New South Wales (NSW)
- Current incentives: Peak Demand Reduction Scheme (PDRS) battery discounts via approved providers.
- Options: VPP participation may provide additional benefits where available.
Solar battery rebates in Australia are delivered through a mix of federal incentives (STCs under the Small-scale Renewable Energy Scheme) and state-based programs that can further reduce upfront costs. This guide explains how the federal discount works, what changes from 1 May 2026, and where to find state-specific rebate rules and stacking examples.
Looking for system-wide savings? Start with our Solar Rebates hub.
Important: Federal battery discounts change from 1 May 2026
Subject to regulations, the Cheaper Home Batteries Program will adjust from 1 May 2026, including more frequent declines in the STC factor and reduced support for larger battery capacities.
FINAL CHANCE!
Battery Incentives Reducing From
May 1st
From 1 July 2025, eligible battery systems can receive a discount through STCs under the Small-scale Renewable Energy Scheme (SRES). The discount is calculated from the battery’s usable capacity and the number of STCs the system can create.
Important: The federal battery rebate is not a cash payment from the government. It is delivered as a discount through STCs, usually applied by your installer or retailer.
Official program update (DCCEEW) | STC calculator (REC Registry)

Subject to regulations being made, the Cheaper Home Batteries Program is expected to change from 1 May 2026 in two important ways: the STC factor will reduce and decline more frequently, and the discount will taper by battery size.
The STC factor that applies on the installation date affects how many STCs are created and therefore the value of the discount.
From 1 May 2026, the STC factor is expected to apply in capacity bands (tapering support as battery size increases):
| Usable capacity band | How the STC factor applies | What it means for sizing |
|---|---|---|
| 0–14 kWh (inclusive) | 100% | Best-value band for federal support. |
| >14–28 kWh (inclusive) | 60% | Reduced support on capacity above 14 kWh. |
| >28–50 kWh (inclusive) | 15% | Significantly reduced support on additional capacity. |
The table below outlines how the STC factor is expected to change from 2026 to 2030, comparing the existing annual step-down approach with the proposed more frequent reductions from May 2026.
| Year | Period | Existing STC factor | Proposed STC factor |
|---|---|---|---|
| 2026 | January – April | 8.4 | 8.4 |
| 2026 | May – December | 8.4 | 6.8 |
| 2027 | January – June | 7.4 | 5.7 |
| 2027 | July – December | 7.4 | 5.2 |
| 2028 | January – June | 6.5 | 4.6 |
| 2028 | July – December | 6.5 | 4.1 |
| 2029 | January – June | 5.6 | 3.6 |
| 2029 | July – December | 5.6 | 3.1 |
| 2030 | January – June | 4.7 | 2.6 |
| 2030 | July – December | 4.7 | 2.1 |
Important: The STC factor is only one part of how the federal battery discount is calculated. The final discount value also depends on battery size, capacity tapering rules, and the market price of STCs at the time of installation.
Battery uptake has accelerated nationally. Market reporting indicates strong demand for battery installations and increasing volumes of battery rebate activity, which can contribute to longer lead times for quoting, approvals, and installation in some regions.
Installing before 1 May 2026 may result in a higher federal discount for the same battery compared to installations after this date.
HURRY!
Last Chance to Lock In Your 2026 Battery Incentives

Businesses can claim battery rebates under both federal and state schemes, depending on system size, site eligibility, and installation compliance.

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CEC-approved equipment: Battery is listed as approved on the relevant product registry.
Accredited installation: System is installed by an accredited installer.
Correct system design: Battery is sized appropriately for the home’s solar production, inverter capacity, and energy use.
Compliance: Installation meets electrical safety requirements and program rules.
Real-time STC and battery rebate deductions
VPP-ready designs with smart inverter matching
Partner brands include Tesla Powerwall, Sungrow, LG Chem
SA Solar Panel Rebates
DON’T MISS OUT!
Battery Incentives Reducing From 1st May
The federal battery discount is delivered through STCs under the Small-scale Renewable Energy Scheme (SRES) for eligible battery systems, typically applied as an upfront reduction through an accredited installer or retailer.
Yes. From 1 May 2026, the STC factor is expected to reduce and decline more frequently, and support is expected to taper across battery size bands.
Yes. From 1 May 2026, full support is expected to apply to the first 14 kWh of usable capacity, with reduced support applying to additional capacity bands above that threshold.
Yes. Batteries connected to existing solar PV can qualify for the federal discount, subject to eligibility rules.
No. VPP participation is not required for the federal discount, but some state programs or retailers may offer additional incentives for VPP participation.
Often, yes. Stacking depends on the state program’s terms and eligibility rules. Use your state rebate page to confirm compatibility and claim pathways.
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