Australia's federal solar battery rebate (officially called the Cheaper Home Batteries Program) is the biggest single discount on home batteries this country has ever seen. We're talking thousands of dollars off, straight off your quote.
This guide covers how Australia's solar battery rebate works, who qualifies, how much you could save, when the rebate changes, and includes a free calculator to estimate your rebate in seconds.
What is the solar battery rebate?
The solar battery rebate is Australia's national rebate on home batteries, officially called the Cheaper Home Batteries Program (CHBP).
Launched 1 July 2025, it's a federal government scheme designed to make home batteries more affordable, help Aussies store more of their solar, take pressure off the grid during peak demand, and accelerate the renewable energy transition. The government has allocated $7.2 billion to the program (up from the original $2.3 billion budget), and it runs through to 2030.
Similar to the federal solar rebate, it runs through the Small-scale Renewable Energy Scheme (SRES). Both solar and batteries create STCs (Small-scale Technology Certificates) that come straight off your quote. Essentially, the rebate is applied like an upfront discount off your home battery.
How much is the battery rebate worth right now?
From May to December 2026, the rebate is worth $251.60 per usable kWh of battery capacity, up to the first 14 kWh. For most households, that's roughly $2,500-$5,000 off the upfront cost of a battery, depending on the usable capacity.
Some real numbers:
Based on an STC price of $37. Actual market price can vary slightly.
That's thousands of dollars saved, before you even get into the bill savings the battery delivers.
Why the rebate isn't the same per kWh on every battery
The rebate is tiered based on battery size, which means bigger batteries don't get the same per-kWh rebate across the board. The structure looks like this:
- First 14 kWh of usable capacity: 100% of the STC rebate
- 14 to 28 kWh: 60% of the STC rebate
- 28 to 50 kWh: 15% of the STC rebate
- Above 50 kWh: no rebate
This is by design. The government wanted to focus the strongest support on typical household batteries, where the impact is biggest, rather than incentivising massive oversizing. The fixed costs of installation are pretty similar whether you're putting in a 10 kWh battery or a 30 kWh one, so the per-kWh marginal cost drops as the battery gets bigger.
How to calculate your rebate
Drop your battery size in below to see exactly what you'd save, based on the rebate as it stands right now.
Solar battery rebate calculator
How does the solar battery rebate work?
The rebate uses something called STCs (Small-scale Technology Certificates). This is a similar system to the federal solar rebate, just applied to batteries.
It works like this:
- Every usable kWh of battery you install earns you a number of STCs
- Each STC is worth about $37 after admin costs
- We calculate the value of those STCs and apply it as an upfront discount on your quote.
- As part of the installation paperwork, you assign the STCs to us.
- We then handle the sale of those STCs through an approved aggregator behind the scenes.
The rebate is applied as a discount on your final invoice, just as it appears on your quote. There's nothing for you to claim and no waiting around for a cashback payment.
Technically, you can register and sell the STCs yourself through the REC Registry, but it's a bit of a headache. It's much easier to let your installer handle it and receive the rebate upfront.
How the rebate steps down over time
Like the solar rebate, the battery rebate is designed to taper over time, ending completely in 2030. Unlike the solar rebate (which steps down once a year), the battery rebate steps down twice a year, on 1 January and 1 July. Except in 2026, which only had a one-off mid-year step-down on 1 May as a budget management measure.
From May to December 2026, the STC factor for batteries sits at 6.8 STCs per kWh (around $252 per kWh). The next scheduled reduction lands on 1 January 2027.
Here's the full schedule:
Based on an STC price of $37. Actual market price can vary slightly.
Who can claim the solar battery rebate?
This rebate is also generous when it comes to eligibility. There's no income test, no postcode restriction, and no limit on how many properties you can claim it for. It's one rebate per property (per electricity meter, technically), and that's about it.
You're eligible if you're:
- A homeowner (owner-occupier)
- A landlord or property investor
- A small business
- A community organisation (like sports clubs, community centres, libraries)
You can claim the rebate whether you're:
- Adding a battery to an existing solar system
- Installing solar and a battery together in a new package
- Adding more battery capacity to a partially-completed battery system (provided the original system hasn't already claimed the rebate, the new capacity is at least 5 kWh, and the combined system stays compliant)
The only hard rule is that each property can only claim the rebate once.
