Solar and Battery Rebates in Australia (2026)
The federal government subsidises solar panels and home batteries through the same certificate scheme, and both discounts shrink every year to 2030. Here is how they are calculated, what changed in 2026, and what each state adds.
Australia’s main solar and battery rebates are federal, and both work the same way. Under the Small-scale Renewable Energy Scheme, an eligible solar or battery system earns small-scale technology certificates (STCs). Your installer normally takes the value of those certificates off your quote in exchange for the right to create and sell them. For solar panels the number of certificates falls every year until the scheme ends in 2030. For batteries, the Cheaper Home Batteries Program has paid for certificates since 1 July 2025, and the rate was cut and tapered by battery size from 1 May 2026.
On top of that, some states add their own rebate or loan. This guide explains how each piece is calculated and what is open as at September 2026.
At a glance
| Program | Where | What it offers | Status (September 2026) |
|---|---|---|---|
| Solar panel STCs (SRES) | Australia-wide | Certificates worth up to about $40 each, based on system size, zone and year | Open; smaller each year to 2030 |
| Cheaper Home Batteries Program | Australia-wide | Around 30% off an eligible battery with solar | Open; rate cut and tapered from 1 May 2026 |
| Solar Homes solar panel rebate | Victoria | Up to $1,400, plus an optional matching interest-free loan | Open; battery loans closed |
| VPP incentive (PDRS) | NSW | Upfront payment for connecting a battery to a virtual power plant | Open; household battery installation discount ended |
| Sustainable Household Scheme | ACT | Loans of $2,000–$20,000 at 3% | Open |
| WA Residential Battery Scheme | WA | Rebate up to $1,300 (Synergy) or $3,800 (Horizon Power), plus no-interest loans | Open until 100,000 rebates are paid |
How the solar panel rebate is calculated
Each STC represents 1 MWh of renewable electricity a system is deemed to generate. For a solar panel system, the Clean Energy Regulator’s formula uses three things:
- System size in kW.
- Zone rating, which reflects how much sun your postcode gets. There are four zones, from Zone 1 (1.622) in the sunniest parts of the country to Zone 4 (1.185), which includes Melbourne, Tasmania and other southern areas.
- Deeming period: the number of years of output the system is credited with up front. It falls by one year every year until the scheme ends in 2030.
| Installation year | Deeming period (years) |
|---|---|
| 2025 | 6 |
| 2026 | 5 |
| 2027 | 4 |
| 2028 | 3 |
| 2029 | 2 |
| 2030 | 1 |
A rough estimate is kW × zone rating × deeming years, rounded down. For example, a 6.6 kW system in Zone 3 (rating 1.382) installed in 2026 would earn about 6.6 × 1.382 × 5 = 45 certificates. That example shows the arithmetic only; the Clean Energy Regulator’s calculator gives the exact number for your postcode.
What a certificate is worth
STCs are traded. Prices on the open market move with supply and demand; the government’s STC clearing house caps the price at $40 excluding GST, but does not guarantee how quickly certificates will sell there. The Clean Energy Regulator reported that STC prices stayed close to $40 throughout the June quarter of 2026. In practice most households assign their certificates to the installer, whose quoted discount reflects the price it expects to get.
Conditions
To create certificates, the system must use panels, inverters and batteries on the Clean Energy Council’s approved list, be designed and installed by a Solar Accreditation Australia accredited installer, and have its certificates created within 12 months of installation. Systems must be no larger than 100 kW. The government has expanded the scheme to mid-scale solar of up to 1 MW installed from 1 October 2026, mainly relevant to businesses.
Accreditation moved from the Clean Energy Council to Solar Accreditation Australia on 29 May 2024, so ask for the installer’s SAA accreditation number.
How the Cheaper Home Batteries Program works
The program started on 1 July 2025. It gives a discount of around 30% on the upfront cost of an eligible battery between 5 and 100 kWh, delivered through STCs based on the battery’s usable capacity. The government buys the certificates created for batteries, so the program’s cost is not passed on to other electricity customers. You do not apply to the government: the installer or retailer either takes the discount off the price or pays it as a rebate after installation.
To be eligible, the battery must:
- be installed with new or existing solar of no more than 100 kW (grid-only batteries do not qualify);
- be on the Clean Energy Council’s approved battery list and installed by, or under the on-site supervision of, an SAA accredited battery installer;
- be capable of joining a virtual power plant, although joining one is not required.
Certificates are only created for the first 50 kWh of usable capacity.
What changed on 1 May 2026
In December 2025 the government expanded the program’s budget from an estimated $2.3 billion to $7.2 billion over four years, and changed how the discount is calculated from 1 May 2026, with the aim of keeping it at around 30% as battery prices fall.
