Installers and homeowners often ask whether the way a battery is connected changes the rebate. For the federal Cheaper Home Batteries Program, it does not. What matters is the battery, the installer and the install date, not whether the battery sits on the DC or AC side of the inverter.
What decides the STC amount
The number of STCs depends on the usable capacity (5 to 100 kWh usable, with up to 50 kWh counted), the factor for the date of installation, and the tier weighting: the first 14 kWh at 100% of the factor, 14 to 28 kWh at 60% and 28 to 50 kWh at 15%. The factor is 6.8 at the time of writing, stepping down to 5.7 on 1 January 2027 and 5.2 on 1 July 2027. Work it through in the battery STC calculator.
DC-coupled batteries
A DC-coupled battery connects to the solar array through a hybrid inverter, so charge never leaves DC form on the way in. It earns battery STCs exactly as any other battery does, as long as the battery model is on the CEC-approved list and is VPP-capable. Check the listing for the specific battery and inverter combination, because some batteries are approved only when paired with particular inverters.
If the install is a new hybrid inverter plus new panels plus a battery, you are really lodging two claims: small-scale solar STCs for the panels (using the deeming period and zone rating) and battery STCs for the storage.
AC-coupled batteries
An AC-coupled battery has its own inverter and connects on the AC side, which makes it the usual way to add storage to an existing solar system. The panels already on the roof stay as they are, and nothing new is claimed on them. The battery is claimed on its own capacity. This is covered in more detail for adding a battery to existing solar.
Battery-only installs
A battery-only install, with no solar on site and none being added, can still qualify. The program is about storage that can support the grid through a VPP, not about generation. The battery without solar page covers the homeowner view. For the installer, the checklist is the same as any other battery job:
- CEC-approved battery and, where relevant, the approved inverter pairing
- VPP capability confirmed for the model
- an accredited installer who attends the install
- one eligible battery per property
- photo evidence that meets the rules in force since 1 March 2026
What this means for installers
Do not describe a job on the claim as “hybrid” or “retrofit” in a way that changes the STC calculation; the form asks for facts, and the calculation does not change. Where mistakes happen is the photo set: capture the battery label, the inverter, the isolators and the installed position clearly. Our battery submission guide lists the shots, and how it works shows how a claim moves from lodgement to payment.
For the wider rules, see battery STCs and the STC trading overview.