Federal Rebate

Solar Battery Rebate 2026

The Cheaper Home Batteries program offers approximately $300 per kWh (~30% off) on eligible home battery systems. Tiered rebates start May 1, 2026, reducing benefits for batteries over 14 kWh.

Check your battery rebate eligibility

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Current battery rates end May 1, 2026 · 63 days remaining

Headshot of Bec Ramirez, Aussie Mum & Energy Expert at Why Solar
Written by Bec Ramirez
·Updated 19 Feb 2026·8 min read
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What is the Cheaper Home Batteries Program?

The Cheaper Home Batteries program is the Australian Government's $7.2 billion solar battery rebate initiative (expanded from $2.3B in December 2025). It provides approximately 30% off eligible battery systems (5–100 kWh) for households, businesses and community organisations when installed by a SAA-accredited installer with a CEC-approved battery.

From May 1, 2026, the program introduces tiered rebates. The first 14 kWh receives 100% of the STC factor, 14–28 kWh receives 60%, and 28–50 kWh receives just 15%. Installing before May 1, 2026 locks in higher rebates for larger batteries.

The rebate works as a point-of-sale discount applied directly to your quote. All CEC-approved batteries from major brands like Tesla, BYD and Sungrow are eligible, and the federal rebate is stackable with state programs for maximum savings.

Example Savings: 10 kWh Battery

Typical battery cost$11,000
Solar battery rebate (~$300/kWh)-$3,000
Your price (before May 1)$8,000

*Example only. Actual rebate varies by battery size and configuration.

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Check Your Battery Rebate

Enter your postcode to check rebate eligibility in your area.

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Current battery rates end May 1, 2026 · 63 days remaining

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Over 3.6 million homes already claiming rebates

Eligible Batteries and Rebate Amounts

All CEC-approved battery systems (5–100 kWh) are eligible for the solar battery rebate. Here are popular options with estimated savings:

Battery SystemCapacityEst. RebateAfter Rebate
Tesla Powerwall 313.5 kWh$4,000-$5,000$8,500-$12,000
BYD Battery-Box Premium10.2-20.5 kWh$3,000-$6,000$5,500-$10,000
Sungrow SBR9.6-25.6 kWh$2,900-$7,500$4,600-$10,500
Enphase IQ Battery10.08 kWh$3,000$5,400-$15,000
Alpha ESS SMILE55.7-34.2 kWh$1,700-$10,000$6,300-$10,000

*Prices are estimates and vary by installer, location, and installation complexity.

How the Rebate Decreases Over Time

The solar battery rebate is funded through Small-scale Technology Certificates (STCs). The STC factor determines how many certificates your battery creates per kWh. This factor declines every six months from May 2026, reducing the rebate over time.

PeriodSTC FactorEst. Rebate/kWh*
Jan – Apr 2026Now8.4~$311
May – Dec 20266.8~$252
Jan – Jun 20275.7~$211
Jul – Dec 20275.2~$193
Jan – Jun 20284.6~$170
Jul – Dec 20284.1~$152
2029 – 20303.6 → 2.1~$133 → ~$78

*Estimated rebate per kWh for the first 14 kWh, based on STC price of ~$37. Actual amount depends on market STC price at installation date. From May 2026, batteries over 14 kWh receive reduced rates (60% for 14–28 kWh, 15% for 28–50 kWh).

Federal + State: Stack Your Rebates

The federal battery rebate can be combined with state programs for even bigger savings. Here's what you could save in each state:

NSW

PDRS VPP IncentiveVPP up to $1,500
Federal rebate~$3,000
Total savings$4,500+

WA (Synergy)

WA Battery SchemeUp to $1,300
Federal rebate~$3,000
Total savings$4,300-$5,000

WA (Horizon)

WA Battery SchemeUp to $3,800
Federal rebate~$3,000
Total savings$6,800-$7,500

SA

REPS VPP ConnectionVPP up to $2,050
Federal rebate~$3,000
Total savings$5,050+

VIC

Closed
Battery Loan (closed)Closed May 2025
Federal rebate~$3,000
Total savings$3,000

QLD

Closed
Battery Booster (closed)Closed May 2024
Federal rebate~$3,000
Total savings$3,000
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See Your Battery Rebate Amount

Enter your postcode to see your estimated rebate amount.

