Battery Rebate for Small Business: Complete Australian Guide 2026

Quick Answer

At Battery IQ, we have verified with official CER sources that small businesses ARE eligible for the federal battery rebate. Despite the program being called "Cheaper Home Batteries," the official eligibility includes "households and small businesses." A factory, warehouse, office or shop with solar under 100kW can receive around 30% off their battery installation—the same discount as residential properties.

Are Businesses Really Eligible for the "Home" Batteries Program?

Yes. The program name is misleading, but the legislation is clear. We verified this directly from official government sources.

Official Source: Clean Energy Regulator

"Households and small businesses may be eligible for around a 30% discount on the upfront cost of installing a small-scale solar battery."

Source: cer.gov.au/batteries (Last updated 18 December 2025)

Official Source: DCCEEW

"The program will continue to support... batteries for residential and non-residential premises."

Source: dcceew.gov.au eligibility page (Last updated 12 December 2025)

Eligible Business Premises Include:

• Factories and manufacturing facilities
• Warehouses and distribution centres
• Offices and commercial buildings
• Retail shops and showrooms
• Workshops and trade premises
• Agricultural and farm buildings
• Hospitality venues (cafes, restaurants)

What Qualifies as "Small Business" for the Rebate?

Here is the key insight: the program does not use a traditional small business definition based on revenue or employee count. Instead, eligibility is determined by system size.

Constraint	Limit	What This Means
Solar PV Capacity	Under 100 kW	Approx. 300-400 panels, 500-700m² roof
Battery Size	5-100 kWh nominal	From single Powerwall to large commercial
STCs Claimable	First 50 kWh usable	Max rebate approx. $16,800 (pre-May 2026)
Revenue Threshold	None	No $10M turnover test like ATO definition
Employee Count	None	Sole trader to large SME all qualify

Bottom line: If your business has (or will install) solar under 100kW, you qualify for the battery rebate regardless of your business size, structure, or turnover.

How Much Rebate Will Your Business Get?

Businesses receive exactly the same rebate rates as residential properties. The timing of your installation determines your rate.

Period	Rate	10kWh Battery	13.5kWh Battery	20kWh Battery
Jan-Apr 2026	$336/kWh flat	$3,360	$4,536	$6,720
May+ 2026	Tiered rates	$2,720	$3,672	$4,786

Business Example: 20kWh System

A small factory installing a 20kWh battery system before May 2026:

• Rebate value: $6,720
• Typical system cost: $18,000-22,000 installed
• Net cost after rebate: $11,280-15,280
• Effective discount: 30-37%

Calculate Your Business Battery Savings

See your exact rebate amount and payback period based on your business energy usage patterns.

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What If You Lease Your Business Premises?

Tenants can absolutely claim the battery rebate, but you will need to work with your landlord. Here is what you need to know.

Landlord Consent Required

Installing a battery on leased premises requires landlord approval. The battery is mounted to walls or floors, connected to the electrical system, and interacts with the solar installation. Get written consent before proceeding.

What Landlords Often Want

• Evidence of professional installation
• Insurance coverage during installation
• Agreement on removal/make-good obligations
• Sometimes a share of energy savings

What Tenants Should Secure

• Written consent for installation
• Clear ownership documentation
• Right to remove at lease end
• Reasonable timeline for removal

Lease Term Consideration

Battery payback periods are typically 5-8 years for businesses. Consider whether your remaining lease term is long enough to realise the return on investment. A 3-year lease with no renewal option may not justify the investment, whereas a 10-year lease with options makes strong financial sense.

Who Owns the Battery: Landlord or Tenant?

This is a common question for commercial tenants. The answer depends on how you structure the arrangement.

Legal Framework: Fixtures vs Chattels

Type	Description	Ownership
Fixture	Permanently affixed to property	Becomes landlord's property
Trade Fitting / Chattel	Installed for business use, intended for removal	Remains tenant's property

A battery mounted with the intention of removal at lease end is typically classified as a trade fitting, meaning it remains the tenant's property.

