What is the Cheaper Home Batteries Program?
The Cheaper Home Batteries Program is a federal solar-storage rebate that launched on 1 July 2025. It pays about $372 per kWh of installed usable battery capacity, applied as a point-of-sale discount on your invoice. The program is administered by the Clean Energy Regulator and runs through 2030, with rebate rates stepping down each January (similar to the STC scheme for solar panels).
It's the biggest single piece of federal energy policy aimed at residential batteries since the original STC scheme. In a typical year it'll subsidise roughly 1 million households across Australia.
How much do you get?
From 1 May 2026 the rate tapers above 14 kWh: 100% on the first 14 kWh of usable capacity, 60% on kWh 14–28, 15% on kWh 28–50, nothing above 50.
| Battery | Usable capacity | 2026 federal rebate |
|---|---|---|
| AlphaESS SMILE5 | 5.7 kWh | $1,471 |
| Sungrow SBR HV (small) | 9.6 kWh | $2,477 |
| BYD Battery-Box Premium HVS | 10.2 kWh | $2,632 |
| Sungrow SBR HV (medium) | 12.8 kWh | $3,302 |
| Tesla Powerwall 3 | 13.5 kWh | $3,483 |
| LG Chem RESU16H Prime | 16 kWh | $3,922 |
| Sungrow SBR HV (large pair) | 25.6 kWh | $5,408 |
Rebate amounts are point-of-sale discounts at the 2026 rate. Actual product availability and price vary quarter to quarter. Confirm the current rate with your installer at quote time.
Stacking the federal battery rebate with state programs
Only two states have active state-funded battery rebates in May 2026 — NSW (per-kWh PDRS) and WA. Several others have closed in the last 18 months. Here's the picture state by state:
| State | State battery program (2026) | Status |
|---|---|---|
| NSW | PDRS per-kWh incentive (~$311–$344/kWh) + $1,500 VPP sign-on | Active |
| VIC | Battery loan | Closed May 2025 |
| QLD | Battery Booster | Closed 8 May 2024 |
| SA | Home Battery Scheme | Closed September 2022 |
| WA | $130/kWh Synergy (max $1,300) · $380/kWh Horizon (max $3,800) | Active |
| TAS | Energy Saver Loan | Closed September 2025 (funding cap) |
| ACT | Sustainable Household Scheme (3% loan, $15k cap) | Active (loan) |
| NT | Home Battery Scheme | Closed (funding cap reached) |
Worked example: a NSW household with stacking rebates
Say you're in Sydney installing a 6.6 kW system with a 13.5 kWh Tesla Powerwall 3. Your 2026 stack:
- Federal STC rebate (solar): $1386 off
- Federal Cheaper Home Batteries (battery): $3,483 off
- NSW PDRS battery incentive (per usable kWh): ~$4,388 off
- NSW VPP sign-on bonus (if you enrol): $1,500 one-off
- Total 2026 stack: ~$10,886 in upfront discounts + one-off payments
On a system that quotes around $22,000 retail, the household pays roughly $11,000–$12,000 net. Most NSW households finish at materially lower monthly outgoings than their pre-solar electricity bill from day one. NSW's previous Empowering Homes interest-free loan closed in 2025; financing options now come through retailer or installer green loans (3–7% typical).
Eligibility checklist
- Battery installed on or after 1 July 2025
- Usable capacity between 5 kWh and 100 kWh
- Installed by a CEC-accredited installer
- Listed on the Clean Energy Council approved product list
- VPP-capable (enrolment not mandatory, but capability required)
- Connected to a grid-tied solar system (existing or new)
You don't need to apply yourself. Your installer handles the paperwork as part of the standard install. The rebate appears on your invoice as a line item.
Is a battery actually worth it?
This is the question we get most. There are three things that determine battery payback:
1. Your feed-in tariff vs. your electricity rate
If you're paying 35c/kWh to import and only getting 4c/kWh for export, every kWh you store and use yourself saves 31c. On a 13.5 kWh battery cycled once a day, that's roughly $1,500 per year of arbitrage savings. States with low feed-in tariffs (VIC at 4.9c, WA off-peak at 2.25c) have the strongest battery economics.
2. Your evening import volume
Batteries are most valuable for households that import a lot between 6pm and 10pm. If your evening usage is under 3 kWh, a 13.5 kWh battery is oversized and won't pay back. If it's over 8 kWh, a larger battery is justified.
3. Your state's stacking rebate
In NSW, QLD, WA, and the ACT, the combined state + federal rebate covers 50–70% of the battery cost. In those states, batteries pay back in 5–7 years. In SA, TAS, and NT, where state rebates are minimal, payback is closer to 10 years.
Common questions
How much is the federal battery rebate worth?
From 1 May 2026, the Cheaper Home Batteries Program pays about $258 per kWh of usable capacity on the first 14 kWh, 60% of that rate on kWh 14–28, and 15% on kWh 28–50. Nothing above 50 kWh. On a 13.5 kWh Tesla Powerwall 3 that's about $3,483 (still in the first tier). On a 20 kWh battery: about $4,541.
Can I claim the federal battery rebate AND a state battery rebate?
Yes, in the two states with active battery rebates. The federal Cheaper Home Batteries Program stacks with NSW's PDRS battery incentive (~$311–$344 per usable kWh) and WA's Residential Battery Scheme ($130/kWh Synergy, $380/kWh Horizon). QLD's Battery Booster closed 8 May 2024 and the SA Home Battery Scheme closed September 2022 — federal-only in those states.
When can I claim it?
The program launched 1 July 2025 and runs to at least 2030 with annual step-downs. Battery must be installed on or after 1 July 2025 to qualify; installation date determines the rebate rate.
What batteries qualify?
The battery must be: between 5 kWh and 100 kWh of usable capacity, installed by a CEC-accredited installer, and approved on the Clean Energy Council's product list. The system must be VPP-capable (able to participate in a Virtual Power Plant), though enrolment in a VPP is not mandatory.
Does the rebate apply if I already have solar?
Yes. The federal battery rebate is for the battery, not the solar system, and applies whether you're adding a battery to existing panels or installing both at the same time.
Is it worth getting a battery now?
Depends on three things: (1) Your feed-in tariff. If you're getting 4c/kWh export and paying 35c/kWh import, the spread makes a battery pay back fast. (2) Whether you use a lot of electricity in the evening. Batteries are most valuable for households that import 5+ kWh between 6pm and 10pm. (3) Whether your state has a stacking rebate. In NSW, QLD, WA, and the ACT, the stack often gets a 13.5 kWh battery under $5,000 net.