The Australian Government solar battery rebate began on 1 July 2025. It’s a government discount that comes off the battery price upfront when you buy an eligible home battery. The discount is intended to cover roughly 30%, and in practice it currently works out to about $311 per usable kWh (based on an STC price of $37, after administration costs).
Important update (December 2025): the Government has announced changes to this Cheaper Home Batteries Program that are proposed to start 1 May 2026. These include increased program funding (from $2.3 billion to $7.2 billion) and changes to how the discount is calculated (a faster reduction over time, plus reduced funding for larger batteries).
From our analysis the federal solar battery rebate will likely move home battery storage into the ‘financially viable’ status for a large number of Australians. We have tracked the financial viability of batteries for the last 10 years in our Are batteries worth it? article.
Key Takeaways: Australia’s Solar Battery Rebate
- Rebate Reduces Over Time – including rule changes coming in 1 May 2026
- Rebate value:
- Jan–Apr 2026: $311 per usable kWh of battery capacity
- From 1 May 2026: rebate amount reduces every 6 months & tapers for larger batteries
- How to claim: installer claims STCs on your behalf and passes through discount
- Expected savings: Approximately $4,350 off a standard 14 kWh home battery
- Eligible Battery size: 5–100 kWh nominal (rebate applies to the first 50 kWh of usable capacity)
- Eligibility: Homeowners, small businesses, and community facilities – not means tested
- Stackable with state battery rebates: Yes, primarily in NSW and VIC
- Rebate limit: One battery per electricity meter (multiple properties may qualify separately)
How To Claim / Who Applies The Discount
How to claim: You don’t apply to the government — accredited retailers/installers apply the discount up-front on your invoice. You can alternatively register and sell STCs yourself via the REC Registry, but most households take the point-of-sale discount. You can see more via the department of climate change, energy, the environment and water.
STC = Small-scale Technology Certificate, find out more in our guide to STCs.
Calculate Your Solar Battery Rebate
Want to calculate how much you could save under the 2025 Federal Solar Battery Rebate? Use the free online calculator to estimate your rebate based on battery size and type.
Try the Federal Battery Rebate Calculator
This tool gives you a straightforward estimate—based on the size and type of battery system you’re looking at, and how the new “Cheaper Home Batteries” program is set to apply.
It’s quick, free, and based on the latest data available .
Compare battery quotes from vetted installers near you
Federal Battery Rebate Eligibility Criteria
To qualify for the Cheaper Home Batteries Program, battery systems must meet specific technical, installation, and property criteria. These rules have now been outlined by the Australian Government.
Who Is Eligible?
The federal battery rebate is available to:
- Homeowners (including landlords and owner-occupiers)
- Small businesses
- Community facilities (e.g. sports clubs, libraries, community centres)
There is no means test, and rebates are available per property. Owners of multiple eligible properties may apply for a separate rebate at each location, as long as each has its own electricity meter (NMI).
Battery System Requirements
- Have a battery size: 5–100 kWh nominal; STCs apply to the first 50 kWh of usable capacity only.
- Must be a new (not second-hand or refurbished) battery.
- Must be installed with a new or existing rooftop solar PV system at the same premises.
- If it is on-grid and VPP-capable: Battery and the inverter it connects to must be VPP-capable at installation (you don’t have to enrol in a VPP). Existing PV inverters onsite don’t have to be VPP-capable
- Off-grid nuance:
• >1 km from the grid: no VPP-capable requirement (CEC-approved products still required).
• <1 km from the grid: either provide written evidence grid connection would cost >$30,000, or install VPP-capable battery/inverter. - Approved products & accreditation: Battery and inverter must be on Clean Energy Council (CEC) approved lists; installation must be supervised on-site by an SAA-accredited installer and comply with state/territory electrical safety rules. Find one via solar choice.
Additional batteries added to existing systems may qualify if:
- The system has not previously claimed the federal rebate
- The additional battery capacity is at least 5 kWh, and the total nominal capacity remains under 100 kWh
- The new and existing batteries together form a compliant system listed on the Clean Energy Council’s approved product list
- The system is re-certified by an SAA-accredited installer to confirm safety and compliance under the latest standards
- Only the new battery modules are eligible for STCs — rebates cannot be claimed on pre-existing capacity
Notes:
- Electric vehicle batteries and EV charging systems are not eligible under this program.
- Nominal capacity refers to the battery’s total storage. Usable capacity is the amount that can actually be discharged (see battery depth of discharge). The rebate is calculated on usable capacity, but systems must meet the nominal size range to qualify.
