In a significant policy shift, the Australian state of Victoria has quietly wrapped up its interest-free home battery loan program, a move that marks the end of a chapter in the state’s push for residential energy storage. While the initiative was originally scheduled to close in mid-2025, the deadline has effectively been brought forward, with Solar Victoria confirming it is no longer accepting new applications.
Launched in July 2023, the program offered up to AUD 8,800 in interest-free loans to help households install battery storage systems alongside existing or new rooftop solar. The original target was to fund 4,500 systems, but uptake exceeded expectations. Over 2,000 systems were financed in the 2023–24 fiscal year, and more than 3,800 are projected for 2024–25 — pushing total deployments well beyond the initial goal.
The Victorian government frames this closure as a successful conclusion rather than a withdrawal. According to Solar Victoria, demand has surged and targets have been achieved, with “hundreds more applications” still being finalized. These installations will continue to roll out over the coming months.
However, the decision has sparked criticism. The Victorian Greens have decried the early closure as short-sighted, arguing that the scheme was cost-effective and vital for households unable to shoulder the upfront cost of batteries. Party spokesperson Tim Read called it a “sensible, low-risk” initiative that empowered people to reduce both their energy bills and dependence on fossil fuels. “This is precisely the kind of program we should be expanding,” he said, “not winding down.”
The battery loan scheme was part of Victoria’s larger AUD 1.3 billion Solar Homes Program, which has supported the installation of more than 20,000 residential battery systems through rebates and loans. The program played a pivotal role in jumpstarting battery adoption across the state, making home energy storage more accessible to everyday Australians.
While the state-level program may be ending, the momentum is expected to carry into the federal government’s forthcoming Cheaper Home Batteries Program, set to launch on July 1, 2025. This nationwide initiative will offer up-front discounts—around AUD 370 per kWh of usable battery capacity—for systems tied to solar arrays, whether new or existing. Eligible installations will range from 5 kWh to 100 kWh, covering not only private residences but also small businesses and community sites, both on and off the grid.
Unlike Victoria’s approach, which focused on zero-interest financing, the federal scheme emphasizes direct rebates. For example, a household installing a 10 kWh battery could receive roughly AUD 3,700 off the total cost. The program will be underpinned by the Small-scale Renewable Energy Scheme (SRES), providing a familiar regulatory framework to ensure accessibility and compliance.
This national rollout may offer broader geographic and demographic reach, helping Australia meet its decarbonization goals by supporting widespread electrification. It also reflects a growing policy consensus: batteries are no longer a fringe technology. They are becoming central to energy resilience and cost control, especially as electricity grids grow more dynamic and distributed.
As Victoria passes the torch to the federal level, the big question remains: will this new phase of battery incentives maintain the pace of adoption, or leave gaps that state initiatives once filled? For now, consumers, installers, and policymakers alike are watching closely — because the path to a cleaner, more reliable energy future depends on what comes next.
