You bought solar to stop paying so much for power. Then the sun goes down and the grid bills you anyway. A battery stores your own daytime solar for the evening, and the federal rebate takes thousands off the price. The catch: it steps down every 6 months, so it is the highest it will be today.
Your solar panels work hard all day. Then the sun sets, your house switches to the grid, and you buy back power at the worst price of the day, right through the evening peak. You paid for the panels, and the grid still bills you every night.
A battery fixes that. It stores your own cheap daytime solar and runs the house off it after dark, so you stop buying back power at peak rates. The thing that used to stop people was the upfront cost.
The federal Cheaper Home Batteries Program changed that in 2025. It takes around 30% off an installed battery in every Australian postcode, with no means test. In NSW, WA and the ACT a state scheme stacks on top, and some homes get to $0 upfront.
Two things to know. The rebate steps down every 6 months, so the amount you can claim is the highest it will be today. And what you can stack depends on your state. Here is what your home can claim in 2026, and how to see your number in 30 seconds.
Check your battery price by size
Pick your home size and the check returns your after-rebate battery price for your postcode. It reads the live federal rebate plus any state top-up you qualify for, so the number is current today.
How much does a battery cost after the 2026 rebate?
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At a glance
Estimate of the federal Cheaper Home Batteries rebate at the May-Dec 2026 rate (6.8 STCs per kWh, tapered above 14 kWh). The STC price moves with the market and the rate steps down again on 1 January 2027, so your installer applies the exact discount at signing.
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3 things that changed on 1 May
The federal Cheaper Home Batteries Program reset on 1 May 2026. Three things shifted. One helps you, one costs you, one depends on the battery size you fit.
1. Most homes still get the full rate. If your battery's usable capacity is 14 kWh or under, you get the full federal rebate on every kWh. That covers most households. A 10 to 13.5 kWh battery runs a typical family's evening and overnight load off stored solar, so you only size up if you charge an EV at home, run a pool pump, or use more than 25 kWh a day.
2. The step-downs are now every 6 months. The 1 May reset cut the STC factor from 8.4 to 6.8, around 19% less rebate per kWh, and that drop is baked in. The next cut lands on 1 January 2027, then every 6 months until the program ends on 31 December 2030. Each step is locked in. Once a date passes, that rebate amount is gone.
3. Bigger batteries get less on the extra capacity. The first 14 kWh of any battery still gets the full rate. Capacity in the 14 to 28 kWh band is subsidised at around 60% of the rate, and the 28 to 50 kWh band at around 15%. So a 20 kWh battery gets the full rebate on its first 14 kWh plus a reduced rebate on the last 6 kWh. EV homes, pool homes, large families and VPP households feel this most. The check returns the exact stacked amount for your size and postcode.
The federal STC factor by period (the whole step-down schedule). The rebate is worked out as a number of small-scale technology certificates (STCs) per usable kWh, and that per-kWh factor is legislated to fall on a fixed timetable until the program ends. This is the schedule the Clean Energy Regulator applies to the first 14 kWh of usable capacity:
| Install period | STC factor per usable kWh | Change |
|---|---|---|
1 Jan – 30 Apr 2026 | 8.4 | — |
Most popular 1 May – 31 Dec 2026 (now) | 6.8 | down ~19% |
1 Jan – 30 Jun 2027 | 5.7 | down ~16% |
1 Jul – 31 Dec 2027 | 5.2 | down ~9% |
1 Jan – 30 Jun 2028 | 4.6 | down ~12% |
Each figure is locked in on its date. Because the certificate price floats (recently around $38 to $40 each), the same battery earns a smaller dollar rebate after every step. Multiply the factor by your usable kWh (first 14 kWh at 100%) and by the certificate price to get the discount.
What that works out to in dollars, by battery size. Approximate federal discount at the current (1 May – 31 Dec 2026) rate, applied at the invoice. Your exact number depends on the certificate price on the day and your battery's usable capacity — the 30-second check returns the live figure.
| Usable battery size | Approx. federal rebate now | After 1 Jan 2027 (est.) |
|---|---|---|
10 kWh | around $2,450 | around $2,050 |
Most popular 13.5 kWh (Powerwall-class) | around $3,300 | around $2,750 |
16 kWh | around $3,750 | around $3,150 |
24 kWh | around $4,950 | around $4,150 |
Figures are indicative and rounded, at a certificate price near the recent market range; they are not a quote. The 14–28 kWh portion is subsidised at ~60% and the 28–50 kWh portion at ~15%, which is why the per-kWh value tapers on the larger sizes above.
See your exact rebate for any battery size from 5 to 50 kWh.
$0 upfront: how the numbers work
Plenty of households can install a battery for $0 upfront in 2026. Three levers do the work.
1. The federal rebate comes off the invoice at install, so the cash quote starts well below the gross hardware cost. You do not claim it back. It is a discount on the price you pay.
2. State finance covers the rest where it is on offer. NSW has a new interest-free loan up to $15,000, the ACT has a low-interest loan up to $20,000, and WA has an interest-free loan up to $10,000. That spreads the post-rebate balance over the years instead of asking for it upfront.
3. Bill savings from running the house off stored solar typically run $730 to $1,680 a year. Those savings cover most or all of a monthly loan repayment, so your out-of-pocket cost stays close to zero.
Over the life of the battery, most families save $30,000 or more on power compared with staying fully grid-tied. Once the system pays off, usually 6 to 8 years in, the power you store and use is effectively free for the rest of the warranty.
See whether your home can install for $0 upfront.
Stack the federal rebate with your state scheme
The federal rebate applies in every postcode. On top of it, three places run a live state scheme in 2026. The rest are federal only, because their old state schemes have closed.
