The federal Cheaper Home Batteries discount takes roughly $2,500 – $2,700 off a typical 10 kWh battery today. It steps down on 1 January 2027. Here is exactly how it is calculated, what your state adds, and what we handle for you.
Your rate is set by your electrical compliance date
The federal discount
What you get off a battery today
The discount arrives as small-scale technology certificates (STCs) that we assign and trade on your behalf, so it lands as a discount on your invoice rather than something you claim back later. Certificate counts are fixed by regulation; the dollar value moves with the STC market, so every figure below is a range.
Federal battery discount by usable capacity at the current STC Factor
Usable capacity
Certificates
Discount today
From 1 January 2027
Cost of waiting
10 kWh
68
$2,500 – $2,700
$2,100 – $2,280
− $400 – $440
13.5 kWh
91
$3,350 – $3,650
$2,810 – $3,040
− $555 – $600
16 kWh
103
$3,800 – $4,100
$3,180 – $3,440
− $630 – $680
Same battery, same install — only the certificate rate changes. Figures assume a traded certificate price between $37 and the $40 Clearing House ceiling; we confirm the live value on your quote.
Sizing
Why the first 14 kWh is worth the most
Since 1 May 2026 the discount tapers with system size. The bands are marginal — every kilowatt-hour is discounted at its own band rate, so a bigger battery never loses the value of the capacity below it. It does mean the help per kWh drops sharply once you pass 14 kWh, which is worth knowing before you size up.
STC Factor taper bands by usable capacity
Usable capacity band
Factor applied
Roughly per kWh
First 14 kWh
100%
$250 – $270
Above 14 up to 28 kWh
60%
$150 – $163
Above 28 up to 50 kWh
15%
$38 – $41
Certificates are only ever created on the first 50 kWh of usable capacity. Partial certificates round down.
Your state
What your state adds on top
New South Wales
State incentive open
Federal discount, plus a VPP connection incentive
NSW runs a virtual power plant incentive under the Peak Demand Reduction Scheme. You receive it for connecting an eligible battery to an approved VPP — a program where, with your permission, the provider can draw on a small share of your stored energy at peak times to support the grid.
From 1 July 2026 the eligible range widened to batteries between 2 and 50 kWh, and rooftop solar is no longer a precondition for this particular incentive. The payment scales with the capacity you make available to the grid, capped at the first 28 kWh.
NSW does not publish a fixed dollar figure, because the incentive is the market value of Peak Reduction Certificates net of your provider’s fees — it moves with battery size, location, VPP provider and certificate prices. Through mid-2026 offers have generally landed near $1,000 – $1,100 at the 28 kWh cap, with smaller batteries proportionally lower. We confirm the current offer for your address on your quote.
It stacks with the federal discount. The separate NSW upfront installation rebate has been paused since 1 July 2025 so it does not double up with the Commonwealth program, so the VPP connection incentive is the live household pathway today.
Victoria
Federal only
Federal discount only — the state battery loan has closed
Solar Victoria stopped taking applications for interest-free battery loans in 2025 and now refers Victorians to the federal program. There is no Victorian battery rebate — the Cheaper Home Batteries discount is the incentive for storage in this state.
The separate solar panel rebate is still open at up to $1,400, with an optional matching interest-free loan repaid over four years. That is worth factoring in if you are adding panels at the same time as the battery.
Queensland
Federal only
Federal discount only — Battery Booster has closed
Queensland’s Battery Booster rebate closed to new applications and the state has not announced a replacement. For Brisbane and Gold Coast homes the federal Cheaper Home Batteries discount is the battery incentive available today.
That is not the disadvantage it sounds like: the federal discount applies in every Queensland postcode with no income test, and South East Queensland’s strong year-round generation means a well-sized battery has more surplus solar to store than in the southern capitals.
Eligibility
What has to be true to qualify
You do not apply for the federal discount yourself — there is no consumer portal or form. Your installer creates and assigns the certificates. These are the conditions we check before quoting.
Battery size: 5 – 100 kWh nominal
Certificates are created on the first 50 kWh of usable capacity. A larger battery is still eligible — it just earns nothing beyond that 50 kWh.
Installed on or after 1 July 2025
What counts is the date the certificate of electrical compliance is issued, not the date you sign or take delivery. That same date sets which STC Factor you get.
Paired with solar PV
The battery must go in with existing solar, or with a new or replacement system under 100 kW. A grid-only battery with no PV is not eligible.
CEC-approved battery and inverter
Both must be on the Clean Energy Council approved product list at the time of installation. Reused inverters must still be listed and must not have been delisted for safety.
