Home battery rebate Australia 2026: how the federal discount, STCs and state incentives work

In 2026 the main home battery rebate in Australia is the federal Cheaper Home Batteries Program, which started on 1 July 2025. It is not a cash payment: an eligible battery creates small-scale technology certificates (STCs) under the Small-scale Renewable Energy Scheme, and the installer or a registered agent usually takes those certificates and takes their value off your price. For batteries installed between 1 May and 31 December 2026, the Clean Energy Regulator (CER) sets the STC factor at 6.8 certificates per kWh of usable capacity, applied in full to the first 14 kWh, at 60% from 14 to 28 kWh and at 15% from 28 to 50 kWh. The factor drops every six months until the scheme ends in 2030. On top of that, a few states offer their own incentives, mainly tied to joining a virtual power plant (VPP).

This guide is the overview for the costs and rebates section. Each part links to a more detailed guide.

The federal discount in one table

The figures below come from the CER's solar batteries page (last updated 31 July 2026, checked 27 October 2026).

The government's stated aim, in the CER's December 2025 announcement, is a discount of around 30% of upfront cost across battery sizes. Whether you see 30% depends on the price you are quoted: a high base price with the same certificate value is a smaller percentage.

The full factor schedule and the tier arithmetic are in how the STC factor works.

What the discount is worth in dollars

The number of certificates is fixed by the rules; their dollar value is not. STCs are traded, and the CER's rooftop solar page describes the usual certificate price as about $33–$38, while noting it does not set the price. A worked example (illustrative STC price):

• Battery: 13.5 kWh usable, installed in November 2026
• Certificates: 13.5 × 6.8 = 91.8, so about 91 (the CER calculator gives the exact whole number)
• Value at $36 per certificate: 91 × $36 = $3,276

A larger battery, say 25 kWh usable:

• Effective kWh: 14 + (11 × 0.6) = 20.6
• Certificates: 20.6 × 6.8 = about 140
• Value at $36: about $5,040

Doubling the capacity from 13.5 to 25 kWh adds only about 54% to the discount, because of the 60% tier. The discount estimator does this arithmetic for any size.

Solar panels still get STCs too

If you are installing new solar at the same time, the panels create their own STCs under the same scheme, based on system size, your postcode zone and the remaining years until 2030. The deeming period is 5 years for systems installed in 2026 and falls by one year each year. See solar STCs and the 2030 end date.

State and territory incentives

State support has changed a lot since mid-2025. As at October 2026:

Details, conditions and links are in state battery incentives in 2026.

What you must check before relying on the discount

The discount only applies if every condition is met. The most common traps:

1. The battery or inverter is not listed. Check the CEC approved battery list and the inverter listing yourself.
2. A battery was already claimed at the property. Only one battery per NMI can create STCs. If a previous owner claimed one, a new battery is not eligible.
3. The installer is not SAA accredited with a battery endorsement. Use SAA's accreditation lookup.
4. The quote hides the certificate value. Ask for the number of STCs and the price per STC in writing.
5. The install date slips. A delay across 31 December 2026 lowers the factor.

The full list of conditions is in eligibility: approved list, VPP-ready and one per NMI.

How the discount fits into the price

The discount is only one part of whether a battery makes sense. The installed price depends on usable capacity, inverter type, backup requirements, switchboard condition and phase supply — see what drives home battery prices. The saving depends on your evening usage and the gap between your import rate and feed-in tariff, which is changing with new free-midday-power offers — see feed-in tariffs and battery value. Joining a VPP can add income but also adds a contract — see virtual power plants explained.

When you are ready to size and price a system, move on to the battery sizing guide and the payback worked example.

FAQ

Is the battery rebate a cash payment from the government?

No. The battery creates STCs. Most people assign them to the installer's registered agent, who takes the value off the price at the point of sale. You can create and sell them yourself, but that involves registering with the CER and selling on the market.

Is there a means test or income limit for the federal discount?

The CER's eligibility conditions on its solar batteries page do not include an income or property-value test. The government's business.gov.au listing describes the program as open to Australian households, businesses and community organisations, provided the battery meets the same CER rules; confirm your situation with your installer and on the DCCEEW program page. State incentives may have income or property conditions.

Will the discount be available in 2027?

The CER publishes factors through to December 2030, stepping down each six months: 5.7 for January–June 2027 and 5.2 for July–December 2027. The scheme is legislated to end in 2030.

Is there a "free battery" offer under the program?

No. The program discounts the price; it does not make batteries free. Treat any free-battery pitch with caution and read door-to-door and phone sales rules.

Sources

• Clean Energy Regulator — solar batteries eligibility, STC factor table, STC calculator
• Department of Climate Change, Energy, the Environment and Water — Cheaper Home Batteries Program policy
• NSW Climate and Energy Action — battery and VPP incentives
• WA Government — WA Residential Battery Scheme
• Solar Victoria — Solar Homes rebates and loans
• Solar Accreditation Australia — installer accreditation lookup