First, the number of certificates per kWh (the STC factor) was cut and now steps down every six months:
| Installation period | STCs per usable kWh |
|---|---|
| January–April 2026 | 8.4 |
| May–December 2026 | 6.8 |
| January–June 2027 | 5.7 |
| July–December 2027 | 5.2 |
| January–June 2028 | 4.6 |
| July–December 2028 | 4.1 |
| January–June 2029 | 3.6 |
| July–December 2029 | 3.1 |
| January–June 2030 | 2.6 |
| July–December 2030 | 2.1 |
Second, the factor now tapers with battery size: it applies in full to the first 14 kWh, at 60% for each kWh from 14 to 28 kWh, and at 15% for each kWh from 28 to 50 kWh.
For example, a battery with 13.5 kWh of usable capacity installed in October 2026 would earn about 13.5 × 6.8 = 91 certificates. The discount is fixed by the installation date, not the date you sign the contract, so a delayed install can cost you money if it slips past a step-down date.
State programs
Victoria
Solar Victoria’s solar panel rebate is worth up to $1,400 (half the cost after STCs, capped at $1,400), with an optional interest-free loan for the same amount. It is for owner-occupiers with a combined household taxable income under $150,000, a property worth less than $3 million, and no solar installed at the address in the past 10 years. You must use an authorised retailer. Solar Victoria is no longer taking applications for battery loans.
NSW
The NSW battery installation discount for households under the Peak Demand Reduction Scheme ended when the federal program began, and the two could not be combined. NSW still pays an upfront incentive for connecting a battery to a virtual power plant; from 1 July 2026 batteries of 2 to 50 kWh are eligible, and it can be claimed on top of the federal discount.
ACT
The Sustainable Household Scheme lends $2,000 to $20,000 at 3% interest over up to 10 years for batteries, heat pumps and other upgrades. Eligible concession card holders can get zero-interest loans, including for solar, under the Home Energy Support Program.
Western Australia
The WA Residential Battery Scheme pays a rebate of up to $1,300 for Synergy customers and up to $3,800 for Horizon Power customers (based on 10 kWh of usable capacity), plus no-interest loans of up to $10,000 for households earning under $210,000. You must join a virtual power plant with Synergy or Horizon Power. It runs until 100,000 rebates have been paid.
Other states
Earlier state battery programs, including South Australia’s Home Battery Scheme and Queensland’s Battery Booster, have closed. Check your state government’s energy website for any new program before you sign.
Before you sign a quote
- Check the discount is itemised. The quote should show the STC discount, and any state rebate, separately from the price.
- Check the installation date. Battery certificates step down every six months, and the discount follows the install date.
- Check the installer and retailer. Ask for the SAA accreditation number. Buying from a New Energy Tech Consumer Code signatory is voluntary but brings extra protections on sales practices and warranties.
- Check the numbers work. A discount lowers the cost but not the saving. Our guide on whether solar batteries are worth it shows how to test payback against your own bill, and our feed-in tariff guide covers what you will be paid for exports.
For the bigger picture on how solar pays and which plans suit solar households, see our solar hub.
Frequently asked questions
How much is the solar rebate in 2026?
The federal solar rebate is paid as small-scale technology certificates (STCs). The number depends on your system's size, your postcode's zone rating and the installation year; a system installed in 2026 is credited with five years of deemed output. Multiply kW by the zone rating by 5 and round down to get an estimate, then use the Clean Energy Regulator's calculator. Certificates trade at up to about $40 each, and the installer normally takes their value off the price.
How does the Cheaper Home Batteries Program work?
It gives a discount of around 30% on the upfront cost of an eligible battery of 5 to 100 kWh installed with new or existing solar. The discount comes as STCs based on the battery's usable capacity, which the installer or retailer takes off the price or pays as a rebate. You do not apply to the government yourself.
Did the battery rebate change in 2026?
Yes. From 1 May 2026 the certificates per kWh were cut from 8.4 to 6.8, and the rate now tapers with size: full rate for the first 14 kWh, 60% for each kWh from 14 to 28, and 15% from 28 to 50. The rate now also steps down every six months until the end of 2030.
Do I need an accredited installer to get the rebate?
Yes. The system must be designed and installed by a Solar Accreditation Australia accredited installer (with a battery endorsement for batteries), using products on the Clean Energy Council's approved list.
Can I get the battery discount without solar?
No. Batteries that only store power from the grid are not eligible. The battery must be installed with new or existing solar of no more than 100 kW.
Can I combine federal and state battery rebates?
Sometimes. WA's Residential Battery Scheme and NSW's virtual power plant incentive can be claimed on top of the federal discount. NSW's own battery installation discount for households ended when the federal program began, and the two could not be combined.
