Western Australian Battery Rebate: State and Federal Incentives in 2025
An in-depth look at the state and federal battery rebate programs in Western Australia, including a $4,000 federal subsidy, costs, customer benefits, and industry implications as of April 2025.
Table of Contents
Overview of the Rebate Programs
As of April 08, 2025, Western Australia (WA) is poised to lead Australia’s residential energy storage revolution with its Residential Battery Scheme, bolstered by a newly confirmed federal rebate of up to $4,000. Announced by WA Labor ahead of the state election, the $387 million state program offers rebates of up to $5,000 for Synergy customers and $7,500 for Horizon Power users, set to launch by July 1, 2025. Complementing this, the federal government’s $4,000 subsidy—confirmed via posts on X and industry buzz—enhances affordability, targeting a nationwide push towards net-zero emissions. Together, these incentives could slash battery costs by up to 90%, making solar storage accessible to tens of thousands of households.
“Supercharging household batteries will revolutionise our electricity grid, allowing us to ramp up renewable energy, slash power bills and create quality manufacturing jobs for WA’s future.” – Premier Roger Cook, WA Labor Campaign Launch, February 2025
WA’s scheme aims to deploy over 200 megawatt-hours of storage, equivalent to the Kwinana Big Battery’s first stage, while the federal contribution aligns with broader climate goals. This synergy addresses grid stability in the South West Interconnected System (SWIS) and capitalizes on WA’s solar potential.
The WA State Battery Rebate
The WA Residential Battery Scheme is a cornerstone of the state’s clean energy strategy. Starting no later than July 1, 2025, it offers $500 per kWh (up to 10 kWh) for Synergy customers, maxing out at $5,000, and $750 per kWh for Horizon Power customers, up to $7,500. Batteries must be Virtual Power Plant (VPP) capable and Wi-Fi connected, ensuring they support grid resilience. The program targets 20,000 households initially—19,000 on Synergy and 1,000 on Horizon Power—with a third-party administrator overseeing rollout in multiple rounds.
For lower-income families, a $10,000 interest-free loan, repayable over 10 years, bridges the affordability gap. A $50 million Battery Manufacturing Program further sweetens the deal, aiming to localize production and reduce costs. Regional customers benefit from higher rebates due to their reliance on distributed energy, reflecting WA’s diverse energy landscape.
“Our no-interest loan program will further support people who may not be able to afford the upfront costs to also benefit from the ongoing power bill relief that a home battery provides.” – Premier Roger Cook, February 2025
Federal Rebate: $4,000 Boost
The federal government’s $4,000 battery rebate, confirmed as of April 2025 via posts on X from figures like Patrick Gorman MP, complements state efforts. Unlike the Small-scale Renewable Energy Scheme (SRES), which offers STCs for solar PV (e.g., $2,500 off a 6.6kW system in Perth), this new subsidy targets batteries directly. It’s designed to stack with state rebates, potentially reducing a $12,000 battery to just $3,000 for Synergy customers ($5,000 state + $4,000 federal) or $500 for Horizon Power users ($7,500 state + $4,000 federal).
“Our discount of up to $4,000 per battery will complement State based schemes. In WA, the State Labor Government has led the way on batteries with the most ambitious support in the country.” – Patrick Gorman MP, Federal Member for Perth, April 6, 2025 (via X)
While details on eligibility and rollout are still emerging, the federal rebate aligns with Labor’s national energy strategy, potentially tied to the looming federal election. Households should monitor energy.gov.au for updates.
What It Means for Customers
For WA residents, these rebates transform the economics of solar batteries. A 10 kWh system, typically $10,000-$16,000, could drop to $1,000-$7,000 with combined incentives, saving $1,000-$1,800 annually via peak shaving under the Distributed Energy Buyback Scheme (DEBS) at 10 cents/kWh from 3 PM-9 PM. A Perth family with a 6.6kW solar system generating 24-28 kWh daily could store 10 kWh, cutting grid reliance and yielding $12,000-$18,000 in savings over a decade—far exceeding the net cost.
The interest-free loan option further levels the playing field, enabling households earning under a yet-to-be-specified threshold to join the energy transition. For regional Horizon Power customers, the higher rebate reflects their unique needs, enhancing energy independence in remote areas.
| Battery Size (kWh) | Cost Before Rebate | WA Rebate (Synergy/Horizon) | Federal Rebate | Net Cost (Synergy/Horizon) | Annual Savings |
|---|---|---|---|---|---|
| 5 kWh | $7,000 | $2,500/$3,750 | $4,000 | $500/($750) | $500-$750 |
| 10 kWh | $12,000 | $5,000/$7,500 | $4,000 | $3,000/$500 | $1,000-$1,500 |
| 13.5 kWh | $16,000 | $5,000/$7,500 | $4,000 | $7,000/$4,500 | $1,200-$1,800 |
| Note: Net cost assumes maximum rebates; Horizon Power rebates cap at 10 kWh. | |||||
Implications for the Industry
The rebate rollout promises a seismic shift for WA’s solar and battery sector. Post-announcement, a sales lull hit installers as customers delayed purchases, prompting layoffs and a “valley of death” in early 2025, per the Smart Energy Council. Yet, the July 1 launch could unleash a “tsunami of work,” as Cook predicts, with demand for VPP-capable systems from Tesla, Sonnen, and emerging local manufacturers surging.
The $50 million manufacturing fund could spawn a domestic battery industry, cutting import reliance and creating 500-1,000 jobs, especially if “manufacturing” includes assembly. Installers face pressure to upscale, with training for VPP integration critical. Price gouging risks loom, but mandated pre-rebate price disclosures aim to curb inflation, though enforcement details remain unclear.
“We’ll work closely with the industry because we need this industry to be ready to take on a tsunami of work as a part of our $387-million program.” – Premier Roger Cook, February 2025
Cost Breakdown and Savings
Here’s a detailed look at a 10 kWh battery in Perth:
With $1,200-$1,500 annual savings, the payback period shrinks to 2-4 years, accelerated by DEBS exports during peak demand. For Horizon Power customers, the net cost could drop below zero with loans, making batteries a no-brainer.