Figures updated 5 August 2026
The Cheaper Home Batteries Program, without the jargon
Australia's federal battery discount knocks roughly 30 percent off an installed home battery. Here is what it pays per kWh in mid-2026, how the size tiers work, and the fine print your installer might not volunteer.
$258
Per usable kWh at the full rate (first 14 kWh)
$3,460
Discount on a popular 13.5 kWh battery
2030
Scheme end date, with step-downs along the way
What the program pays in mid-2026
Since the 1 May 2026 adjustment, an eligible battery earns certificates worth about $258 per usable kWh at the full rate. The rate is tiered by capacity:
| Usable capacity | Rate | Roughly worth |
|---|---|---|
| First 14 kWh | Full rate | $258 per kWh |
| 14 to 28 kWh | 60% rate | $155 per kWh |
| 28 to 50 kWh | 15% rate | $39 per kWh |
Worked examples at current rates:
- 10 kWh battery: about $2,580 off
- 13.5 kWh battery: about $3,460 off
- 20 kWh battery: about $4,520 off
- 27 kWh battery: about $5,620 off
How it reaches your quote
The program works through the same certificate system as the solar rebate. Your battery generates Small-scale Technology Certificates, your installer claims and sells them, and the value comes off your price at the point of sale. You should see it as a line item on the quote. If you do not, ask for the gross price and the discount shown separately, because that is the only way to compare two quotes honestly.
Eligibility, in plain terms
- Usable capacity between 5 and 100 kWh
- Battery on the approved product list and capable of joining a virtual power plant
- Installed by an accredited installer alongside new or existing solar
- Available to households, small businesses and community facilities, with no income test
The step-down schedule is the deadline that matters
The discount is not a fixed dollar amount. It is a legislated number of certificates per usable kWh, called the STC Factor, multiplied by whatever certificates are trading at (about $38 each). The factor is currently 6.8 certificates per kWh, and it drops every six months until the scheme ends in 2030.
The next cut is on 1 January 2027, when the factor falls from 6.8 to 5.7 per kWh — about 16% less. On a 13.5 kWh battery that is the difference between $3,460 and $2,890.
The rate that applies is the one in force on the day your battery is installed, not the day you sign or pay a deposit. That distinction catches people out. If your installer is quoting a lead time that runs past a step-down date, the discount in your quote is not the discount you will get. Ask them to put the install date in writing.
| Installed during | Certificates per kWh | Roughly worth per kWh |
|---|---|---|
| From 1 May 2026 | 6.8 | $258 |
| From 1 Jan 2027 | 5.7 | $217 |
| From 1 July 2027 | 5.2 | $198 |
| From 1 Jan 2028 | 4.6 | $175 |
| From 1 July 2028 | 4.1 | $156 |
| From 1 Jan 2029 | 3.6 | $137 |
| From 1 July 2029 | 3.1 | $118 |
| From 1 Jan 2030 | 2.6 | $99 |
| From 1 July 2030 | 2.1 | $80 |
Certificate prices move, so the dollar column is indicative. The certificate counts are legislated.
Stacking it with the NSW schemes
The federal discount is the first domino. In NSW it combines with the VPP incentive and the $15,000 interest-free Home Energy Saver loan, which together change the equation from "is a battery worth it" to "the battery pays for itself from day one" for a lot of households. The stacking guide walks through the full order of operations.
Your discount, calculated for your battery size
Pick a size, answer four quick questions, and see the federal discount plus every NSW incentive stacked on top.
Check my rebatesCommon questions
Is the Cheaper Home Batteries Program a rebate or a discount?
Technically it creates Small-scale Technology Certificates for your battery, which your installer claims and converts to a discount on your quote. From your side it behaves like a point-of-sale rebate: the price you sign is already reduced, and no money changes hands afterwards.
Which batteries are eligible?
Batteries from 5 kWh up to 100 kWh usable capacity, on the Clean Energy Council approved product list, capable of joining a virtual power plant, and installed by an accredited installer. Nearly every mainstream residential battery sold in Australia qualifies. Note that while the program accepts systems to 100 kWh, certificates stop accruing above 50 kWh, so the discount stops growing past that point.
Do I need solar panels to get the battery discount?
You need solar for the battery to charge from, but it does not matter whether the panels are new or existing. Households adding a battery to an old solar system qualify the same as new combined installs.
How is the discount worked out for bigger batteries?
Capacity is tiered. The first 14 kWh earns the full rate, capacity from 14 to 28 kWh earns 60 percent of it, and capacity from 28 to 50 kWh earns 15 percent. A 20 kWh battery, for example, earns full rate on 14 kWh plus the reduced rate on the remaining 6 kWh.
When does the rebate reduce next?
The next reduction is on 1 January 2027, when the STC Factor drops from 6.8 to 5.7 certificates per usable kWh — roughly 16 percent less. The scheme then steps down every six months until it closes at the end of 2030. Each reduction is permanent, and the rate that applies is the one in force on your installation date, not your order date.
How much is the federal battery rebate worth right now?
About $258 per usable kWh on the first 14 kWh. On a 13.5 kWh battery that is roughly $3,460 off the installed price, and on a 10 kWh battery about $2,580. The figure comes from 6.8 certificates per kWh at around $38 per certificate.