Australia’s solar battery rebate is helping eligible households; businesses and community organizations reduce the upfront cost of battery storage through the Cheaper Home Batteries Program. The scheme operates under the Small-scale Renewable Energy Scheme (SRES), with the available discount calculated through Small-scale Technology Certificates (STCs).
From 1 May 2026, the rebate structure changed. Batteries installed between May and December 2026 use an STC factor of 6.8, with support reducing across higher usable-capacity tiers. Eligible systems can have a nominal capacity of 5–100 kWh, while STCs are available for up to the first 50 kWh of eligible usable capacity.
This guide covers the current federal solar battery rebate rules, eligibility requirements, rebate calculations and what Australians should check before choosing an eligible home battery system.
2026 Solar Battery Rebate Quick Overview
Item
Current Rule
Program
Cheaper Home Batteries Program
Current STC factor period
May–December 2026
STC factor
6.8
Eligible battery size
5–100 kWh nominal capacity
STC-supported capacity
First 50 kWh of eligible usable capacity
0–14 kWh
100% of STC factor
Above 14–28 kWh
60% of STC factor
Above 28–50 kWh
15% of STC factor
Solar requirement
New or existing solar PV system up to 100 kW
Battery requirement
Eligible CEC-approved battery configuration
Installer
SAA-accredited installer with battery endorsement
VPP requirement
Grid-connected and certain off-grid systems must meet VPP-capability requirements; joining a VPP is not compulsory
Typical program support
Around 30% upfront discount for a range of eligible systems
About the Cheaper Home Batteries Program
The Cheaper Home Batteries Program reduces the upfront cost of eligible battery installations through Small-scale Technology Certificates under the SRES.
In simple terms:
An eligible battery creates STCs based on its usable capacity, the applicable STC factor and the capacity tier.
In most cases, customers assign the right to create those STCs to a retailer or registered agent.
The value of the certificates is then passed on as an upfront discount or rebate.
Eligible households, businesses and community organizations can use the program when installing a qualifying battery with new or existing solar PV.
The Australian Government describes the program as providing around 30% off the upfront cost of a range of eligible battery systems. The actual solar battery rebate varies with battery capacity, installation date and the value of the STCs created.
Federal Battery Rebate Rules for 2026
The solar battery rebate changed on 1 May 2026, when updated STC rules came into effect. The changes introduced a lower STC factor and a tiered structure based on usable battery capacity.
For installations completed between 1 May and 31 December 2026, the STC factor is 6.8. The first 14 kWh of eligible usable capacity receives the full factor, with reduced support for capacity above 14 kWh and again above 28 kWh.
The applicable factor is determined by the battery installation date, not simply when a quote or contract is signed. From 2027, the STC factor is scheduled to step down every six months through 2030, so the level of federal support will progressively reduce over time.
Eligibility Requirements
The program covers eligible residential and non-residential installations, including homes, businesses and community organisations.
Key requirements include:
Battery size: The complete system must have 5–100 kWh nominal capacity, with STCs available for only the first 50 kWh of eligible usable capacity.
Solar connection: The battery must be installed with a new or existing solar PV system of no more than 100 kW.
New equipment: The battery must be new, created within 12 months of the installation date, and not previously installed or claimed.
Approved product: The battery configuration must be included on the CEC Approved Battery List.
Accredited installation: Installation must be completed by an SAA-accredited installer with battery endorsement and follow SAA technical requirements.
Safety: The system must comply with AS/NZS 5139:2019 and applicable state or territory electrical safety laws.
VPP capability: Grid-connected batteries must be VPP-capable, although joining a VPP is optional. For off-grid properties, the requirement depends on distance from the grid and applicable connection-cost rules.
One supported system: Generally, one solar battery system can receive STCs per premises. Expansion rules apply where an existing system has not previously claimed support.
Portable batteries and electric vehicles are not eligible solar battery systems under the program. For more information on eligibility requirements, visit the Australian Government’s official eligibility page.
Watch a Short Video on Australia’s Federal Solar Battery Rebate
Note: STCs trade like commodities on an open market managed by the Clean Energy Regulator, where prices fluctuate based on supply/demand—typically stabilizing between $35-$40 per certificate recently, with $38 as a common mid-point used for rebate estimates
Home Battery Rebate: How Much Can You Save?
Pre-May 2026 Prices (Jan-Apr, STC 8.4, ~$38/STC)
Uniform full rebate up to 50 kWh; all listed batteries qualify fully.
Battery Brand & Model
Standard Price (incl. install)
Capacity (kWh)
Gross Rebate
Net Price
Tesla Powerwall 3
$14,850
13.5
$4,302
$10,548
Tesla Powerwall 2
$11,700
13.5
$4,302
$7,398
Sungrow SBR096
$9,424
9.6
$3,061
$6,363
Sungrow SBR128
$9,942
12.8
$4,081
$5,861
Sonnen Eco
$14,000
10.0
$3,192
$10,808
LG Chem RESU 12
$12,285
9.8
$3,126
$9,159
Alpha ESS Smile5
$9,800
5.0
$1,596
$8,204
Post-May 2026 Prices (STC 6.8, tiered, ~$38/STC)
All listed batteries ≤14 kWh, so full 100% rate applies (no tapering).
