Side by side
Battery lease vs buy in Australia: what changes with the rebate
In short
Buying gives ownership and a clear line to the STC discount; leasing or subscribing lowers the upfront cost but moves ownership, and often the benefit of the certificates, to the provider. We do not give financial advice, and whether a particular lease structure qualifies for the program is something to confirm.
A home battery costs thousands of dollars even after the STC discount, so it is natural to ask whether leasing or subscribing beats buying. The honest answer is that they trade different things, and the certificates are one of the places where the trade is easiest to miss.
Side by side
| Buy | Lease or subscription | |
|---|---|---|
| Upfront cost | Full price less the STC discount | Low or none |
| Ownership | You own the battery | The provider usually owns it for the term |
| STC discount | Reflected in your quote, or retained by you | Depends on the contract; may be kept by the provider and priced into payments |
| VPP | Your choice whether to join one | Often bundled with the arrangement |
| Maintenance and warranty | Yours, within the manufacturer warranty | Typically the provider’s |
| End of term | You keep it | Buy out, renew or return |
| Total cost over the term | Known at purchase | Sum of payments plus any buyout |
Where certificates fit
The federal program creates STCs for a battery of 5 to 100 kWh usable capacity, with up to 50 kWh eligible, one per property, which must be CEC-approved and VPP-capable and installed by an accredited installer. 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, with tiers from 1 May 2026 that count the first 14 kWh at 100%, the next 14 at 60% and the next 22 at 15%. At roughly $38 to $40 per STC, a 13.5 kWh battery earns in the order of $3,500 to $3,600.
In a purchase, that value is usually visible on the quote. In a lease, it may be invisible: the provider claims the certificates and prices the lease accordingly. That is not wrong, but you should be able to see it. We have not verified how the program treats every lease structure, so ask the provider to confirm in writing that the installation is eligible and who the registered person is. For the paperwork, see assignment of STC rights.
Questions to ask before you sign
- Who owns the battery during and after the term?
- Who claims the STCs, and how does that show in what I pay?
- Is VPP participation a condition, and can I leave it?
- What happens to payments if the battery fails or the provider changes hands?
- What is the total cost over the term, including any buyout?
For installers
If you sell or install leased batteries, your claim still has to meet the program’s evidence rules, which tightened from 1 March 2026. Check the battery submission guide and make sure the registered person on the claim matches the contract. If you are weighing who should handle the STCs, see VPP-capable vs VPP-enrolled and the battery STC pillar.
A worked illustration
Take a 13.5 kWh battery installed after 1 May 2026, with an STC value of about $3,500 to $3,600 at the time of writing. If you buy, you would expect that value to appear as a discount on the quote. If you lease, ask where it went. It may reduce the provider’s cost of the battery, and so your payments, or it may not appear at all. Neither is wrong; the issue is visibility. Then ask the same question about the end of the term: if you buy the battery out, is there a payment, and is the price written down now? These illustrative figures are not a quote and will change as the factor steps down to 5.7 on 1 January 2027. If you are comparing a lease with a purchase, lay both out as total cost over the same period, with the certificate treatment stated, and a household can then see what the extra convenience costs.
A fair verdict
Buy if you want ownership and a transparent discount; lease or subscribe if you value low upfront cost and provider-managed maintenance and accept the trade. Compare total cost over the term, not the weekly figure. The right answer depends on your finances, which we do not advise on. For the current STC rate, see /pricing/, and for how our process works, /how-it-works/.
How we wrote this. Energy Merchants is a certificate trader, so we have a horse in this race. Statements about other providers are taken from their own public websites on the date shown above and are attributed. If something here is out of date, tell the desk and we will fix it.
Sources: Clean Energy Regulator: Cheaper Home Batteries Program
Questions
Before you decide
Can I get the Cheaper Home Batteries discount on a leased battery?
Who receives the STCs on a leased battery?
Is a VPP plan the same as a lease?
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