Installer & Compliance Requirements
- Systems must be installed by an installer accredited by Solar Accreditation Australia (SAA)
- Installation must be supervised on-site by the accredited installer
- The install must comply with the Best Practice Guide: Battery Storage Equipment and all state/territory electrical safety regulations
- On-grid systems must be VPP-capable at installation (no requirement to join a VPP); use CEC-approved products and an SAA-accredited installer, and meet all state/territory electrical safety requirements.
Compare solar and battery quotes from local installers now.
How Much Is the Federal Battery Rebate Worth?
For installations before 1 May 2026, eligible batteries will generate 8.4 STCs per usable kWh (capped at 50 kWh usable), with each certificate currently valued at around $37 after factoring in transaction and administration costs. That puts the expected rebate at $311 per usable kWh. From 1 May 2026 onwards the rebate will be $252 and will decrease every 6 months thereafter.
For example, a 10 kWh battery (average price: ~$11,120) would attract a rebate of around $3,110, reducing the net cost to $8,010. The rebate factor will decrease each year from 2026 to 2030 (8.4STCs per kWh in 2026 → 2.1 in 2030), as outlined in the official government cheaper home battery documentation. It is funded under the 2025–26 Federal Budget and will run until 2030, with annual adjustments.
Government Battery Rebate (STC) Declines Each Year
| Year | Period | STCs per kWh | Estimated value per kWh* |
|---|---|---|---|
| 2026 | Jan–Apr | 8.4 | $311 |
| 2026 | May–Dec | 6.8 | $252 |
| 2027 | Jan–Jun | 5.7 | $211 |
| 2027 | Jul–Dec | 5.2 | $192 |
| 2028 | Jan–Jun | 4.6 | $170 |
| 2028 | Jul–Dec | 4.1 | $152 |
| 2029 | Jan–Jun | 3.6 | $133 |
| 2029 | Jul–Dec | 3.1 | $115 |
| 2030 | Jan–Jun | 2.6 | $96 |
| 2030 | Jul–Dec | 2.1 | $78 |
After 1 May – Rebate For Batteries Over 14kWh Decreases
In response to many homeowners installing very large batteries, the government’s proposed changes will mean that as the battery capacity exceeds 14kWh the additional rebate is lowered in line with the below table. The marginal cost of increasing a battery size beyond the fixed costs of getting an installation is low, so this reduce is intended to keep the overall rebate at around 30% of costs.
| Usable battery capacity band | How the STC factor is applied (proposed from 1 May 2026) |
| 0–14 kWh (inclusive) | 100% of the STC factor |
| Between 14 and 28 kWh (inclusive) | 60% of the STC factor |
| Between 28 and 50 kWh (inclusive) | 15% of the STC factor |
How Much Could A Battery Save You on Energy Bills?
Savings vary based on system size, usage, and location. A typical 10kWh battery can reduce electricity bills by $700–$1,500 per year, depending on your electricity usage and prices.
Work out the expecting savings in your scenario with our battery payback calculator.
Battery Costs After Federal Rebate: Popular Brands Compared
The table below shows how the government solar battery incentive (for 2026 installations prior to May rule changes) could affect out-of-pocket costs for well–known models.
| Battery model | STCs ¹ | Average price ² | Federal rebate ³ | Net price |
| Alpha ESS Smile 5 (10.1kWh) | 85 | $10,055 | $3,139 | $6,916 |
| BYD B-Box LVS 12 (13.8kWh) | 116 | $14,181 | $4,289 | $9,892 |
| Enphase IQ 5P (11kWh) | 92 | $13,000 | $3,419 | $9,581 |
| Fox ESS EQ Series (14kWh) | 118 | $11,561 | $4,351 | $7,210 |
| Goodwe Lynx (12.8kWh) | 108 | $12,237 | $3,978 | $8,259 |
| Growatt APX (10kWh) | 84 | $10,000 | $3,108 | $6,892 |
| Sigenergy Sigenstor (13kWh) | 109 | $13,409 | $4,040 | $9,369 |
| SonnenBatterie hybrid 9.53 (10kWh) | 84 | $12,256 | $3,108 | $9,148 |
| Sungrow SBR (9.6kWh) | 81 | $10,917 | $2,984 | $7,933 |
| Tesla Powerwall 3 (13.5kWh) | 113 | $15,642 | $4,196 | $11,446 |
¹ STCs (Small-scale Technology Certificates) based on usable capacity noted next to the battery name.
² Average price from the Solar Choice Battery Price Index.
³ Estimated based on value of $37 per STC and the size of the battery.
Can the Rebate Be Combined with State Incentives?
Yes — but only in states that allow it.
