So you're thinking about adding a battery to your solar system, and the first question on your mind is probably the one that actually matters most: how much money is the government actually going to take off the price?
Fair question. Here's the honest answer. In 2026, most Australian households can still expect the federal government's Cheaper Home Batteries Program to cut roughly 30% off the upfront cost of a battery. On a typical household-sized system, that generally lands somewhere in the thousands of dollars, taken straight off your quote before you even pay a cent. No forms to fill in, no waiting weeks for a cheque to arrive.
But (and this is the part a lot of people miss) the exact number depends on two things: how big your battery is, and how soon you install it. Get those two right and you can secure a better-value discount than someone who waits for the next rebate reduction or chooses more battery capacity than their household needs. A larger battery can still receive a higher total dollar rebate, but the additional capacity is supported at a progressively lower rate.
The Quick Version
Right now, a standard 10 to 14kWh home battery, the size that suits most 3 to 4 person households, still qualifies for the full rebate rate on every kilowatt-hour. Depending on your postcode and the current STC price, that typically works out to somewhere in the ballpark of $2,500 to $3,800 off the installed price of a battery in that size range.
These estimates apply to eligible batteries installed from 1 May to 31 December 2026, when the federal STC factor is 6.8 certificates per kilowatt-hour of eligible usable capacity. From 1 January 2027, the factor falls to 5.7, before reducing again to 5.2 from 1 July 2027.
For a battery with 14kWh of eligible usable capacity, the January 2027 change reduces the entitlement from approximately 95 STCs to 79 STCs. At an assumed realised certificate value of $36 to $40, that represents a reduction of approximately $580 to $640. The actual dollar reduction will depend on the STC value and any agent or administration deductions at the time.
Bigger batteries still get a rebate too, just not at the same rate for every kilowatt-hour. And the rebate itself gets smaller every six months as the scheme winds down toward 2030. So if a battery has been on your radar, sooner is genuinely better than later.
Want your actual number, based on your home and your postcode? That's what we're here for. Get a free battery quote and we'll show you exactly what applies to you today.
How the Rebate Is Actually Calculated
The Cheaper Home Batteries Program runs through the Small-scale Renewable Energy Scheme (SRES), the same system that's discounted solar panels in Australia for over a decade. Batteries earn Small-scale Technology Certificates (STCs), and those certificates have a dollar value. Your installer creates the certificates on your behalf and simply subtracts that value from your quote.
You never touch the paperwork. Your installer handles it, and the discount shows up as a line item on your invoice.
A few things worth knowing about eligibility:
- There's no income test. It doesn't matter what you earn, you're eligible either way.
- It applies per property, not per person, so if you own more than one home (each with its own electricity meter) you can claim on each.
- Eligible battery sizes run from 5kWh up to 100kWh. You can check the full criteria on the Australian Government's rebate guidance.
- Your installer needs to be accredited by Solar Accreditation Australia (SAA), and the battery itself needs to be on the Clean Energy Council's approved products list.
- Grid-connected batteries generally need to be VPP capable (Virtual Power Plant capable). You don't have to actually join a VPP, the hardware just needs to support it.
For the full eligibility rules in one place, see our guide to who is eligible for the federal battery rebate.
What Changed From 1 May 2026 (And Why It Affects Your Number)
This is the bit that really determines how much you'll get. The program has experienced rapid uptake. On 14 August 2026, the Australian Government reported that more than 500,000 batteries had been installed under the Cheaper Home Batteries Program since it commenced. That success meant the original budget was going to run out faster than planned, so the federal government stepped in and made two changes.
First, funding got a big boost, from $2.3 billion up to $7.2 billion, stretching the program through to 2030. That's good news, it means the scheme isn't going anywhere any time soon.
Second, and this is the part that actually affects your rebate amount, the way the discount is calculated changed. There are now two moving parts:
It steps down more often. Instead of dropping once a year, the rebate rate now reduces roughly every six months. Whatever rate is active on your installation date is the rate you lock in.
