The Federal Battery Rebate - In short
The federal battery rebate takes roughly 30 per cent off the installed cost of a home battery. It is not a cheque in the post and it is not something you apply for after the fact. It arrives as a discount on your invoice, calculated from the size of your battery and the date it is installed.
Two things changed on 1 May 2026, and most pages online still have them wrong. The rebate is now tiered by battery size, so the first 14 kWh earns far more per kilowatt hour than anything above it. And the value now steps down every six months instead of once a year. The next reduction is 1 January 2027.
This page shows the actual numbers: what each battery size is worth today, how the tiers are calculated, when the value drops and by how much. We install these systems ourselves across Lismore, Byron Bay, Ballina, Alstonville, Mullumbimby and Nimbin, so the figures here are the same ones we put on our quotes.
Two things changed on 1 May 2026, and most pages online still have them wrong. The rebate is now tiered by battery size, so the first 14 kWh earns far more per kilowatt hour than anything above it. And the value now steps down every six months instead of once a year. The next reduction is 1 January 2027.
This page shows the actual numbers: what each battery size is worth today, how the tiers are calculated, when the value drops and by how much. We install these systems ourselves across Lismore, Byron Bay, Ballina, Alstonville, Mullumbimby and Nimbin, so the figures here are the same ones we put on our quotes.
What the federal battery rebate actually is
The rebate runs under the Cheaper Home Batteries Program, which began on 1 July 2025 and is funded through to the end of 2030. It works through the Small-scale Renewable Energy Scheme, the same mechanism that has discounted rooftop solar in Australia for years. Your battery generates small-scale technology certificates, or STCs, and your installer trades those certificates and passes the value straight through as a discount on your invoice.
You do not fill in a form or wait for a payment. The discount is already deducted from the price you are quoted. Batteries between 5 kWh and 100 kWh are eligible, although certificates are only generated on the first 50 kWh of usable capacity.
The program's funding was expanded from $2.3 billion to $7.2 billion in December 2025. That is worth understanding clearly, because it is widely misreported: the total pool of money got bigger, but the amount an individual household receives has been falling, and will keep falling every six months until the scheme ends.
You do not fill in a form or wait for a payment. The discount is already deducted from the price you are quoted. Batteries between 5 kWh and 100 kWh are eligible, although certificates are only generated on the first 50 kWh of usable capacity.
The program's funding was expanded from $2.3 billion to $7.2 billion in December 2025. That is worth understanding clearly, because it is widely misreported: the total pool of money got bigger, but the amount an individual household receives has been falling, and will keep falling every six months until the scheme ends.
How much the rebate is worth in 2026
The figures below apply to any battery installed between 1 May and 31 December 2026. They are calculated from the current STC factor of 6.8 and an STC price of $38 after administration fees. Note what happens between the last two rows: adding another 2 kWh above 28 kWh adds barely $80 of rebate. That is the tiering at work, and it is the single most useful thing on this page when you are choosing a size.
| Usable capacity | STCs generated | Indicative rebate | Typical household |
|---|---|---|---|
| 10 kWh | 68 | $2,580 | Smaller home, evening load shifting |
| 13.5 kWh | 91 | $3,450 | Average family home, whole evening covered |
| 14 kWh | 95 | $3,610 | Best value per kWh. Top of the full-rate tier |
| 16 kWh | 103 | $3,910 | Larger home, first 2 kWh at the reduced rate |
| 20 kWh | 119 | $4,520 | High usage, or backup for most of the house |
| 25 kWh | 140 | $5,320 | Large rural property or light commercial |
| 28 kWh | 152 | $5,770 | Top of the 60 per cent tier |
| 30 kWh | 154 | $5,850 | Two extra kWh add roughly $80. The rebate has flattened out |
Indicative only. Based on an STC factor of 6.8 for installations from 1 May to 31 December 2026, an STC price of $38 after administration fees, and certificates rounded down to whole numbers. STC prices move with the market, typically between $37 and $40, so your figure may vary by a few per cent either way. We confirm the exact amount on your quote.