Sample Ownership Agreement Clause

EQUIPMENT OWNERSHIP SCHEDULE

1. The Tenant has installed the following equipment at their cost: [Battery make/model/serial number]

2. This equipment remains the Tenant's personal property (chattel)

3. The Tenant may remove the equipment at or before lease expiry

4. The Tenant will make good any damage from removal

5. If not removed within [30 days] of lease end, ownership transfers to Landlord

Can You Take the Battery When You Move Premises?

This is where the official guidelines require careful interpretation. Here is what the CER documentation says.

Official CER Guidance

"Your solar battery must remain installed at your premises until after 2030 or the end of the warranty period, whichever is later."

"Your solar battery won't be eligible to claim STCs if re-installed at a new property."

Source: cer.gov.au/solar-batteries

Important: Interpretation Uncertainty

The CER guidance says the battery must "remain installed" until 2030 or warranty end. It is not entirely clear whether this:

• Prohibits physical removal before 2030, OR
• Simply prevents claiming STCs again at a new location

There is no explicit clawback mechanism mentioned in the documentation. However, we recommend treating the "remain installed" requirement conservatively until clearer guidance is available.

The Practical Reality for Tenants

Here is the good news: this ambiguity may not matter for most business decisions.

If you want a solid return on your battery investment, you would ideally have a lease running until 2030 or beyond anyway. Battery payback periods are typically 5-8 years for commercial installations. If you are planning to move premises before 2030, the ROI case for installing a battery weakens regardless of the relocation rules.

Bottom line: If your lease extends to 2030+, the relocation question becomes irrelevant. If it does not, consider whether the battery investment makes sense in the first place.

If Relocation Becomes Necessary

Batteries are physically relocatable (they are designed to be serviceable):

• Electrician disconnection: 1-2 hours
• Physical unmounting: 4-6 bolts typically
• Transport: Tesla Powerwall weighs 114kg (requires two people)
• Reinstallation at new site: Standard installation process
• Estimated relocation cost: $800-1,500

Note: You definitely cannot claim STCs again at the new location. Whether early removal affects your original rebate is the uncertainty.

Our recommendation: If you are a tenant considering a battery, focus on whether your lease term supports a solid ROI rather than banking on relocation. Align your battery decision with your premises timeline.

Business Battery ROI: Key Considerations

Commercial battery installations often have different economics than residential. Here are the factors that matter for business ROI.

The Feed-in Tariff Reality

If your business has solar, you have probably noticed: feed-in tariffs have collapsed. Many businesses are now receiving just 3-5 cents per kWh for excess solar exported to the grid. That same energy costs 25-35 cents to buy back in the evening. A battery lets you store your excess solar and use it when you need it, rather than giving it away for next to nothing.

Advantages for Businesses

• Capture wasted solar: Stop exporting at 3-5c and use it at 25-35c value
• Demand charge reduction: Shave peak demand and reduce capacity charges
• Predictable operating costs: Lock in energy costs for forecasting
• Tax depreciation: Battery is a depreciable business asset
• Backup power: Avoid costly business interruptions
• Sustainability credentials: Support ESG and tender requirements

Challenges for Businesses

• Daytime usage: May already consume solar directly (less to store)
• Weekend shutdown: Battery may not cycle on non-operating days
• Lease uncertainty: ROI depends on tenure (aim for 2030+)
• Scale mismatch: May need larger systems than 100kWh cap

Best-Fit Business Profiles

Businesses that benefit most from batteries typically have:

• Evening or overnight operations: Restaurants, gyms, shift manufacturing
• High demand charges: Where peak shaving delivers significant savings
• Critical operations: Where power interruptions are costly
• Long-term premises: Owned property or 10+ year leases
• Sustainability requirements: Government tenders, corporate ESG

How Do Business Owners Apply?

Good news: you don't apply directly. The process is handled through your installer. But choosing the right installer matters more than just getting the rebate paperwork done.

Think Beyond Just the Battery

A battery is part of your business's energy infrastructure for the next 10-20 years. The best installers help you plan for:

• Electric vehicle fleet: Will you need more capacity for EV charging (company cars, delivery vans, forklifts)?
• Equipment electrification: Gas equipment, industrial heating, or other plant that might go electric?
• Business expansion: New equipment, extended hours, or additional premises on the horizon?
• Energy contract optimisation: The right commercial tariff can add significant annual value through demand charge reduction and VPP participation

Confirm premises eligibility

Verify your business premises has solar under 100kW (or will install solar with the battery). Get landlord consent in writing if you lease the premises.

