Sick of watching your solar panels work overtime while the grid pockets your leftover power? Or perhaps you’ve been considering a home battery, but you’re concerned about big upfront costs?
Well, your solar SOS has finally been heard. Launched in July 2025, the federal government’s rebate – officially known as the Cheaper Home Batteries Program – has slashed the prices of installing a battery in your home or small business by about 30% and in some cases, even more.
Not surprisingly, the rebate has been running red-hot, with the government reporting 160,000 home batteries have been installed across Australia since July.
The rampant uptake has burnt a lot of the program’s initial budget of an estimated $2.3 billion, prompting the government to increase it to a whopping $7.2 billion across the next four years.
To ensure it lasts, the government will introduce new rebate rates and conditions in May 2026 (read more about it below).
How much will the rebate save you?
Right now, the new incentive translates to an approximate discount of around 30% off the purchase and installation of a home battery when paired with new or existing solar panels.
The rebate is based on the battery’s usable capacity (up to 50kWh) with a maximum saving of $372 per usable kilowatt hour (kWh). Once you subtract admin charges, that’s more like $330 per usable kWh.
So, for a typical 10kWh battery, you’ll score a handy $3300 upfront reduction, which is more than 30% off the usual price. Go even bigger to a 40–50kWh battery system and, based on economies of scale, the discount gets closer to 40–50%.
Like the solar panel rebate, the battery discount decreases over time and is currently set to end in 2030.
Video: The federal battery rebate explained
Our solar partners SolarQuotes explain the government’s new incentive.
Battery rebate changes just announced
On 13 December 2025, the federal government announced significant changes to how the rebate will work from 1 May next year.
Why? Because the program’s popularity has seen much of its $2.3 billion budget claimed already, driven by many residents getting far larger batteries than initially anticipated to maximise their systems and savings.
To make the new $7.2 billion budget last longer and be more equitable, the rebate will change in two key ways. We get into the technical nuts and bolts below, but topline, the rebate will now:
decline every six months as opposed to yearly (to align with falling battery prices over time)
adjust its ‘per kWh’ discount from a flat rate to a tiered system based on battery size installed.
Rebate rates decline over time
As part of the May 2026 changes, the rebate’s value (measured in Small-scale Technology Certificates, aka STCs, which are the same ‘credits’ applied to solar panels) will now decrease every six months rather than annually, and at a higher rate than previously planned.
You can see the new STC Factor rates in the accordion below, but in monetary terms, the estimated rebate now looks like this (with thanks to our friends at SolarQuotes for the numbers):
Rest of 2025: $372 per kWh
Jan-April 2026: $336 per kWh
May-Dec 2026: $272 per kWh
Jan-Jun 2027: $228 per kWh
Jul-Dec 2027: $208 per kWh
Jan-Jun 2028: $184 per kWh
Jul-Dec 2028: $164 per kWh
Jan-Jun 2029: $144 per kWh
Jul-Dec 2029: $124 per kWh
Jan-Jun 2030: $104 per kWh
Jul-Dec 2030: $84 per kWh
Proposed STC Factor discount over time
The discount is determined by the STC Factor on the date the battery is installed.
Year
Time period
Existing STC Factor
Proposed STC Factor
2026
January – April
8.4
8.4
2026
May – December
8.4
6.8
2027
January – June
7.4
5.7
2027
July – December
7.4
5.2
2028
January – June
6.5
4.6
2028
July – December
6.5
4.1
2029
January – June
5.6
3.6
2029
July – December
5.6
3.1
2030
January – June
4.7
2.6
2030
July – December
4.7
2.1
Rebate now dependent on battery size
From 1 May 2026, the rebate will switch from a flat ‘per kWh’ discount to a tiered rate system according to battery size. The government says this will maintain a discount of around 30% across small, medium and large batteries.
Under the previous rules, a 40–50kWh system could earn a discount of 40–50%. Industry critics argued this drained rebate funds quicker and incentivised people to get systems bigger than they actually needed or could ever charge properly.
From 1 May, the STC Factor rate will depend on the battery capacity installed:
Small: 0–14 kWh capacity: STC Factor applied at 100%.
Medium: 14–28 kWh capacity: STC Factor applied at 60%.
Large: 28–50 kWh capacity: STC Factor applied at 15%.
be capable of joining a Virtual Power Plant (VPP) if it’s an on-grid system (though actual participation is optional)
be claimed once per property – however, if you own multiple properties, you can get separate discounts for each.
Note: The federal government’s separate solar panel rebate only applies to the panels in the installed system, not the battery. However, you can apply for both discounts together, plus applicable state or territory incentives, to really supercharge your savings.
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Why we've partnered with SolarQuotes
We've partnered with SolarQuotes to help you find and buy the right solar, battery, heat pump and EV charger. While we make money if you use SolarQuotes to find an installer, this doesn't influence our ratings. 100% of the money we make goes directly back into our nonprofit mission.
Battery costs after the rebate
Costs vary significantly for solar home batteries, but generally, the bigger the battery capacity, the more you can expect to pay.
Since the launch of the federal rebate, the ‘average’ size of batteries being installed has increased dramatically, with a battery exceeding 20kWh quickly becoming the new norm.
Here are approximate battery costs (after the current federal rebate) for common sizes, including basic installation. Prices are based on information from our solar partners, SolarQuotes.
10 kWh storage: $7000–$11,000 installed
15 kWh storage: $11,000–$15,000 installed
20 kWh storage: $14,000–$19,000 installed
30 kWh storage: $18,000–$22,000 installed
Keep in mind, a more complicated installation will bump up costs considerably, given architectural and technical factors can increase the time, work and components a job requires. See our guide to finding a good solar installer.
