the system handles the rest automatically

Switch on STCs in your Battery Configuration during project setup and analysis

The software will automatically:

  • Calculate STC eligibility based on your project start date
  • Apply the correct STC rates for the installation year
  • Show STC revenue in your upfront costs breakdown
  • Include STC benefits in all financial reports

View your projects STC savings clearly via interactive reports

Worked Battery Rebate Scheme Example in Orkestra

To demonstrate how transformative small business battery incentives can be, we’ve run an example feasibility assessment in Orkestra.

Roger owns a NSW business business consuming 376 megawatt hours a year with an annual electricity bill of around $90k. He’s been planning to get a 100kW solar system but had decided not to get a battery because they took the investment over his budget of $100k.

100kW is a common system size because this is the largest system eligible for the STC rebate.

For the solar alone, Roger was quoted $94k ex GST after STCs of $33k were been deducted.

The largest battery available in the Home Battery Program to receive the full rebate is 50kWh so he asked his solar specialist for a new quote including the battery - with and without the rebate.

The installer models a 46.8kWh battery (close to 50kWh). The cost would normally be $42,120, but the $15,660 rebate will bring that down to $26,460.

Here’s the impact on the total investment of solar and battery over 10 years:

Without the rebate

With the rebate

Roger is happy. In the first year alone, he’ll be saving $24,991 - a significant chunk out his annual grid electricity bill of $90k.

But the rebate brings his upfront cost down $15.6k, reduces the payback period down to 3.7 years, and lifts the rate of return to 29.4%.

With the investment now comfortably inside his $100k budget, Roger decides to proceed.

This examples show how better financials, when clearly presented, can turn interest into action.

Be Ready Before 1st of July

With battery project complexity increasing, from sizing to VPP-readiness to changing tariffs—installers and consultants need to deliver fast, accurate, and scalable assessments.

Orkestra simplifies every step:

🚀 Fast Turnaround: Model complex scenarios in minutes, not hours - keeping pace with increased market demand.

Feasibility Modelling: Accurately assess savings, ROI, and tariff impacts for battery projects.

📄 Client-Ready Reports: Generate clean, branded proposals to win trust and close deals.

🔍 Compliance & Confidence: Ensure battery designs meet scheme requirements (5–50 kWh, VPP-ready) and are tailored to site-specific conditions.

Start engaging your commercial leads now using Orkestra, book a demo with our team for help setting up your first project.

Book a Demonstration with our Team

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The Bottom Line

The 30% battery rebate is a major opportunity, but only for those ready to move fast. Small businesses will need trusted guidance and clear, data-backed solutions.

Orkestra gives you the platform to deliver exactly that - and win more work in the process.

Ready to grow your commercial solar and storage business with confidence? Let’s model your next opportunity together!

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