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Current battery rates end May 1, 2026 · 63 days remaining

verifiedVerified Local Installersthumb_up100% Free ServiceshieldNo Obligation

Over 3.6 million homes already claiming rebates

Solar Battery Rebate Eligibility

Full eligibility criteria is available on the DCCEEW website.

check_circleYou're Eligible If:

  • checkYou have solar panels or are installing solar with the battery
  • checkBattery is 5–100 kWh nominal capacity, CEC-approved
  • checkInstalled by a SAA-accredited installer
  • checkOn-grid batteries must be VPP-capable (able to participate in a virtual power plant)
  • checkHouseholds, businesses and community organisations eligible

cancelNot Eligible:

  • closeBattery-only systems without solar PV
  • closeBatteries under 5 kWh or over 100 kWh nominal capacity
  • closeDIY installations (must use SAA-accredited installer)
  • closeNon-CEC-approved battery systems
  • closePortable batteries and electric vehicles

What does "VPP-capable" mean? To qualify for the rebate, on-grid batteries must be able to participate in a virtual power plant. This means the battery can receive remote signals to export stored energy during grid demand events. All major brands (Tesla, BYD, Sungrow, Enphase, Alpha ESS) meet this requirement. Being VPP-capable doesn't mean you have to join a VPP, but it gives you the option to earn $300–$1,000+ per year from VPP participation on top of your regular savings.

How to Claim the Solar Battery Rebate

1

Get a Quote

Request a free quote from Why Solar. We'll assess your home and recommend the best battery.

2

Confirm Eligibility

We verify your eligibility for the federal battery rebate and any applicable state programs.

3

Rebate Applied

The rebate is applied as a point-of-sale discount. You see the reduced price on your quote.

4

Installation

Our SAA-accredited team installs your battery. We handle all paperwork and compliance.

Solar Battery Rebate FAQ

helpWhat is the solar battery rebate?

The solar battery rebate is officially called the "Cheaper Home Batteries" program. It provides approximately 30% off eligible battery storage systems (5-100 kWh) installed with new or existing solar PV. Households, businesses and community organisations are all eligible. The program runs through 2030 with $7.2 billion in funding, but the rebate structure changes on May 1, 2026 when tiered rates reduce benefits for batteries over 14kWh.

helpHow much can I save with the Cheaper Home Batteries program?

The program offers approximately $300 per kWh before May 1, 2026. For a typical 10kWh battery, this means savings of around $3,000. A 13.5kWh Tesla Powerwall 3 receives $4,000-$5,000. After May 1, 2026, tiered rates apply: first 14kWh gets 100% of STC factor, 14-28kWh gets 60%, and 28-50kWh gets just 15%.

helpWho is eligible for the solar battery rebate?

Households, businesses and community organisations are all eligible. You need: a new or existing solar PV system (under 100 kW), a CEC-approved battery between 5-100 kWh nominal capacity, and installation by a SAA-accredited installer. On-grid batteries must be VPP-capable (able to participate in a virtual power plant). All major battery brands meet this requirement. There is no means test and the rebate is available per property.

helpCan I stack the federal battery rebate with state rebates?

Yes! The federal battery rebate can be combined with state programs. NSW residents can combine it with VPP PDRS incentives (up to $1,500). WA residents can stack with the state battery rebate ($1,300-$3,800). SA residents can add REPS VPP rebates (up to $2,050). Note: many state battery programs closed in 2024-2025.

helpWhen does the Cheaper Home Batteries program end?

The program runs through 2030 with $7.2 billion in funding (expanded from $2.3B in December 2025). However, the rebate structure changes on May 1, 2026 to tiered rates that reduce benefits for larger batteries. Installing before May 1, 2026 locks in higher rebates for batteries over 14kWh.

helpHow do I apply for the solar battery rebate?

You do not need to apply directly. The rebate is applied as a point-of-sale discount through accredited installers. Your installer either offers an upfront reduction on the battery cost or a rebate after installation. Alternatively, you can claim the discount directly by creating and trading STCs through the REC Registry.

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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 a home battery system, 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 • Battery rates change in 63 days