Solar and battery rebates
The federal battery rebate is worth roughly $302 per kilowatt-hour in 2026 — and it steps down every six months.
The rebate is generous, and it is shrinking.
The federal Cheaper Home Batteries Program is worth roughly $302 per usable kilowatt-hour in 2026, or about $300–$320 once administrative fees are accounted for. That is close to 30% off the upfront cost of a typical installation. The program's budget was expanded from $2.3 billion to $7.2 billion with the aim of supporting more than two million installations by 2030, so it is not going away — but the per-kilowatt-hour value declines every six months from 1 May 2026. Waiting a quarter is not free.
Full value applies to the first 14 kilowatt-hours.
The rebate is tiered. The full rate applies to the first 14kWh of usable capacity, then tapers above that, and stops entirely past 50kWh. For most households this is not a constraint — 10kWh to 14kWh is the range that suits a typical family's evening consumption. It does mean oversizing has a worse return than it first appears: the marginal kilowatt-hour above 14 costs full price and earns a reduced subsidy.
What the rebate is worth at your size
Federal rebate, 2026
What the battery rebate is worth at your size
- Rate per kilowatt-hour
- $302
- Capacity at full rate
- 13 kWh
This rate steps down every six months from 1 May 2026.A quote’s rebate figure therefore has an expiry — ask which rate it assumes and the date it applies to.
Full rate applies to the first 14kWh of usable capacity; above that the rate tapers and stops past 50kWh. The taper is not modelled here because it is not published in a form worth reproducing. Cheaper Home Batteries Program
Size it against your evening, not your total.
A battery earns its money by shifting solar generation from the middle of the day into the evening peak, so what matters is how much electricity you use after the sun goes down — not your annual total. A household that is out all day and then cooks, heats and watches television between 5pm and 10pm has a large shiftable load. One that works from home and uses most of its power while the panels are producing has a much smaller one, and may do better spending the money on more panels.
What the ACT adds.
The ACT Sustainable Household Scheme lends at 3% over up to ten years, with no upfront costs or fees. From 1 July 2026 new applicants can borrow up to $20,000; anyone who applied or was approved before that date is capped at $15,000 across the life of the scheme. Applicants complete an online workshop before approval. Households that qualify for Home Energy Support may instead access a zero-interest loan of up to $10,000. Note that the scheme is a loan, not a rebate — it changes the cash flow, not the total cost.
How to approach it
- Look at your evening use firstPull twelve months of interval data from your meter and look at what you draw after sunset. That number, not the system size a salesperson suggests, is what the battery has to cover.
- Get the rebate value in writingBecause the rate steps down every six months, a quote's rebate figure has an expiry. Ask for the assumed rate and the date it applies to.
- Check the loan before you signThe Sustainable Household Scheme requires its workshop first, and approval takes time. Starting that in parallel avoids a signed contract waiting on finance.
- Ask about a virtual power plantSome retailers pay for access to your battery during grid demand events. It can add meaningful annual value, but it also means someone else discharges your battery — understand the terms before opting in.
Frequently asked questions
Around $302 per usable kilowatt-hour in 2026, or roughly $300–$320 after administrative fees. On a 13kWh battery that is close to $4,000. It is applied as a discount by the installer rather than claimed back by you.
It is designed to. From 1 May 2026 the per-kilowatt-hour value steps down every six months, on the assumption that battery prices fall over the same period. Whether the two move at the same rate is the open question, and it is why timing matters.
Much less. Without generation to store, a battery can only arbitrage between tariff periods, which is a far smaller margin than storing power you produced for nothing. Panels first, battery second, is the usual order.
Only if it is specified to. Backup during an outage needs additional switchgear and often a dedicated circuit, and not every battery or installation includes it. If that is why you want one, say so before the quote is written.
Yes. The rebate reduces the price and the loan covers what is left. They are separate programs with separate administrators.
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