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Federal battery rebate

How the battery rebate works.

What the Cheaper Home Batteries Program is, who qualifies, and what it takes off the price of a battery since the May 2026 changes.

What it is

The Cheaper Home Batteries Program is a federal scheme that reduces the upfront cost of a home battery. It runs through the Small-scale Renewable Energy Scheme: an eligible battery earns small-scale technology certificates (STCs), and the installer takes their value off your price.

You don't apply for anything. On a Sunsave quote the discount is its own line, so you can see exactly what it's worth on your system.

Who qualifies

  • The battery is installed with a new or existing solar system (up to 100 kW).
  • Its nominal capacity is between 5 and 100 kWh. Certificates are only paid on the first 50 kWh of usable capacity.
  • It's new, on the Clean Energy Council approved battery list, and installed to AS/NZS 5139.
  • It's installed by a Solar Accreditation Australia (SAA) accredited installer with battery endorsement.
  • If it's connected to the grid, it must be able to join a virtual power plant (VPP). You don't have to join one.
  • One battery per property (per electricity meter, or NMI).

How the tiers work

Since 1 May 2026 the rebate is tiered by usable capacity:

  • First 14 kWh: full rate.
  • Next 14 kWh (14 to 28 kWh): 60% of the full rate.
  • Last 22 kWh (28 to 50 kWh): 15% of the full rate.
  • Above 50 kWh: nothing.

So most of the rebate sits on the first 14 kWh. Here's what that looks like on a 50 kWh battery.

About $6,790 off a 50 kWh battery Rebate per kWh of usable capacity, for a battery installed May–December 2026
Battery rebate on a 50 kWh battery, by tier The first 14 kWh earns about $265 per kWh, about $3,713 in total. The next 14 kWh earns about $159 per kWh, about $2,228. The last 22 kWh, from 28 to 50 kWh, earns about $40 per kWh, about $875. Total about $6,790. $300 $200 $100 $0 First 14 kWh Full rate $3,713 Next 14 kWh 60% rate $2,228 Last 22 kWh · 15% $875 0 14 28 50 Usable battery capacity (kWh)

What it's worth on common sizes

Approximate rebate for a battery installed May–December 2026, at $39 per certificate
Usable capacityCertificatesApprox. rebate
10 kWh68$2,652
14 kWh95$3,705
20 kWh119$4,641
28 kWh152$5,928
50 kWh174$6,786

Certificates are worked out as usable kWh × 6.8 × the tier rate, rounded down to whole certificates. Certificate prices move with the market, so the exact figure is on your quote.

It steps down every six months

The government lowers the rate each January and July. It's 6.8 certificates per kWh until 31 December 2026, then 5.7 from 1 January 2027 and 5.2 from 1 July 2027, continuing down to 2030. The same 50 kWh battery installed in January 2027 would get about $5,690 instead of $6,790.

Worth keeping in mind

  • Don't size up just for the rebate. Past 28 kWh it only covers 15% of the full rate, so extra capacity has to earn its keep on your bills.
  • The rebate doesn't make a battery right for your home. We work it out from your actual bills first. Sometimes the answer is panels first, or not yet.

Official sources

Clean Energy Regulator: solar batteries (eligibility, tiers and rates) and dcceew.gov.au: Cheaper Home Batteries Program.

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