What is the Cheaper Home Batteries Program?
The Cheaper Home Batteries Program is the federal battery rebate, launched 1 July 2025 and administered by the Clean Energy Regulator. It works like the solar STC scheme: your battery earns Small-scale Technology Certificates based on its usable capacity, your installer sells or assigns those certificates, and the value lands on your invoice as a point-of-sale discount. In December 2025 the government expanded the program budget from $2.3 billion to $7.2 billion, so it is funded to run its full course to the end of 2030.
Source: Clean Energy Regulator data, to 1 July 2026.
| Launched | 1 July 2025 · budget expanded to $7.2 billion (Dec 2025) |
| Current rate | 6.8 STCs per usable kWh (installs certified 1 May – 31 Dec 2026) |
| Worth | ~$271/kWh gross · typically $244–$252/kWh net on your quote |
| Tiers | 100% of the first 14 kWh, 60% on >14–28, 15% on >28–50, nil above 50 |
| Eligible size | 5–100 kWh nominal capacity (certificates paid on usable capacity) |
| Requirements | Solar required · VPP-capable if on-grid · CEC-approved product + accredited installer |
| Next step-down | 1 Jan 2027 (factor drops to 5.7) |
| Ends | 31 December 2030, after step-downs every 1 January and 1 July |
How much is the federal battery rebate in 2026?
The formula: usable kWh × 6.8 STCs × the STC price (spot price $39.90, clearing house cap $40 ex GST). The per-kWh factor applies to 100% of the first 14 kWh of usable capacity, 60% of anything from 14 to 28 kWh, and 15% from 28 to 50 kWh. The STC total is rounded down to a whole number before it is valued. Three worked examples:
Gross = STCs × $39.90 spot price. The net range reflects the typical $244–$252 per eligible kWh installers pass through after certificate admin fees. Figures are typical, not guaranteed; the exact pass-through is set by your installer's quote.
Popular battery sizes at the 2026 rate
| Battery | Usable capacity | 2026 gross rebate |
|---|---|---|
| Sungrow SBR HV (small) | 9.6 kWh | $2,594 |
| BYD Battery-Box Premium HVS | 10.2 kWh | $2,753 |
| Sungrow SBR HV (medium) | 12.8 kWh | $3,471 |
| Tesla Powerwall 3 | 13.5 kWh | $3,631 |
| LG RESU16H Prime | 16 kWh | $4,110 |
| Sungrow SBR HV (large pair) | 25.6 kWh | $5,666 |
The step-down schedule: what the battery rebate is worth each period to 2030
The rate is legislated to fall every 1 January and 1 July until the program ends. Here is the full schedule, with the value of a 13.5 kWh battery computed for each period at today's $39.90 STC price:
| Install certified | STCs per usable kWh | 13.5 kWh battery gets | Change |
|---|---|---|---|
| 1 Jan 2026 to 30 Apr 2026 | 8.4 | $4,509 | – |
| 1 May 2026 to 31 Dec 2026Now | 6.8 | $3,631 | −$878 |
| 1 Jan 2027 to 30 Jun 2027 | 5.7 | $3,032 | −$599 |
| 1 Jul 2027 to 31 Dec 2027 | 5.2 | $2,793 | −$239 |
| 1 Jan 2028 to 30 Jun 2028 | 4.6 | $2,474 | −$319 |
| 1 Jul 2028 to 31 Dec 2028 | 4.1 | $2,195 | −$279 |
| 1 Jan 2029 to 30 Jun 2029 | 3.6 | $1,915 | −$280 |
| 1 Jul 2029 to 31 Dec 2029 | 3.1 | $1,636 | −$279 |
| 1 Jan 2030 to 30 Jun 2030 | 2.6 | $1,397 | −$239 |
| 1 Jul 2030 to 31 Dec 2030 | 2.1 | $1,117 | −$280 |
The practical takeaway: a 13.5 kWh battery certified in December 2026 gets about $3,631; the identical battery certified in January 2027 gets about $3,032. Waiting over the new year costs $599. "Certified" means the date on the certificate of electrical compliance, not the day you sign the contract, so allow for installer lead times if you are quoting late in the year.
Gross vs net: how to check your quote
The headline $271 per kWh is the gross certificate value at the $39.90 spot price (the CER clearing house caps STCs at $40 ex GST). Your installer does not pass through 100% of it: registered agents charge admin fees to create and trade the certificates, so the typical net discount on quotes is $244 to $252 per eligible kWh.
- On a 13.5 kWh battery, expect a line item around $3,294 to $3,402. Gross would be $3,631.
- The discount must appear as its own line on the quote, usually labelled "Cheaper Home Batteries" or "battery STC discount".
- If the line is well under $244 per eligible kWh, ask the installer to explain their STC pricing before you sign.
- If a quote shows the full gross value, check for a separate STC admin fee elsewhere on the invoice.
Eligibility: the rules that actually trip people up
- Solar is required. The battery must be connected to a solar PV system, new or existing. A battery set up to charge only from the grid is not eligible.
- 5–100 kWh nominal capacity. Eligibility is tested on the battery's nominal capacity; the certificates are earned on usable capacity (first 14 kWh at 100%, then 60% to 28 kWh, then 15% to 50 kWh).
