What is the Federal Battery Rebate?
The Cheaper Home Batteries Program is Australia's federal government initiative to make home battery storage more affordable. Launched on July 1, 2025, it provides approximately 30% off the cost of installing a home battery through an expansion of the Small-scale Renewable Energy Scheme (SRES).
Unlike traditional rebates where you apply and wait for a refund, the federal battery rebate works as an upfront discount. Your installer claims Small-scale Technology Certificates (STCs) on your behalf, and the value is deducted directly from your quote.
Quick Facts
- Rebate rate: ~$372 per usable kWh (9.3 STCs × $40)
- Typical rebate: ~$5,000 for a 13.5kWh battery
- Maximum rebate: $18,600 (capped at 50kWh)
- Program funding: $2.3 billion expansion of SRES
- Start date: July 1, 2025
Eligibility Requirements
To qualify for the federal battery rebate, you must meet the following requirements:
Property Requirements
- Australian residential property - Houses, apartments, and townhouses qualify
- Grid-connected - Off-grid properties have separate programs
- Owner or tenant - Both homeowners and renters (with landlord permission) are eligible
Battery Requirements
- Capacity: Between 5kWh and 100kWh usable capacity
- VPP-capable: Must be able to participate in Virtual Power Plant programs (you don't have to join one)
- New equipment: Must be new, not refurbished or second-hand
- CEC-approved: Listed on the Clean Energy Council approved products list
Installation Requirements
- CEC-accredited installer: Must be installed by a Clean Energy Council accredited installer
- Commissioning date: System must be commissioned on or after July 1, 2025
- Compliance: Must meet Australian Standards and local regulations
No Income Test
Unlike some state rebates, the federal Cheaper Home Batteries Program has no means testing. All Australians meeting the above requirements are eligible, regardless of household income.
How Much Will You Save?
The federal rebate is calculated based on your battery's usable capacity (not the advertised nominal capacity). Here's how it works:
The Calculation
Rebate = Usable kWh × 9.3 STCs × STC Price
*Capped at first 50kWh of usable capacity
Example Calculations
Using the official STC Clearing House price of $40 per certificate:
| Battery Model | Usable Capacity | STCs Generated | Approx. Rebate |
|---|---|---|---|
| Tesla Powerwall 3 | 13.5 kWh | 125 STCs | ~$5,000 |
| BYD HVS 10.2 | 10.2 kWh | 95 STCs | ~$3,720 |
| Enphase IQ 5P | 5 kWh | 47 STCs | ~$1,860 |
| BYD HVM 25.6 (Large) | 25.6 kWh | 238 STCs | ~$9,520 |
| Maximum Rebate (50 kWh cap) | 50 kWh | 465 STCs | ~$18,600 |
About Those Big Numbers in Ads
You may see solar companies advertising rebates of "$17,500" or "$18,600" - these figures are technically accurate but only apply to massive 50kWh battery systems. That's 4× larger than what most households need.
A typical Australian home uses 15-25kWh per day. A 10-13.5kWh battery is usually sufficient and represents the best value. Oversizing your battery means paying more upfront for capacity you may never use.
Our advice: Focus on the rebate for the battery size that matches your actual needs (~$3,700-$5,000 for most homes), not the theoretical maximum.
Important: STC prices fluctuate based on supply and demand. The actual rebate you receive depends on the STC spot price at the time your system is registered. Check the Clean Energy Regulator for current pricing.
VPP Requirements Explained
One of the most misunderstood aspects of the federal rebate is the Virtual Power Plant (VPP) requirement. Let's clear up the confusion.
VPP-Capable vs VPP-Enrolled
Your battery must be VPP-capable, meaning it has the technical ability to participate in VPP programs. However, you are not required to actually join a VPP to receive the rebate.
Required: VPP-Capable
- Battery can communicate with grid operators
- Has remote monitoring capability
- Meets AS4777.2 standards
- Most major brands qualify
Not Required: VPP Enrollment
- Joining a VPP program
- Allowing grid export during events
- Signing VPP contracts
- Earning VPP credits
Why VPP-Capable?
The government included this requirement to future-proof Australia's energy grid. As more homes add batteries, having VPP-capable systems creates the option for coordinated grid support during peak demand - even if most homeowners never opt in.
Installation vs Commissioning Date
This is a critical distinction that confuses many homeowners. The rebate eligibility is based on the commissioning date, not the installation date.
What's the Difference?
- Installation date: When the battery is physically mounted and wired
- Commissioning date: When the system is tested, certified, and officially "switched on"
Key Point
Your battery must be commissioned on or after July 1, 2025 to qualify for the federal rebate. You can begin installation earlier, but the final commissioning certificate must be dated July 1 or later.
Planning Your Installation
If you're ordering a battery now, coordinate with your installer to ensure commissioning occurs on or after the eligibility date. Many installers are booking installations that span the cutoff, with commissioning scheduled for early July.
Can You Stack State Rebates?
This is the most frequently asked question about the federal rebate. The short answer: it depends on your state.
