The short answer
If you install an eligible home battery with new or existing solar, the federal Cheaper Home Batteries Program takes about 30% off the price of a typical battery. On a 13.5 kWh battery installed by 31 December 2026, that is about $3,458.
The discount comes straight off your quote. There is nothing to claim back later. It is based on the battery's usable capacity and on when it is installed, and it gets smaller every six months until the program winds down in 2030.
How the rebate works
The program started on 1 July 2025. It works through the same scheme as the federal solar rebate, the Small-scale Renewable Energy Scheme. An eligible battery creates small-scale technology certificates (STCs), and the installer takes their value off your price.
- Number of certificates = the battery's usable capacity × the "STC factor" for the period it is installed in. From May to December 2026 the factor is 6.8 per kWh.
- Value of each certificate: set by the certificate market, recently around $38. The estimates in this guide use $38.
- You assign the certificates to us when you sign, we lodge them after installation, and the discount is already on your quote.
Bigger batteries get a smaller rate per kWh
Since 1 May 2026, the rate depends on how much usable capacity the battery has:
| Usable capacity | Rate applied | Certificates per kWh, May to Dec 2026 |
|---|---|---|
| First 14 kWh | 100% | 6.8 |
| Over 14, up to 28 kWh | 60% | 4.08 |
| Over 28, up to 50 kWh | 15% | 1.02 |
| Over 50 kWh | No discount | 0 |
Who can get it
- Households and small businesses installing a battery with new or existing solar.
- The battery must be an approved product, installed by an accredited installer.
- It must be able to join a virtual power plant (VPP). Actually joining one is up to you.
How much each battery size gets
Estimated discounts for common battery sizes, before and after the 1 January 2027 step-down:
| Usable capacity | Certificates (2026) | Installed by 31 Dec 2026 | Installed Jan to Jun 2027 | Difference |
|---|---|---|---|---|
| 5 kWh | 34 | about $1,292 | about $1,064 | −$228 |
| 10 kWh | 68 | about $2,584 | about $2,166 | −$418 |
| 13.5 kWh | 91 | about $3,458 | about $2,888 | −$570 |
| 16 kWh | 103 | about $3,914 | about $3,268 | −$646 |
| 20 kWh | 119 | about $4,522 | about $3,800 | −$722 |
| 25 kWh | 140 | about $5,320 | about $4,446 | −$874 |
Worked out with the tiers above, an STC factor of 6.8 (May to December 2026) and 5.7 (January to June 2027), rounded down to whole certificates, at $38 per certificate. Usable capacity is the figure on the battery's datasheet, not its total (nominal) capacity.
Notice how the discount grows more slowly above 14 kWh. A 20 kWh battery holds about 48% more than a 13.5 kWh one but gets only about 31% more discount. Bigger is not always better value. See getting the most from the rebate.
How the discount shrinks to 2030
The STC factor is scheduled to step down every six months. Here is what that means for a 13.5 kWh battery:
| Installed | STC factor (per kWh) | 13.5 kWh battery |
|---|---|---|
| May to Dec 2026 | 6.8 | about $3,458 |
| Jan to Jun 2027 | 5.7 | about $2,888 |
| Jul to Dec 2027 | 5.2 | about $2,660 |
| Jan to Jun 2028 | 4.6 | about $2,356 |
| Jul to Dec 2028 | 4.1 | about $2,090 |
| Jan to Jun 2029 | 3.6 | about $1,824 |
| Jul to Dec 2029 | 3.1 | about $1,558 |
| Jan to Jun 2030 | 2.6 | about $1,330 |
| Jul to Dec 2030 | 2.1 | about $1,064 |
What counts is the installation date, not the date you sign. Network approvals and scheduling can take a few weeks, so if you want the 2026 rate, start early.
Extra help in your state
The federal discount applies everywhere. On top of it:
- New South Wales: the VPP incentive pays an extra amount when you connect your battery to an approved virtual power plant, and it can be combined with the federal discount. The amount depends on your battery size and the VPP provider, and only the first 28 kWh counts. The earlier NSW battery installation incentive ended when the federal program began. Solar in Sydney
- Queensland: no state rebate at the moment. The Battery Booster program closed in May 2024, so the federal discount is the main help. Solar in Brisbane
- Victoria: the Solar Homes program currently helps with solar panels (up to $1,400 for eligible homes) rather than batteries. Solar in Melbourne
- ACT: the Sustainable Household Scheme offers low-interest loans (3%) of $2,000 to $20,000 for batteries and other electric upgrades. Solar in Canberra
See all current incentives on our solar and battery rebates page.
Getting the most from the rebate
- Size the battery to your evenings, not to the maximum. Many homes find 10 to 15 kWh of usable capacity covers their evening and overnight use. Because the full rate stops at 14 kWh, the extra capacity above that costs you more per kWh.
- Make sure your solar can fill it. A battery only saves money if your panels can charge it most days. If your system is small, adding panels at the same time may make more sense.
- Check it is on the approved list. Only approved batteries installed by accredited installers create certificates. We only quote eligible products.
- Think about a VPP. Joining is optional, but some plans pay you for letting the battery support the grid, and in NSW it unlocks the extra state incentive.
- Keep it online. Most manufacturers need the battery connected to the internet for updates and to keep the warranty valid.
Questions
Do I need solar panels to get the battery rebate?
Yes. The battery must be installed with solar, but the solar can be new or already on your roof.
Can I add a battery to my existing solar and still get it?
Yes. Depending on your current inverter, we either add a battery with its own inverter or replace your inverter with a hybrid one. Either way, an eligible battery gets the discount. See our battery range.
Do I have to join a virtual power plant?
No. The battery has to be able to join a VPP, but joining is your choice. In NSW, joining an approved VPP also unlocks the extra state incentive.
Is the rebate paid to me after installation?
No. You assign the certificates to us when you sign, and their value is taken off your quote upfront. You pay the lower price, and we lodge the paperwork.
When does the program end?
The discount is scheduled to step down every six months until the end of 2030. Each step makes it a little smaller, so installing earlier gets a bigger discount.
General information only, checked against published program rules in October 2026. Rebates, certificate prices and eligibility rules change, so your exact discount and eligibility are confirmed in your quote.