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Solar home battery rebate: The big changes coming 1 May

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, with discounts of around 25% and in some cases, even more.

Not surprisingly, the rebate has been running red-hot, with the government reporting in March that 250,000 home batteries have already been installed across Australia since July.

This solar stampede has already chewed up much of the Program’s initial $2.3 billion budget way ahead of schedule. 

The good news is the government has since increased the budget to a whopping $7.2 billion across the next four years. 

The bad news is the individual battery rebate will now be smaller – but as it’s designed to benefit more people, it is probably fairer all around.

To ensure the budget lasts through to the intended 2031 end date, the government is implementing new changes to the rebate’s rates and conditions, effective from 1 May 2026.

Find out what’s changing and how it might impact your battery plans below.

On this page:

• New battery rebate changes
• Rebate eligibility criteria
• Battery costs after the rebate
• How long does a battery take to pay itself off?
• Electricity savings and payback periods with rebate
• Additional state and territory battery schemes
• How virtual power plants can reduce your bills

Battery rebate changes from 1 May

We’ll get into the technical nuts and bolts of the changes below, but the top line is the revised rebate will now:

1. decrease every six months as opposed to yearly (to reflect falling battery prices over time)
2. change its ‘per kWh’ discount on batteries from a flat rate to a tiered system based on the size of the battery installed.

Change #1: Rebate rates decrease over time

As part of these new 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. 

When the rebate launched last July, it paid $372 per kWh for a battery installation, and then $366 in January to April earlier this year. From May, this is the new rate schedule below.

Note: Expect to lose 10% of your rate to admin fees.

• 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

Figures supplied by our friends at SolarQuotes. If you want to see the exact specific STC Factor rates, view them in the following section.

Change #2: Rebate now depends on battery size

From 1 May, 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 25% across small, medium and large batteries. 

Under the previous rules, some residents super-sized their battery systems because 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 May, the STC Factor rate will depend on the battery capacity installed:

• Small: 0–14kWh capacity: STC Factor applied at 100%.
• Medium: 14–28kWh capacity: STC Factor applied at 60%.
• Large: 28–50kWh capacity: STC Factor applied at 15%.

Video: The federal battery rebate explained

Battery rebate eligibility criteria

Currently to be eligible for the rebate, the battery must:

• be installed after 1 July 2025
• have a nominal capacity of 5–100kWh, but the rebate only applies to the first 50kWh of usable capacity
• be installed alongside new or existing rooftop solar
• be on the Clean Energy Council (CEC)
• be fitted by an installer accredited by
• 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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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.

• 10kWh storage: $7000–$11,000 installed
• 15kWh storage: $11,000–$15,000 installed.
• 20kWh storage: $14,000–$19,000 installed
• 30kWh storage: $18,000–$22,000 installed
• 50kWh storage: $24,000–$30,000 installed

Keep in mind, a more complex installation can increase costs considerably, given that architectural and technical factors can increase the time, work and components a job requires. See our guide to finding a good solar installer.

How long does a battery take to pay itself off?

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 25%, the maths is looking a lot more attractive, depending on the aforementioned factors.

Electricity savings and payback periods with rebate

Calculating your own possible payback period can be mind-boggling, but 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.

Additional state and territory battery schemes

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. 

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.

How virtual power plants can reduce your bills

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).

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 .

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Jason Treuen

Jason Treuen is a Content producer and editor at ÌÇÐÄVlog. Previously at ÌÇÐÄVlog, he worked as a Content specialist and Audience engagement editor. Find Jason on .

Jason Treuen is a Content producer and editor at ÌÇÐÄVlog. Previously at ÌÇÐÄVlog, he worked as a Content specialist and Audience engagement editor. Find Jason on .