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Home electrification policy in Australia, 2026 guide

5 August 2026 · 8 min read

Electrification is a policy story told in dozens of small programs. A household that wants to move from gas and petrol to electricity meets a federal battery scheme, a state hot water program, a retailer offer and an ever-shifting set of loans. For an installer, the job is to know which of those create certificates, which are cash programs and which have closed. This map is as at early October 2026, and it names the schemes and their mechanics. It does not invent amounts that we cannot verify.

The policy logic

Australian governments are pursuing the same three goals through different tools: put more solar and storage on roofs, move hot water and heating to efficient electric technology, and use batteries to ease evening peaks. The tools split into three families.

Family Examples How the money moves
Federal certificate schemes Small-scale solar, solar hot water and heat pump STCs, battery STCs Certificates created by the installer, sold to a trader or retailer-liable entity
State certificate schemes Victorian Energy Upgrades (VEECs), NSW Energy Savings Scheme (ESCs), NSW Peak Demand Reduction Scheme (PRCs) Same logic, with state targets
State grants and loans Solar Victoria rebate, WA battery scheme, others Direct payment or finance, usually with eligibility tests

Federal: batteries lead

The headline federal policy is the Cheaper Home Batteries Program, from 1 July 2025. It creates STCs for batteries of 5 to 100 kWh usable capacity, with up to 50 kWh eligible, for CEC-approved and VPP-capable batteries installed by an accredited installer, one per property. The factor schedule steps every six months: 9.3, 8.4, 6.8 (May to December 2026), 5.7 (from January 2027), 5.2 (from July 2027), and on down to 2030. Since 1 May 2026 the first 14 kWh earns 100% of the factor, 14 to 28 kWh 60%, and 28 to 50 kWh 15%. The reported budget grew from $2.3 billion to $7.2 billion. A 14 kWh battery creates about 95 STCs today. See Bowen battery rebate changes explained.

Small-scale solar remains under the SRES to 31 December 2030, and the scheme now reaches mid-scale solar for systems above 100 kW and up to 1 MW installed from 1 October 2026, with a fixed five-year deeming period. See mid-scale solar and STCs.

Hot water and heat pumps

Heat pump and solar hot water systems create STCs under the same scheme, and some states add certificates. In Victoria, VEECs support heat pump hot water and some heating and cooling activities, with the price reported about $85 to $90 in September 2026. In NSW, the Energy Savings Scheme creates ESCs for some hot water and air conditioning activities, with reported 2026 changes covering gas exclusions and an air conditioning lifetime uplift. See heat pump STCs explained and NSW ESS 2026 changes.

State programs to watch and those closed

Program Status
Solar Victoria rebate Open; household income cap $150,000 from 1 July 2026
NSW PDRS home battery incentive (BESS1) Suspended from 1 July 2025
NSW commercial battery incentive From 1 September 2026 (reported)
WA battery scheme Active, VPP required
NT battery scheme, Tasmania Energy Saver Loan, Queensland Battery Booster, Victoria Solar Battery Loan Closed

For detail, see energy rebates ending in Australia in 2026. We do not give dollar amounts for state rebates here. Check the scheme’s own page for the current figure.

Consumer protection runs alongside

A feature of 2025 and 2026 policy is stronger consumer protection. NSW reported a ban on unsolicited door-knocking to market ESS and PDRS upgrades from 12 September 2025, and the CER tightened battery evidence from 1 March 2026. Installers who sell on the basis of a clear explanation and complete paperwork are positioned well. Those who rely on pressure are not.

Where certificates fit

For each electrification technology, there is a certificate that funds part of the price:

Technology Main certificate
Rooftop solar to 100 kW STCs (deeming-period based)
Mid-scale solar, above 100 kW to 1 MW from 1 Oct 2026 STCs, fixed 5-year deeming
Home battery STCs, factor based
Heat pump hot water and solar hot water STCs, with VEECs in Victoria and ESCs in NSW for some activities
Efficient heating and cooling VEECs (Victoria), ESCs (NSW)

An all-electric retrofit can therefore involve several certificate types on one job, with different traders, forms and rules. Our guide on VEECs and STCs on the same job is worth a read before you quote a multi-activity project.

From the desk: On an all-electric retrofit, list each certificate on the quote with its scheme, its count, its date dependency and who it is assigned to. A customer who sees a line for solar STCs, battery STCs and a state certificate understands where the discount is coming from, and you can see which part is exposed to a date step.

What is not decided

Policy beyond 2030 is open. The SRES ends on 31 December 2030, and there is no announced like-for-like replacement at the time of writing. The government’s wider agenda (grid, tariffs, demand flexibility) will keep generating new programs, and some will replace ones that close. See what happens after 2030.

A customer journey through the schemes

Take a Melbourne household replacing gas hot water, adding 6.6 kW of solar and a 14 kWh battery in the same month. The solar creates STCs (39 in 2026 in zone 4). The battery creates about 95 STCs at the current factor. The heat pump creates STCs and, depending on the activity, VEECs under Victorian Energy Upgrades. The Solar Victoria rebate may apply if the household is under the $150,000 income cap, and eligible products and installers are needed for each. That is four sources of discount on one job, with different rules and dates. A customer who understands where the discount comes from will not be upset when one step changes.

For a related answer on how the Victorian program treats air conditioning, see VEU air conditioning rebates, and for a state-by-state view of batteries see battery rebates by state.

What to do next

Questions

Quick answers

What is the main federal home electrification program in 2026?
The Cheaper Home Batteries Program, which has created STCs for batteries from 1 July 2025. The factor is 6.8 at the time of writing, stepping to 5.7 on 1 January 2027.
Do heat pumps get certificates?
Yes. Heat pump and solar hot water systems create STCs under the small-scale scheme, and state schemes such as Victorian Energy Upgrades and the NSW Energy Savings Scheme add certificates for some activities.
Are state electrification rebates still open?
It varies. Several loans and top-ups have closed, including Queensland's Battery Booster and Victoria's Solar Battery Loan, while others continue. Check each scheme's own page.

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