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.
By Bec Ramirez
8 min read
Find out what your home actually needs
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.
- Instant discount at purchaseYour installer handles the paperwork and deducts the value upfront
- Based on location and system sizeSunnier locations receive higher rebates (zone rating)
- Decreases each yearThe deeming period reduces annually until 2030
STC zones & rebate examples
Australia is divided into zones based on solar irradiance. Higher zone ratings mean more STCs and bigger rebates.
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 $258/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.
- ~30% discount on eligible batteriesApplied instantly at point of sale
- 5 to 50 kWh capacityRebate applies to first 50kWh only
- VPP-capable requiredBattery must be VPP-capable (joining is optional)
- New or existing solarWorks with both new installations and retrofits
Find out what your home actually needs
Free, takes 60 seconds, no obligation.
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.
Eligibility requirements
Solar (STCs)
- System under 100kW capacity (1MW from 1 October 2026)
- SAA-approved panels and inverter
- Installed by SAA-accredited installer
- New equipment only (not second-hand)
- No income or property value test
Battery program
- Battery capacity 5 to 50 kWh
- SAA-approved battery system
- Paired with new or existing solar
- VPP-capable (joining optional)
- One 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 explainerYour rebate, worked out to your address
Then one Why Solar Approved installer near you, and fifteen minutes with a solar expert before you sign.
Frequently asked questions
What 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 $1,482 to $2,014 on a standard 6.6kW system depending on your zone, and $2,964 to $4,066 on a 13.3kW system.
How 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 $258/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 $2,584 off. The next stepdown is 1 January 2027.
Do 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.
When 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 to 20%. Each year the rebate decreases further. The Cheaper Home Batteries Program runs through 2030 with $7.2 billion in funding.
What are STC zones and how do they affect my rebate?
Australia is divided into four STC zones based on solar irradiance. Zone 1 (Alice Springs and Karratha) gets the highest rebates, Zone 4 (Melbourne and Hobart) gets the lowest. Your location determines how many STCs your system generates.
Can 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.
What 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 ($2,622 for 10kW in Zone 3, $3,458 for 13.3kW), the Cheaper Home Batteries Program ($2,584 for a 10 kWh battery, $3,610 for 14 kWh, $5,776 for 28 kWh under tiered rates), and state-specific VPP incentives.
Sources
The next step
If you're considering solar panels or batteries for your home, Bec and the team can match you with one Why Solar Approved installer near you for a free written quote, and fifteen minutes with a solar expert before you sign.
Written by
Aussie Mum & Energy Expert
Helps families 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.
If you have any questions about the information in this guide, email hello@whysolar.com.au or call +61 2 5657 6527.