SAA-accredited installer on site
A Solar Accreditation Australia accredited installer must be present for set-up, installation and commissioning, alongside state electrical compliance.
VPP-capable — joining one is optional
On-grid systems need the technical capability to participate in a virtual power plant. You are not required to actually join one for the federal discount. Off-grid systems are exempt.
One system per premises, once only
Support is available the first time a battery is installed, added to, or replaced at an address. Adding to an existing battery can qualify if that battery never received program support and the addition is at least 5 kWh.
Portable batteries and EVs are excluded
The battery has to be installed for permanent use at the premises.
What we handle
Sunbridge does the rebate work
Check what you qualify for at your address, including how the federal discount and any state incentive stack
Size the battery against your bills and usable-capacity bands so you are not paying for kWh that earn a reduced rate
Confirm the battery and inverter are on the CEC approved lists at the time of install
Apply the discount to your quote up front, so the price you see is the price after the rebate
Complete the STC paperwork and assignment, and arrange the compliance certificate that locks in your rate
What you do
Three things, and none of them are paperwork
Share a recent electricity bill so the system is sized to how you actually use power
Confirm your details and sign where required
Choose a VPP offer if you are in NSW and want the connection incentive
The schedule
Every step-down to December 2030
Legislated in the February 2026 amendments to the Renewable Energy (Electricity) Regulations. The rate that applies to you is the one in force on the day your electrical compliance certificate is issued.
Jan – Apr 20268.4
May – Dec 20266.8Now
Jan – Jun 20275.7Next
Jul – Dec 20275.2
Jan – Jun 20284.6
Jul – Dec 20284.1
Jan – Jun 20293.6
Jul – Dec 20293.1
Jan – Jun 20302.6
Jul – Dec 20302.1
FAQ
Frequently asked questions
How much is the battery rebate in 2026?
The federal Cheaper Home Batteries Program currently discounts about $2,500 to $2,700 off a 10 kWh battery, $3,350 to $3,650 off 13.5 kWh, and $3,800 to $4,100 off 16 kWh. It works out to roughly $250 to $270 per usable kWh on the first 14 kWh. The discount comes as small-scale technology certificates your installer assigns and trades, so it reduces your invoice rather than being claimed back later, and the dollar value moves with the certificate market.
When does the battery rebate step down?
On 1 January 2027 the STC Factor drops from 6.8 to 5.7 certificates per usable kWh, a cut of about 16%. On the same 13.5 kWh battery that is roughly $555 to $600 less for an identical installation. It steps down again on 1 July 2027 and then every 1 January and 1 July until the scheme ends in December 2030. The rate you receive is set by the date your certificate of electrical compliance is issued, not the date you sign.
Do I have to apply for the battery rebate myself?
No. There is no consumer application, portal or form for the federal discount. Your accredited installer creates and assigns the certificates. Sunbridge checks eligibility for your address, applies the discount to your quote up front so the price you see is already net of it, and handles the certificate paperwork and compliance certification.
Does my state add anything on top of the federal discount?
In New South Wales, yes: an incentive for connecting an eligible battery to a virtual power plant, which stacks with the federal discount. It scales with the capacity you make available to the grid up to 28 kWh and has generally landed near $1,000 to $1,100 through mid-2026, though NSW publishes no fixed figure because it tracks certificate prices. Victoria and Queensland have no active state battery rebate — Solar Victoria closed its battery loans and Queensland closed Battery Booster — so the federal discount is the incentive there. Victoria still offers a separate solar panel rebate of up to $1,400, income-tested at $150,000 since 1 July 2026.
Does a bigger battery get a bigger rebate per kWh?
Not beyond 14 kWh. Since 1 May 2026 the discount tapers by size: the full rate applies to the first 14 kWh of usable capacity, 60% of it between 14 and 28 kWh, and 15% between 28 and 50 kWh. The bands are marginal, so a larger battery never loses the value earned below it, but the help per kWh falls from around $250 to $270 on the first 14 kWh to about $150 to $163 on the next band. Certificates are only created on the first 50 kWh of usable capacity.
What makes a battery eligible for the federal discount?
It has to be 5 to 100 kWh nominal capacity, installed on or after 1 July 2025, paired with solar PV rather than charging from the grid alone, and both the battery and inverter must be on the Clean Energy Council approved lists at the time of installation. An installer accredited by Solar Accreditation Australia must be on site, and on-grid systems need the technical capability to join a virtual power plant, though joining one is not required. Support is available once per premises. Portable batteries and electric vehicles are excluded.
Explore more
Use your rebate planning to choose the right system.