Solar & Battery Rebates, Incentives And Finance Explained
Kathy Calilao
13 min
Why solar and batteries are being pushed so hard right now
If you feel like you are hearing about solar, home batteries and energy rebates everywhere, you are not imagining it. Australia’s grid is under more pressure than ever, and the fastest way to relieve that pressure is for households like yours to generate and store more of their own power.
This article turns our recent 1KOMMA5° webinar, “How to Get Solar & Batteries Cheaper with Incentives, Rebates & Finance”, into a clear, easy to follow guide. It was hosted by Grant Ackroyd, 1KOMMA5°’s Director of Sales and Installations, who has overseen more than 25,000 solar and battery installations across Australia.
If you are a homeowner without solar yet, or you have solar and are now thinking about a battery, this is for you. You will learn:
Why the grid is under strain and how that affects your bills
How current rebates for solar and batteries actually work
Which incentives for solar and batteries you can claim in 2025
How financing for solar and batteries can turn bill money into an investment
How to choose the right system size so you do not overpay or under-size
By the end, you will have a clearer picture of how to cut your power bills, protect yourself from price spikes and feel confident taking the next step.
The grid is under pressure, and you are part of the solution
How Australia’s energy market actually works
Most power bills make it look like you pay a simple flat rate. In the background, it is very different. Australia runs on a wholesale energy market where prices move up and down every five minutes based on supply and demand.
When demand is high and there is not enough generation online, wholesale prices spike. When there is more solar than the grid needs in the middle of the day, prices can fall to almost zero, or even go negative.
As you can see in the Wholesale Energy Problem image below, the well known duck curve shows how rooftop solar pushes daytime demand down, then demand spikes again in the evening when the sun goes down and everyone gets home.
The duck curve, and why daytime power is getting cheaper
On the chart above, the “belly” of the duck is the middle of the day. This is when:
Solar generation is high
Many homes with solar buy little to no power
Wholesale prices crash
On the right hand side of the same graphic, you see the average spot price curve, with far higher prices in the morning and evening peaks. These peaks are when coal and gas plants need to ramp up, and where the grid is most fragile.
Why feed in tariffs are falling fast
For years, one of the big drawcards for solar was generous feed in tariffs. Early customers were getting around 60c per kilowatt hour for energy they exported back to the grid.
Those days are gone. As more solar has been added, daytime power on the wholesale market has become very cheap. Retailers can no longer afford to pay high rates for exports when they can buy power cheaply elsewhere.
The chart below shows how average feed in tariffs have fallen into the low single digits in most states, with some Victorian offers now close to zero.
This changes the game. The value is no longer in selling power back to the grid. It is in using more of your own solar, and storing the excess in a battery so you buy less from the grid at peak times.
Why the government offers incentives for solar and batteries, not just grid upgrades
You might reasonably ask, “If the grid is the problem, why not just fix the grid?”
The answer is simple. Upgrading the national grid, building new large scale renewable plants and running new transmission lines takes:
Tens of billions of dollars
Years or even decades of planning and approvals
In contrast, rooftop solar and home batteries can be installed in weeks, directly where the energy is needed.
Upgrading big centralised power stations and transmission lines is slow and expensive, while rooftop solar and batteries can be installed at your home in weeks and take pressure off the grid straight away.
So, in short:
Centralised generation and new transmission is slow and expensive
Rooftop solar and batteries are fast, decentralised and take pressure off an ageing system
That is why we have federal rebates for solar and batteries and state level programs on top.
Rebates and incentives for solar and batteries in 2025
The federal SRES scheme in plain English
At the heart of the federal incentives for solar and batteries is the Small scale Renewable Energy Scheme (SRES). Under SRES, eligible systems create Small scale Technology Certificates (STCs).
Each certificate has a value. When you install solar or a battery, your system is assigned a number of STCs based on:
The size of your system
Where you live
How many years of the scheme remain
Installers like 1KOMMA5° handle all of this in the background, then apply the value of those STCs as an upfront discount on your quote.
Solar STCs, the original rebate
Solar STCs have been running in various forms since around 2011. There is no fixed dollar “cap”, as the scheme is funded by energy companies that are required to buy certificates.
What matters to you is that the number of STCs you receive falls every year until 2030. That means the upfront rebate for solar gets smaller over time. On the webinar, Grant showed how the solar rebate for a typical system has already dropped by more than half over the last five years.
The Cheaper Home Batteries Program, the new battery rebate
On 1 July 2025, the federal government launched the Cheaper Home Batteries Program, which extends the STC framework to home batteries.
