The Cheaper Home Batteries Program can lower the upfront cost of a home battery by about 30%. The program started on 1 July 2025 and is set to run until the end of 2030. The discount comes off your quote and Evergreen or your installer handles the certificates it uses.
The Federal battery rebate has changed a bit since it started. A couple of those changes came into effect on 1 May 2026 and they affect how much of a rebate you get. This guide looks at what the rebate is worth now and what it will be worth later. We will also look at who qualifies for the battery rebate and whether it’s possible for you to claim solar and battery rebates together.
How much is the STC rebate worth?
“STC” stands for “small-scale technology certificate” and it is the unit the rebate scheme runs on. The solar battery rebate is calculated per usable kilowatt-hour of battery capacity and it is paid in STCs instead of cash.
The STC factor is the rate used to calculate your rebate. For batteries installed between May and December 2026, the STC factor is 6.8 certificates per usable kWh. Certificates usually sell for a little under the $40 price set by regulation, which puts the rebate at roughly $250 to $270 per usable kWh on the first 14 kWh.
Here is what that looks like on common battery sizes.
Figures in this table are rounded and calculated using 6.8 STCs per usable kWh at $37 to $40. The price of the certificates changes and installers differ – your quote will carry the exact amount.
There is one important detail worth knowing when comparing quotes from different installers:
Battery certificates have a value backstop that solar certificates never had. Solar certificates have historically traded below $40 and sometimes well below that because more were created than retailers were obliged to buy. But for battery certificates, however, the Australian Government has committed to buying STCs matching the volume created by battery installs – so demand rises in step with supply. So if an installer quotes you a battery rebate much less than the figures we calculated in the above table then we suggest that you ask them what certificate price they used.
How did the STC factor change on 1 May 2026?
As of 1 May 2026
- The STC factor dropped from 8.4 per kWh to 6.8 per kWh.
- The rebate is now tiered to the size of the battery.
And how do the tiers work?
The first 14 kWh of usable capacity earns the full STC factor. Then every kWh after that and up to 28 kWh earns 60% of the STC factor. The rate then drops again and your battery earns just 15% of the STC factor for every kWh past 28 kWh up to 50 kWh. And above 50 kWh of usable capacity there is no discount at all – but batteries up to 100 kWh can still be installed and are eligible for the program in other ways.
The Clean Energy Regulator explains that the program was expanded from $2.3 billion to about $7.2 billion in December 2025 and the tiers it uses keep the money going to typical household systems instead of very large ones.
What this means in practice is that the sweet spot for value sits at or just under 14 kWh so if you are choosing between 13 kWh and 20 kWh for reasons that were already marginal then the rebate maths work out more in your favour on the smaller system.
Our best advice? Size the battery to your evening load first. The rebate is a discount. It should not be your deciding factor.
When does the STC factor step down again?
The STC factor is reviewed at least once a year and it will keep going down until the scheme ends in 2030. The next reduction is set for 1 January 2027 and it will lower the STC factor to 5.7. The Cheaper Home Batteries Program plans to keep stepping down the STC factor every six months from here down to 2.1 per kWh from July to December 2030.
The date that matters is not the date you sign. It is the date the certificate of electrical compliance is issued for the install. Batteries that were booked in December but commissioned in January fall under the lower rate. So as you would imagine, installers get busy in the run-up to a step-down. Book six to eight weeks ahead in Brisbane.
Who is eligible for the Federal Battery Rebate?
The solar battery rebate works under federal rules and they apply the same way in Queensland as they do elsewhere in Australia. A system qualifies if:
- The battery is between 5 kWh and 100 kWh. Smaller batteries can be stacked to reach the 5 kWh minimum.
- The battery is connected to solar. A battery installed on its own and which charges only from the grid is not eligible. The solar panels in the system may be new or existing.
- The battery is VPP capable. This means it has to be able to join a virtual power plant though you do not actually have to join one for it to qualify.
- The battery is on the Clean Energy Council’s approved list and the installer is accredited.
- The certificate of electrical compliance was issued on or after 1 July 2025.
