Battery rebate guide · 8 min read

The home battery rebate explained: how Australia's Cheaper Home Batteries Program works

The federal home battery rebate takes about 30% off an eligible battery added to solar, as a discount on the quote. Who qualifies, how it works, what stacks.

Australia's home battery rebate is the federal Cheaper Home Batteries Program. It takes around 30% off the upfront cost of an eligible battery of 5 to 100 kWh installed with new or existing solar, and most people get it as a discount on their installer's quote, with no application to the government. The amount depends on the battery's usable capacity and the date it is installed, and it falls every six months until 2030.

Installers: this page is written so you can send it to customers. It sticks to what the government's own pages say, with links to each one.

The rebate at a glance

QuestionAnswer
Who can get itHouseholds, businesses and community organizations
Which batteriesNew, 5 to 100 kWh nominal, on the Clean Energy Council's approved list, able to join a virtual power plant (VPP), installed with solar
How muchAround 30% of the upfront cost, worked out in certificates per kWh of usable capacity
How you get itUsually a discount on the quote or a rebate after installation, from the retailer or installer
Do you apply?No. Consumers don't apply to the department or the regulator
Who installs itAn installer accredited by Solar Accreditation Australia (SAA) with a battery endorsement
Until whenOpen until 31 December 2030, with the amount falling every six months

How the discount works

The program is part of the Small-scale Renewable Energy Scheme, the same scheme that has discounted rooftop solar for years. An eligible battery can create small-scale technology certificates (STCs), and the government buys the certificates created for batteries to fund the discount. Your installer or retailer normally creates and sells them for you, and you see their value as a lower price. The Clean Energy Regulator runs the program day to day.

Three things set the number of certificates:

  • Usable capacity. Certificates are based on usable kWh, not the nominal size on the box, and only the first 50 kWh counts.
  • The installation date. Each six-month period has its own factor: 6.8 certificates per kWh for batteries installed from May to December 2026, 5.7 from January to June 2027, falling to 2.1 in the second half of 2030. The factor on the date the battery is installed is the one that counts, not the date you sign.
  • Size tiers. Since 1 May 2026 the factor applies in full to the first 14 kWh, at 60% from 14 to 28 kWh, and at 15% from 28 to 50 kWh.

Each certificate is then worth its market price, which moves. That is why two honest quotes can show slightly different discounts for the same battery.

Two batteries installed before 31 December 2026
10 kWh usable: eligible capacity10 kWh
Certificates at 6.8 per kWh68
Discount at A$37 a certificate (example price)A$2,516
20 kWh usable: eligible capacity (14 + 60% of 6)17.6 kWh
Certificates at 6.8 per kWh119
Discount at A$37 a certificate (example price)A$4,403
Certificates are eligible kWh times the factor, rounded down. The certificate price is an example, not a quote: it moves with the market, so check your own quote and the regulator's STC calculator.

Doubling the battery from 10 to 20 kWh adds 51 certificates, not 68, because everything above 14 kWh earns 60%. The department's own advice is that bigger is not always better: a battery too large for your solar or inverter can limit what you get from it. Size it to your use, then check the sum in our battery rebate calculator.

Who is eligible

The regulator's rules for a battery to earn certificates:

  • New. Made within 12 months of the installation date, never installed or claimed before.
  • The right size. 5 to 100 kWh nominal capacity, installed in a single job. A group of modules connected to act as one unit counts as one battery.
  • Approved. On the Clean Energy Council's approved battery list, and installed to AS/NZS 5139:2019 and your state's electrical safety laws.
  • VPP-capable. Technically able to join a virtual power plant if it is grid-connected. Joining one is your choice: the regulator says you can choose to sell power through a VPP once the battery is in.
  • With solar. Installed with a new or existing solar system of no more than 1 MW.
  • One per premises. One battery per meter (NMI) for grid-connected homes. A second battery at the same address doesn't earn certificates after the first claim.
  • Staying put. The battery has to stay at the property until the end of its warranty or the end of 2030, whichever is later.

Adding to an existing battery. Extra capacity can qualify if the existing battery never received the discount, the addition is at least 5 kWh, and the total stays at or under 100 kWh, according to business.gov.au. If the first battery was discounted, a later one at the same address won't be, so choose the size at the start.

Adding a battery to solar you already have. The existing panels don't need to be on today's approved list, but they must meet electrical safety rules. The inverter the battery connects to must be VPP-capable. An existing hybrid inverter has to be on the Clean Energy Council list now, or have been when the solar was commissioned. If it isn't, it is replaced with a listed, VPP-capable model, which belongs in the quote.

Off-grid homes. An off-grid battery can qualify if it serves a lived-in dwelling, such as a remote farmhouse, but not a shed or a bore pump. A property more than 1 km from the grid doesn't need a VPP-capable battery. One closer than that needs one, or written evidence that connecting to the grid would cost more than A$30,000.

Three common mix-ups

  • Nominal and usable capacity. The battery has to be 5 to 100 kWh nominal to qualify, but the discount is worked out on usable capacity, which the spec sheet lists separately. Check that the quote uses the usable figure.
  • Signing date and installation date. A quote signed in December for a January installation gets January's factor. The date the battery goes in decides it.
  • Who pays the discount. The government doesn't send the homeowner a cheque. The value comes from the certificates, so it shows up as a lower price on the quote, or as a rebate from the retailer after installation.

Two ways to claim it

  1. Through your installer or retailer. You assign your right to create the certificates to them, and they give you an upfront reduction or a rebate after installation. This is how almost everyone does it.
  2. Yourself, through the REC Registry. You can skip the installer's discount and create and sell the certificates yourself. If you do, don't sign the right over to the installer. It means more paperwork, and the price you get depends on the market.