Here’s a quick recap of the program:
Funded with $2.3 billion in support
Designed to cover up to around 30% of the cost of an eligible battery system
Applies to battery systems between 5 and 100 kWh, with the rebate capped at 50 kWh of storage
Runs on the same “stepping down” schedule as solar STCs, with yearly reductions to 2030
From 1 January 2026, the STC factor for batteries drops by around 10% from 9.3 to 8.4 per kWh, this means a typical 27 kWh battery loses close to $1,000 in federal support between 2025 and 2026. Combined solar and battery installs can see total rebates fall by roughly $1,400 for the same system.
How much support can you expect from federal rebates for solar and batteries
The exact figure depends on your system and location, but the important idea is this:
The bigger the system (within the scheme limits), the larger the total rebate
The earlier you install, the more STCs you receive
The graph below demonstrates how the STC battery rebate drops each year on a 20 kWh battery system. In simple terms:
Roughly $3,500 less in rebate value if you wait five years
Around $14,000 in extra grid power costs over that same period, assuming a $1,800 annual bill with 10% yearly increases
Put simply, relying on the grid and waiting for “a better time” usually means you pay more upfront later and keep paying more in power bills along the way.
State based incentives and virtual power plant extras
On top of federal rebates, there is a patchwork of state based incentives for solar and batteries, including:
Feed in tariffs set above wholesale prices
Low interest or interest free loans
Virtual power plant (VPP) sign up bonuses
Targeted programs for apartments and social housing
The table below maps these out across each state and territory. The exact mix changes over time, so the best approach is to speak with one of our specialists who lives and breathes this every day.
Why waiting usually costs you more every year
Between falling STC factors, rising energy bills and a finite federal funding pool, the cost of waiting is real.
As reported by the Department of Climate Change, Energy, the Environment and Water in late October 2025, more than 100,000 batteries had already been installed under the Cheaper Home Batteries Program. Every installation draws from the same $2.3 billion pool.
When you combine that rush with installer shortages, you start to see why acting earlier typically means:
Higher rebates locked in
Shorter wait times for installation
More years of savings on your side of the ledger
Financing for solar and batteries, making it affordable
You are already on a “payment plan” with your energy retailer
A lot of people hesitate about finance because they do not want another loan. The reality is, if you pay an energy bill every month or quarter, you are already on a kind of payment plan.
You:
Use the power first
Get a bill later
Keep paying, forever
There is no end date, no equity and no return.
Solar and batteries flip this on its head. The goal is to redirect what you are already spending on power into an asset that lowers your bills for years to come.
The graphic below shows three scenarios:
Before solar, all money goes to your energy retailer
With solar on finance, part of that money goes to a loan repayment, part to a much smaller bill
Once the system is paid off, the bulk of that money stays in your pocket as savings
How solar finance actually works
Most 1KOMMA5° customers who use financing for solar and batteries choose green energy loans that are quite different to a typical personal loan:
Zero deposit for most customers
Fixed monthly repayments, which are often similar to or lower than your current bill
5 to 10 year terms, not 20 or 30 years like a mortgage
No penalties for paying it off early
The loan is linked to your system, not your house title
Many options are backed by government green finance initiatives
You can absolutely pay cash if you prefer. That is usually the cheapest option overall. Finance simply gives you a way to start saving sooner, even if you do not have the capital sitting in the bank today.
Solar loan vs energy bill, a simple comparison
If you stick with your retailer:
You pay around $2,000 a year for power (based on a $500 quarterly bill)
Bills typically rise 5 to 10% a year, and sometimes more
There is no end point, you pay as long as you live in the home
If you switch to solar and batteries on finance:
You might have a monthly repayment of around $210
Your remaining bill could fall to around $50
Your total energy spend can drop from day one
After roughly 7 to 8 years, the system has “paid for itself” within its 12 year warranty period and you keep saving after that
Every home is different, but many households find they are cash flow neutral or cash flow positive from day one.
Green finance partners 1KOMMA5° works with
To make the process smoother, 1KOMMA5° partners with specialist green finance providers such as Plenti and Brighte. Their products are:
Designed specifically for solar, batteries and energy upgrades
Available to a wide range of customers, including joint applicants and self employed
Linked to government initiatives like the Clean Energy Finance Corporation and the Home Energy Upgrades Fund
You get access to competitive fixed rates, fast approvals and loan structures that are built around energy savings, not lifestyle spending.
Getting your system size right
The key questions that decide the right battery size
There is no one size fits all solution. In the webinar, Grant shared five key questions that guide your battery design:
How much energy do you use each day on average?
How much solar or cheap grid power is available to charge the battery?
How independent do you want to be from the grid?
How deep can the battery safely discharge without shortening its life?
What is your budget, once rebates and finance are factored in?
