Federal battery rebate: current rates and how it works
The federal Cheaper Home Batteries Program currently discounts home batteries by about $252 per usable kilowatt-hour at our assumed STC net price of$37 (STC factor 6.8, effective 1 May 2026). That figure is what most comparison articles get wrong after each legislated step-down — so we keep it in one data file and stamp every page with the date we last checked the Clean Energy Regulator sources.
Prefer numbers over narrative? Jump to thebattery rebate calculator — same maths, live inputs.
What is the battery rebate worth right now?
Under the current rules, STCs are created from your battery’s usable capacity, multiplied by the STC factor, then adjusted by the tier percentage for each band of kilowatt-hours. The dollar result is STC count × STC price. Using a net STC price of $37(headline clearing-house price is about $40), the effective headline rate for capacity inside the first tier is roughly $252 per usable kWh.
How is the discount applied?
In practice, accredited installers usually apply the federal benefit as a point-of-sale discount on your quote. They create the Small-scale Technology Certificates in the REC Registry and sell them into the STC market. You can self-create certificates in some cases, but most households never see that paperwork — they see a lower invoice.
The program is administered through the Clean Energy Regulator. Primary program information sits with the Department of Climate Change, Energy, the Environment and Water — we link sources at the bottom of this page and on what changed.
Tier structure since 1 May 2026
From 1 May 2026 the flat STC factor was replaced with three capacity bands. Capacity in the first14 usable kWh attracts 100% of the factor; the next 14 kWh attracts 60%; capacity from 28 to 50 kWh attracts15%. Nothing above 50 usable kWh earns federal STCs under this program.
| Usable capacity band | Share of STC factor | Effective factor |
|---|---|---|
| 0–14 kWh | 100% | 6.80 |
| 14–28 kWh | 60% | 4.08 |
| 28–50 kWh | 15% | 1.02 |
That change hit larger batteries hardest — which is exactly why we published a dedicatedwhat changed in May 2026 explainer with before/after dollars at common sizes.
Step-down schedule
The STC factor declines on a legislated timetable through to program end in2030. From 2027 the schedule steps every January and July. Exact future factors are filled in here as the Clean Energy Regulator publishes them — rows marked TBA are announced dates without a confirmed factor yet.
| Effective from | STC factor | Structure | Status |
|---|---|---|---|
| 1 July 2025 | 9.3 | Flat rate | Historical |
| 1 Jan 2026 | 8.4 | Flat rate | Historical |
| 1 May 2026 | 6.8 | Tiered | Historical |
| 1 Jan 2027 | TBA | Step-down | announced |
| 1 July 2027 | TBA | Step-down | announced |
| 1 Jan 2028 | TBA | Step-down | announced |
| 1 July 2028 | TBA | Step-down | announced |
| 1 Jan 2029 | TBA | Step-down | announced |
| 1 July 2029 | TBA | Step-down | announced |
| 1 Jan 2030 | TBA | Step-down | announced |
Eligibility checklist
- Battery on the CEC-approved product list for the program period
- Usable capacity generally within about 5–100 kWh nominal range; discount capped at 50 usable kWh
- Grid-connected systems typically must be VPP-capable
- Installed by an accredited installer
- Usually one eligible system per property — confirm edge cases with the regulator
Worked examples at current rates
We use the same three reference systems across the site so numbers stay comparable: a10 kWh battery, a 13.5 kWh (Powerwall 3–class) battery, and a30 kWh large system. Rebates below assume STC net price$37.
| System | Usable capacity | STCs | Est. rebate |
|---|---|---|---|
| 10 kWh battery | 10 kWh | 68 | $2,516 |
| 13.5 kWh battery (Powerwall 3 class) | 13.5 kWh | 91 | $3,367 |
| 30 kWh large system | 30 kWh | 154 | $5,698 |
State stacking
Several states layer their own battery support on top of the federal discount. Stacking is common but never automatic — income caps, retailer rules, and VPP enrolment can all apply. Start with your state page:
- Western Australia — Synergy vs Horizon depth
- New South Wales
- Victoria
- Queensland
- South Australia
Frequently asked questions
Does the install date or the order date set my rebate rate?
Your installation date determines which STC factor and tier rules apply. Ordering before a step-down does not lock the old rate if the system is installed after the change takes effect.
Can I claim the federal battery rebate twice on the same property?
Generally no — the program is designed around one eligible system per premises. Confirm edge cases (replacements, expansions) with the Clean Energy Regulator and your installer.
Does the rebate cover the inverter?
The Cheaper Home Batteries Program discounts eligible battery capacity via STCs. Hybrid inverter costs are part of the installed quote but are not separately rebated under this battery program.
Do I need a virtual power plant (VPP) to get the rebate?
Grid-connected systems generally need to be VPP-capable (able to participate), but you are not always required to enrol in a VPP to receive the federal discount. Check the current CER eligibility rules for your install date.
Is the rebate paid to me or taken off the invoice?
Most households see it as a point-of-sale discount applied by the installer, who then creates and sells the STCs. A self-claim path via the REC Registry exists but is less common for households.
What STC price should I assume?
The clearing-house headline is about $40, but households typically net closer to $37 after admin costs. Our calculator defaults to $37.
Can I stack a state rebate with the federal discount?
Often yes — WA, NSW, VIC and SA schemes commonly stack, subject to each program’s rules. We list stacking status on each state page; always confirm with the state source and your installer.
Where do these figures come from?
Federal rates are taken from the Cheaper Home Batteries Program materials administered via the Clean Energy Regulator. Every data page carries a verified date and links to /what-changed/.