The incentive landscape for residential solar and batteries in Australia has simplified significantly over the past two years. Most state-run rebate and loan programs that existed between 2019 and 2024 have now either closed or been wound back. The primary incentive in 2026 is a federal one — the Small-scale Technology Certificate scheme — supplemented by a small number of active state programs and one substantial new federal battery program. Getting the incentives right before you sign a contract can save you thousands of dollars.
The federal STC scheme — the baseline for everyone
Every eligible solar panel installation in Australia receives a rebate through the Small-scale Renewable Energy Scheme (SRES), administered by the Clean Energy Regulator (CER). The rebate takes the form of Small-scale Technology Certificates (STCs), which your installer creates on your behalf and deducts from the purchase price. You see the discount as a reduced invoice — there is no application, no waiting for a government cheque, and no tax return to lodge.
The value of the STC rebate depends on your system size, your location (solar zone 1–4), and the current STC spot price, which fluctuates but has sat close to the CER's clearing house fixed price of $40 per certificate. In 2026, a typical 6.6 kW system in a capital city attracts around $2,800–$3,500 in STC value. The scheme reduces by one year's worth of certificates each January and closes entirely in 2030. See our full explainer on how STCs work for the calculation methodology.
The federal Cheaper Home Batteries Program — the new battery incentive
From 1 July 2025, the federal government extended the STC scheme to include home batteries through the Cheaper Home Batteries Program. This is applied in the same way as solar STCs — as an upfront point-of-sale discount — but is calculated on the battery's usable kWh capacity rather than kWh of solar generation.
From 1 May 2026, the program moved to a tiered structure:
- First 14 kWh of usable capacity: approximately $252 per kWh (STC factor 6.8, clearing house price ~$37–40).
- 14–28 kWh: approximately $151 per kWh (60% of base factor).
- 28–50 kWh: approximately $38 per kWh (15% of base factor).
A 10 kWh battery thus attracts roughly $2,440–$2,520 off the installed cost. A 13.5 kWh Tesla Powerwall 3 attracts roughly $3,200–$3,400. The program continues through to 2030 with the STC factor reducing every six months. Batteries must be CEC-approved, installed by an accredited professional, and paired with solar (new or existing). There is no income test and no means testing.
State-by-state rebates table 2026
| State | Solar PV rebate | Solar PV rebate amount | Battery rebate / incentive | Battery amount | Interest-free loan? | Status |
|---|---|---|---|---|---|---|
| NSW | No state solar rebate | — | Yes — NSW PDRS VPP incentive (Peak Reduction Certificates) | Up to ~$1,500 for VPP-connected batteries (2–28 kWh) | No | Active. Federal CHB + PDRS can be combined. VPP enrolment required for PDRS. |
| VIC | Yes — Solar Homes Program (Solar Victoria) | Up to $1,400 (50% of purchase cost after STCs, capped). Income <$210k combined, property value <$3m. | State battery loan: closed 2025. Federal CHB program applies. | Federal only (~$252/kWh from May 2026) | Was available (battery loan closed). Solar PV loan: up to $1,400 interest-free still available for PV. | Solar PV rebate + interest-free loan active. Battery loan closed. VEU scheme (Victorian Energy Upgrades) provides additional incentives for heat pumps and efficiency upgrades. |
| QLD | No state solar rebate | — | QLD Battery Booster: closed May 2024. Federal CHB only. | Federal only (~$252/kWh from May 2026) | No | Battery Booster closed. No current state battery program. |
| SA | No state solar rebate | — | SA Home Battery Scheme: closed 2021. Federal CHB only. | Federal only (~$252/kWh from May 2026) | No | SA Home Battery Scheme (was $300–$600/kWh, up to $3,000) closed. No current state program. |
| WA | No state solar rebate | — | Yes — WA Residential Battery Scheme (Synergy customers) | $130/kWh capped at 10 kWh = max $1,300. VPP enrolment required. | No | Active from 1 July 2025. Stacks with federal CHB. WA is not on the NEM (DEBS solar export scheme applies separately). |
| TAS | No state solar rebate currently active | — | Federal CHB only. TAS Energy Saver Loan: for other efficiency upgrades. | Federal only (~$252/kWh from May 2026) | Yes — Tasmanian Energy Saver Loan for eligible efficiency measures (not batteries directly) | No active state solar or battery rebate. Aurora Energy is primary retailer. |
| ACT | No current solar rebate (Sustainable Household Scheme loans available for broader home upgrades) | — | ACT SHS interest-free loan covers solar + batteries as part of eligible home upgrades | Loans up to $15,000 at 0% interest over 10 years for eligible ACT households | Yes — ACT Sustainable Household Scheme (ZeroInterest loans via Brighte) | Active. Covers solar, batteries, heat pumps, EVs. Income and property eligibility applies. Check actgov.au for current terms. |
| NT | No state solar rebate | — | Federal CHB only. NT Home and Business Battery Scheme: check current status with NT Government. | Federal only | No | NT Government has previously run battery incentives via Jacana Energy. Confirm current availability directly with NT Government. |
Sources: Clean Energy Regulator; Solar Victoria; NSW PDRS; Synergy WA. Table reflects status as at April 2026 — check official program websites before applying.