It’s a tricky question and one that depends on multiple factors including your solar/battery set-up, energy consumption and, most vitally, electricity costs and additional rebates in your state or territory, which can vary a lot.
For a long time, home batteries didn’t make complete economic sense. They were relatively expensive and the payback time was often longer than the battery’s warranty period, which is typically 10 years.
But with the new federal rebate promising a discount of more than 30%, the maths is looking a lot more attractive, depending on the aforementioned factors.
The federal rebate offers a discount of around 30% off an installed battery. Image: SolarQuotes.
Electricity savings and payback periods with rebate
Calculating your own possible payback period can be mind-boggling, but thankfully our friends at SolarQuotes have shared this helpful general guide comparing electricity savings and simple payback periods (with the rebate) by state and territory. You’ll notice payback times vary a lot depending on where you live. That’s due to your state and territory’s electricity prices, feed-in tariffs and weather.
For example, Adelaide’s payback period is the shortest because they have high electricity prices, while Hobart’s is the longest, thanks to relatively cheap electricity and high solar feed-in tariffs.
Capital city
Annual electricity savings
Simple payback period
Adelaide
$1350
6.3 years
Brisbane
$1100
7.7 years
Canberra
$700
12.1 years
Darwin
$620
13.7 years
Hobart
$410
20.7 years
Melbourne
$610
13.9 years
Perth
$1120
7.6 years
Sydney
$1030
8.3 years
*Using only federal rebate and $8500 installed cost. Based on estimated overnight electricity consumption of 7kWh.
As well as the federal initiative, here are the current battery-focused rebates or loan schemes available by state and territory. These can be combined with the federal rebate for greater savings.
ACT: Sustainable Household Scheme
Canberra locals can access a low-interest loan (currently 3%) from $2000 to $15,000 for home energy improvements, including household batteries, electric heating and cooling systems, hot water heat pumps, EVs and more.
Over the scheme’s lifespan, you can install one product or several products from the list of eligible products – together, these can be valued at up to $15,000. Zero-interest loans are available to eligible concession card holders under the Home Energy Support Program.
NSW: Virtual Power Plant (VPP) Incentive
From 1 July 2025, the NSW government has increased the incentive to up to $1500 to encourage more households and small businesses to install a battery and connect to a Virtual Power Plant. The incentive varies by the size of the battery and can be combined with the federal battery rebate.
Additional rebates may be available depending on your state.
Northern Territory: Home and Business Battery Scheme (closed)
NT homeowners, businesses and nonprofit organisations can apply for a grant to buy and install batteries and inverters. Grants can be used to buy solar panels too, but must be paired with a battery.
Eligible applicants can access a grant of $450 per kilowatt hour of usable battery system capacity, up to a maximum grant of $6000. Homeowners that own a business can apply for both their home and business.
Note that the funding cap for this scheme has been reached and it is closed for new grants. Stay tuned for updates in case this changes.
South Australia: Home Battery Scheme (closed)
Offering up to $6000 off a battery, South Australia’s HBS was one of the earliest and most successful battery programs, but sadly ceased in 2022. Instead, the state government has focused on its emPowering SA program, which employs 18 much-larger community batteries to lower residents’ electricity bills.
Queensland and Tasmania: None
Tasmania and Queensland don’t currently have their own dedicated battery rebate schemes. However, households can still claim the new federal rebate and benefit from VPP programs offered through energy retailers like Reposit, Amber and others.
Victoria: Solar Homes Program
This program is currently not taking applications, but keep an eye on it to see if more become available in future. Previously, it offered interest-free loans to purchase home batteries. If you’re considering installing solar panels, rebates of up to $1400 plus interest-free loans for the same amount are still available.
Western Australia: Residential Battery Scheme
This incentive allows residents to get a rebate and no-interest loan to purchase and install a home battery.
On a 10kWh battery, applicants are eligible for a combined rebate of $5000 for Synergy customers and $7500 for Horizon Power customers. This is in addition to the federal rebate.
No-interest loans of up to $10,000 are also available to households with a combined annual income of less than $210,000. Loan repayment periods will be up to 10 years.
To receive a battery rebate and/or no-interest loan through the scheme, eligibility requirements apply, including participation in a Virtual Power Plant (VPP).
A Virtual Power Plant (VPP) is a network of solar and battery systems owned by homes and small businesses, centrally controlled by a computer system run by the VPP operator company.
By joining a VPP program, you agree to make the stored energy in your home battery available to the VPP operator, who can then use it to supply the grid in times of high demand.
In return, you’re paid an ongoing subsidy, which might come in the form of reduced energy bills, a rebate towards buying the battery, or even free solar and battery installation.
In a wider sense, VPPs also reduce demand on the grid, which makes the state’s energy supply more stable and less prone to outages, and it reduces the price of electricity for everyone (it’s also better for the environment).
By joining a VPP program, you agree to make the stored energy in your home battery available to the VPP operator … in return, you’re paid an ongoing subsidy
Keep in mind, though, that joining a VPP program won’t always guarantee that your battery pays for itself, and that not all battery types can connect to one.
Additionally, it can mean that your own battery runs low at night time when you need it the most, due to the VPP having taken some of the stored energy earlier that day.
There are various VPP programs in most states that can help reduce the cost of a battery. SolarQuotes maintains a list of current VPP programs.
Jason Treuen is a Content producer and editor at CHOICE. Previously at CHOICE, he worked as a Content specialist and Audience engagement editor.
Find Jason on LinkedIn.
Jason Treuen is a Content producer and editor at CHOICE. Previously at CHOICE, he worked as a Content specialist and Audience engagement editor.
Find Jason on LinkedIn.
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