Battery Brand & Model
Standard Price (incl. install)
Capacity (kWh)
Gross Rebate
Net Price
Tesla Powerwall 3
$14,850
13.5
$3,485
$11,365
Tesla Powerwall 2
$11,700
13.5
$3,485
$8,215
Sungrow SBR096
$9,424
9.6
$2,481
$6,943
Sungrow SBR128
$9,942
12.8
$3,307
$6,635
Sonnen Eco
$14,000
10.0
$2,586
$11,414
LG Chem RESU 12
$12,285
9.8
$2,531
$9,754
Alpha ESS Smile5
$9,800
5.0
$1,293
$8,507
Explore detailed information on all available solar batteries here: [Solar Battery]
Tip: If you’re planning to install a battery, do it sooner rather than later because the solar battery rebate drops each year until 2030. Installing in 2026 gives you the highest discount at approximately $336 per kWh of usable battery capacity.
What Affects the Final Price of a Popular Solar Battery?
System size: Bigger batteries cost more, but it may qualify for a higher rebate.
Installation complexity: If you have older homes or a switchboard, then upgrades may increase costs.
Location: Prices can vary depending on the state or regional areas.
State rebates: Some regions offer extra discounts that can also lower your cost.
How Much Can You Save On Your Electricity Bill After Solar Battery Installation?
Depending on the system and usage profile, the program offers potential savings such as:
Up to $1,000/year for homes with existing solar
Up to $2,500/year for homes installing both solar and battery
$3,336 off the upfront cost of a typical 10 kWh battery
Annual savings for a 13.5 kWh battery system will typically range between $700 – $1,500, with additional savings possible when part of a VPP.
So you will not need to apply for the program. The battery MUST be installed with a new solar system or added to an existing solar system. But stand-alone batteries will not be eligible for the rebate. To receive the discount, you must:
Install an eligible battery with a new solar system or add it to an existing system
Install the battery with an SAA (Solar Accreditation Australia) approved installer
What to Check Before Installing a Rebate-Eligible Battery
Before choosing a battery, look beyond the rebate and make sure the system suits your property, energy use and existing solar setup.
Battery size: Match usable capacity with your electricity use and available surplus solar.
System compatibility: Confirm the battery, inverter and existing solar system can work together.
Total installed cost: Check whether switchboard upgrades, extra wiring, backup equipment and other work are included.
Product availability: Confirm stock and installation timing if you want a specific model or configuration.
Eligibility: Make sure the battery configuration is CEC-approved, and the installer has the required SAA accreditation.
Warranty and support: Compare product warranty, workmanship warranty and local after-sales support.
Site conditions: Available space, property layout and environmental conditions can affect installation requirements.
Expected payback: Ask how estimated savings and payback have been calculated.
VPP and monitoring: If considering a VPP, review the provider’s terms and understand the battery’s monitoring and control settings.
Compare quotes: Check that each quote clearly separates equipment, installation work, STC discount and additional costs.
Choosing a system around real energy use, compatibility and total installed cost is more important than simply selecting the largest battery that qualifies for support.
Tips for Australian Families and Businesses
Battery needs can differ depending on how a property uses electricity.
For Families
Size the battery around evening and overnight use.
Check whether your solar system produces enough surplus energy to charge it regularly.
If backup is important, confirm which circuits will remain powered during an outage.
For Businesses
Review daily and after-hours electricity use.
Identify equipment that may require backup power.
Consider future demand from expansion, new equipment or EV charging.
For both homes and businesses, battery sizing should be based on actual energy use rather than the maximum rebate available.
FAQ’s About Federal Solar Battery Rebate Australia
Can I get the rebate if I already have solar?
Yes. An eligible battery can be added to an existing solar PV system, provided the battery and installation meet the program requirements. A battery installed without solar PV solely to store grid electricity is not eligible.
Do I need to apply directly for the federal battery rebate?
Usually, no. Most customers receive the discount through their retailer or installer by assigning the right to create the eligible STCs. You can also choose to create and trade the STCs yourself through the REC Registry.
Is there an income limit for the federal battery rebate?
The published federal eligibility criteria do not include a household income test. Eligibility is based on the battery system, solar connection, approved equipment and installation requirements.
Can I get support when expanding an existing battery?
Possibly. Additional capacity can qualify if the existing battery has not previously received STCs, at least 5 kWh of additional nominal capacity is added, and the total upgraded system remains within the 100-kWh nominal capacity limit.
Will the federal battery rebate decrease after 2026?
Yes. The STC factor is scheduled to step down every six months from 2027 through 2030. The actual dollar discount will also depend on eligible usable capacity and the value of the STCs.
Your Path to Smarter Solar Savings with Aussie Solar Tech
So, the federal government solar battery rebate starting July 1, 2025, is like a golden ticket for Aussies looking to make the most of solar power. With discounts of $336 per kWh, you can snag a battery—and start saving on your bills, whether you’re in bustling Sydney or a quiet town like Margaret River. It’s not just about the money, though batteries give you peace of mind during blackouts, help the planet, and even let you earn extra cash through VPPs.
At Aussie Solar Tech, we’re here to help you every step of the way. Let’s make 2062 the year you take charge of your energy—grab that solar battery rebate and start saving today!
Shah Tarek is a Solar Energy Consultant with 10 years experience in solar system design and solar consultancy field at Australia. He is now a Director, Operation & Consultancy Division at Aussie Solar Tech, a leading Australian solar retailer and installer. Here he is writing informative and engaging solar content that educates the community on the benefits of solar power. His work supports Aussie Solar Tech’s mission to promote sustainable energy solutions and foster a greener future for Australia.
* Calculation based on a fixed STC rate of $40 AUD and the 2026 federal base STC factor of 6.8 per kWh. Rebates apply tapering rules: 100% factor up to 14 kWh, 60% for >14–28 kWh, and 15% for >28–50 kWh usable capacity. Systems under 5 kWh are ineligible.