- VPP-capable if on-grid. The battery must be able to join a Virtual Power Plant. Actually joining one is optional. Off-grid systems are exempt from the VPP requirement.
- One battery per premises, ever. A premises can only claim once under the program, so size the battery for where your usage is heading, not just today's bill.
- Approved product, accredited installer. The battery must be on the Clean Energy Council's approved product list and installed by an accredited installer.
- "Installed" means the compliance date. The rebate rate is set by the date on the certificate of electrical compliance, not the contract or deposit date.
You never file anything yourself. The installer (or their registered agent) creates the certificates and the discount appears on your invoice.
Stacking the federal battery rebate with state programs
Most state battery rebates have now closed, replaced in practice by the federal program. Two states still add real money on top, and a few offer cheap finance:
| State | State battery support (July 2026) | Status |
|---|---|---|
| NSW | PDRS VPP connection incentive, up to ~$1,500 · Home Energy Saver 0% loan up to $15,000 | Active |
| VIC | Battery loan closed May 2025; federal-only | Closed |
| QLD | Battery Booster closed 8 May 2024; federal-only | Closed |
| SA | REPS VPP incentive up to $2,050, priority-group households only for the rest of 2026 | Limited |
| WA | $130/kWh Synergy (max $1,300) · $380/kWh Horizon (max $3,800) + 0% loan | Active |
| TAS | Energy Saver Loan closed September 2025; federal-only | Closed |
| ACT | Sustainable Household Scheme loan, 3% up to $20,000 | Active (loan) |
| NT | Home and Business Battery Scheme closed June 2025; federal-only | Closed |
Worked example: a Sydney household's 2026 stack
Say you are in Sydney installing a 6.6 kW solar system with a 13.5 kWh battery, and you connect the battery to a Virtual Power Plant:
About $6,927 in combined support before you negotiate the hardware price. The battery line is the gross certificate value; expect the quote line to land in the $3,294–$3,402 range once admin fees come out.
What a battery actually saves (with sources)
Adding a battery to existing solar saves up to $1,100/yr on top of what the panels already save, per the government's own estimate (Minister for Climate Change and Energy). A new solar plus battery system saves up to $2,300/yr, about 90% of a typical household bill, from the same source.
On payback, the honest version: it depends almost entirely on your buy price. The government's own estimate for a battery on existing solar is up to $1,100 a year. Through our installer network a 15 kWh battery is currently $4,500 installed after the federal rebate (subject to site inspection, while allocation lasts), so that arithmetic lands at roughly 2 to 4 years, and under 3 where a state incentive stacks on top. The economics are strongest where feed-in tariffs are lowest, because every stored kWh replaces expensive evening grid power instead of earning a few cents as an export.
Common questions
What will the battery rebate be in 2026?
For batteries certified between 1 May and 31 December 2026, the Cheaper Home Batteries Program pays 6.8 STCs per usable kWh, worth about $271 per kWh gross at the current $39.90 certificate price, and typically $244 to $252 per kWh on your quote after admin fees. A 13.5 kWh battery gets about $3,631 gross. On 1 January 2027 the factor steps down to 5.7, which cuts the same install to about $3,032, a loss of $599.
What is the rebate for a 10kW battery?
A battery sold as "10 kW" or "10 kWh" usually has about 10 kWh of usable capacity. At the current 2026 rate that creates 68 STCs, worth $2,713 gross at $39.90 per certificate, and typically $2,440 to $2,520 as the actual discount on your quote after installer admin fees.
How long will the government battery rebate last?
The Cheaper Home Batteries Program runs to 31 December 2030, but the rate steps down every 1 January and 1 July along the way: 6.8 STCs per kWh now, 5.7 from January 2027, then 5.2, 4.6, 4.1, 3.6, 3.1, 2.6 and finally 2.1 for July to December 2030. Each step is permanent, so the same battery attracts less support the longer you wait. The program budget was expanded to $7.2 billion in December 2025, so funding is not expected to run out before the schedule ends.
Do I need solar to get the battery rebate?
Yes. The battery must be connected to a solar PV system, either one you already have or one installed at the same time. A battery configured to charge only from the grid is not eligible. If your home is on-grid the battery must also be VPP-capable (able to join a Virtual Power Plant), although actually signing up to a VPP is optional.
Can I claim the federal battery rebate and a state battery rebate?
Yes, where a state program is still open. The federal discount stacks with WA's Residential Battery Scheme ($130 per usable kWh for Synergy customers, $380 per kWh for Horizon Power customers) and with NSW's PDRS incentive of up to about $1,500 for connecting your battery to a Virtual Power Plant. VIC, QLD, SA, TAS and NT have all closed their battery rebates, so the federal program is the whole story there.
Is it worth getting a battery now?
Two honest numbers. First, savings: the government estimates up to $1,100/yr in extra savings from adding a battery to existing solar, and up to $2,300/yr for a new solar plus battery system, roughly 90% of a typical bill. Second, payback: it depends on your buy price. Through our installer network a 15 kWh battery is currently $4,500 installed after the federal rebate, and against the government's savings estimate that pays for itself in roughly 2 to 4 years, faster where a state incentive stacks on top. The rebate itself only gets smaller from here, with the next cut on 1 January 2027.