2026 Federal Battery Rebate: What the Cheaper Home Batteries Program Means for You
In mid-2025, the Australian Government has introduced a nationwide battery rebate scheme as part of its new Cheaper Home Batteries Program. The program reduces the cost of home battery storage by up to 30%, making solar batteries more affordable than ever. This guide will help you understand who is eligible, how much you can save, and what to do now to prepare, whether you are a homeowner, landlord, or small business owner.
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Latest Update: Federal Battery Rebate 2026
In December 2025, the Australian Government announced major updates to the Cheaper Home Batteries Program, including expanded total funding, clearer eligibility rules, and stronger alignment with Virtual Power Plants (VPPs).
Total program funding is now estimated at up to $7.2 billion through to 2030, providing long-term certainty for households and businesses installing home battery systems. This expanded funding significantly reduces the risk of the program being exhausted early due to high demand.
From May 2026, however, rebate values will begin to step down every six months, rather than annually. A new tiered structure will also apply, meaning larger batteries will receive a lower rebate per kWh compared to smaller systems.
This guide has been updated to reflect the latest rebate values, eligibility criteria, and state-based rebate stacking opportunities announced under these changes.
What Is Australia’s New Cheaper Home Batteries Program (Introduced in 2025)?
The Cheaper Home Batteries Program is the Federal Government's newest plan to help more Australians participate in the clean energy transition, this time by making home batteries more affordable.
Eligible households, small businesses, and community organisations get massive discounts on approved battery systems. The program is delivered through the Small-scale Renewable Energy Scheme (SRES), which is the same mechanism used for the solar panel rebate. The government amended the Renewable Energy Regulations 2001 to include batteries in the scheme.
There's no fixed cap on how many rebates are available, at least for now. But, similar to how the STC (Small-scale Technology Certificate system works for solar, the rebate value will decline every 6 months until the program wraps up in 2030. So, if you're considering getting a battery, acting sooner could save you more.
From January to April 2026, you’ll receive 8.4 STCs per kWh of usable battery capacity then from May 2026 onwards, the number of STCs will drop every six months, and at a faster rate.
Battery rebates will continue to apply to systems up to 100 kWh. However, the rebate is higher for smaller batteries and reduces as battery size increases. This is designed to keep the rebate at around 30% off for most common home battery systems as battery prices continue to fall.
STC rates by battery size
Up to 14 kWh: Full rebate applies
14–28 kWh: Reduced rebate applies
28–50 kWh: Minimal rebate applies
Here's what your solar rebate will look like in 2026 onwards:
| Year Installed | Period | STC Factor | Approx. Value Per kWh |
|---|---|---|---|
| 2026 | January - April | 8.4 | $336 |
| 2026 | May - December | 6.8 | $272 |
| 2027 | January - June | 5.7 | $228 |
| 2027 | July - December | 5.2 | $208 |
| 2028 | January - June | 4.6 | $184 |
| 2028 | July - December | 4.1 | $164 |
| 2029 | January - June | 3.6 | $144 |
| 2029 | July - December | 3.1 | $124 |
| 2030 | January - June | 2.6 | $104 |
| 2030 | July - December | 2.1 | $84 |
source: dcceew.gov.au
The estimates are based on an estimated STC market values of $40.
Important: STC values fluctuate based on market conditions, supply, and demand. Final rebate amounts may vary slightly at the time of installation.
How Much Money Can You Save with the 2026 Federal Solar Battery Rebate?
The government's $7.2 billion initiative aims to cut the cost of home battery systems by around 30%. Under the program, eligible systems between 5 and 50 kWh can receive a rebate of approximately $336 per kilowatt-hour (kWh) of usable battery capacity until May 2026.
For example, if you plan to install a total of 27 kWh of storage, with the rebate estimated at $370 per kWh, you could save as much as $9,072. However, this figure could be slightly lower due to administrative fees and other charges.
Can You Combine State Battery Incentives with the New Federal Solar Battery Rebate?
The new federal battery rebate can be stacked with certain state and local existing battery incentives. Below are some programs that can be used alongside the federal battery rebate:
New South Wales
The NSW battery rebate ended on 30 June 2025 and cannot be combined with the federal Cheaper Home Batteries Program.