Either way, the quote should show the value of the discount and when you get it. The department lists three things your retailer or installer should tell you: the value of the discount and when you will receive it, the system warranty, and the expected payback period.

What installers must do

What the installer and retailer must get right
  • Installer accredited by Solar Accreditation Australia with a battery endorsement, following SAA's technical requirements
  • Battery on the Clean Energy Council approved list, installed to AS/NZS 5139:2019 and state electrical safety law
  • Battery and the inverter it connects to both VPP-capable; an unlisted existing hybrid inverter replaced
  • Installer on site for set-up, installation and commissioning
  • Quote shows the discount's value and timing, the warranty and the expected payback
  • Owner given written documentation about the battery and the installation
  • Retailer satisfied the battery is for permanent use at that address, not to be moved or resold
  • Any state program checked for compatibility before it goes on the quote

The certificates also depend on photos and records captured on the day, which the regulator checks. Our installer paperwork checklist lists what each job needs and who signs each document. Retailers and installers must also follow Australian Consumer Law when they advertise and sell batteries.

How state programs stack

The federal discount is available in every state and territory. On top of it, some states run their own programs, and energy.gov.au says state and local schemes are in addition to the federal certificates. The department's advice is to check with your state whether its program can be combined, because the regulator notes some state programs may not be claimable alongside the federal certificates. Read on 10 November 2026:

StateWhat is on offerCombines with the federal discount?
New South WalesThe NSW install discount is no longer available. A VPP incentive pays an upfront amount for connecting a 2 to 50 kWh battery to a virtual power plant, based on up to 28 kWh made available to the grid, once per meter. The amount varies by VPP providerYes, the VPP incentive can be combined
Western AustraliaA rebate of up to A$1,300 for Synergy customers or A$3,800 for Horizon Power customers (the maximum at 10 kWh usable), plus no-interest loans up to A$10,000 for households under A$210,000 combined income. Joining a VPP is required, and the vendor applies for youYes, it is in addition to the federal program
VictoriaSolar Victoria's battery loan page now covers repayments on existing loans and points buyers to the federal program. See our Solar Victoria rebate paperwork guide for the solar panel rebateThe federal discount applies
ACTThe Sustainable Household Scheme offers loans of A$2,000 to A$20,000 at 3% over up to 10 years, and household batteries are on the eligible listA loan, not a rebate; check the scheme's guidelines
Other states and territoriesCheck your state energy department or energy.gov.au before you quoteCheck each scheme

State programs change more often than the federal one, and some have closed or reset within months. Check the state's own page on the day you quote, and put the state amount on the quote as a separate line so the customer can see where each dollar comes from.

The dates that matter

The factor falls every six months, so the same battery earns less the later it is installed. A 10 kWh battery installed by 31 December 2026 earns 68 certificates; the same battery installed from 1 January 2027 earns 57. If you are an installer working out what that means for December bookings and quotes, read what changes on 1 January 2027.

Before you sign: questions to ask

Questions to ask before signing a battery quote
  • What is the federal discount on this quote in dollars, and is it off the price or paid after installation?
  • What usable capacity is the discount based on, and why is that size right for my use?
  • Is the battery on the Clean Energy Council approved list, and is my inverter VPP-capable?
  • Who is the SAA-accredited installer, and will they be on site for set-up, installation and commissioning?
  • What is the booked installation date, and what happens to the price if it moves into the next period?
  • Is there a state program I qualify for, and can it be combined with the federal discount?

The department also suggests checking the installer's accreditation and getting quotes from more than one retailer. If something goes wrong, raise it with the installer or retailer first, then the Clean Energy Regulator, your state's electrical safety regulator or consumer protection agency, or the energy ombudsman.

For installers: using this page

Send it with every battery quote, so the customer reads the rules from the government's pages rather than from a rival's ad. Put the free battery rebate calculator on your own site with your name and color, so homeowners can test their size before they call. If you want the rebate dates turned into booked jobs, that is what our Growth package does.

This page covers Australia only. US battery incentives differ by state and utility and aren't covered here.

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Solar · FAQ

Questions owners ask

How much is the federal home battery rebate?

Around 30% of the upfront cost of an eligible battery, according to the department. It is paid in certificates: 6.8 per eligible kWh for batteries installed from May to December 2026, with full support on the first 14 kWh and less above that. The dollar value depends on the certificate price.

Do I need to apply for the Cheaper Home Batteries Program?

No. Consumers don't apply to the department or the Clean Energy Regulator. Your installer or retailer usually takes the certificates and gives you a discount or a rebate after installation. You can also create and sell the certificates yourself through the REC Registry.

Can I get the battery rebate if I already have solar?

Yes. The battery can be added to existing solar of up to 1 MW. The inverter it connects to must be able to join a virtual power plant, and an existing hybrid inverter must be on the approved list now or have been when the solar was commissioned.

Do I have to join a virtual power plant?

Not for the federal discount: the battery only has to be capable of joining one if it is grid-connected, and the regulator describes joining as your choice. Some state programs, such as Western Australia's rebate and the NSW VPP incentive, do require you to join one.

Can I combine the federal rebate with a state rebate?

Sometimes. Western Australia's scheme and the NSW VPP incentive both say they can be combined with it. The department and the regulator say to check each state program first, because some may not be claimable alongside the federal certificates.

Does the battery rebate go down?

Yes, every six months. The factor is 6.8 certificates per kWh until 31 December 2026, 5.7 from 1 January 2027, and 2.1 in the second half of 2030. The installation date decides which applies, not the date you sign.

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