NSW. The NSW Home Energy Saver, a $557 million package launched on 17 June 2026, is the headline. It pairs an interest-free loan up to $15,000 (for homes with income under $210,000, repaid over 10 years) with a targeted discount up to $4,000 for homes under $80,000 income or holding a concession card, opening later in 2026. Both stack on the federal rebate, so eligible NSW homes get to $0 upfront. The old PDRS install incentive has closed, though some retailers still offer a VPP sign-up bonus.
WA. The state Residential Battery Scheme adds up to around $1,300 for Synergy customers or around $3,800 for Horizon Power customers on top of the federal rebate. WA also runs an interest-free loan up to $10,000 (income under $210,000) for the balance. The allocation is capped and running down, so timing matters.
ACT. The Sustainable Household Scheme offers a loan up to $15,000, rising to $20,000 on 1 July 2026, repaid over 10 years. It moved to 3% interest on 1 July 2025, so it is low-interest rather than interest-free now, and there is no income test. Batteries are eligible, and it stacks on the federal rebate.
SA, VIC, QLD, TAS, NT. Federal rebate only. SA's Home Battery Scheme closed in 2022. The Solar Victoria battery loan closed in May 2025. Queensland's Battery Booster closed in May 2024, over a year before the federal program launched. Tasmania's Energy Saver Loan closed in September 2025. The NT Home and Business Battery Scheme is fully allocated and closed, with the federal rebate available where your network qualifies.
See exactly which federal and state rebates stack on your postcode.
Backup power when the grid drops
Most solar owners learn this the hard way. Solar panels alone do not run your home in a blackout. By Australian safety standard, a grid-tied system shuts off when the grid goes down, so it cannot back-feed the lines and put the repair crew at risk.
A battery with backup-mode wiring gets around that. When the grid drops, the battery isolates your home and keeps essential circuits running. Most modern batteries support this when they are wired for it at install.
Worth specifying upfront. Backup wiring is a small extra at install time and expensive to retrofit later. Tell your installer which circuits you want covered, usually the fridge, lights, internet and one power point per room. A 13.5 kWh battery keeps a typical household's essentials running for 12 to 24 hours, longer if the panels are still generating through the day.
Why waiting costs you
The rebate steps down every 6 months now, and the next cut lands on 1 January 2027. Waiting does not get you a better deal. It gets you a smaller rebate and another summer of full-price power bills.
Whatever rate you lock in for your install before a step-down date is the rate you keep. After the date, it is gone. Metro install lead times run 4 to 8 weeks, longer in regional areas, so a signed contract by early November 2026 locks in today's rate.
The WA state allocation and any capped state offers are first come, first served and running down. The 30-second check confirms the exact federal and state stack you qualify for, then matches you with an accredited installer in your postcode.
Frequently asked questions
The federal Cheaper Home Batteries Program takes around 30% off an installed battery, paid at invoice. The first 14 kWh of usable capacity gets the full rate, with reduced rates on capacity above that. The exact dollar amount depends on your battery's usable size and the current certificate price, and it steps down every 6 months, with the next cut on 1 January 2027. The 30-second check returns your real number for your postcode.
Three things. The first 14 kWh of any battery still gets the full federal rebate per kWh, which covers most homes. The rebate now steps down every 6 months instead of once a year, with the next cut on 1 January 2027 and each cut locked in until the program ends on 31 December 2030. And capacity above 14 kWh now gets a reduced rate, around 60% in the 14 to 28 kWh band and around 15% in the 28 to 50 kWh band.
In a lot of cases, yes. The federal rebate comes off the invoice at install, NSW, WA and the ACT offer a state loan for the balance, and the monthly bill savings cover most or all of the repayment. NSW eligible homes can reach $0 upfront by stacking the new Home Energy Saver loan and discount on top of the federal rebate. The check confirms what applies to your postcode.
Yes, where one is running. NSW launched the Home Energy Saver on 17 June 2026, an interest-free loan up to $15,000 plus a targeted discount up to $4,000, both stacking on the federal rebate. WA adds up to around $1,300 (Synergy) or $3,800 (Horizon) plus an interest-free loan up to $10,000. The ACT offers a loan up to $15,000, rising to $20,000 on 1 July 2026, at 3% interest. SA, VIC, QLD, TAS and NT are federal only. The check confirms the current numbers for your postcode.
NSW, WA and the ACT. NSW runs the Home Energy Saver (loan up to $15,000 plus a targeted discount up to $4,000). WA runs the Residential Battery Scheme (up to around $1,300 Synergy or $3,800 Horizon) plus an interest-free loan up to $10,000. The ACT runs the Sustainable Household Scheme loan up to $15,000, rising to $20,000 on 1 July 2026. SA, VIC, QLD, TAS and NT closed their state schemes, so they are federal only.
Most existing solar setups take a retrofit battery. If your inverter is hybrid or battery-compatible, common since around 2018, the battery DC-couples directly. Older inverters can still take an AC-coupled battery. Either way, the federal rebate applies to the retrofit, not just to brand new installs.
Not soon, but it is winding down. The Cheaper Home Batteries Program runs until 31 December 2030, with the rebate stepping down every 6 months from now. The next cut is 1 January 2027, then every 6 months after that. Each step is locked in, so earlier installs get a larger rebate than later ones.
Households, small businesses and community organisations with an eligible solar system and a battery in the 5 to 50 kWh capacity range. The install must be done by an accredited installer using an approved battery, and there is no means test. The rebate applies to retrofit installs on existing solar as well as new combined solar and battery systems.
