Cheaper Home Batteries Scheme 2026: full guide
The federal Cheaper Home Batteries scheme pays about $3,640 for a typical 13.5 kWh battery as of May 2026. Since 1 May 2026 the rebate has been calculated in capacity tiers, and the deeming factor steps down each period until the scheme ends in 2030.
Last reviewed May 2026; figures from our rebate engine, verified against the Clean Energy Regulator.
What is the Cheaper Home Batteries scheme?
The Cheaper Home Batteries scheme is a federal subsidy delivered through small-scale technology certificates (STCs) under the Small-scale Renewable Energy Scheme administered by the Clean Energy Regulator (CER). Eligible batteries generate STCs based on usable capacity and the current deeming factor; those certificates are surrendered at the clearing-house price of $40/STC to produce the upfront rebate.
To qualify, the battery must be paired with new or existing rooftop solar PV, be installed by a Clean Energy Council-accredited installer, and have usable capacity of no more than 50 kWh (the scheme cap). The rebate is applied at point of sale — you pay less upfront; the installer claims the certificates.
For official policy background, see the DCCEEW Cheaper Home Batteries page ↗. Program funding figures (e.g. total committed, target installations) are not held in our engine — check the DCCEEW source for current policy announcements.
How much is the rebate?
The rebate is set by your battery's usable capacity and the deeming factor current at install. The table below shows the rebate across common battery sizes as of May 2026.
Federal rebate by battery size in Australia (2026)
| Usable capacity | Certificates | Federal rebate |
|---|---|---|
| 5 kWh | 34 | $1,360 |
| 10 kWh | 68 | $2,720 |
| 13.5 kWh | 91 | $3,640 |
| 14 kWh | 95 | $3,800 |
| 20 kWh | 119 | $4,760 |
Values from the federal rebate engine at the current deeming factor; capacity above 50 kWh is not eligible. The rebate steps down each year to 2030.
Worked example: a 10 kWh battery in Australia
A 10 kWh home battery installed in Australia qualifies for about $2,720 under the federal Cheaper Home Batteries rebate as of May 2026 (68 small-scale technology certificates at the $40 clearing-house price). Larger batteries earn more up to the 50 kWh eligibility cap — see the size comparison below.
How do the 1 May 2026 size tiers work?
From 1 May 2026, certificates are calculated in marginal capacity bands. Only the portion of usable capacity that falls within each band earns that band's certificate rate; larger batteries see the reduced rate only on the capacity above 14 kWh.
| Capacity band | Certificate rate |
|---|---|
| 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). For most home batteries under 14 kWh, the full 100% rate applies.
Does it change over time? (step-down)
Yes — the deeming factor steps down each period until the scheme closes on 31 December 2030. Installing earlier locks in a higher rebate; the rate never increases under the current schedule.
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.
| 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 |
See the full what changed in 2026 page for a detailed breakdown.
Can I stack state support?
In most states, the federal rebate can be combined with state or territory incentives. State programs are separate from the federal scheme and subject to their own eligibility and funding availability — always confirm current status with your state's official source.
| State / Territory | Status | Official source |
|---|---|---|
| New South Wales | NSW battery incentive (PDRS) | Official source ↗ |
| Victoria | Federal rebate (state battery support closed) | Official source ↗ |
| Queensland | Federal rebate only | Official source ↗ |
| South Australia | South Australia — limited support | Official source ↗ |
| Western Australia | WA Residential Battery Rebate | Official source ↗ |
| Tasmania | Federal rebate + interest-free loans | Official source ↗ |
| Australian Capital Territory | ACT — interest-free loans | Official source ↗ |
| Northern Territory | Federal rebate applies | Official source ↗ |
Am I eligible?
The key eligibility requirements are: your battery must be paired with solar PV, installed by a Clean Energy Council-accredited installer, and have usable capacity under 50 kWh.
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.
Frequently asked questions
- What is the Cheaper Home Batteries scheme?
- The Cheaper Home Batteries scheme is a federal subsidy delivered through small-scale technology certificates (STCs). Your battery generates certificates based on usable capacity and the deeming factor; those certificates are surrendered at the $40/STC clearing-house price to reduce your purchase price. The battery must be solar-paired and installed by an accredited installer. Capacity above 50 kWh is not eligible.
- How much is the rebate in 2026?
- A typical 13.5 kWh battery earns about $3,640 as of May 2026. The exact figure depends on your battery's usable capacity and when you install — use the rebate calculator for a personalised figure.
- Do the 1 May 2026 size tiers reduce my rebate?
- From 1 May 2026, certificates are calculated in bands: the first 0–14 kWh earns 100%, the next 14–28 kWh earns 60%, and 28–50 kWh earns 15%. For most home batteries under 14 kWh, the full rate still applies.
- Can I stack state support on top of the federal rebate?
- Yes — in most states the federal rebate can be combined with state incentives. NSW (PDRS), WA (residential rebate), SA (REPS), ACT (interest-free loans), and TAS (interest-free loans) all have some form of additional support. VIC and QLD currently have no state battery rebate; the federal rebate still applies. Confirm current availability with your state's official source.