How much is the solar battery rebate in Australia?

The federal Cheaper Home Batteries Program rebate is approximately $344 per usable kilowatt hour of battery capacity, equivalent to around 30 percent off the upfront installation cost. The rebate applies to the first 50kWh of battery capacity, with a maximum saving of up to $18,000 on a 50kWh system. As a guide: a 5kWh battery saves approximately $1,860, a 10kWh battery saves approximately $3,720, and a 13.5kWh battery saves approximately $5,000 to $5,400. The rebate is applied by your installer as an upfront discount on your invoice.

Who is eligible for the solar battery rebate in Australia?

The federal battery rebate is available to homeowners, small businesses, and community facilities. There is no means test. The battery must be new, installed with solar (either existing solar panels or a new system), and the battery must be VPP-capable, though joining a Virtual Power Plant is optional. The battery must be between 5 and 100kWh total capacity, and must be installed by an accredited installer.

Can I combine the federal battery rebate with state rebates?

Yes, in some states. The federal rebate can be stacked with state-based incentives where they exist. In NSW, an additional VPP incentive of up to $1,500 is available under the Peak Demand Reduction Scheme. In Western Australia, Synergy customers can claim an additional $1,300 and Horizon Power customers up to $3,800. In the ACT, up to $15,000 is available through the Sustainable Household Scheme. State battery loan programs in SA, VIC and TAS have closed, so these states currently have the federal rebate only.

How do I apply for the solar battery rebate?

You do not apply directly. The process is: get a battery consultation and quote from an accredited installer, confirm the system design matches your needs, and your installer applies the rebate as an upfront discount on your invoice at point of sale. You simply pay the discounted price. If your state offers an additional rebate or loan, your installer will help you claim that too. The rebate reduces in value each period until 2030, so earlier installation locks in a higher rebate.

2026 Solar Battery Rebate Explained: Who Qualifies and How to Apply

Q: Can I claim the battery rebate if I already have solar panels?

Yes. You do not need a brand-new solar system to qualify. If you already have solar panels, you can add a new battery and still receive the federal rebate. The combined system must remain under 100kWh total capacity, the new battery must be at least 5kWh in size, and only the new battery capacity qualifies for the rebate — you cannot claim it on a battery you already own.

September 12, 2025

For the average Australian household, electricity bills keep climbing while solar feed-in tariffs keep falling. As the world turns more electric, families are using more power at home than ever and many feel like they’re losing control of their energy costs.

That’s why the new Federal Solar Battery Rebate, launched in July 2025, is such a big deal.

It directly helps households cut their upfront battery costs by up to 30% (as much as $18,000), making it finally realistic for everyday Australians to store their own solar energy, use it at night, and protect themselves from rising power prices.

Instead of being a once off relief handout, this rebate is designed to give households lasting support by lowering bills year after year. For many families, it’s the first time a battery system has been within reach — turning energy independence from a dream into a real option.

Key Details of the Federal Battery Rebate

Rebate value: 30% off upfront cost, or about $344 per usable kWh (based on current STC value).
Battery size: Eligible for systems between 5–100 kWh, with the rebate applying to the first 50 kWh.
Maximum savings: Up to $18,000 on a 50 kWh battery system.
Who can apply: Homeowners, small businesses, and community facilities. No means test applies.
Requirements: Battery must be new, installed with solar (existing or new), and VPP-capable (but joining a VPP is optional).
Timing: Available now. Installers apply the rebate as an upfront discount on your invoice.
Rebate reduces over time: The subsidy steps down each year until it ends in 2030.

How Much Can You Save With the Federal Battery Rebate?

Battery Size	Approximate Rebate Value
5 kWh	~$1,860
10 kWh	~$3,720
13.5 kWh	~$5,000–$5,400
20 kWh	~$7,440
50 kWh	Up to $18,000

These savings are applied instantly at the point of sale, lowering your upfront investment.

Can You Add a Battery to an Existing Solar System?

You don’t need a brand-new solar setup to claim the rebate. If you already have solar panels, you can add a battery and still qualify for the federal subsidy. The rebate applies whether you’re installing your first battery or adding an extra battery to expand your storage.

Key points to know:

– The combined system must remain under 100 kWh total capacity.
– The new battery module(s) must be at least 5 kWh in size.
– Only the new battery capacity qualifies for the rebate (you can’t claim it again on a battery you already own).
– The full system (new + existing batteries) must be compliant and certified by an accredited installer.

This makes it easier to grow your solar setup over time, starting with one battery now and adding more later as your needs change.

Can You Combine Federal & State Solar Battery Rebate Incentives?

Yes. The federal rebate can be stacked with some state-based rebates or loans. Here’s what’s currently available around Australia:

South Australia (SA): The state’s battery loan program has closed. Federal rebate only.
Victoria (VIC): The state’s battery loan program has closed. Federal rebate only.
New South Wales (NSW): Up to $1,500 Virtual Power Plant (VPP) incentive under the Peak Demand Reduction Scheme.
Queensland (QLD): Battery Booster Program offers $3,000–$4,000 (means-tested). Can be combined with federal rebate.
Western Australia (WA):
- Horizon Power customers: Up to $3,800 rebate ($380/kWh, capped at 10 kWh).
  Synergy customers: Up to $1,300 rebate ($130/kWh, capped at 10 kWh)
Tasmania (TAS): The state’s battery loan program has closed. Federal rebate only.
Australian Capital Territory (ACT): $15,000 through the Sustainable Household Scheme.
Northern Territory (NT): NT Home & Business Battery Scheme funding has ended. Federal rebate only.

How to Apply For the Federal Battery Rebate– Simple 4-Step Process

Step 1 – Book a Free Battery Consult
Get a tailored assessment of your energy use, solar setup, and the best battery options for your household.

Step 2 – System Design & Quote
Your installer will design a system that matches your budget, energy needs, and future goals.

Step 3 – Rebate Applied Automatically
Accredited installers apply the rebate upfront, so you pay the discounted price straight away. If your state offers an additional rebate or loan, your installer will help you claim it.

Step 4 – Install & Start Saving
Your battery can be installed now and activated immediately under the federal scheme.

Why Act Now?

The rebate value decreases every year until 2030.
Combining federal and state incentives means even bigger savings if you qualify.
Electricity prices are rising, and solar feed-in tariffs are falling — a battery helps you keep more of your solar power at home.

The Bottom Line

The new federal rebate is a gamechanger for Australians considering solar battery storage. With savings of up to $18,000 and the ability to combine with some state-based incentives, there’s never been a better time to invest in a battery system. Acting early will lock in the biggest discounts before the rebate steps down year by year.

Reefe Eleftheriou

Reefe Eleftheriou is a second-generation electrician and award-winning solar installer who has had enough of the salesy, big-corporation approach to solar. As the owner of his own solar installation company, Solar Energy Adelaide and founder of The Solar Guide, he champions local installers and gives homeowners the straight facts so they can make the right solar decision for their home.

Reefe Eleftheriou