How the size tiers work since 1 May 2026
Before May 2026 every kilowatt hour earned the same rebate. It does not any more. Your battery is now split into bands, and each band earns a different share of the STC factor. The bands apply to portions of the battery, not to the battery as a whole, so a 20 kWh system earns the full rate on its first 14 kWh and the reduced rate only on the remaining 6 kWh.
| Portion of your battery | Share of the rebate applied | Worth per kWh today | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| First 14 kWh | 100 per cent | $258 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Above 14 kWh, up to 28 kWh | 60 per cent | $155 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Above 28 kWh, up to 50 kWh | 15 per cent | $39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Above 50 kWh | No rebate | $0 |
| Installation period | STC factor | Rebate on 13.5 kWh |
|---|---|---|
| July to December 2025 | 9.3 | $4,750 |
| January to April 2026 | 8.4 | $4,290 |
| May to December 2026 ← current rate | 6.8 | $3,450 |
| January to June 2027 ← next step-down | 5.7 | $2,880 |
| July to December 2027 | 5.2 | $2,660 |
| January to June 2028 | 4.6 | $2,350 |
| July to December 2028 | 4.1 | $2,090 |
| January to June 2029 | 3.6 | $1,820 |
| July to December 2029 | 3.1 | $1,550 |
| January to June 2030 | 2.6 | $1,330 |
| July to December 2030 | 2.1 | $1,060 |
What waiting until 2027 costs you
The rate is locked by the date your battery is installed and commissioned, not the date you sign a contract or pay a deposit. A December quote installed in January attracts the January rate. That distinction is worth real money.
| Battery size | Installed by 31 Dec 2026 | Installed from 1 Jan 2027 | Difference |
|---|---|---|---|
| 10 kWh | $2,580 | $2,160 | $420 less |
| 13.5 kWh | $3,450 | $2,880 | $570 less |
| 20 kWh | $4,520 | $3,800 | $720 less |
Northern Rivers installation slots for December typically fill from around October, and grid connection approvals add time on top. If a 2026 installation matters to you, the practical deadline for booking is earlier than the calendar suggests.
Who is eligible?
Eligibility is assessed at the point of installation and depends on the final system design, so the definitive answer comes with your quote. That said, the rules are not complicated and most Northern Rivers households meet them without difficulty. There is no income test and no means test of any kind.
| What qualifies | What does not |
|---|---|
|
|
Two points that are often buried elsewhere and worth stating plainly. There is no income cap, so household earnings do not affect your eligibility or your amount. And landlords can claim on multiple properties, provided each has its own electricity meter and has not claimed before.
Do I have to join a virtual power plant?
No. Your system must be technically capable of joining one, which almost every quality battery on the market already is, but participation is entirely your choice. You can claim the full federal rebate and never join a virtual power plant. If you do choose to join, there is a separate NSW incentive available on top, covered below.
Other incentives you can stack in New South Wales
The federal rebate is designed to sit alongside state programs rather than replace them. In New South Wales there are two worth knowing about, and one common misunderstanding to clear up.
The NSW virtual power plant incentive
New South Wales suspended its upfront battery installation incentive on 1 July 2025 when the federal program took over, and it has not been reinstated. What remains is a separate incentive for connecting an eligible battery to an approved virtual power plant, paid through the Peak Demand Reduction Scheme. From 1 July 2026 it covers batteries from 2 kWh to 50 kWh and no longer requires you to have solar. It stacks with the federal rebate. Because the payment derives from certificate market prices rather than a fixed schedule, the amount varies.
NSW Home Energy Saver Program
Launched on 1 July 2026, this offers interest-free loans of up to $15,000 repayable over ten years, covering batteries alongside solar, heat pump hot water and other efficiency upgrades. Combined household income must be $210,000 or below. Additional discounts of up to $4,000 for lower-income and concession-card households were flagged for later in 2026.
Feed-in tariffs and the free power window
Feed-in tariffs are not a rebate, but they change the maths on how big a battery should be. As export rates in New South Wales have fallen, the value of storing your own solar rather than selling it has risen, which is the real economic argument for a battery. Retailers now also offer free power windows in the middle of the day, which a well-configured battery can charge from. We factor both into the sizing we recommend.
Choosing the right battery size
The tiering makes 14 kWh look like the obvious answer, and for a lot of households it is. But the rebate is a discount on a purchase, not the reason for the purchase. A battery too small to carry your evening load costs you more in electricity you keep buying than it ever saves you in rebate. Size to the load first, then check what the rebate does to the price.
| Household profile | Typical household usage | Recommended capacity | Why |
|---|---|---|---|
| Couple, modest evening load | 12 – 15 kWh/day | 10 – 13.5 kWh | Entirely in the full-rate tier |
| Family home, standard load | 15 – 20 kWh/day | 13.5 – 16 kWh | Maximises the full-rate tier |
| Large family, pool or ducted air | 20 – 28 kWh/day | 16 – 20 kWh | Some reduced-rate capacity |
| Rural property, backup a priority | 25 kWh/day and above | 20 – 28 kWh | Resilience beats rebate rate |
If you live west of the highway, or anywhere the network drops out in a storm, the sizing conversation changes completely. Backup capability is worth more to you than rebate efficiency, and we will say so even though it means recommending a size that earns proportionally less. That is the trade-off, stated openly.
