What changed for the home battery rebate in 2026
On 1 May 2026 the federal Cheaper Home Batteries rebate changed in two ways: the deeming factor stepped down, and capacity tiers began — the first 0–14 kWh of a battery is subsidised at 100%, the next 14–28 kWh at 60%, and 28–50 kWh at 15%. The rate steps down again each period until the scheme ends in 2030.
Figures verified May 2026 against the Clean Energy Regulator.
A 13.5 kWh battery installed now earns about $3,640; after the next step it falls to about $3,040 — installing before 1 January 2027 is worth more.
Federal battery rebate step-down timeline
| Period | Deeming factor | Size tiers? | Indicative rebate (13.5 kWh) |
|---|---|---|---|
| 1 July 2025 – 31 December 2025 | 9.3 | No (flat) | $5,000 |
| 1 January 2026 – 30 April 2026 | 8.4 | No (flat) | $4,520 |
| 1 May 2026 – 31 December 2026 | 6.8 | Yes (size tiers) | $3,640 |
| 1 January 2027 – 30 June 2027 | 5.7 | Yes (size tiers) | $3,040 |
| 1 July 2027 – 31 December 2027 | 5.2 | Yes (size tiers) | $2,800 |
| 1 January 2028 – 30 June 2028 | 4.6 | Yes (size tiers) | $2,480 |
| 1 July 2028 – 31 December 2028 | 4.1 | Yes (size tiers) | $2,200 |
| 1 January 2029 – 30 June 2029 | 3.6 | Yes (size tiers) | $1,920 |
| 1 July 2029 – 31 December 2029 | 3.1 | Yes (size tiers) | $1,640 |
| 1 January 2030 – 30 June 2030 | 2.6 | Yes (size tiers) | $1,400 |
| 1 July 2030 – 31 December 2030 | 2.1 | Yes (size tiers) | $1,120 |
How the 1 May 2026 size tiers work
From 1 May 2026, certificates are calculated in capacity bands. Only the portion of a battery's usable capacity that falls within each band earns that band's rate.
| Capacity band | Rate (% of certificates) |
|---|---|
| 0–14 kWh | 100% |
| 14–28 kWh | 60% |
| 28–50 kWh | 15% |
Certificates are valued at the $40 clearing-house price (fixed by regulation, ex GST).
Installed with solar PV?
The battery must pair with new or existing rooftop solar.
Own the home?
You must be able to authorise the roof and electrical install.
Usable capacity 50 kWh or under?
Capacity above the 50 kWh cap earns no rebate.
Eligible for the federal rebate
Claimed as small-scale technology certificates at install.