Current Offers by State and Territory
Last updated: January 2026
By Solar Cost Guide – Independent Australian Solar Research
Battery storage is becoming more common across Australian homes as electricity prices rise and solar feed-in tariffs fall. While batteries are still a significant investment, a combination of federal and state incentives can reduce upfront costs and improve long-term payback.
This page explains all battery rebates, incentives, and government-backed loans currently available in Australia, including how they work and who can access them.
Federal Battery Rebate (Australia-Wide)
01
Cheaper Home Batteries Program
The Cheaper Home Batteries Program is the main federal incentive supporting battery storage in Australia. It is a $7.2 billion subsidy scheme designed to lower the installed cost of batteries for households, small businesses, and community facilities.
This program:
- Applies Australia-wide
- Reduces the upfront installed cost of eligible batteries
- Uses the STC certificate system, similar to the solar panel rebate
- Is applied automatically through installers (no direct application)
02
Battery size and eligibility
- Applies to new battery systems
- Usable capacity between 5 kWh and 50 kWh
- Battery must be connected to solar (new or existing)
Battery must be VPP-capable (joining a VPP is not mandatory)
03
Example (federal rebate only)
An 11 kWh home battery installed before 1 May 2026 may receive:
- Around $3,300 off the installed price
The same battery installed after 1 May 2026 would receive:
- Around $2,600–$2,700, depending on timing
Actual figures vary based on installation date and certificate pricing.
04
How much is the federal battery rebate worth?
The rebate value reduces over time and is affected by administration costs.
Changes from 1 May 2026 (tiered system)
- When introduced on 1 July 2025, the maximum rebate was about $372 per usable kWh
- After administration costs, households received about $335 per kWh
From 1 January 2026, this reduced to around $302 per kWh
Current values (early 2026)
From 1 May 2026, the rebate moves to a tiered structure, meaning larger batteries receive less rebate per kWh:
- First 14 kWh: ~$243 per kWh
- Next 15–28 kWh: ~$146 per kWh
- 29–50 kWh: ~$36 per kWh
The value of all tiers will reduce every six months from 2027 until the scheme ends at the end of 2030.
State & Territory Battery Rebates and Loans (Current)
At present, Western Australia is the only state offering a direct battery rebate. Other states focus on VPP incentives or zero-interest loans.
New South Wales (NSW)
Program: NSW Virtual Power Plant (VPP) Incentive
NSW no longer offers a direct battery rebate. Instead, households can receive a payment for connecting a battery to a Virtual Power Plant (VPP) under the Peak Demand Reduction Scheme.
- Applies to batteries between 2–28 kWh usable capacity
- Payment is based on certificates (PRs), which fluctuate in value
- At current values, certificates are worth roughly $60 per kWh
- After compliance and admin costs, households typically receive about 60% of that value
Typical household payment:
- Around $30–$40 per usable kWh
- Maximum payment generally around $1,000–$1,100
Eligibility highlights
- Battery must be CEC-approved and VPP-capable
- Minimum 10-year warranty
- Must retain at least 70% capacity over warranty period
- Must be connected to solar and the grid
This incentive can be combined with the federal battery rebate.
Western Australia (WA)
Program: WA Residential Battery Scheme
Western Australia currently offers the most generous combined battery support in Australia.
Rebate component
- Synergy customers (south-west WA):
- $130 per kWh, capped at $1,300
- Horizon Power customers (regional WA):
- $380 per kWh, capped at $3,800
Loan component
- Zero-interest loans from $2,000 to $10,000
- Can also cover solar if installed with the battery
- Household income must be under $210,000
- Repayable over 10 years
Conditions
- Battery must be minimum 5 kWh
- Must be VPP-ready and connected to a WA-approved VPP
- Program capped at 100,000 rebates, released in rounds
Example (WA + Federal rebate)
A 7.8 kWh battery installed in Perth may receive:
- WA rebate: ~$1,014
- Federal rebate: ~$2,500+
- Total support: ~$3,500+
This can reduce a $10,000 battery to around $6,400, before financing.
South Australia (SA)
Program: SA REPS VPP Incentive
South Australia no longer offers a general battery rebate, but provides incentives through the Retailer Energy Productivity Scheme (REPS) for batteries connected to approved VPPs.