Western Australia:
Up to $3,800 for Horizon Power customers ($380/kWh, capped at 10 kWh) or $1,300 for Synergy customers ($130/kWh, capped at 10 kWh), stackable with the federal battery scheme, with VPP participation required and interest-free loans up to $10,000 available to eligible households (one rebate/loan per property/NMI).
New South Wales:
Up to $1,500 VPP sign-up incentive under the NSW Peak Demand Reduction Scheme (BESS2); the exact amount varies by provider and PRC value, and can be combined with the federal battery discount.
Victoria:
The state’s Solar Battery Loan program has closed. Only the federal rebate is available.
Northern Territory:
The NT Home and Business Battery Scheme has reached its funding cap. Only the federal rebate applies at this time.
Final Thoughts – Will the Solar Battery Rebate be a game changer?
The federal solar battery rebate takes 30% off the upfront cost and likely moves the financial case for installing a battery into an attractive range for many customers.
With electricity prices rising, solar feed in tariffs dropping and the overall cost of installing a battery trending downwards, the case for installing a battery has already improved in recent years prior to the announcement of this National battery rebate program.
Based on the early evidence, we are expecting a large increase in the demand for battery storage in Australia. In the short run this may lead to supply shortages and installations delays as the market attempts to catch up with the step increase in demand.
The evidence from the early days of the scheme suggests that this will be a gamechanger for battery storage update in Australia.
Compare solar and battery quotes from local installers now.
Frequently Asked Questions (FAQ)
What is the federal battery rebate and how does it work?
Is there a cap on how many households can apply?
Can I get the federal rebate if I already have solar?
What if I already have a battery?
Can landlords claim the federal rebates on multiple properties?
- Changes To Cheaper Home Batteries Program | Homeowners Guide | Coming 1 May 2026 - 15 December, 2025
- ReadySteadyPlug EV Charging for Apartments: An Independent Review by Solar Choice - 12 December, 2025
- Everything Electric Melbourne | EV Battery Health, Street Charging & Smarter Homes - 27 November, 2025
I’ve been reading that only ‘a single battery system installation’ is eligible under the program. Does this mean that if you install multiple batteries that only 1 will be eligible for the rebate?
Hi Tommy,
It is a single installation, not a single battery. That means you can install multiple batteries (if not stackable) as long as it meets the other requirements.
Once you make a claim under the rebate, you won’t be able to make another claim. Likely to be per electricity meter (NMI). So if your property has multiple NMIs then you might be able to claim the rebate on each meter.
Regards
SC
My installer is advising me the NSW legislation does not allow claiming both the State and Federal rebates, only the Federal or State rebate. Can you confirm is this correct, or who can be contacted within the State Goverment to confirm this is the case?
Hi Robert,
Yes that is the current state of play. The PDRS (NSW Gov Rebate) states it cannot be claimed in tandem with other rebates. The NSW government have not had time to respond to the federal government’s stated claim that their rebate could be ‘stackable’ with state schemes, so this ruling might change prior to the official commencement of the rebate on the 1st of July.
Keep an eye out for an announcement from the NSW Government soon, we will update our pages as soon as we hear anything.
Solar Choice Team
Is it a requirement that the battery be VPP capable and activated? I don’t want to charge my battery up during the day, go to use it in the evening, and find the Grid has significantly drained it “behind my back”, which would defeat my whole purpose in installing it? I’m not interested in earning any income from feeding battery power to the Grid!!
Hi Peter,
At present the eligibility requirement is that the battery is VPP-capable, but not necessarily connected to one. Usually in the scenario you mentioned where the grid draws down your battery, you would be paid a greater bonus feed in credit for the drawn energy than you could have earned by off-setting your evening energy use, although always important to read through the specific terms of each VPP.
Cheers
Jeff
Does the scheme apply if you want to add an additional battery to a home?
Hi Frank,
At this stage, yes it does appear that you can add a battery and receive the rebate (as long as you haven’t already received a battery rebate).
Cheers
SC
Is this availabke for offgrid people? I love offgrid and want to add rack mount lithium to my existing rack?
Hi Jocko,
Based on the information that the government has provided so far, it appears that Off-grid batteries will be eligible. We expect more granular details on eligibility to be released soon.
Keep an eye on this article as we will update as more information is released.
Thanks
SC
Can you buy a solar battery from a retailer, have it installed by an ACP and still claim the rebates? Also, could this course of action affect warranties?
Hi Lexie,
The main requirement is that the battery is installed by a Clean Energy Council accredited installer. The Authorised Certificate Provider (ACP) will be responsible for created the small-scale technology certificates (STCs) which facilitate the rebate and are usually not involved in the installation.
Hope that helps.
SC