Battery rebates and government incentives have made home storage more affordable than ever — but the landscape has changed dramatically in the past year. Several state programs have closed, a major new federal program launched in mid-2025, and program rules are already being tightened. This guide summarises what is actually available right now, but note that eligibility rules, dollar amounts, and program status can change with very little notice. Always verify the current status with the relevant authority before committing to a purchase.
The Federal Cheaper Home Batteries Program (National — Open)
The most significant development since mid-2025 has been the federal government's Cheaper Home Batteries Program, which launched on 1 July 2025 and replaced the patchwork of state-only subsidies as the primary national incentive.
The program works through the existing Small-scale Renewable Energy Scheme (SRES). When you install an eligible battery, your installer creates Small-scale Technology Certificates (STCs) — which the government buys — and passes the value to you as an upfront discount off the installed price. There is no application form or rebate claim to submit; the discount comes off your quote directly.
What you can expect to save
From 1 July 2025 to 30 April 2026, the discount worked out to approximately $311–$340 per usable kWh of battery capacity. For a typical 10 kWh battery, that is roughly $3,100–$3,400 off the installed price — broadly equivalent to a 30% discount.
From 1 May 2026 the STC factor dropped and a tiered structure was introduced:
- First 14 kWh of usable capacity: full STC factor
- 14–28 kWh: 60% of the STC factor
- 28–50 kWh: 15% of the STC factor
If you are considering a larger battery (over 14 kWh), the discount per kWh falls substantially above that threshold. For most households a 10–13.5 kWh battery captures the maximum benefit per dollar spent.
Eligibility requirements
- The battery must be between 5 kWh and 100 kWh in nominal capacity
- It must be installed with new or existing rooftop solar (grid-connected batteries only — standalone grid-storage without solar does not qualify)
- The battery model must be on the CEC approved product list at the time of installation
- Installation must be carried out by a Solar Accreditation Australia (SAA) accredited installer who is on site for set-up, installation, and commissioning
- The battery must have the technical capability to participate in a VPP at the time of installation (it does not have to be actively enrolled in one)
- Only the first installation on a premises is eligible — a second battery added later does not qualify
- The battery must remain installed until after 2030 or until the end of its warranty period, whichever is later
- Batteries tested and certified before 1 July 2025 are not eligible, even if installed after that date
Practical tip: Before signing a contract or paying a deposit, confirm with your installer that the exact battery model (and firmware variant, if applicable) appears on the current CEC approved product list. The list is updated regularly and a product can be de-listed. Ask for the model number in your quote — do not rely on a shorthand product name.
Victoria (State program: CLOSED — federal program applies)
Solar Victoria's interest-free battery loan program — which offered up to $8,800 in zero-interest financing repaid over four years — closed to new applications in late May 2025. The closure was foreshadowed in the Victorian government's 2025/26 budget, and funding ended on 30 June 2025.
Victorian homeowners now rely entirely on the federal Cheaper Home Batteries Program described above. The state solar panel rebate and interest-free solar loan remain open, but there is no current Victoria-specific battery incentive.
South Australia (State program: CLOSED — REPS VPP bonus available)
South Australia's Home Battery Scheme, which at its peak offered subsidies of up to $6,000 and helped more than 39,000 households, closed in 2022. The state government has not replaced it with a direct household battery subsidy.
However, South Australian homeowners can stack a meaningful additional incentive on top of the federal program:
REPS Virtual Power Plant rebate (up to $2,050)
Under South Australia's Retailer Energy Productivity Scheme (REPS), households that connect their home battery to a REPS-approved Virtual Power Plant can receive a cash rebate of up to $2,050. This is paid by the VPP operator as part of your enrolment and is separate from the federal STC discount.
Combined, the federal Cheaper Home Batteries Program plus the REPS VPP rebate can reduce the out-of-pocket cost of a battery by a substantial amount for eligible SA households.
