The federal government solar battery rebate

The Australian battery rebate can deliver savings of up approximately $252 per kWh of battery storage installed. For popular household batteries, the scheme can deliver savings of up to $3,800. Greater savings are available for larger installs and multiple batteries can be included under the rebate.

The solar battery rebate is set to end on 31st December 2030. However, the incentive will reduce in value slightly biannually.

In December 2025, the Australian government announced extra $4.9 Billion in funding to ensure the program continues until its slated end date.

Home solar batteries can deliver benefits like backup power, energy independence and reduce electricity bills.

Key notes about the battery rebate

Important details about the solar battery rebate:

• The rebate will decrease on January 1 2027
• Install date for STCs is when the certificate of compliance is issued
• A per kWh rebate applies to all households and businesses
• All batteries from 5 kWh to 100 kWh are eligible
• The rebate only applies to the first 50 kWh of storage
• The rebate is issued in the form of STCs which fluctuate in price
• Projected savings are approximately $252 per kWh
• The rebate is tiered according to the useful battery capacity
• Rebate applies to new batteries and new panel and battery systems

How the solar battery rebate works

The Australian solar battery rebate is available to all households and businesses that install a new battery storage unit, provided they meet the eligibility criteria. The battery can be added to an existing solar panel system or coupled with new solar panels.

Receive STCs for installing a new battery

Like the government solar panel rebate, the battery incentive is issued in the form of Small-scale Technology Certificates (STCs).

Every kilowatt-hour (kWh) of battery storage will earn 6.8 STCs for the remainder of 2026. The number of STCs will decrease from the 1st January 2027 and then decrease further at 6 month intervals until the scheme's completion date in 2030.

*Calculations based on an STC value of $37 which factors in administration costs.

At this point in time, it is not anticipated that the battery scheme will extend beyond 2030.

The value of the solar battery rebate

Your chosen battery installer will trade your STCs for you to claim your rebate. Typically, STCs trade around the $40 mark. However, administrative costs can reduce the STC value to around $37. To calculate the value of the rebate, we multiply 6.8 by $37 to arrive at $252 per kWh. A 10 kWh battery will attract a rebate of $2,516.

The table below shows the anticipated rebate amount for various size batteries:

With the rebate applied, Solar battery prices now average between $800 - $1,100 per kWh of storage. The maximum rebate available under the scheme is around $6,416 as only the first 50 kWh of storage installed is eligible for the rebate under the government's guidelines.

Battery rebate is tiered according to useful capacity

The battery rebate decreases according to the size of the unit installed:

• The first 14 kWh of storage receives the full allocation
• 14 - 28 kWh will receive 60% of the STCs normally allocated
• 28 - 50 kWh will receive 15% of the normal STC allocation

We illustrate how the rebate is calculated for a BYD Battery-Box HVM 22.1 below. The HVM 22.1 BYD battery has a usable capacity of 21.5 kWh:

• Tier 1 (first 14 kWh) - Full rate applies: 14 x 6.8 STCs = 95.2 STCs
• Tier 2 (next 7.5 kWh) - 60% rate applies: 7.5 x 6.8 x 60% = 30.6 STCs

The total STCs = 125.8, which gets rounded down to the nearest whole number of 125. The battery rebate at an STC price of $37 is therefore, $4,625.

Solar battery rebate eligibility

There are a number of eligibility requirements that need to be met to ensure you receive the solar battery rebate. Importantly, the Cheaper Homes Battery Program does not include any means testing and is open to all Australians.

• Battery must be between 5 kWh to 100 kWh in storage capacity
• Only the first 50 kWh of storage is eligible for the subsidy
• The battery system must not have previously received a rebate
• Battery must appear on the CEC’s approved battery list
• Battery must be installed by an SAA accredited battery installer
• Grid-connect and off-grid systems are eligible
• Grid-connect batteries must be capable of joining a VPP
• Multiple modular (stackable) batteries serve as one battery unit
• The battery rebate does not apply to electric vehicle (EV) batteries

Battery and installation compliance

The solar battery must appear on the Clean Energy Council’s (CEC) list of approved batteries, you can view the list here. The battery must also be installed by an SAA accredited (formerly CEC accredited) installer.

Install date for claiming rebate

The 'installed' date for claiming the battery rebate is when the certificate of electrical compliance is issued. To claim the rebate before the January 2027 reduction, the battery must be installed with a certificate of compliance prior to this date.

VPP capability

To be eligible for the solar battery rebate, the storage unit must have the technical capability to be able to connect to a Virtual Power Plant (VPP). Only the capability to connect is mandatory at this point in time.

Connecting batteries to a VPP is a key objective of the battery rebate so as to assist with the ongoing stabilisation of the electricity grid.

Stackable modular batteries

Multiple stackable modular batteries e.g. BYD and SunGrow, will count as one battery storage system provided they are installed at the same time. For example, two SunGrow 9.6 kWh modular units can be combined into one 19.2 kWh system. The battery rebate can be applied to full 19.2 kWh unit.

Popular batteries included in the rebate

Many popular batteries like the Tesla Powerwall 3 will be eligible under the rebate. Popular Tesla alternatives like: BYD, SunGrow, Sigenergy, SolarEdge, Enphase, Alpha ESS and Sonnen are also available.

Federal battery rebate calculator table

The table below shows popular batteries that appear on the Clean Energy Council's list of approved batteries. The table shows the battery, model number and the approximate rebate amount:

State-by-state solar battery rebates

In addition to the Australian solar battery rebate, many states offer additional rebates and incentives.

The table and description below shows which states currently support solar battery incentives or rebates.

Combining rebates

It's possible to combine multiple rebates when purchasing a new solar panel and battery system. For example, you can receive rebates for:

• Solar panels (federal government)
• Solar batteries (federal government)
• State government battery incentives

The state and territory incentives work in unison with the federal battery subsidy. Most incentives revolve around interest-free finance. The NSW government provides a rebate for connecting to a VPP while the WA government provides an additional saving for installing a new battery.

Battery rebates, system costs, and payback periods

Purchasing a solar battery is not always necessarily a financial decision, batteries have many other benefits like battery backup power.

The solar battery rebate has fundamentally changed the economics of installing a battery.

Where solar panels are a worthwhile financial investment, the case for batteries was always marginal.

The new national battery subsidy now helps to deliver far better financial results. The payback period for a new hybrid system now ranges between 5 - 10 years. While adding a battery to an existing system may take longer to pay back, the new rebate has significantly improved the economics.

Our solar and battery calculator can tell you the savings and payback figures for your desired system.

Next steps

If you’re planning the finances of a new panel and battery system, you might find these tools and guides helpful:

• STC calculator: Find out how much the federal rebate can shave off your solar panels cost.
• Lifespan of batteries: Learn about the longevity and warranties that comes with batteries.
• Best solar batteries: We list the best solar batteries