A good solar specialist will look at at least twelve months of your usage, your roof space, your future plans and local rebates before recommending a size.
Option 1, cover your daily use
One approach is to size the battery to roughly match your average daily usage, plus a small buffer. In practice, that means:
The battery empties overnight
It recharges during the day from solar
You minimise imports from the grid, especially in the evening peak
This is a solid starting point for many homes and keeps upfront costs lower while still delivering strong savings.
Option 2, go bigger for flexibility, protection and trading
More and more households are choosing to go bigger while the rebates for solar and batteries are at their most generous. A larger battery can:
Support virtual power plant participation or wholesale energy plans, where you are paid to discharge at peak times
Keep more of your home running during blackouts or extreme weather
Provide more protection as energy usage grows over time with EVs, pools, air conditioning and home offices
The Cheaper Home Batteries Program allows you to claim the rebate on up to 50 kWh of storage, which is a very large battery by residential standards. Even if you do not go that big, going slightly larger today can give you more flexibility for the future.
Why inverter size matters more than most people realise
A common trap in the current market is pairing a very large battery with a very small inverter to chase the maximum rebate.
Your inverter is the “tap” between your solar, battery and home. It controls:
How quickly your battery can charge
How much power it can deliver to your home at once
On the image below we compare:
A 50 kWh battery with a 5 kW inverter
A 20 kWh battery with the same 5 kW inverter
With the larger battery, you would need around 10 hours of perfect sunshine just to fully charge it, but most locations only get about 4.2 usable solar hours per day on average. In reality, that giant battery may never fully charge or discharge.
With the 20 kWh battery, you can comfortably charge within those 4 or so hours, meaning you actually use what you paid for.
The lesson is simple, and the image spells it out, pairing a battery and inverter properly is more important than chasing the biggest headline battery size.
Can you charge your battery every day?
Finally, you need a clear plan for how the battery will charge, especially in winter or on cloudy days. The image below highlights two main sources:
Excess solar during the day
Cheap grid energy, for example overnight or during “free power” windows on certain wholesale linked plans
A well designed system will:
Use solar first wherever possible
Top up from the grid at cheap times if needed
Avoid charging from the grid at peak rates
This is where smart software, good system design and the right energy plan work together.
How 1KOMMA5° helps you make the most of rebates, incentives and finance
What to expect when you speak with a 1KOMMA5° specialist
When you book a quote or consultation with 1KOMMA5°, you are not just getting a hardware price. You are getting a plan for your home energy.
A typical discussion covers:
Your last few power bills and any future changes, such as EVs or pools
Roof layout, shading and panel placement
Which rebates for solar and batteries and incentives for solar and batteries apply at your address
Whether financing for solar and batteries makes sense for your situation
Your appetite for grid independence, VPPs and wholesale energy plans
The goal is to give you a clear, honest view of your options so you feel informed and supported, not pushed.
Avoiding common traps in the current rush for batteries
With strong rebates on the table, there are also more questionable offers out there. In the webinar Q&A, Grant called out a few red flags to watch for:
Quotes where the rebate seems to cover far more than 30% of the system cost
Very large batteries with undersized inverters
Companies with limited track records or unclear warranties
Promises that sound too good to be true
Good quality systems are not “cheap”, and “cheap” systems are rarely good. The Cheaper Home Batteries Program is designed to make quality systems more affordable, not to drive prices to the bottom.
1KOMMA5° has been operating in Australia for years, with local teams across the East Coast and South Australia. We focus on premium hardware, high quality installation and long term support so your system performs for the long haul.
Webinar replay and next steps
If you would like to dive deeper, you can:
Watch the full webinar replay of “How to Get Solar & Batteries Cheaper with Incentives, Rebates & Finance”
Explore our other educational sessions on battery sizing, energy plans and grid stability
Conclusion, take control of your power while the support is still strong
Key takeaways
If you take one thing away from this guide, make it this, the current mix of rebates for solar and batteries, incentives for solar and batteries and smart financing for solar and batteries is designed to help you move quickly, not to reward waiting.
To recap:
The grid is under pressure, and solar plus batteries at the home level are a key part of the solution
Federal STCs and the Cheaper Home Batteries Program significantly reduce upfront costs, but they step down every year
State based schemes and VPPs can add extra value on top
Green finance can turn your existing power bill into repayments on your own energy system, often with better cash flow from day one
The right system size, inverter pairing and charging strategy make all the difference to your long term savings
Your next step
If you are ready to see what this could look like for your home, the simplest next step is to get tailored numbers.
👉 To find out which rebates and incentives you are eligible for, and how financing for solar and batteries could work for your home, fill out our quick quote form below.