Find a whole-business electrification partner

Look for installers who understand commercial energy needs: current usage patterns, electric vehicle fleet plans, equipment electrification, and future expansion—not just today's battery size.

Review your energy plan options

Your business energy contract matters as much as the hardware. Ask about time-of-use tariffs, demand charge optimisation, export rates, and VPP earnings—the right plan can add significant annual value.

Choose the right-sized CEC-approved battery

Size based on your business operations: evening trading hours, shift patterns, demand peaks, and planned electrification (EV fleet, electric forklifts, heat pumps). Oversizing wastes capital; undersizing limits savings.

Ensure VPP capability and configuration

Your installer configures VPP capability as a technical requirement. Actual VPP participation is optional but can generate additional revenue for your business.

Receive point-of-sale discount

The rebate is applied automatically at purchase. Your installer claims STCs on your behalf and deducts the value from your invoice—no business application required.

What to Check with Your Installer

• Confirm they're CEC accredited (not just "CEC approved")
• Do they have commercial installation experience?
• Do they discuss your future electrification plans? (EV fleet, equipment, expansion)
• Can they help optimise your energy contract? (demand charges, TOU tariffs, VPP)
• Ask if rebate is shown as line-item discount on quote
• Verify the battery is on the current CEC approved list
• Confirm VPP capability will be configured
• Get commissioning date in writing

Documents to Have Ready

• Proof of business premises (lease or title)
• Landlord consent letter (if leasing)
• Existing solar system details (if applicable)
• Recent electricity bills for sizing analysis
• ABN for business records

Our approach at Battery IQ: We believe in right-sizing systems for your business's current and future needs. That means understanding your electrification journey—not just selling you a battery. We also help you find the optimal energy contract to maximise your return on investment.

Frequently Asked Questions

Can a small business get the federal battery rebate?

Yes. The Cheaper Home Batteries Program explicitly covers "households and small businesses." Despite the name having "home" in it, non-residential premises including factories, warehouses, offices, and shops are eligible for the same rebate as residential properties.

What defines a small business for the battery rebate?

The program defines eligibility by system size, not business turnover or employees. Your solar PV system must be under 100kW capacity, and the battery must be 5-100kWh nominal capacity. There is no revenue threshold or employee count requirement.

Can I get the rebate if I lease my business premises?

Yes, but you will need landlord consent to install the battery. The property owner typically needs to approve any permanent installations. You can structure an agreement where you own the battery as a trade fitting that can be removed at lease end.

Can I take the battery with me if I move premises?

This is uncertain. The CER states batteries "must remain installed" until 2030 or warranty end, and cannot claim STCs again if relocated. Whether physical removal triggers any penalty is not explicitly clarified. For a solid ROI, you would ideally have a lease until 2030+ anyway—making the relocation question less relevant to your investment decision.

How much rebate will my business get?

The same rates as residential: approximately $336/kWh before May 2026 (8.4 STCs x $40), then tiered rates after. A 13.5kWh battery like Tesla Powerwall 3 receives approximately $4,536 before May 2026, dropping to $3,672 after.

Do I need solar panels to get the business battery rebate?

Yes. The battery must be installed with an existing or new solar PV system. Grid-only batteries that solely store energy from the grid are not eligible, regardless of whether it is a business or residential property.

Does my business need to join a VPP?

Your battery must be VPP capable (have the technical ability to participate), but actual VPP enrollment is optional. Many businesses find VPP participation valuable for additional income, but it is not required to receive the rebate.

Can I claim the rebate on multiple business locations?

Yes. Each business premises can claim one battery rebate, provided each location has its own solar PV system under 100kW and meets all other eligibility requirements. The one-battery-per-address rule applies per premises.

Calculate Your Business Battery ROI

See your exact rebate amount, payback period, and annual savings based on your business energy usage patterns.

Try Calculator

Written by the Battery IQ research team. Last updated January 2026. Information verified against official Clean Energy Regulator and DCCEEW sources. This guide addresses common questions about commercial battery eligibility under the Cheaper Home Batteries Program.

Battery Rebate for Small Business: Complete Australian Guide

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