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Battery STCs and Cheaper Home Batteries Program

Home battery rebate in Australia: what is available

Short answer

The main home battery rebate in Australia is the federal Cheaper Home Batteries Program, which pays STCs for batteries from 5 to 100 kWh, up to 50 kWh counted. Some states add incentives, and VPP operators may add credits.

Written and checked by the Energy Merchants desk · Reviewed 2 October 2026 · For homeowners

Australia has one national home battery rebate and a patchwork of state and retailer incentives on top. Understanding the layers makes it much easier to compare quotes.

Layer one: the federal program

The Cheaper Home Batteries Program began on 1 July 2025. It pays through small-scale technology certificates for batteries of 5 to 100 kWh usable capacity, with the first 50 kWh counted. The factor is 6.8 STCs per kWh in 2026 and 5.7 from 1 January 2027, and since 1 May 2026 it is tiered: full value to 14 kWh, 60 per cent to 28 kWh, 15 per cent to 50 kWh. At about $38 to $40 per STC a 14 kWh battery earns roughly $3,600 to $3,800.

Requirements: a CEC-approved, VPP-capable battery, an accredited installer, a solar system at the property, and one rebate per property.

Layer two: state schemes

Some states and territories add their own incentives or finance, and the details change often. New South Wales has a Peak Demand Reduction Scheme incentive linked to connecting a battery to a VPP. Western Australia has a residential battery scheme. Check your own state government energy page for the current rules, because amounts and eligibility move.

Layer three: VPP and retailer offers

A virtual power plant operator may pay a sign-up credit or ongoing earnings for letting them manage your battery at peak times. These are contracts, not rebates, so read the terms about how often your battery can be called on.

From the desk: Add up every layer on paper, then subtract the lock-in of any contract. A large sign-up credit with a long term is not the same as a rebate.

What this means for you

Start with the federal figure, since it is the same for everyone, then check your state and any VPP offers. See the 2026 rebate, the NSW incentive and the WA scheme. The battery STC pillar explains how it works, and how it works shows how installers turn certificates into your discount. For the cost after discount, read how much a battery costs after the rebate.

Follow-up questions

People also ask

Is the rebate the same in every state?
The federal part is the same everywhere. State and VPP incentives differ.
Do I need solar to get the rebate?
Yes. The battery must be paired with a new or existing solar system.

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