Resources | Smart Commercial Solar

Australia's First Battery Rebate for Businesses Unpacked

Written by Lauren Hamilton | Apr 7, 2025 3:34:41 AM

After years of industry advocacy, the moment has finally arrived: the Federal Government has announced plans to launch Australia's first battery rebate scheme large enough to apply to businesses.

If the current government are re-elected, from 1 July 2025 businesses and households will be able to claim a 30% rebate on battery systems up to 50kWh (with larger systems eligible for partial coverage). It's the biggest shift we've seen in commercial solar and storage economics — and it changes the game for businesses sitting on untapped solar potential.

Smart Commercial Solar was named Australia’s top commercial battery installer in the 2024 SunWiz awards, and we’ve delivered energy storage systems across industries — from hospitality and health to manufacturing and agriculture. For businesses with larger storage needs, our Smart Stack offering opens the door to bigger battery systems with built-in revenue generation.

Now there’s something for everyone — and a smarter way to make batteries more affordable.

 

Battery Rebate Eligibility Criteria

  • Battery size: 5kWh-50kWh (systems up to 100kWh are eligible but the payment is only on the first 50kWh).

  • Date: Commissioned on or after July 1 2025. Can be purchased and even installed beforehand but not commissioned.

  • Battery inverter must be capable of participating in a VPP.

  • Suitable for residential or commercial - no means test - with solar already installed.

Why This Rebate Changes Everything

Until now, commercial batteries have often been a "not yet" conversation. Long paybacks, high capital cost, and uncertainty made many businesses wait. But with:

- A 30% rebate

- 20%+ price drops on batteries over the past two years

- Growing VPP revenue streams

- Rising grid and peak demand charges

...the economics just flipped. A 50kWh battery is now a smart step, especially for sites with solar systems sized between 30–100kW.

 

Topline Business Cases

So, what might the rebate mean for your bottom line? Let's look at three common commercial scenarios for businesses with high energy demands and model the business case*.


1. Aged Care

  • Solar System Size: 50kW

  • Current Solar Coverage: 30% of energy needs

  • Exported Solar: 20% daily surplus

 
BATTERY OPPORTUNITY
  • Store surplus solar instead of exporting at low feed-in tariffs

  • Use stored energy overnight and during early morning ramp-ups

  • Shave afternoon peak demand charges with battery discharge

  • Earn additional revenue through VPP participation
MODELLING
  • 50kWh battery stores ~2.5 hours of site load
  • Reduces grid usage by ~15%
  • Estimated annual savings: $7,000–$10,000
  • Payback period post-rebate: 5-6 years

2. Cold Storage

  • Solar System Size: 100kW

  • Current Solar Coverage: 25% of energy needs

  • No solar exports (all energy generated used on-site)

 
BATTERY OPPORTUNITY
  • No solar waste, but can store solar during low-load periods for use in high-demand windows

  • Offset overnight refrigeration loads

  • Shave afternoon demand charges by dispatching battery power

MODELLING
  • 50kWh battery offsets peak 3–6pm load and early AM compressor startup

  • Estimated annual savings: $9,000–$12,000 (depending on tariff structure)

  • Payback period post-rebate: 6-7 years

3. Clubs e.g. Leagues, RSLs etc.

  • Solar System Size: 80kW

  • Current Solar Coverage: 20% of energy needs

  • No solar exports (all energy generated used on-site)

 
BATTERY OPPORTUNITY
  • Store solar generated between 11am–2pm for use during evening trading hours

  • Shave peak demand from kitchen, lighting and HVAC systems during dinner service

  • Makes evening load-shifting affordable and lowers the barrier for clubs to participate in VPPs


MODELLING
  • 50kWh battery covers late afternoon/evening peak usage

  • Reduces reliance on expensive evening grid tariffs

  • Estimated annual savings: $6,000–$8,000

  • Payback period post-rebate: 5–6 years

 

What Should You Do Now?

If you’re already a Smart Commercial Solar customer, we likely have your system data and can run the numbers quickly. If not — no worries. We’ll assess your solar, model the impact, and build a simple business case to see if a 50kWh battery stacks up for your site.

This is the moment the commercial solar and storage market has been waiting for. Let’s make it count.

*Note - these are indicative, topline use cases only and should not be used to make business or financial decisions.