State-by-State Breakdown
NSW
NSW suspended their battery rebate when the federal program launched. Cannot be combined.
Victoria
VIC battery loan program closed May 2025. Federal rebate only.
South Australia
SA REPS VPP incentives may be combined with federal rebate. Can potentially stack.
Western Australia
WA Battery Scheme provides additional rebates. Can stack.
Queensland
QLD Battery Booster ended. Federal rebate is the primary incentive. Federal only.
Tasmania & ACT
No competing state programs. Federal rebate applies. Federal only.
How to Get the Rebate
Unlike traditional rebate programs, you don't apply directly. The federal battery rebate works through your installer:
- Get quotes from CEC-accredited installers
Ensure they're accredited by the Clean Energy Council and experienced with the STC process.
- Review quotes showing the STC discount
Reputable installers will show the full price and the STC discount separately, so you see exactly what the rebate is worth.
- Schedule installation with commissioning after July 1, 2025
Confirm the commissioning date will be on or after the eligibility start date.
- Installation and commissioning
Your installer completes the work and generates the commissioning certificate.
- Installer registers the system
They submit documentation to the Clean Energy Regulator and claim STCs on your behalf.
- You pay the discounted price
The rebate is applied upfront - you never see the full price leave your account.
Watch Out For
Some installers may quote the "after rebate" price without clearly showing the breakdown. Always ask to see the full price and STC discount separately. This protects you and helps compare quotes accurately.
Who's Designing Your System?
For a valid STC claim, your battery system must be designed by someone with SAA GCBS Design accreditation. Many companies have sales teams making recommendations who aren't qualified designers. Ask if the person sizing and specifying your system holds GCBS Design accreditation - not just the person installing it. You can verify accreditation at saaustralia.com.au.
Rebate Declining Schedule
Like the solar rebate before it, the federal battery rebate is designed to decrease over time as battery costs fall. Here's what to expect:
Projected Decline Rate
The battery rebate declines as the STC multiplier reduces each year. The STC factor for batteries decreases from 9.3 in 2025 to 4.7 by 2030:
| Year | STC Factor | Rate per kWh | 13.5kWh Rebate | Change |
|---|---|---|---|---|
| 2025 | 9.3 STCs | ~$372 | ~$5,020 | Baseline |
| 2026 | 8.4 STCs | ~$336 | ~$4,540 | -10% |
| 2027 | 7.4 STCs | ~$296 | ~$4,000 | -20% |
| 2028 | 6.5 STCs | ~$260 | ~$3,510 | -30% |
| 2029 | 5.6 STCs | ~$224 | ~$3,020 | -40% |
| 2030 | 4.7 STCs | ~$188 | ~$2,540 | -49% |
*Calculations assume STC Clearing House price of $40. Actual prices fluctuate with market conditions.
Don't Fall for "Act Now" Pressure
Should you rush? Some installers use declining rebates to create urgency. Here's the reality: while the rebate decreases ~10% annually, battery prices are also falling - often faster than the rebate decline.
The government designed this deliberately - the rebate is meant to represent roughly 30% of battery cost each year. So waiting doesn't necessarily mean worse value.
Our advice: Choose a battery when it makes sense for your situation, not because of artificial urgency. Our calculator factors in both trends to help you find the optimal timing.
Eligible Battery Models
Most major battery brands are VPP-capable and eligible for the federal rebate. Here are some popular options:
Popular Eligible Batteries
- Tesla Powerwall 3 - 13.5kWh usable, integrated inverter
- BYD Battery-Box Premium HVS - Modular 5.1-12.8kWh
- Enphase IQ Battery - Modular 5-15kWh, AC-coupled
- Sungrow SBR - Modular 9.6-25.6kWh
- LG RESU Prime - 16kWh, high power output
- Sonnen - Premium German engineering, 5-15kWh
- Alpha ESS - Budget-friendly options from 5kWh
For the complete list of approved products, check the Clean Energy Council approved batteries list.
Frequently Asked Questions
Do I need solar panels to get the battery rebate?
No. While most battery owners have solar, you can install a battery without solar panels. Grid-only battery systems that charge from cheap off-peak electricity and discharge during expensive peak periods are eligible for the rebate.
Can I claim the rebate if I already have a battery?
No. The rebate only applies to new battery installations commissioned on or after July 1, 2025. Existing battery systems cannot be claimed retrospectively.
What if I'm renting?
Renters can access the rebate with landlord permission. The landlord would need to agree to the installation, and typically would own the system. Some states have specific renter programs worth investigating.
Is there a limit to how many rebates I can claim?
The rebate is per installation address. If you have multiple properties, each can receive the rebate for a new battery installation. However, you cannot claim multiple rebates for the same property.
Will the rebate affect my taxes?
For residential installations, the rebate is not considered taxable income. However, if the battery is installed on a business property or income-generating asset, consult your accountant about potential implications.
Calculate Your Federal Rebate
Our calculator shows exactly how much you'll save with the federal rebate, plus any state incentives. Get your personalized estimate in under 2 minutes.
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