The Complete 2026 Australian Solar Battery Rebate Guide: Every State, Every Dollar, Every Deadline
From the $7.2 billion federal program to state-specific incentives — this is the definitive guide to maximising your battery rebate in 2026
Key Takeaway
The federal Cheaper Home Batteries Program has been expanded to $7.2 billion, but the STC rebate factor drops from 8.4 to 6.8 in May 2026 — and a new tiered system slashes rebates for batteries over 14kWh. Combined with state programs winding down across the country, every month you wait costs you real money. This guide shows you exactly what's available in your state right now.
If you're an Australian homeowner with solar panels — or thinking about getting them — 2026 is shaping up to be the most critical year for battery decisions. The federal government has tripled its commitment to home batteries, but the fine print reveals a clear message: act sooner, save more.
We've compiled every federal and state incentive into one definitive guide. Whether you're in Melbourne, Sydney, Brisbane, Adelaide, Perth, or regional Australia — this is everything you need to know to maximise your rebate before the deadlines hit.
Federal: The Cheaper Home Batteries Program ($7.2 Billion)
In December 2025, the federal government announced a massive expansion of the Cheaper Home Batteries Program — from the original $2.3 billion to $7.2 billion over the forward estimates. The target? Two million Australian homes with battery storage by 2030, delivering 40 GWh of distributed energy storage to the grid.
The program works through Small-scale Technology Certificates (STCs). Your installer claims the STCs on your behalf and deducts the value directly from your quote — meaning you see the discounted price upfront with no paperwork to manage yourself.
The discount currently sits at approximately 30% off the upfront cost of eligible battery systems between 5 and 100 kWh nominal capacity. But that percentage is shrinking every six months — and a major new tiering rule kicks in from May 2026.
STC Factor Timeline — The Rebate Is Shrinking
| Period | STC Factor | Est. Rebate / kWh | Status |
|---|---|---|---|
| 2025 (Jul – Dec) | 9.3 | ~$372 | Expired |
| Jan – Apr 2026 | 8.4 | ~$336 | Current |
| May – Dec 2026 * | 6.8 | ~$272 | New Tiers Apply |
| Jan – Jun 2027 | 5.7 | ~$228 | – |
| Jul – Dec 2027 | 5.2 | ~$208 | – |
| 2028+ | Declining | Declining | – |
Critical: New Tiered System from May 2026
From May 2026, the rebate will no longer apply equally across all battery capacities. A new tiered structure dramatically reduces the incentive for larger systems:
Only the first 50 kWh of usable capacity is eligible for STCs, and only one battery per premises qualifies. Your battery must be CEC approved and installed by an SAA-accredited installer.
What does this mean in practice? If you're planning a 13.5 kWh system, install before May and you get the full rebate at the 8.4 STC factor. Wait until May and your rebate drops to the 6.8 factor — but at least you're still in the 100% tier. Planning a 20 kWh+ system? The difference could be $2,000–$4,000 in lost rebates.
Federal Program Eligibility
- Battery systems 5 kWh – 100 kWh nominal capacity (STCs on first 50 kWh usable)
- Must be connected to new or existing rooftop solar
- CEC-approved battery products only
- Installed by SAA-accredited installer (like Cosmic Renewable Energy)
- No means test — available to all households regardless of income
- One battery per premises — scheme is uncapped nationally
State-by-State Breakdown
Every Australian household gets the federal STC discount automatically. But what's available on top of that depends entirely on your state. Here's the full picture for 2026.
Victoria
Solar Victoria Battery Loan Program — CLOSED (no longer accepting applications)
Victoria's once-generous battery loan scheme is now closed to new applicants. That leaves the federal STC discount as the primary incentive for Victorian households — making it more important than ever to act while the STC factor is still at 8.4.
Victorian households are feeling the pain more than most. Electricity prices have surged over 50% since 2021, with the average household now paying between $1,800 and $2,200 per year on electricity alone. That's the sharpest price growth of any state, and it's exactly why battery storage makes such compelling financial sense in Victoria.
New South Wales
Household Energy Saving Upgrades — Battery installation incentives AVAILABLE
NSW households have a real advantage in 2026. The Household Energy Saving Upgrades program offers incentives for battery installation that can be stacked with federal STCs — meaning NSW residents can potentially access the deepest total discount of any state.
With the average NSW household paying between $1,800 and $2,400 per year on electricity, the payback period for a battery system with stacked rebates can be as short as 5–7 years — and that's before factoring in continued electricity price rises.
Queensland
Supercharged Solar for Renters — $3,500 for landlords installing solar/battery
Queensland has the best solar conditions in Australia, and the state government is leaning into that advantage. The Supercharged Solar for Renters program provides landlords with up to $3,500 toward solar and battery installation on rental properties — a unique incentive that benefits tenants through lower bills.
For homeowners, the federal STC discount remains the primary rebate. Queensland households typically pay between $1,500 and $2,100 per year on electricity — lower than the southern states thanks to abundant solar generation. A battery lets you capture more of that solar energy instead of exporting it for minimal feed-in tariff returns.
South Australia
Home Battery Scheme — ENDED (federal STCs only)
South Australia's pioneering Home Battery Scheme has ended, leaving federal STCs as the sole rebate mechanism. But SA households have the strongest financial case for batteries of any state — they face the highest electricity prices in the country at $2,000 to $2,600 per year.