Technical requirements
For your battery to be eligible, it needs to tick a few boxes:
- Connected to solar. The battery must be installed alongside a solar PV system (new or existing).
- At least 5 kWh of usable storage. Smaller batteries don't qualify.
- Between 5 kWh and 100 kWh nominal capacity. Anything larger isn't eligible.
- CEC-approved battery and inverter. Both components must be on the Clean Energy Council's approved product list.
- Installed by an SAA-accredited installer. Solar Accreditation Australia accreditation, supervised on-site.
- VPP-capable (for on-grid installs). Your battery and inverter need to be technically capable of joining a Virtual Power Plant. Critically, you don't actually have to join one.
- New, not second-hand or refurbished.
Good news: if we install your battery, all of the above is covered.
If you're installing off-grid, the requirements differ slightly:
- More than 1 km from the grid: No VPP-capable requirement, but you still need CEC-approved products.
- Less than 1 km from the grid: Either provide written evidence that grid connection would cost over $30,000, or install a VPP-capable system.
You should not have to stress about most of this. Any installer worth their salt will only quote eligible products that meet the requirements.
Can you stack the federal rebate with state rebates?
Yep, in some states. Here's where things stand in 2026.
Solar battery rebate WA
WA gets the most generous rebate stack available. Synergy customers get up to $1,300 ($130/kWh capped at 10 kWh), Horizon Power customers up to $3,800 ($380/kWh capped at 10 kWh). VPP participation is required for the WA state rebate (not the federal one). Interest-free loans up to $10,000 also available. Stacks with the federal rebate.
Solar battery rebate NSW
The PDRS VPP sign-on incentive pays up to about $1,500, calculated per kWh. Stacks with the federal rebate. VPP enrolment required for the NSW incentive (still not the federal one).
Solar battery rebate ACT
No cash rebate, but the Sustainable Household Scheme offers zero-interest loans up to $15,000 for batteries and other energy upgrades. Stacks with the federal rebate.
Solar battery rebate VIC
State battery rebate closed in late 2024. Federal solar battery rebate only. (The Solar Victoria solar panel rebate of up to $1,400 is still active for eligible households, but that's for panels, not batteries.)
Solar battery rebate QLD
State battery rebate (Battery Booster) closed in 2024. Federal solar battery rebate only.
Solar battery rebate SA
Home Battery Scheme closed in 2024. Federal solar battery rebate only. South Australia does have one of the country's largest VPPs, which can stack with the federal rebate.
Solar battery rebate TAS and NT
No active state-specific battery rebates in Tasmania or the Northern Territory in 2026. Federal solar battery rebate only.
How to apply for the solar battery rebate
Easy: you don't. Your installer does.
When you get a quote from a CEC-accredited installer, the price should already show the rebate applied. You'll sign a form assigning the STCs to the installer, and the installer handles every other piece of paperwork, lodges the claim with the Clean Energy Regulator, and gets the certificates created on your behalf.
If you really want to, you can register and sell STCs yourself through the REC Registry. In theory you could get a slightly higher per-STC price, but there are fees, it takes weeks to process, and you'd need to wait until you have enough STCs to justify the effort. It's not really worth the trouble for the few extra dollars.
Want to see what a battery costs for your home, with the rebate already applied?
Our team will look at your bills, your usage and your goals, then put together a tailored quote with every applicable rebate built in. Request a tailored quote to get started.
Frequently asked questions
From 1 May 2026 to 31 December 2026, $251.60 per usable kWh, up to the first 14 kWh of battery capacity. Larger batteries get a reduced rate on the extra capacity. For a typical 10 to 14 kWh battery, that's around $2,500 to $3,520 off your quote.
The solar battery rebate (Cheaper Home Batteries Program) ends in 2030. Between now and then, the value steps down every six months on 1 January and 1 July. The next step-down is 1 January 2027, when the value drops from around $252 per kWh to around $211 per kWh.
No. Your battery has to be VPP-capable (technically able to join one), but actually joining is completely optional.
You don't have to apply yourself. Your CEC-accredited installer handles every step. You sign one form, the discount comes off your quote, that's it.
Yes. The rebate applies whether you already have solar or not, you just need to be adding a battery, and you can't have claimed the rebate for that property before.
Install date. If you sign a quote one side of a step-down but your install lands the other side, you get the lower rebate.
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