Last updated 15 December 2025
Key points (Updated December 2025)
The Federal battery rebate budget has been vastly expanded from $2.3 billion to $7.2 billion to support over 2 million installations by 2030.
From 1 May 2026, the rebate structure will change: the value will decline every six months, and a new tiered system will significantly reduce the subsidy for systems larger than 14 kWh.
WA residents can still stack this with state rebates, but must join a Virtual Power Plant (VPP).
For a 28 kWh system installed after May 2026, eligible WA customers combining the federal rebate ($6,149) with the Synergy rebate ($1,300) could receive up to $7,449 in total support.
Interest-free loans of $2,001–$10,000 remain available for WA households earning under $210k.
What is the Cheaper Home Batteries Program?
The Cheaper Home Batteries Program is a vastly expanded $7.2 billion federal initiative designed to make battery storage more affordable and accessible. Delivered through the Small-scale Renewable Energy Scheme (SRES), the program provides an upfront discount based on the battery’s usable capacity. This expansion is intended to help more than 2 million Australians install a battery by 2030.
The rebate value is determined by the number of Small-scale Technology Certificates (STCs) assigned to the battery system, which are then sold to reduce the installation cost. The government intends to maintain a discount of approximately 30% for a range of battery sizes.
How Much Is the Federal Battery Rebate Worth?
Due to the initial rapid uptake of large battery systems, the government announced significant changes to the rebate structure, effective 1 May 2026.
New Tiered System for Battery Capacity
The STC factor will now taper based on the size of the system. The full rebate only applies to the first 14 kWh of capacity.
| Capacity Range (Usable Capacity) | STC Factor Applied |
|---|---|
| Up to 14 kWh | 100% of the relevant STC Factor |
| >14 kWh up to 28 kWh (inclusive) | 60% of the STC Factor applies to this portion of capacity |
| >28 kWh up to 50 kWh (inclusive) | 15% of the STC Factor applies to this portion of capacity |
Note: While a system up to 100 kWh can be installed, the rebate (STCs) only applies to the first 50 kWh of usable capacity.
Updated Rebate Value (Based on 100% STC Factor)
The rebate value will also decline more frequently – every six months – to align with falling battery costs. The table below shows the full (100%) estimated rebate value per kWh (which applies to the first 14 kWh of capacity):
| Installation Period | Proposed STC Factor per kWh | Approx. Rebate per kWh | Example Rebate (28 kWh Battery) |
|---|---|---|---|
| Jan-Apr 2026 | 8.4 | $336 | $9,408 |
| May-Dec 2026 | 6.8 | $272 | $6,149 |
| Jan-Jun 2027 | 5.7 | $228 | $5,153 |
| Jul-Dec 2027 | 5.2 | $208 | $4,706 |
| Jan-Jun 2028 | 4.6 | $184 | $4,163 |
| Jul-Dec 2028 | 4.1 | $164 | $3,715 |
| Jan-Jun 2029 | 3.6 | $144 | $3,269 |
| Jul-Dec 2029 | 3.1 | $124 | $2,822 |
| Jan-Jun 2030 | 2.6 | $104 | $2,376 |
| Jul-Dec 2030 | 2.1 | $84 | $1,929 |
Rebate Calculation Breakdown (For Installations from May 2026)
The total rebate for a 28 kWh system is the sum of two parts, multiplied by the STC value of $40:
- Tier 1 (0 to 14 kWh): 14 kWh x (STC Factor) x $40
Tier 2 (14 to 28 kWh): 14 kWh x (STC Factor) x 60% X $40
Example (May–Dec 2026, STC Factor 6.8):
Tier 1: 14 kWh x 6.8 x $40 = $3,808
Tier 2: 14 kWh x 6.8 x 0.6 x $40 = $2,279
Total Rebate: $3,808 + $2,279 = $6,149
Who is Eligible for the Rebate?
The program is open to:
- Homeowners and renters (with landlord consent)
- Small businesses
- Community organisations and facilities
Eligibility criteria:
- Battery must have a usable capacity between 5 kWh and 100 kWh. Note: The financial incentive (STCs) is only provided for the first 50 kWh of usable capacity.
- Battery must be installed with a new or existing rooftop solar system.
- Battery must be listed on the Clean Energy Council’s approved battery list.
- Installer must be accredited with Solar Accreditation Australia (SAA).
- Battery must be VPP-compatible (participation optional under this scheme).
- Only one rebate per electricity meter is available.
- No household income test applies.
Can the Federal Rebate Be Combined with State Incentives?
Yes. The federal rebate can be stacked with eligible state-based rebates or loans.
In Western Australia, for example:
- Synergy customers may also receive a $1,300 WA rebate (calculated at $130 per kWh, capped at 10 kWh of capacity).
- Horizon Power customers may also receive a $3,800 WA rebate (calculated at $380 per kWh, capped at 10 kWh of capacity).
The WA state rebate is capped at 10 kWh of usable capacity, while the Federal rebate continues to apply to the first 50 kWh of usable capacity (with the tiered reduction applied above 14 kWh).
This means that eligible WA customers could receive total support of:
- Up to $5,000 (for a 10 kWh system: $3,700 Federal + $1,300 Synergy).
- Up to $7,500 (for a 10 kWh system: $3,700 Federal + $3,800 Horizon Power).
For systems larger than 10 kWh, the Federal rebate continues to increase, but the WA state rebate remains at its capped maximum.
Using the federal rebate rate for a 28 kWh system installed after May 2026 (approx. $6,149), eligible WA customers could receive total support of:
- Up to $7,449 (Synergy $1,300 + Federal $6,149)
- Up to $9,949 (Horizon Power $3,800 + Federal $6,149)
Important Update for WA Residents
To qualify, batteries must be enrolled in an approved Virtual Power Plant (VPP).
Related: WA Residential Battery Scheme 2025: rebates & loans at a glance
How to Apply for the Rebate
There’s no need to apply directly. The rebate is applied upfront by your battery installer as part of the quote.
Steps to follow:
- Your installer will calculate and apply the rebate through the STC process
- Choose a battery from the Clean Energy Council’s approved list
- Use a battery installer accredited with Solar Accreditation Australia (SAA)
- Ensure your system is VPP-compatible
To learn more about how we can help your situation, email us or call 08 9779 9568 today. Why not browse our off-grid solar kits, too.