However, from 1 July 2025, the NSW Government almost doubled its Virtual Power Plant (VPP) incentive, and this can be stacked with the federal battery rebate.
That means if you already have a battery or install one using the new federal program, you may still be eligible for the NSW VPP incentive.
As VPP participation becomes a bigger focus of Australia’s energy policy, NSW homeowners who install VPP-ready batteries may benefit from ongoing incentives and future grid payments, even if they choose not to join a VPP straight away.
Some NSW homeowners may still benefit from additional support through local council incentives. To find out if your council is offering additional rebates, speak with our team.
Estimated savings: Varies depending on the availability of local council incentives.
Australian Capital Territory
ACT residents may be eligible for the federal solar battery rebate and a low-interest loan through the ACT Sustainable Household Scheme. The loan can help cover the cost of energy-saving home upgrades such as batteries, electric heating and cooling, hot water systems, and more.
From 1 July 2025, interest-free loans will no longer be available to most households. New loans will be at a 3% fixed interest rate instead. However, concession card holders can still access zero-interest loans and additional rebates under the Home Energy Support Program. You can typically borrow between $2,000 and $15,000 and repay it over 10 years, subject to meeting the scheme’s criteria and Brighte’s lending requirements.
Estimated savings:
For a 10 kWh battery priced around $15,000, the federal rebate of $3,360 reduces your upfront cost to approximately $11,640. Borrowing this new amount through the ACT Sustainable Household Scheme could help you spread the cost over 10 years, making clean energy upgrades more manageable and affordable.
Western Australia
From 1 July 2025, WA households can access battery rebates of up to $5,000 for Synergy customers and up to $7,500 for Horizon Power customers, based on $500–$750 per kilowatt-hour (kWh) for up to 10kWh. Batteries exceeding 10 kWh may still qualify for the full rebate if approved. Interest-free loans of up to $10,000 are also available to help more households participate. This rebate can be combined with the upcoming federal battery rebate.
Estimated savings: Varies depending on energy provider and battery size
2026 Federal Solar Battery Rebate Eligibility Checklist
The Cheaper Home Batteries Program applies to battery systems installed on or after 1 July 2025.
Australian homeowners with a new or existing solar panel system
Small businesses in Australia that want to reduce energy costs and improve energy reliability
Community facilities in Australia, such as schools, non-profits, or local halls, have solar systems in place
From any income level. The federal battery rebate is not means-tested, so it's open to all income levels.
Landlords and owners of multiple properties can claim one rebate per eligible property, considering each site has a solar system and meets the program requirements
Off-grid homes are eligible if the property is at least 1km from a grid line or the cost of connection to the grid exceeds $30,000.
Also, your battery must be:
Connected to a new or existing solar power system
Approved by the Clean Energy Council
Installed by an accredited installer
Batteries must be new, first-installed systems (second-hand or relocated batteries are not eligible)
System is considered installed when a Certificate of Electrical Compliance (or state equivalent) is signed
The system must have between 5 kWh and 50 kWh of usable storage capacity (you can install a battery system of up to 100 kWh, but the rebate will only apply to the first 50 kWh of usable capacity)
For an on-grid system, the battery must be capable of connecting to a Virtual Power Plant (VPP). If the battery is installed in an off-grid home, it is not required to be VPP-ready.
Which Batteries are Eligible for the Rebate?
As mentioned above, your battery must be approved by the Clean Energy Council to qualify for the Cheaper Home Batteries Program. Here are some popular CEC-approved solar batteries available at 1KOMMA5°:
| Brand | Model | Capacity (kWh) | VPP Ready? | Expiry Date |
|---|---|---|---|---|
| 1KOMMA5° | 1K5-BAT-4660-L2 to 1K5-BAT-4660-L9 | 8.4 - 37.7 | Yes | 08-05-2028 |
| Tesla | Tesla Powerwall 2 | 13.5 | Yes | 23-08-2025 |
| Tesla | Tesla Powerwall 3 | 13.5 | Yes | 17-10-2027 |
| Sungrow | SBR096 | 9.6 | Yes | 02-08-2026 |
| Sungrow | SBR160 | 16 | Yes | 02-08-2026 |
| Sungrow | SBR128 | 12.8 | Yes | 02-08-2026 |
| Sungrow | SBH200 | 20 | Yes | 04-01-2027 |
| Enphase | IQ BATTERY 5P | 4.96 | Yes | 02-05-2026 |
| SolarEdge | BAT-10K1P | 9.7 | Yes | 20-12-2027 |
Not sure how to proceed yet? Our battery experts can help you compare brands, check rebate eligibility, and tailor a system that suits your energy needs and budget. You can view the full list of CEC-approved battery brands and models here: https://cleanenergycouncil.org.au/industry-programs/products-program/batteries
Why Does Your Battery Need to Be VPP-Ready to Qualify for the Rebate?