Businesses and community organisations qualify on the same terms, too. And there is no income test and no limit to the number of households that can claim the rebate.
One thing that’s important to know:
Only the first 50 kWh of new or added usable capacity attracts certificates. That means that if you are adding to an existing battery then the extra capacity has to be at least 5 kWh.
Is there a Queensland rebate on top of the Federal Battery Rebate?
There is no Queensland rebate on top of the federal battery rebate. Queensland had a Battery Booster program but it closed in May 2024 and has not been replaced – there is nothing else at state level for batteries. If you find a page telling you otherwise then check its date.
Apart from the rebate, Queensland does have two things working in its favour.
The first is that Queenslanders are able to generate a lot of energy from solar. The roof systems in Brisbane produce enough surplus energy throughout most of the year to fill a battery on solar alone. That's not true in every part of the country.
The second thing we have going for us is a bit newer. Households in south-east Queensland on a Solar Sharer plan get three hours of free grid power every day between 11 am and 2 pm. A battery can absorb and store that power for use in the evening.
The combination of free midday power and a rebated battery to store it in is the strongest argument we have seen in Queensland so far for solar battery storage.
Can you claim the Solar Sharer and Federal Battery Rebate together?
Yes you can claim the solar and battery rebates together because they are separate calculations even though they fall under the same scheme. Solar panels earn STCs based on the size of the system, your postcode's zone rating and the number of years left in the scheme. Batteries earn their STCs per usable kWh. A household installing both solar panels and batteries gets both discounts on the one quote.
Keep in mind, too, that if you are comparing quotes from different installers for the same system at the same address then every installer should apply the same number of STCs to your invoice. If two quotes for the same system show a different number of certificates then ask them why. If they show different rebate amounts though, then that would likely be because of the certificate price each installer uses – asking about that is a fair question, too.
An example of the Solar Sharer and Federal Battery Rebate together
A Brisbane household has a solar panel array on the roof but no battery. They add a 13.5 kWh battery and because it’s connected to a solar system and sits inside the top rebate tier, the whole 13.5 kWh earns the full STC factor for the battery rebate. According to the table above, that’s roughly $3,400 – $3,670 off the installation price. The family is home in the evenings and was importing most of its power between 5 pm and 9 pm at peak rates but the battery now covers that window on stored solar.
If the same household were to wait until February 2027, the battery is the same and the install is the same but the rebate is smaller because of the 1 January 2027 STC factor step down.
Frequently asked questions
Do I need to apply for the federal battery rebate?
There is no application process for the battery rebate. Your installer creates and assigns the certificates and the discount is applied to your invoice. You can claim the STCs yourself through the REC Registry if you wish but you have to withhold that right from the installer and most people find the paperwork just isn’t worth the difference.
Is the price of an STC fixed?
STC prices are partly fixed. The STC Clearing House price is set by regulation at $40 per certificate, excluding GST. But while this guarantees installers a price, it does not guarantee them a buyer, which is why most installers sell on the open market instead – where the price changes with supply and demand. It's the reason you will usually find quotes calculated at a little under $40 and varying slightly between installers. So it is a fair thing to ask about when you are comparing which installer to use.
Do I have to join a VPP to get the federal battery rebate?
Joining a virtual power plant is not a condition of the federal battery rebate, but the battery has to be capable of joining one.
Is a bigger battery still worth it after the tiering?
A battery above 14 kWh can still be worth buying, though the rebate no longer covers the extra capacity at the full rate. Above that point you are paying closer to full price for each additional kilowatt-hour, so the question becomes whether you’ll actually use it. If your household has an EV, central air conditioning, a pool, or high evening load then it’s likely that you will.
Does the federal battery rebate apply to a battery added to an old solar system?
Batteries added to older solar systems usually qualify for the federal battery rebate if the existing system meets electrical safety requirements. It does not automatically mean you will need to replace your panels or inverter. We check this at quote stage because occasionally an older inverter does need to change and that changes the numbers.
Want the numbers for your own home?
We size and install batteries across Brisbane and South East Queensland and we apply the rebate at the quote. Ask for a free assessment.