It tapers by battery size. Larger batteries no longer get the same rate across the board. Instead, the discount works in tiers:
| Battery capacity | Rebate tier |
|---|---|
| First 14kWh | Full rate |
| 14kWh to 28kWh | Around 60% of the full rate |
| 28kWh to 50kWh | Around 15% of the full rate |
| Above 50kWh | No further discount on that extra capacity |
| Installation period | Base STC factor |
|---|---|
| 1 May to 31 December 2026 | 6.8 |
| 1 January to 30 June 2027 | 5.7 |
| 1 July to 31 December 2027 | 5.2 |
Your rebate is based on the factor applying on the eligible installation date. This makes 31 December 2026 an important deadline: an installation completed from 1 January 2027 will generate fewer STCs for the same eligible usable battery capacity.
What this means in plain English: a standard 10 to 14kWh battery, which covers most homes, still gets the best possible rate on every single kilowatt-hour. It's only once you go bigger than that, into 28kWh or 40kWh territory, that your overall rebate percentage starts to shrink, because only the first slice of capacity gets the top rate.
Curious how a mid-size system compares to a larger one? Have a look at our battery size comparison and you'll see why "bigger" doesn't automatically mean "better value" anymore. These days it really pays to size your battery to what your household actually uses, rather than going as big as the rebate will allow.
Roughly What Different Battery Sizes Are Worth Right Now
Numbers here are approximate, because the STC price moves with the market and the rebate rate itself steps down every six months. But as a rough guide for what households have generally been seeing:
- A 10 to 14kWh battery (the most common household size) typically attracts a rebate somewhere around $2,500 to $3,800.
- A 28kWh battery, once you factor in the tapered rate for the second 14kWh, generally lands somewhere in the $4,500 to $6,000 range.
- Anything above 28kWh still gets a rebate, but the extra capacity beyond that point contributes far less to the overall discount than it used to.
These figures move around depending on your state's STC zone and the current certificate price, so treat them as a general guide rather than a quote. If you'd like to see an approximate STC number for your own system size, the government's official STC calculator on the REC Registry gives a rough estimate, though it's designed as a general guide only, not an exact dollar figure. For your real, exact rebate and final installed price, request a personalised quote and we'll run the actual numbers for you.
State Battery Support as at 28 September 2026
In some parts of the country, yes. Depending on where you live, you might be able to stack a state-level incentive on top of the federal discount:
- New South Wales: NSW households and small businesses may receive a separate incentive for connecting an eligible battery to a Virtual Power Plant. The amount is not fixed by the NSW Government; it depends on the capacity made available to the VPP, up to 28kWh, as well as the provider and contract. The former NSW home battery installation discount only applies to installations completed before 1 July 2025. Current VPP offers are provider-dependent and should be confirmed before installation.
- Western Australia: The WA Residential Battery Scheme remains open. The state rebate provides up to $1,300 for eligible Synergy customers and up to $3,800 for eligible Horizon Power customers. It can complement the federal program, but participation in an approved VPP is required. An approved vendor submits the application for the customer.
- Victoria: Victoria's former battery rebate has ended, and Solar Victoria is no longer accepting applications for its battery loan. Eligible customers may still access the federal program.
- Queensland: Queensland does not currently have a general standalone state battery rebate. Eligible households and small businesses can use the federal program.
- South Australia: South Australia does not currently offer a general standalone battery rebate. VPP-linked support may be available through participating providers under the Retailer Energy Productivity Scheme, but availability, eligibility and payment amounts vary by provider.
State programs and provider offers can change quickly. Confirm current availability and eligibility through the relevant government program before signing a contract. Check out our full solar rebate page, or just get in touch and we'll check for you.
Do You Have to Apply for It Yourself?
Nope. Your installer handles the whole process on your behalf, the same way it's worked for solar panel rebates for years. They create and manage the STCs, and the value comes straight off your quote. There's a separate option to create and trade the certificates yourself instead of assigning them to your installer, but almost nobody does this, it's really just there for households who want full control.
Before you sign anything, it's worth double checking a few things:
- Your installer is actually SAA accredited for battery installations.
- The battery you're being quoted is on the Clean Energy Council's approved list.
- Your quote clearly shows the price before the rebate, the rebate amount itself, and the final price you're paying.
A trustworthy installer will always show you this breakdown, not just a final number.
So, Is It Still Worth Getting a Battery in 2026?
