The Cheaper Home Batteries Program discounts a new home battery through the same mechanism as the solar rebate, small scale technology certificates (STCs), calculated on the battery's usable capacity in kWh. The rate is not fixed. It has stepped down twice in 2026 already, from 9.3 STCs per kWh at launch to 8.4, then to 6.8 from 1 May 2026, and it now tapers further on batteries above 14kWh. On top of the federal discount, some states add their own incentive, and some do not.
The short version
- The federal battery rebate now runs at 6.8 STCs per kWh (May to December 2026), down from 9.3 at launch in mid 2025.
- From 1 May 2026 the rate tapers by capacity band within one battery: full rate to 14kWh, 60 percent to 28kWh, 15 percent above that.
- A typical 10kWh battery attracts roughly $2,500 off in the current period, as an upfront discount, not a cheque.
- WA and the ACT run their own state incentives that stack with the federal rebate. NSW offers a separate VPP payment. Several other states currently have none.
- The battery must be installed with solar, be new, and use a VPP capable inverter and an accredited installer to qualify.
What each state adds on top of the federal rebate, July 2026
- NSW: Peak Demand Reduction Scheme, a VPP connection payment (roughly $400 to $1,500 depending on capacity and VPP operator). Active, stacks with the federal rebate.
- Victoria: none found. The Solar Homes battery loan (up to $8,800) closed to new applicants in May 2025.
- Queensland: none found. The Battery Booster rebate closed in May 2024.
- South Australia: Retailer Energy Productivity Scheme, a VPP payment up to about $2,050. Active in name, but 2026 funding for most applicants ran out in May, priority and concession groups only.
- WA: WA Residential Battery Scheme, up to $1,300 (Synergy) or $3,800 (Horizon Power), plus an optional no interest loan up to $10,000. Active, confirmed, VPP participation is mandatory.
- Tasmania: none confirmed. The Energy Saver Loan Scheme was reported closed in 2025, worth confirming directly with Tasmanian authorities before assuming.
- ACT: Sustainable Household Scheme, a loan up to $20,000 at 3 percent interest (better terms for concession card holders). Active, stacks with the federal rebate.
- NT: none confirmed. The NT home battery grant is reported at its funding cap.
How the federal rebate actually works
The Cheaper Home Batteries Program started on 1 July 2025. It runs through the Small Scale Renewable Energy Scheme, the same registry used for solar panel STCs, but with its own rate table for batteries. A registered installer or agent typically buys the STCs your battery generates and applies that value as an upfront discount on the invoice, so you rarely see the rebate as a separate cheque. The eligible capacity is usable capacity, from 5kWh up to 100kWh nominal, though STCs can only be claimed on the first 50kWh even on a larger system.
Why the rate keeps changing
The STC factor for batteries is not a flat number. It declines every six months on a published schedule, from 9.3 at launch in mid 2025, down to 8.4 for January to April 2026, and 6.8 for the current period, May to December 2026. It keeps falling through to 2.1 by December 2030, when the scheme is due to end. From 1 May 2026 a second change applies: the factor now tapers by capacity band within a single system, 100 percent of the rate on the first 14kWh, 60 percent on the next tranche to 28kWh, and only 15 percent on capacity from 28kWh to 50kWh. For a typical 10kWh battery today that works out to roughly $2,500 off, though the exact figure depends on the STC market price on the day, which moves in a band of roughly $37 to $39.
Who is eligible
The battery must be installed with solar, in the same job as a new or existing system up to 100kW, not as a standalone grid charging battery. It must be new, not relocated or previously claimed. Only one battery per address can claim STCs, though multiple solar claims at the same address are allowed. The inverter the battery connects to needs to be VPP capable, or have been VPP capable at the time the solar was installed. Installation has to be by an installer accredited with Solar Accreditation Australia, using Clean Energy Council approved products.
What each state adds
NSW households can stack a Peak Demand Reduction Scheme payment for connecting the battery to an approved virtual power plant, on top of the federal STC discount. WA runs its own Residential Battery Scheme, worth up to $3,800 for Horizon Power customers, plus an optional no interest loan, though VPP participation is a condition, not optional. The ACT's Sustainable Household Scheme offers a larger loan, up to $20,000, at a modest 3 percent interest rather than a straight rebate. South Australia's REPS VPP payment technically still exists but ran out of funding for most households partway through 2026, leaving it effectively limited to concession card holders. Victoria, Queensland, Tasmania and the Northern Territory currently have no confirmed additional battery incentive beyond the federal program, after each state's earlier scheme closed or lapsed.
Can I combine the federal rebate with a state incentive?
Generally yes where a state scheme is still open, but check the fine print. The Clean Energy Regulator notes some state programs are not compatible with an STC claim, so confirm with your installer or the state scheme directly before assuming both apply.
Compare batteries and solar installers with AUD pricing on the WattsUp Find and Compare directory. New to the mechanics behind the discount? Read our solar rebates and STCs explained guide, or work out whether a battery is worth it for your home.
Frequently asked questions
How much is the Cheaper Home Batteries rebate worth in 2026?
For a typical 10kWh battery installed from May to December 2026, roughly $2,500, based on the current 6.8 STC per kWh factor and an STC market price of about $37 to $39. Larger batteries get a smaller proportional discount on the capacity above 14kWh.
Is the battery rebate a cheque or a discount?
It is an upfront discount, applied by your installer at point of sale, the same way the solar panel rebate works. You do not receive a separate payment.
Does every state have its own battery rebate too?
No. WA and the ACT have active state level incentives that stack with the federal rebate. NSW offers a separate VPP connection payment. Victoria, Queensland, Tasmania and the NT currently have no confirmed additional incentive, and South Australia's scheme is limited to concession card holders in 2026.
Do I need solar to get the battery rebate?
Yes. The battery must be installed with a solar PV system, new or existing, in the same job. A standalone battery with no solar connection is not eligible.
Will the rebate keep shrinking?
Yes, on a published schedule. The STC factor for batteries steps down roughly every six months through to December 2030, when the scheme ends, so a battery bought today attracts a larger discount than the same battery bought in a year or two.