The federal Cheaper Home Batteries discount explained, with worked examples
The short answer
The federal Cheaper Home Batteries discount, often called the battery rebate, takes money off a battery installed with solar. Each usable kWh up to 14 earns the full rate, each kWh from there up to 28 earns 60% of it, and each kWh above that earns 15%. The date the battery is certified sets the rate.
. Written by Nick Green.
Each extra kWh earns less
The discount uses a taper. Each slice of the battery earns a share of the full rate, and the share gets smaller as the battery gets bigger.
| Usable battery size | Share of the full rate |
|---|---|
| Up to 14 kWh | 100% |
| Above 14 kWh, up to 28 kWh | 60% |
| Above 28 kWh, up to 50 kWh | 15% |
| Above 50 kWh | Nothing |
A bigger battery is not automatically better value. Take the time you need to decide.
Worked examples
Each example below is for a battery certified today. Every slice of the battery is multiplied by the factor and by its share of the full rate. The amounts are added, and the total is rounded down once to a whole number of certificates. It is not rounded slice by slice.
| Part of the battery | Certificates |
|---|---|
| First 9 kWh, at the full rate9 × 6.8 | 61.2 |
| Total, rounded down to a whole number | 61 |
| Discount taken off the price | about $2,300 |
| Part of the battery | Certificates |
|---|---|
| First 14 kWh, at the full rate14 × 6.8 | 95.2 |
| Total, rounded down to a whole number | 95 |
| Discount taken off the price | about $3,600 |
| Part of the battery | Certificates |
|---|---|
| First 14 kWh, at the full rate14 × 6.8 | 95.2 |
| Next 4 kWh, at 60% of the rate4 × 6.8 × 0.6 | 16.32 |
| Total, rounded down to a whole number | 111 |
| Discount taken off the price | about $4,200 |
| Part of the battery | Certificates |
|---|---|
| First 14 kWh, at the full rate14 × 6.8 | 95.2 |
| Next 13 kWh, at 60% of the rate13 × 6.8 × 0.6 | 53.04 |
| Total, rounded down to a whole number | 148 |
| Discount taken off the price | about $5,600 |
The dollar amounts are rounded estimates. The value of each certificate can change, so the quote you receive in writing is what counts.
The discount is worked out on usable kWh
A kilowatt hour (kWh) is the unit of energy on your power bill. The discount is worked out on the usable capacity of the battery, not the size printed on the box. Usable capacity can be smaller than the label, so ask for both numbers in writing.
Only the first 50 kWh of usable capacity earns a discount. Batteries with a label size under 5 kWh do not qualify.
How the discount is paid
The federal battery discount is paid in small-scale technology certificates, or STCs. You give the right to the certificates to your installer, and the value comes off your price as a dollar discount. The installer may take it off the price up front or pay it as a rebate after installation. Administration fees may apply.
You can instead keep the certificates and sell them yourself. Then you do not get the discount from the installer.
The factor changes on set dates
The factor is the number the working above multiplies by. It is written into the Regulations, and it falls in steps twice a year. This table shows each period and its factor as the Regulations set them.
| Certified between | Factor |
|---|---|
| 1 May 2026 to 31 December 2026Applies now | 6.8 |
| 1 January 2027 to 30 June 2027Scheduled | 5.7 |
| 1 July 2027 to 31 December 2027Scheduled | 5.2 |
| 1 January 2028 to 30 June 2028Scheduled | 4.6 |
| 1 July 2028 to 31 December 2028Scheduled | 4.1 |
| 1 January 2029 to 30 June 2029Scheduled | 3.6 |
| 1 July 2029 to 31 December 2029Scheduled | 3.1 |
| 1 January 2030 to 30 June 2030Scheduled | 2.6 |
| 1 July 2030 to 31 December 2030Scheduled | 2.1 |
The period in force today runs from 1 May 2026 to 31 December 2026, with a factor of 6.8. Batteries certified from 1 January 2027 fall in the next period, with a factor of 5.7. The schedule runs to 31 December 2030. The official sources do not promise that the program will run that long, so read the official pages below for the latest.
The factor that applies is the one for the period that holds the date the battery is certified. It is set by that date and by nothing else. The date you sign the contract does not decide it.
What the battery must meet
The federal discount has conditions. In plain words:
- The battery and its inverter must be on the Clean Energy Council's approved product lists.
- The installer must be accredited by Solar Accreditation Australia.
- The battery must be installed with a solar system, new or existing. A battery that only stores power from the grid is not eligible.
- Only one battery system is eligible for each home.
- A battery that connects to the grid must be able to connect to a virtual power plant. You do not have to join one.
- The battery should stay at your property until the end of its warranty or 31 December 2030, whichever is later.
Ask your installer to confirm each of these in the quote.
Check your own home
The fit check works out a suggested size and shows the discount for it, using the same rules as this guide. For help choosing a size, read what size battery you need. If you are still deciding whether a battery suits you at all, read whether a home battery is right for your home.
Common questions
Does the date I sign the contract set the rate?
No. The rate is set by the date the battery is certified as compliant, which is the date its certificate of electrical compliance, or the state or territory equivalent, is issued. The contract date does not decide it.
Does a bigger battery always earn a bigger discount?
The discount grows with size, but each extra kWh earns less. The full rate applies up to 14 kWh, 60% of it applies up to 28 kWh and 15% applies above that. Nothing is earned above 50 kWh. A bigger battery is not automatically better value.
Do I have to join a virtual power plant to get the discount?
No. A battery that connects to the grid must be able to connect to a virtual power plant, but you do not have to join one to get the federal discount.
Can I claim the discount again if I add to my battery later?
The right to the discount arises once for each home. If a battery has already received it, a later, larger battery cannot claim it again. Ask the installer how this applies to your home before you start small.
Is the dollar amount on my quote the same as your worked examples?
Not necessarily. Our examples use a rounded estimate for the value of a certificate, and that value can change. Your written quote shows the discount that applies to you.
Check what fits your home
The fit check asks a few short questions and gives you a suggested size, a price range and the federal battery discount worked out for your home. Nick only calls if you ask him to.
Start the fit checkThis site is run by Nick Green, a solar and battery adviser who works with a licensed installer partner. We do not compare installers. If your home is a good fit and you ask us to, Nick will call you and prepare a quote through that partner. No cold calls, no door knockers, no obligation.
Where the facts come from
These are the official pages behind the rules and figures on this page. Read them yourself if you want to check us.
- DCCEEW: Cheaper Home Batteries Program (page last updated 9 June 2026)
- DCCEEW: Small-scale technology certificates for batteries (page last updated 9 July 2026)
- Clean Energy Regulator: Calculate small-scale technology certificate entitlements (page last updated 18 September 2026)
- Federal Register of Legislation: Renewable Energy (Electricity) Regulations 2001, pinned to Compilation 91 (F2026C01001), compilation date 1 October 2026, regulations 20(7), 20(8) and 59. The latest-version link moves; the mid-scale solar amendment from 1 October 2026 does not change these regulations.
Last checked 29 Sep 2026
Keep reading
Is a home battery right for your home? (NSW and QLD, 2026)
Who a home battery may suit, what decides whether it works for you, and the questions to ask before you agree to anything. Written for NSW and Queensland homes.
What size battery do I need?
A starting battery size for each power bill band, why the fit check pairs a single phase home with a bigger inverter, and the price bands for each size.