For most households with solar already on the roof, yes. The mindset has shifted a bit this year, from "get the biggest battery the rebate will subsidise" to "get the battery that actually matches how much power your home uses." A well-sized battery still meaningfully cuts down how much you're buying back from the grid during the expensive evening peak, and the rebate remains one of the more generous incentives going around in Australian renewable energy right now.
And because your rebate rate locks in on your installation date, waiting doesn't get you a better deal. It gets you a smaller one. If a battery has been sitting on your to-do list, this is a pretty good nudge to actually get it sorted.
If you've already got solar panels but no battery yet, it's worth getting a proper sizing assessment done rather than guessing. Check out our page on feed-in tariffs to see the full savings picture, or look into solar finance options if you'd rather spread the cost after the rebate is applied.
Battery Rebate FAQs
How much will I actually get off my battery?
For installations completed by 31 December 2026, a typical eligible battery with 10 to 14kWh of usable capacity may generate an estimated discount of approximately $2,450 to $3,800, depending on battery capacity, STC value and agent deductions. From 1 January 2027, the STC factor falls from 6.8 to 5.7, so the same battery will receive a smaller discount.
Do I have to do anything to get the rebate, or does it just happen?
You don't have to do anything. Your installer sorts it out and simply takes the rebate off your quote, the same way it's always worked for solar panels. You won't be filling out government forms, waiting on a payment, or chasing anyone up. All you need to do is choose an accredited installer.
Will I get less if I choose a bigger battery?
A larger battery can receive a higher total dollar rebate, but the rebate does not increase proportionally with its capacity. The first 14kWh receives the full factor, capacity above 14kWh and up to 28kWh receives 60%, and capacity above 28kWh and up to 50kWh receives 15%.
Does my income affect how much I can claim?
No income test applies to the federal program. However, the battery, solar system, installer and installation must still satisfy all program eligibility requirements.
If I wait a few months, will I get more or less?
Less, if your installation moves past a scheduled step-down. The next reduction occurs on 1 January 2027, when the factor falls from 6.8 to 5.7. For a 14kWh usable battery, that could reduce the estimated rebate by roughly $580 to $640, depending on the STC value.
I already have solar panels, can I still get the battery rebate?
Yes, absolutely. You don't need to install solar and a battery together to qualify. If your solar panels went in years ago, you can add a battery today and still get the full discount on the battery itself.
Can I get extra money on top of the federal rebate?
Depending on where you live, potentially yes. If you're in New South Wales, there's a Virtual Power Plant incentive that can stack on top. Western Australia has offered extra battery incentives in the past too. If you're in Victoria, South Australia or Queensland, there's currently no separate state rebate, so you'd be working with the federal discount only. Check your state's options or ask our team when you get a quote.
What size battery actually qualifies?
Anything from 5kWh up to 100kWh is eligible, though only the first 50kWh of a system's usable capacity gets any STC discount at all. For most households though, this is a non-issue, a typical family home uses somewhere between 10 and 14kWh, which sits comfortably in the eligible range and attracts the best rebate rate available.
How do I know if my installer or battery actually qualifies?
Ask them directly whether they're accredited by Solar Accreditation Australia (SAA) and whether the battery you're being quoted is on the Clean Energy Council's approved products list. A legitimate installer will answer this without hesitation and show you the rebate broken out clearly on your quote, not buried in a single final number.
Can my small business claim the rebate too?
Yes. Small businesses and community organisations like sports clubs, libraries and community centres are eligible under the exact same rebate as households.
Is there a way to estimate my rebate before I get a quote?
You can get a rough approximate figure using the government's official STC calculator, though it's a general estimate rather than an exact dollar amount for your battery. For a real, current number based on your actual battery size and postcode, it's faster and more accurate to just ask our team directly.
Find Out Exactly What You Can Claim
Every home's rebate is a little different. Your battery size, your postcode, and when you install all change the final figure, so a generic online estimate will only get you so far. Talk to our team and we'll work out your real number, and show you the final installed price before you commit to anything.
Get a free, no-obligation battery quote, or give us a call on 1300 650 747 and speak with an accredited Smart House Solar consultant directly.




