On top of the federal Cheaper Home Batteries Program, only a short list of state incentives is still worth planning around, and most of them depend on connecting the battery to a virtual power plant (VPP). Several state schemes that carried real money in 2024 and early 2025 have closed. The federal discount does the heavy lifting now, and state offers are an extra layer that changes quickly.
State schemes are the part of this topic that goes stale fastest, so this page describes what has been reported at the time of writing and tells you where to confirm each item. We do not quote dollar amounts for state schemes.
The federal baseline
Every eligible battery in every state gets the federal discount. The battery must be CEC-approved, VPP-capable, installed by an accredited installer, one per property, between 5 and 100 kWh usable with up to 50 kWh counted. The factor is 6.8 for installs in 2026, 5.7 from 1 January 2027 and 5.2 from 1 July 2027, applied in tiers of 100%, 60% and 15% across the first 14, the next 14 and the last 22 kWh. See the tier explainer for worked numbers. A 13.5 kWh battery creates 91 STCs, about $3,450 at $38.
State by state
| State or territory | What has been reported at the time of writing | What to check |
|---|---|---|
| NSW | The earlier state battery incentive moved into the federal program in 2025. The Peak Demand Reduction Scheme offers a VPP-connection incentive paid through certificates, and a commercial battery incentive has been reported from 1 September 2026. BESS1 under the PDRS was suspended from 1 July 2025. | The NSW Government PDRS pages and your accredited certificate provider |
| WA | A state residential battery scheme is active and requires VPP participation. Funding is capped. | The WA Government scheme page for current availability and which network area you are in |
| SA | The old state subsidy has largely been overtaken by the federal program. VPP offers from retailers still exist. | SA Government energy pages and retailer offers |
| VIC | The Solar Victoria Solar Battery Loan is closed. The Victorian Energy Upgrades program is run by the Essential Services Commission. | Solar Victoria and the Essential Services Commission |
| QLD | The Battery Booster scheme is closed. | Queensland Government energy pages |
| TAS | The Energy Saver Loan is closed. | Tasmanian Government energy pages |
| ACT | The Sustainable Household Scheme has offered zero-interest loans for batteries. Check whether the offer is open and what the cap is. | ACT Government Sustainable Household Scheme page |
| NT | The battery scheme is closed. | NT Government energy pages |
Two caveats. First, this is a snapshot, so treat anything with a date or a cap as unconfirmed until you see the official page. Second, “closed” can mean closed to new applicants while earlier approvals are still being paid. If you were approved before closure, read your own paperwork.
The two that matter most
NSW
NSW households deal with two certificate systems. The Energy Savings Scheme creates ESCs and the Peak Demand Reduction Scheme creates PRCs. For batteries, the PDRS incentive for connecting to an eligible VPP is the relevant piece. PRCs have been reported at around $3 recently, so the incentive is real but modest compared with the federal STC discount. See the NSW VPP incentive answer for how it flows.
Western Australia
WA’s scheme carries a funding cap, so the date you sign matters more than the scheme’s headline. VPP participation is required. If you are in the state, check the funding position on the official page on the day you book installation, and read the WA residential battery scheme answer for the structure.
VPP offers are not rebates, but they are money
Retailers and aggregators pay sign-up credits or ongoing credits to households whose batteries join a VPP. These are commercial offers and they vary a lot. Compare on four points:
- Term and exit fee. A two-year lock-in with a $300 exit fee changes the maths.
- Control. How often can the aggregator discharge the battery, and can you set a minimum reserve?
- Payment form. Bill credit, cash or both.
- Retailer tie-in. Some offers need you to move your electricity plan.
The federal program requires the battery to be VPP-capable, not to be enrolled. You can enrol later or not at all. That matters because, if you buy on the strength of a sign-up payment, you are buying a retailer product on top of the government discount, and you should compare it like one. For the longer analysis, see should you join a VPP for the battery rebate.
A worked example
A household in a metro area installs a 13.5 kWh battery in December 2026.
- Federal discount: 91 STCs x $38 = $3,458.
- State support: nothing available beyond the federal program in most states.
- VPP sign-up credit, if the household chooses it: variable, quoted by the retailer. Treat it as a separate decision.
If the same household were in a state with an active, funded scheme, the state amount comes on top, and the net price falls by that amount. The lesson is to price the battery on the federal discount alone first and add any state or retailer money as a bonus once you have confirmed it in writing.
For installers
You carry the discount until the certificates are paid. State schemes that need extra paperwork, such as VPP evidence for NSW PRCs or WA approval before installation, add work and delay. Build each state’s step into your job checklist and decide who owns it. Certificates themselves are straightforward to settle, and how STC payment works covers timing. The battery STCs page is the home for the federal side. For stacking, see battery rebate stacking, federal and state.
How to check a scheme in five minutes
Because state offers change quickly, the habit matters more than any table. Use this routine whenever a quote mentions state money.
- Name it. Ask the installer for the official name of the scheme, not “the state rebate”.
- Find the owner. Open the relevant department or regulator page, such as the NSW Government PDRS page, the WA Government battery scheme page or Solar Victoria.
- Read the status line. Look for “open”, “paused”, “closed” or “funding exhausted”, and the date of the last update.
- Check the conditions. VPP participation, network area, income tests, installer registration, and whether you must apply before installation.
- Get it in writing. Ask the installer to state in the quote who applies, who is paid and what happens if the scheme closes before the job is done.
If any step cannot be completed, treat the money as zero and price the battery on the federal discount alone. That way a closed scheme costs you nothing you were counting on, and an open one is a bonus. For the federal side, see the federal battery rebate in 2026 and the NSW battery incentive through PRCs.
What to do next
- Confirm the federal discount on your quote: usable kWh, factor, STC count.
- Check the official page of your state or territory for anything still open.
- Get any VPP offer in writing with term, exit fee and control terms.
- Use the battery STC calculator for the baseline.
- Read the state-by-state guide to battery rebates for city pages, and see how it works if you are an installer who wants certificates settled quickly.