The SA government has also rolled out the emPowering SA program, which deploys community-scale batteries (owned by the state government, operated by AGL) across the network. Shortlisted households with existing rooftop solar in targeted areas can benefit from reduced electricity costs without installing their own battery — but this is a network program, not a household hardware grant.
Practical tip: Not all VPP operators are REPS-approved. Confirm your chosen VPP is on the approved list before enrolment. The maximum $2,050 figure assumes the full eligible battery capacity is enrolled; the actual payment depends on battery size.
New South Wales (PDRS BESS2 VPP incentive — Open)
NSW no longer offers a general upfront rebate for installing a battery. The BESS1 activity under the Peak Demand Reduction Scheme (PDRS), which issued Peak Reduction Certificates (PRCs) as a point-of-sale discount for all new residential battery installations, ended on 1 July 2025.
What remains is the BESS2 VPP connection incentive: a one-off payment of up to $1,500 for connecting an eligible battery to a VPP. The incentive is open to both newly installed batteries and existing batteries that have not previously claimed a NSW rebate.
Eligibility for the BESS2 incentive
- Battery must have 2–28 kWh of usable storage
- Must have at least 6 years of remaining warranty
- The property must have solar PV
- Must be grid-connected
- The battery model must be on the Clean Energy Regulator's approved list for VPP participation
- Businesses as well as households can apply (eligibility was expanded in mid-2025)
Practical tip: The incentive is administered by Accredited Certificate Providers (ACPs), not by homeowners directly. Ask your installer or VPP provider to manage the claim on your behalf. ACPs may charge a brokerage or administration fee, which reduces the net payment you receive — the final amount is often less than $1,500. Get the net figure in writing before proceeding.
Queensland (No state program — federal program applies)
Queensland's Battery Booster program closed in May 2024. There is currently no Queensland state battery rebate. Queensland homeowners access support through the federal Cheaper Home Batteries Program only.
Retailer and VPP operator incentives are available — some programs offer bill credits or upfront payments in exchange for VPP enrolment — but these vary significantly by provider and change frequently.
Virtual Power Plant (VPP) programs nationally
Across all states, several retailers and network operators offer incentives in exchange for VPP participation. These typically take the form of upfront discounts, bill credits, or ongoing payments. Major programs include those run by AGL, Origin Energy, Amber Electric, Sonnen, and Discover Energy.
Incentive values vary widely. As a rough guide, additional VPP enrolment payments range from $250 to $2,050 depending on the operator, your location, and battery size. South Australia has the strongest VPP incentives due to the REPS scheme.
Important: VPP operators retain some control over when your battery charges and discharges during grid events. Read the participation agreement carefully — some contracts have minimum term commitments or exit penalties.
See our VPP comparison guide for a side-by-side breakdown of current programs.
Stacking incentives: the full picture
The best outcomes come from combining available incentives. As an example, a South Australian household installing a 10 kWh battery might access:
- Federal Cheaper Home Batteries Program: ~$3,100–$3,400 off upfront
- REPS VPP rebate: up to $2,050 additional
That is a combined reduction of over $5,000 on a typical installed system. NSW households can layer the federal discount with the $1,500 BESS2 VPP incentive. Victorian and Queensland households currently have access to the federal discount only.
Our calculator lets you enter your rebate amount and models the adjusted payback period so you can see what the numbers look like for your situation.
A word of caution
Rebate programs in Australia change frequently — sometimes with only weeks of notice. The information above reflects the position as at mid-2026 based on publicly available sources, but specific amounts, eligibility rules, and program status should be verified directly with the relevant authority before you purchase:
- Federal program: Clean Energy Regulator — cer.gov.au/batteries
- Victoria: Solar Victoria — solar.vic.gov.au
- South Australia: SA Energy & Mining — energymining.sa.gov.au
- NSW: NSW Energy — energy.nsw.gov.au
Any installer who tells you a rebate is guaranteed or that you "definitely qualify" without checking your specific address, solar system, and battery model is cutting corners. A good installer will verify eligibility with you before you sign anything.