Federal Rebate

Federal Solar & Battery Rebates 2026

The Australian Government offers two main programs to reduce the cost of solar and batteries: Small-scale Technology Certificates (STCs) for solar panels, and the Cheaper Home Batteries Program for battery storage. Both are available nationwide and active until 2030.

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Headshot of Bec Ramirez, Aussie Mum & Energy Expert at Why Solar
Written by Bec Ramirez
·Published 3 January 2026·8 min read
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Updated 18 February 2026

Small-scale Technology Certificates (STCs)

STCs are the main federal incentive for solar panels. When you install a solar system, you earn certificates based on how much renewable energy your system will generate over its lifetime. These are typically assigned to your installer, who gives you an instant discount on your system price.

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    Instant discount at purchaseYour installer handles the paperwork and deducts the value upfront
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    Based on location and system sizeSunnier locations receive higher rebates (zone rating)
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    Decreases each yearThe deeming period reduces annually until 2030
Current STC Value (2026)
~$38-40 per certificate
Market rate fluctuates daily
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Over 3.6 million homes already claiming rebates

STC Zones & Rebate Examples

Australia is divided into zones based on solar irradiance. Higher zone ratings mean more STCs and bigger rebates.

1Zone 1(1.622)
Darwin, Far North QLD
~$2,200-$2,500 for 6.6kW
2Zone 2(1.536)
Brisbane, Cairns, NT
~$2,000-$2,200 for 6.6kW
3Zone 3(1.382)
Sydney, Perth, Adelaide, Canberra
~$1,600-$1,800 for 6.6kW
4Zone 4(1.185)
Melbourne, Hobart, Tasmania
~$1,600 for 6.6kW

Cheaper Home Batteries Program

Launched July 2025 and expanded to $7.2 billion (from $2.3B) in December 2025, this federal program provides approximately 30% off eligible battery systems. Since 1 May 2026 it uses tiered rates: around $252/kWh on the first 14 kWh, 60% on 14 to 28 kWh, and 15% on 28 to 50 kWh. The next stepdown is 1 January 2027.

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    ~30% discount on eligible batteriesApplied instantly at point of sale
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    5-50 kWh capacityRebate applies to first 50kWh only
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    VPP-capable requiredBattery must be VPP-capable (joining is optional)
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    New or existing solarWorks with both new installations and retrofits
Example: 10kWh Battery (May-Dec 2026)
~$2,520 off
Based on ~$252/kWh (Tier 1 STC factor of 6.8). Next stepdown 1 January 2027.
Full Battery Rebate Guidearrow_forward

Battery Rebate Tiers (in effect since 1 May 2026)

The Cheaper Home Batteries Program now uses a tiered system based on battery capacity. The STC factor steps down again on 1 January 2027 and every six months until 2030.

Small Battery
100%
0-14 kWh
10 kWh = ~$2,520 off
Tier 1 (full STC factor)
Medium Battery
60%
14-28 kWh
20 kWh = ~$4,430 off
Tier 2 (reduced)
Large Battery
15%
28-50 kWh
40 kWh = ~$6,100 off
Tier 3 (heavily reduced)
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Next stepdown 1 January 2027: the STC factor drops every six months until the program closes in 2030. Installing sooner secures a larger rebate, especially for batteries over 14 kWh where marginal rates are already reduced.
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Based on your postcode, energy use and roof.

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Over 3.6 million homes already claiming rebates

Eligibility Requirements

solar_powerSolar (STCs)

  • check_circleSystem under 100kW capacity
  • check_circleSAA-approved panels and inverter
  • check_circleInstalled by SAA-accredited installer
  • check_circleNew equipment only (not second-hand)
  • check_circleNo income or property value test

battery_fullBattery Program

  • check_circleBattery capacity 5-50 kWh
  • check_circleSAA-approved battery system
  • check_circlePaired with new or existing solar
  • check_circleVPP-capable (joining optional)
  • check_circleOne per property

What Is the $7,000 Solar Rebate?

The "$7,000 solar rebate" is not a single program. In 2026, you can reach $7,000+ in total savings by combining federal STCs on a larger system, the Cheaper Home Batteries Program, and state-specific VPP incentives.

Read the full $7,000 rebate explainerarrow_forward

Frequently Asked Questions

helpWhat is the federal solar rebate in Australia?

The federal solar rebate comes through Small-scale Technology Certificates (STCs). When you install solar, you earn certificates based on your system size and location. These are typically assigned to your installer, who gives you an instant discount of $2,000-$3,000+ on a standard 6.6kW system.

helpHow much is the federal battery rebate in 2026?

The Cheaper Home Batteries Program provides approximately 30% off eligible battery systems. Since 1 May 2026 it uses tiered rates: around $252/kWh on the first 14 kWh (100% STC factor), 60% on 14 to 28 kWh, and 15% on 28 to 50 kWh. A 10 kWh battery now receives approximately $2,520 off. The next stepdown is 1 January 2027.

helpDo I need to apply for the federal solar rebate?

No, you don't need to apply separately. The STC rebate is automatically applied as a point-of-sale discount by your SAA-accredited installer. Just ensure your quote shows the STC discount applied.

helpWhen do federal solar rebates end?

The STC program reduces annually and ends completely on December 31, 2030. The deeming period for 2026 is 5 years (down from 6 in 2025), reducing rebate values by approximately 15-20%. Each year the rebate decreases further. The Cheaper Home Batteries Program runs through 2030 with $7.2 billion in funding.

helpWhat are STC zones and how do they affect my rebate?

Australia is divided into four STC zones based on solar irradiance. Zone 1 (Darwin, Far North QLD) gets the highest rebates, Zone 4 (Melbourne, Hobart) gets the lowest. Your location determines how many STCs your system generates.

helpCan I get federal rebates if I already have solar?

Yes! If you're adding a battery to existing solar, you can access the Cheaper Home Batteries Program for ~30% off. For solar upgrades or new systems, you can get STCs on any new panels added.

helpWhat is the $7,000 solar rebate?

The "$7,000 solar rebate" is not a single program. In NSW, it originally referred to the Empowering Homes interest-free loan scheme, which closed in 2024. In 2026 you can reach $7,000+ in total savings by combining federal STCs on a larger system (e.g. $3,200-$3,600 for 10kW), the Cheaper Home Batteries Program (~$2,520 for a 10 kWh battery, ~$5,600 for a 28 kWh battery under tiered rates), and state-specific VPP incentives.

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The next step

If you have any questions about the information in this guide, feel free to get in touch:

If you're considering solar panels or batteries for your home, Bec and the team can help you get quotes from trusted, pre-vetted local installers:

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Headshot of Bec Ramirez, Aussie Mum & Energy Expert at Why Solar

Written by

Bec Ramirez

Aussie Mum & Energy Expert

Helping families navigate the switch to solar with practical, real-world advice. Bec focuses on the financial side — rebates, bill savings, and financing options — so everyday Australians can see real value from going solar.

Learn more about Bec Ramirez
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Up to $5,350 in rebates • Federal rebates step down in 218 days