Victoria: Solar Homes is still the most accessible state scheme
Victoria's Solar Homes Program, administered by Solar Victoria, provides a rebate of up to $1,400 on a new rooftop solar system (up to 50% of the purchase cost after STCs). An optional interest-free loan of up to $1,400 is also available. Eligibility requires: owner-occupier status, combined household income under $210,000, and property value under $3 million. The property must not have previously received a Solar Homes rebate. The Victorian Energy Upgrades (VEU) scheme provides separate certificate-based incentives for heat pump hot water systems, appliance upgrades and draught sealing — worth checking alongside solar quotes.
NSW: the PDRS "double-dip" for batteries
NSW no longer offers an upfront state rebate on battery hardware, but the Peak Demand Reduction Scheme (PDRS) provides an incentive worth up to approximately $1,500 for batteries connected to a Virtual Power Plant (VPP). The PDRS BESS2 incentive is separate from the federal STC discount and applies to batteries of 2–28 kWh usable capacity. VPP enrolment with a registered aggregator is mandatory. The two programs stack: a 10 kWh battery in NSW can attract roughly $2,440 (federal CHB) plus $1,000–$1,500 (PDRS), totalling $3,400–$4,000 in combined incentives.
WA: Synergy Residential Battery Scheme stacks well with federal
WA's scheme pays $130 per usable kWh, capped at the first 10 kWh, giving a maximum state incentive of $1,300 for a standard home battery. VPP enrolment with Synergy is required. Stacked with the federal CHB program, a 10 kWh WA battery attracts roughly $2,440 (federal, from May 2026) plus $1,300 (WA) = approximately $3,740 combined. WA batteries also interact with the DEBS export scheme, which pays a premium 10 c/kWh for evening exports. The combination makes batteries commercially attractive for WA households relative to other states.
A warning on scheme timing
Most Australian solar and battery incentive programs have ended without much public notice. The QLD Battery Booster closed with minimal warning. SA's Home Battery Scheme closed in 2021. Victoria's battery loan closed in 2025. The federal Cheaper Home Batteries Program is confirmed to 2030, but its value drops every six months from May 2026. If you are considering solar or a battery purchase, confirming scheme availability in writing before signing any contract is essential. Program websites can lag behind actual scheme closures — call the administering body directly and request written confirmation of eligibility if you intend to rely on the incentive.
Use the home battery payback calculator to model how these incentives affect your after-rebate battery cost and overall payback period. For solar payback modelling, the solar payback calculator lets you enter your state's rebate-adjusted install cost.
Sources
- Clean Energy Regulator — Small-scale Technology Certificates and Cheaper Home Batteries Program.
- Solar Victoria — Solar Homes Program rebate and loan details.
- NSW Department of Climate and Energy Action — Peak Demand Reduction Scheme (PDRS).
- Clean Energy Regulator — Battery rebates changing 1 May 2026.
Last reviewed: — figures verified against the Clean Energy Regulator, Solar Victoria, NSW PDRS and Synergy WA scheme documents.