Home solar, batteries and inverters in Australia
How panels, inverters and batteries fit together, what the federal and state rebates actually give you, and how to size a system for your home.
Home solar in Australia comes down to three parts working together. Panels on the roof generate DC electricity from sunlight. An inverter converts that into the AC power your home uses, and a hybrid inverter also manages a battery. A battery stores the surplus your panels make during the day so you can use it at night instead of exporting it for a small feed-in credit.
For a typical three to four person household, a 6.6kW system paired with a 5kW inverter is the national sweet spot, and a 10 to 13kWh battery covers most overnight use. Two federal incentives bring the cost down: small-scale technology certificates (STCs) discount the panels at the point of sale, and the Cheaper Home Batteries program, live since 1 July 2025, takes roughly 30 percent off an eligible battery with no income test. Several states stack extra rebates on top. Solar-only payback typically runs three to six years.
The Cheaper Home Batteries rebate, in plain terms
This federal rebate is applied upfront by your installer, so there are no forms to lodge yourself. It delivers about 30 percent off the installed cost of an eligible battery, with the full rate applying to batteries between 5kWh and 14kWh. There is no income test, and one claim applies per electricity meter. Your installer must be accredited and the battery must be on the approved product list. Details: DCCEEW Cheaper Home Batteries.
STCs: the solar discount you never apply for
Small-scale technology certificates are the federal mechanism that makes panels cheaper at the till. Your system creates a set number of certificates based on size and location, and your installer assigns them in exchange for an upfront discount, commonly around 2,000 to 2,500 dollars on a 6.6kW system. The scheme winds down by the end of 2030, and the discount shrinks each January, so installing sooner means more certificates. Background: Clean Energy Regulator.
State battery rebates in 2026
The federal program runs everywhere, and some states add more. Western Australia is the most generous through its Residential Battery Scheme, and New South Wales offers an incentive for connecting a new battery to an approved virtual power plant. Victoria, Queensland and South Australia have closed their earlier state battery schemes, so the federal rebate is the main lever there. Always confirm current rebates for your state before you sign.
Sizing your system
The average Australian home uses roughly 15 to 20kWh a day. A 6.6kW system is the default for most households and sits at the best price per watt. If you have an EV, a pool pump or ducted air conditioning, step up to 10kW or more. Most networks cap single-phase exports at 5kW regardless of system size, which is one more reason a battery earns its keep: it captures what you cannot export.
Feed-in tariffs and export limits
Feed-in credits are far lower than the early-adopter years, commonly in the single digits of cents per kilowatt hour, and some networks now apply charges or limits on daytime exports. The practical takeaway is simple: self-consumption, through good timing and a battery, is worth more than exporting. Compare your retailer's current offer before counting on export income.