Battery rebates
How the Cheaper Home Batteries Program works in 2026
A plain-English guide to the federal Cheaper Home Batteries Program in 2026, how much it is worth, who is eligible, and whether to wait.
Short answer
The Cheaper Home Batteries Program is the federal battery discount. It takes roughly 30% off the upfront cost of an eligible home battery. It launched in July 2025, and the value stepped down on 1 May 2026 as battery prices fell.
Start a quoteWhat is the Cheaper Home Batteries Program?
It is a federal incentive delivered as extra small-scale technology certificates, or STCs, and it is almost always applied as an upfront discount by your installer.
Eligible batteries are 5 kWh to 100 kWh, with the discount paid on the first 50 kWh of usable capacity. That means the headline capacity matters less than the usable capacity and the way the system is configured.
How much is it worth?
In 2026, the discount is roughly $250 to $330 per usable kWh depending on battery size and certificate settings. It is not a fixed cash grant, so quotes should show how the value has been calculated.
The factor is tapered: the first roughly 14 kWh carries the full value, then the value falls for larger capacity bands. For most homes, that makes right-sized storage more attractive than simply buying the biggest battery that fits the wall.
Who is eligible?
The battery must connect to solar, be on the approved product list, and be installed by a Solar Accreditation Australia accredited installer.
Grid-connected systems must be VPP-capable. That does not mean you must join a Virtual Power Plant for the federal discount itself, but the hardware needs to be able to participate.
Does it stack with state incentives?
Often, yes, but state rules set their own conditions. NSW, South Australia and Western Australia can add value through battery or VPP-linked programs, while other states may rely mostly on the federal discount.
The practical step is to check federal eligibility, then check the state or territory page for the property before accepting a quote.
Should you wait?
Waiting for cheaper hardware is tempting, but the rebate value tapers over time. A lower battery price later can be partly offset by a smaller incentive.
The honest answer is household-specific: model the battery against your usage, tariff, solar generation and backup goals, then compare installing now with waiting.
Sources
Primary references used for this guide.
Rebate settings and certificate values change. Use these sources for live program rules before accepting a quote.
FAQ
How much is the federal battery rebate worth in 2026?
It is roughly 30% off an eligible battery, with the exact value depending on usable capacity, certificate settings and the quote.
Do I have to join a VPP?
Not for the federal discount itself. Grid-connected batteries need to be VPP-capable, but some state incentives require actual VPP participation.
Can it stack with my state's rebate?
Sometimes. Stacking depends on the state program rules, installer accreditation, product eligibility and timing.
Related guides
Keep reading.
Battery rebates
Battery rebate eligibility checklist for Australian homes
Before relying on a battery discount, check that the battery is connected to solar, the usable capacity fits the program rules, the equipment is approved, the inverter path works, and the installer has the right current accreditation.
Battery rebates
Battery rebate quote red flags to check before signing
The rebate should be visible, explainable and tied to eligible equipment. Be careful with quotes that hide the certificate value, use outdated accreditation language, overpromise VPP returns or treat backup power as automatic.
Battery economics
Is a home battery worth it yet?
Home batteries are closer to worth it than they have ever been: the federal rebate takes about 30% off, hardware prices keep falling, grid prices keep rising, and a Virtual Power Plant can add income. But a battery still is not automatically worth it for every home.