Be cautious of rebate-led sales offers
Every time a government incentive is announced, a wave of operators follows it. We have had Northern Rivers customers come to us after signing with companies that had no local presence, no accreditation they could name, and no intention of servicing the system afterwards. The warning signs are consistent:
- Pressure to sign today, usually framed as a rebate deadline that does not match the published schedule
- A quote that does not itemise the STC discount as a separate line, so you cannot see what you are actually receiving
- No named accredited installer and no local address
- A price well below the market with no product specifications attached
- Claims that the rebate has increased. It has not. It has fallen every step since July 2025
A legitimate quote will show you the battery make and model, the usable capacity, the STC quantity and the discount value. If any of those are missing, ask for them before you sign anything.
Choosing a battery installer in the Northern Rivers
The rebate is the same wherever you buy. What differs is whether the system is sized correctly, installed properly and supported afterwards. Three things worth checking before you commit:
- Accreditation you can verify. Ask for the installer's Solar Accreditation Australia number and the electrical contractor licence.
- A local presence. Batteries need service. An interstate call centre cannot attend your site in three years when a module needs replacing.
- A fixed, itemised quote. No fine print, no variable rebate assumptions, no allowances that move after installation.
Rainbow Power Company has been designing and installing energy systems from Nimbin since 1987, which makes us one of the longest-serving solar businesses in the country. We are a registered electrical contractor in New South Wales (198555C) and Queensland (S9580814), our installers are accredited with Solar Accreditation Australia, and we handle design, paperwork, installation and aftercare ourselves. We are not a call centre and we do not subcontract your job to whoever is closest.
Get a battery assessment
Rebate figures on a website are indicative by nature. Your actual amount depends on the usable capacity of the battery you choose and the date it goes in. An assessment gives you the real number alongside everything else that matters:
- Your genuine evening and overnight load, from your bills rather than an estimate
- The right usable capacity for that load, weighed against the tier thresholds
- Your exact rebate amount, itemised on the quote
- Whether a virtual power plant incentive is worth adding in your situation
Federal battery rebate FAQs
How much is the federal battery rebate in 2026?
For batteries installed between 1 May and 31 December 2026, roughly $2,580 on a 10 kWh system, $3,450 on 13.5 kWh and $4,520 on 20 kWh. The amount is calculated from usable capacity and the current STC factor of 6.8, and arrives as a discount on your invoice.
When does the battery rebate reduce again?
1 January 2027, when the STC factor falls from 6.8 to 5.7. That is a reduction of roughly 16 per cent. After that it steps down every January and July until the scheme ends on 31 December 2030.
If I sign now but install next year, which rate do I get?
The installation rate, not the signing rate. Eligibility and value are assessed at the point of installation, so a system commissioned in January 2027 attracts the January 2027 rate regardless of when the contract was signed or the deposit paid.
Is there an income limit for the battery rebate?
No. The federal rebate has no means test and no income cap. Household earnings do not affect your eligibility or the amount you receive. Some state programs, such as the NSW Home Energy Saver loans, do apply income thresholds.
Can I get the rebate if I already have solar?
Yes. The battery can connect to an existing rooftop solar system, it does not have to be installed at the same time as new panels. The age of your solar system does not affect the rebate, although it may affect which batteries are compatible.
Can I claim the rebate on a second battery?
No. It is one claim per premises, tied to the electricity meter. If a battery has already been claimed at that address, a second one is not eligible, even under a new owner. Landlords can claim once on each property they own where each has a separate meter.
Do I have to join a virtual power plant?
No. Your system must be capable of joining one, which most quality batteries already are, but participation is optional and does not affect your federal rebate. Joining does unlock a separate NSW incentive if you want it.
Can I combine the federal rebate with NSW incentives?
Yes. The federal scheme is designed to complement state programs. In New South Wales you can claim the federal rebate and the virtual power plant incentive on the same battery. The NSW upfront installation incentive has been suspended since 1 July 2025.
What battery size gets the best rebate value?
Per kilowatt hour, 14 kWh. It is the largest capacity that sits entirely in the full-rate tier. Above that the rate drops to 60 per cent, and above 28 kWh it drops to 15 per cent. Best rebate value and best system for your home are not always the same thing.
Does the rebate apply to off-grid systems?
The program is written around grid-connected systems, and off-grid eligibility depends on the specific configuration. Given how much off-grid work we do across the Northern Rivers, we will confirm exactly where your system sits before you commit to anything.
Do I claim the rebate myself?
No. Your installer creates and trades the certificates and passes the value through as a discount on your invoice. There is no form for you to complete and no waiting period. The discount is already reflected in the price you are quoted.
What happens after 2030?
The scheme is legislated to end on 31 December 2030. The final period, July to December 2030, carries an STC factor of 2.1, which is under a quarter of the launch rate. No replacement program has been announced.