The policy, which Prime Minister Anthony Albanese will unveil at a campaign speech in Brisbane on Sunday, will reduce the cost of a typical battery by 30 per cent.
It will kick in from July 1, if the government is re-elected on May 3.
Batteries allow households with solar panels to charge the battery during the day and use the power in the evening.
For a regular household taking advantage of the incentive to purchase a new solar and battery system, that means savings of up to $2300 a year - or 90 per cent - off their energy bill, government analysis shows.
The one-in-three Australian households with existing rooftop solar could save up to $1100 per year.
Labor has upped its focus on cutting energy prices to help with the cost of living, following a failed pledge to lower bills by $275 at the last election in 2022.
The battery subsidies build on an existing scheme to reduce the cost of solar installation, and follow a promise to extend power bill rebates and a $1 billion fund for households to upgrade to energy-efficient appliances.
"This is good for power bills and good for the environment," Mr Albanese said.
Australians who don't take part in the scheme would also benefit as it would push down peak electricity demand, reducing prices for the broader market.
The government expects the subsidies to cost taxpayers $2.3 billion and drive sales of batteries to one million by 2030.
Business owners and community organisations will also be able to access the battery subsidies.
Independent MP Helen Haines, who could become a king-maker in the event of a hung parliament and has advocated for a similar scheme, welcomed Labor's announcement.
The Clean Energy Council labelled it a significant and welcome cost-of-living measure.
"A national battery scheme will ensure more households will be empowered to turbocharge their energy independence and save on their bills," said the council's general manager of distributed energy, Con Hristodoulidis.
"It's good news for everybody's wallets, and the long-term future of Australia's modern energy system - built on the cheapest form of renewable energy backed by storage."
Despite the subsidy, buying a battery will still be out of reach for many households, with up-front costs currently averaging around $14,000.
Opposition housing spokesman Andrew Sukkar refused to confirm whether the coalition would match the policy, labelling the subsidy "an admission of failure".
"What Anthony Albanese seems to be saying is, because energy prices are going to be so high, we will give some people who can afford $10,000 for a battery ... allow them to get off the grid, presumably," he told Sky News.
Meanwhile, the cost of the coalition's nuclear energy plan is under the spotlight as Labor claims it will cost $5.7 billion a year in interest over the next decade.
The coalition claims its nuclear plan is 44 per cent cheaper than the Albanese government's plan to shift the grid to renewables, backed up with storage and gas.
But Labor has put a $600 billion price tag on the opposition's plan to build seven nuclear reactors across five states on the sites of coal-fired power stations.
Labor has also released costings estimating the plan will require $5.7 billion a year due to interest payments on debt over the next decade, and $57 billion over the decade to 2035 to 2036.
The coalition's plan was "nuclear insanity" that would blow out the Commonwealth's budget, Treasurer Jim Chalmers said.Â
Labor says the coalition's plan will cost every taxpayer $86,339 by 2050, $42,857 to build and another $43,482 in interest.
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