- Incentive value: up to $2,050
- Paid after successful VPP connection
- Applies to new or existing batteries
Key points
- Can be claimed on multiple batteries, up to 28 kWh total
- Can be claimed again when renewing a VPP contract (minimum 3 years)
- Priority households may receive higher rates
This incentive can be combined with the federal battery rebate.
Australian Capital Territory (ACT)
Program: Sustainable Household Scheme (SHS)
The ACT does not offer a battery rebate, but provides government-backed, zero-interest loans.
- Loan value: $2,000 to $15,000
- Repayment term: up to 10 years
- Can be used for batteries, solar, EV chargers, and electrification
Additional support:
- Eligible concession-card holders may access extra rebates through the Home Energy Support Program
This scheme improves affordability by spreading costs rather than reducing the purchase price.
Summary: Battery Incentives Currently Available in Australia
Location | Program | Type |
Australia-wide | Cheaper Home Batteries Program | Federal rebate |
NSW | NSW VPP Incentive | VPP payment |
ACT | Sustainable Household Scheme | Zero-interest loan |
WA | WA Residential Battery Scheme | Rebate + loan |
SA | REPS VPP Incentive | VPP payment |
States like QLD, VIC, and NT no longer offer direct battery rebates, but households in those states can still access the federal battery rebate.
Final Thoughts from Solar Cost Guide
Battery rebates in Australia are now more structured and targeted than in previous years. Instead of large one-off state grants, most support now comes from:
- the federal battery rebate
- VPP participation incentives
- government-backed loans
Understanding how these schemes interact is key to judging whether a battery makes financial sense for your home.
Frequently Asked Questions :
Is there a national battery rebate in Australia?
Yes. The Cheaper Home Batteries Program is a federal scheme available in all states and territories. It reduces the upfront installed cost of eligible home batteries and is applied automatically through your installer.
How much is the federal battery rebate worth in 2026?
In early 2026, the federal battery rebate is worth around $300 per usable kilowatt-hour (kWh), after administration costs. From 1 May 2026, the rebate moves to a tiered structure, where smaller batteries receive a higher rebate per kWh than larger batteries. The rebate value will continue to reduce gradually until the scheme ends in 2030.
Do I need to apply for the battery rebate myself?
No. In most cases, your installer will handle the rebate process and apply the discount directly to your quote. You do not submit a separate application to the government.
Do I need solar panels to get a battery rebate?
Yes. To access the federal battery rebate, the battery must be connected to a solar system. This can be either:
- an existing solar system, or
- solar panels installed at the same time as the battery
Standalone batteries without solar are not eligible.
Do I have to join a Virtual Power Plant (VPP) to get the federal battery rebate?
No. The federal battery rebate does not require VPP participation. However, the battery must be VPP-capable, meaning it can connect to a VPP if you choose to join one later.
Can battery rebates be combined with state incentives?
In many cases, yes. For example:
- The WA Residential Battery Scheme can be combined with the federal battery rebate
- NSW and SA VPP incentives can be claimed on top of the federal rebate
Eligibility rules apply, so it’s important that your installer confirms stacking before installation.
Which state offers the highest battery rebates?
Currently, Western Australia offers the strongest combined support, with a state battery rebate plus zero-interest loans, on top of the federal battery rebate. Regional WA (Horizon Power areas) generally receive higher state rebates than the Perth (Synergy) area.
Are battery rebates means-tested?
No rebate value is guaranteed until installation is confirmed. The number of certificates and the rebate structure are fixed at the time of installation, but future installations may attract lower rebates as schemes step down.
Are batteries worth it even with rebates?
Battery rebates reduce upfront cost, but whether a battery is “worth it” depends on:
- electricity tariffs
- household energy use
- solar export limits
- whether the battery joins a VPP
As Solar Cost Guide often notes, rebates help — but correct system sizing and realistic usage assumptions matter just as much.
Where can I check official battery rebate rules?
Battery rebate rules are published on Australian government websites and state energy department pages. Independent resources like Solar Cost Guide summarise these programs to help homeowners understand what actually applies in practice.