Cheaper Home Batteries 2026: how the battery rebate works, and what changes on 1 January 2027

How does the battery rebate work?

The Cheaper Home Batteries Program is part of the Small-scale Renewable Energy Scheme, the same scheme behind the solar rebate. An eligible battery earns small-scale technology certificates (STCs), and the government buys those certificates to fund the discount. The government says the discount is around 30% of the installed cost for a range of battery sizes.

You don't apply for it yourself. There are two ways to receive it:

• From your installer (the usual way). You assign the certificates to your installer, and they take the value off your price up front, or pay it back after installation.
• Claim it yourself. You can create and sell the STCs through the Clean Energy Regulator's REC Registry. Most people don't, because the installer route is simpler.

Either way, the value of a certificate moves with the market. We assume about $37 per STC reaches you after fees; the government Clearing House price is fixed at $40 excluding GST, and installers pass on slightly less.

The 14 kWh line: how the tiers work

Since 1 May 2026, the number of certificates depends on how big the battery is, in usable kWh (what you can actually draw out, not the nameplate figure):

• Up to 14 kWh: 100% of the full rate, about $252 per kWh.
• 14–28 kWh: 60% of the full rate, about $151 for each extra kWh.
• 28–50 kWh: 15% of the full rate, about $38 for each extra kWh.
• Above 50 kWh: no extra certificates.

So the rebate on a 14 kWh battery is not twice that of a 7 kWh one, and a 28 kWh battery earns far less than double a 14 kWh one. Past 14 kWh, extra capacity has to pay for itself mostly out of your own pocket. That's why so many batteries on offer sit just under 14 kWh.

How much is the solar battery rebate?

Worked out from the government's factors and our assumed certificate value. For example, a 13.5 kWh battery earns 91 STCs, about $3,367. Your installer's figure can differ slightly, because the certificate price they pass on varies.

When does the battery rebate drop? What changes on 1 January 2027

The discount now falls every six months (in January and July), and faster than before, in line with falling battery prices. The amount you get is set by the factor on the day your battery is installed, not the day you sign.

If you sign a quote shortly before a step-down but the battery goes in after it, the rebate will be lower. Ask your installer before you sign: will the price change if installation slips past the date, and who carries that difference? Get the answer in writing. Be wary of anyone promising an install date they can't control, or using the deadline to rush you. The Clean Energy Regulator has warned installers about exactly that.

Who can get the battery rebate?

Households, businesses and community organisations can all get the battery discount. There's no income test. The battery must:

• be between 5 and 100 kWh (nominal capacity); certificates are only paid on the first 50 kWh of usable capacity;
• be installed with a new or existing solar system of up to 100 kW (the existing system doesn't need to be on the approved list, but it must be electrically safe);
• be on the Clean Energy Council's approved battery list, and be able to join a virtual power plant (it doesn't have to join one);
• be installed by a Solar Accreditation Australia–accredited installer with a battery endorsement, who is on site for installation and commissioning.

One battery per property. Only one battery system can claim the discount per premises (or per meter, the NMI). You can add to an existing battery and claim for the extra capacity only if the original battery never claimed STCs, you add at least 5 kWh, and the total stays at or under 100 kWh. If you're buying a home that already has a battery, ask whether it claimed the rebate. See our guide to adding a battery to existing solar.

Does it stack with state programs?

Generally, yes. The federal discount is designed to sit alongside state and territory programs, but each state sets its own conditions. Open battery programs as of 26 September 2026:

• New South Wales: NSW Home Energy Saver zero-interest loan. A zero-interest, no-fee loan of up to $15,000, repaid over up to 10 years, for solar, batteries and other upgrades, for NSW homeowners with a combined taxable household income up to $210,000.
• New South Wales: NSW virtual power plant incentive. An extra incentive if you connect your battery to a virtual power plant. The amount varies by provider and network, so it isn't included in your price.
• South Australia: SA REPS battery VPP incentive (via retailers and providers). Some retailers and providers pay an incentive for connecting a new or existing battery to an approved virtual power plant, often more for concession households. Each sets its own amount, so it isn't in your price.
• Western Australia: WA Residential Battery Scheme. Up to $1,300 for Synergy customers, or up to $3,800 for Horizon Power customers, when you join a virtual power plant. Confirmed by your installer, so it isn't included in your price.
• Western Australia: WA no-interest battery loan. A no-interest loan of $2,001 to $10,000 over 3 to 10 years, for households earning under $210,000.
• the ACT: ACT Sustainable Household Scheme loan. A loan of $2,000 to $20,000 at 3% interest over up to 10 years for batteries and other upgrades. Solar panels are only covered for concession card holders.

The rest of the states currently rely on the federal discount. See every state.

Is a bigger battery better value?

Not automatically. The government's own advice is that bigger isn't always better: a battery too big for your solar, your inverter or your evenings won't fill up or empty often enough to earn its keep. Size it to what you use after dark, check your solar can charge it most days (winter included), and remember the rebate thins out above 14 kWh. A larger battery can still make sense for blackout backup, an electric car or a virtual power plant, but decide that on purpose.

How do you check you got the battery rebate?

You can check you got the battery rebate in three ways:

• Your quote should show the number of STCs and the dollar value taken off, not just a “rebate” line.
• The battery model should appear on the Clean Energy Council's approved list, and your installer's accreditation on SAA's register.
• If you're unsure whether a discount was claimed for your installation, the Clean Energy Regulator can tell you.