The silver lining? South Australia is the national pioneer of Virtual Power Plants (VPPs). By enrolling your battery in a VPP program, you can earn an additional $300 to $800 per year by allowing your battery to support the grid during peak demand. This dramatically improves the payback period and turns your battery into a genuine income-generating asset.
Western Australia
DEBS feed-in tariffs extremely low — batteries now essential for solar value
Western Australia presents a unique case. The Distributed Energy Buyback Scheme (DEBS) offers just 2.25 cents per kWh during off-peak hours for exported solar — making it virtually worthless to send your solar energy back to the grid. Combined with increasing solar curtailment issues in WA, a battery isn't just nice to have — it's essential for getting real value from your solar panels.
With average household bills of $1,600 to $2,200 per year and federal STCs providing the main rebate, WA homeowners who install a battery can shift from exporting solar for pennies to self-consuming it during expensive evening peak periods — a swing that can save hundreds annually.
State-by-State Comparison at a Glance
2026 Battery Rebate Summary by State
| State | Federal STCs | State Incentive | Avg. Annual Bill | Urgency |
|---|---|---|---|---|
| VIC | ~30% off | Closed | $1,800 – $2,200 | HIGH |
| NSW | ~30% off | Stackable | $1,800 – $2,400 | HIGH |
| QLD | ~30% off | $3,500 (Renters) | $1,500 – $2,100 | MEDIUM |
| SA | ~30% off | Ended | $2,000 – $2,600 | HIGH |
| WA | ~30% off | Federal Only | $1,600 – $2,200 | HIGH |
Why Every Month You Wait Costs You Money
Let's put concrete numbers to the declining rebate. Consider a typical 13.5 kWh battery system:
Cost of Delay: 13.5 kWh Battery Example
| Install Period | Est. Total Rebate | Lost vs. Today |
|---|---|---|
| Now (Jan – Apr 2026) | ~$4,536 | — |
| May – Dec 2026 | ~$3,672 | -$864 |
| H1 2027 | ~$3,078 | -$1,458 |
| H2 2027 | ~$2,808 | -$1,728 |
For larger systems, the numbers are even more dramatic. A 20 kWh battery installed before May 2026 receives the full STC rate on every kilowatt-hour. After May, only the first 14 kWh gets 100% — the remaining 6 kWh drops to just 60% of an already-lower STC factor. The rebate loss on a 20 kWh system could exceed $2,500 by mid-2026.
And it's not just the rebates declining. Every month without a battery means another month of paying full grid prices during expensive evening peaks, another month of exporting solar for minimal feed-in returns, and another month of exposure to the electricity price increases that show no sign of stopping.
How to Choose the Right Battery Size
With the new tiered system, right-sizing your battery is more important than ever. Here's what we recommend based on typical Australian household consumption:
Bonus Income: Virtual Power Plant Earnings
Regardless of which state you're in, enrolling your battery in a Virtual Power Plant (VPP) program can earn you $300 to $800+ per year in additional income. Your battery occasionally exports stored energy to the grid during peak demand events, and you're paid a premium rate for it.
South Australia leads the country in VPP participation, but programs are now available across all major states. When you factor VPP earnings into the battery economics, payback periods shorten dramatically — in some cases to just 4–6 years.
How Cosmic Renewable Energy Maximises Your Savings
- 1Free Consultation & Custom Sizing
We analyse your energy bills, solar generation, and consumption patterns to recommend the optimal battery size for your home — ensuring you land in the right rebate tier.
- 2Rebate Pre-Applied on Your Quote
We deduct the full STC rebate and any applicable state incentives directly from your quote. You see the final discounted price upfront with no hidden costs.
- 3SAA-Accredited Installation
All our installers are Solar Accreditation Australia accredited — a requirement for the federal rebate. We use only CEC-approved products.
- 4We Handle All Paperwork
STC claims, state program applications, grid connection forms — we manage every piece of documentation so you don't have to.
- 5VPP Setup & Ongoing Support
We help you enrol in the best VPP program for your area, maximising your ongoing returns from battery ownership.
The Bottom Line: 2026 Is the Year to Act
Here's what the data tells us unequivocally:
- Federal rebates are declining every six months — the STC factor drops from 8.4 to 6.8 in May 2026, then to 5.7 in early 2027
- State programs are closing — Victoria's battery loan is gone, SA's scheme has ended, and remaining programs have no guaranteed extension
- Electricity prices keep rising — every quarter without a battery means higher bills you can't recover
- New tiered rules punish delay — larger batteries face drastically reduced rebates from May 2026
Whether you're in Victoria dealing with 50%+ price surges, in South Australia paying the nation's highest electricity bills, in WA watching solar exports earn you barely 2 cents, or anywhere else in Australia — the mathematics of battery storage have never been more compelling. And they'll never be this good again. The best time to install a battery was six months ago. The second-best time is right now, before the May 2026 deadline.
Lock In Your Maximum Rebate Before May 2026
As a CEC-accredited installer, Cosmic Renewable Energy handles everything — from rebate claims to professional installation. Get your free quote today and see exactly how much you'll save in your state.