One of the rebate criteria is that your battery system must be capable of connecting to a VPP. However, joining a VPP is optional. You remain in full control of whether and when you participate.
What is a VPP, and why does it matter?
VPPs allow home batteries to work together across the grid, sharing stored power when demand is high. It helps reduce pressure on the energy network and can create a more stable, reliable power supply.
By making VPP-readiness a condition of the rebate, the government is ensuring batteries installed today are compatible with future energy programs, grid support payments, and evolving electricity market rules.
Who Benefits Most From the Updated Federal Battery Rebate?
This expanded program from 2026 is especially valuable if you:
Plan to stay in your home long-term
Already have solar and want to reduce evening power bills
Are affected by low feed-in tariffs
Want blackout protection and energy independence
Own multiple properties and want to electrify over time
With funding now locked in through to 2030, homeowners can plan battery upgrades with far more confidence than before.
When Should You Install a Home Battery to Qualify for the Rebate?
Don't wait too long.
Battery rebate values will step down over time, so planning early can make a real difference. With demand rising, installation wait times are already reaching up to 16 weeks. If you delay, your system may not be installed until after May 2026, when rebate values are lower.
Installing sooner allows you to lock in a higher rebate, avoid long installation delays, and start reducing your power bills earlier.
Whether you’re ready to install now or just looking for clarity on timing, our team can help you compare battery options, model your potential savings, and secure your eligibility with confidence. We can also help you explore your options for solar panels and home batteries that meet the rebate criteria.
If you’re just starting your research or ready to explore your options, we’re here to make the process simple. Contact our solar experts to receive a free, no-pressure quote.
How to Apply for the Cheaper Home Batteries Program?
Working with an accredited solar retailer and installer such as 1KOMMA5° will ensure your eligibility and make the process easier and hassle-free. Here's how:
Choose Your Battery
Our battery experts will introduce you to our range of CEC-approved and VPP-ready home batteries.
Schedule Your Installation
Book your install as soon as possible to avoid long wait times and potential stock shortages.
Submit Your Rebate Claim
Once the program is available, our team will assist you in submitting your rebate application through the government’s online portal.
Enjoy Your Savings
The rebate will be applied as a discount on your upfront costs.
FAQs About the Federal Battery Rebate
Is the rebate means-tested?
No. The rebate is not based on income. Any eligible household or business can apply.
Can I get a rebate if I add a battery to an existing solar?
Yes, you can. As long as the solar system is already installed (and eligible), and the battery meets the new rebate requirements.
What if I live in a state that already offers a battery rebate?
You may be able to claim both federal and state rebates or loan programs, depending on the rules of your state program. Check with your local government or solar provider for details.
What if I already have a battery?
You can claim the rebate for adding at least 5 kWh of new capacity to your existing battery system, as long as the total battery size doesn’t exceed 100 kWh in nominal capacity.
However, you won’t be eligible for a rebate if you’re adding capacity to a battery that has already received this rebate. Only one rebate can be claimed per battery system under the program.
Do I have to be part of a Virtual Power Plant (VPP) to qualify?
No, you don't have to join a VPP. But if your system is on-grid, the battery must be VPP-capable.
Can I claim the rebate on more than one property?
Yes, but only one rebate per property is allowed. So landlords or property investors can claim for each address, provided each installation meets the requirements.
1KOMMA5° Blog
Need more information?
Head over to the 1KOMMA5° blog for more helpful tips and other important guides on everything solar, from inverters, panels and batteries to how to make the most of your investment for years to come.
More Helpful Articles:
1KOMMA5° Blog
Need more information?
Head over to the 1KOMMA5° blog for more helpful tips and other important guides on everything solar, from inverters, panels and batteries to how to make the most of your investment for years to come.