Battery Rebates in Australia: Current Offers by State and Territory
Last Updated: 26th Jun 2026 By Finn Peacock, Chartered Electrical Engineer, Fact Checked By Ronald Brakels
This page covers current rebates, grants, and zero and low-interest loans available across Australian states and territories that make battery storage systems more affordable and improve payback times.
Federal Battery Rebates
The Cheaper Home Batteries Program is a multi-billion-dollar subsidy scheme designed to reduce the cost of batteries for Australian homes and businesses. It’s usually referred to as the federal battery rebate. New battery systems with 5-100 kWh of nominal capacity are eligible, but the subsidy amount received is based on the first 5–50kWh of usable capacity. The battery must be either connected to an existing solar system or installed with a new solar system.
The federal battery rebate works in tiers: the first 14 kWh of usable battery storage will receive 100% of the per kWh rebate value. After that, from 14 to 28 kWh will receive 60% of the value, while 28 to 50 kWh will receive only 15%.
The amount received by all tiers reduces at the end of 2026. From then, it will decline at the middle and end of each year, until the scheme concludes at the end of 2030. To find out the exact dollar amount you can expect, use our federal battery rebate calculator.
The rebate uses STCs like the Small-scale Renewable Energy Scheme (SRES) for solar. Like that scheme, the rebate will already be applied to any quotes you get for batteries. It’s not necessary to join a VPP to get the battery price reduction, but batteries must be VPP-capable. It’s available to homeowners, small businesses, and community facilities, and can be combined with the WA state battery rebate.
State/Territory Battery Rebates and Loans
The only state or territory battery rebate is the WA rebate. The ACT offers a low-interest loan to purchase batteries. Meanwhile, NSW will pay you extra for joining a VPP, while SA may also provide an incentive to join a VPP, but it’s often unavailable due to limited funding.
Here’s how they compare:
| State / Territory | Program Name | Type | Value |
|---|---|---|---|
| Western Australia | WA Residential Battery Scheme | Rebate + Zero-interest Loan | Rebate: Up to $1,300 ($3,800 Horizon area) Loan: Up to $10,000 |
| New South Wales | NSW VPP incentive | Payment for joining VPP | Up to ~$1,100 |
| South Australia | SA REPS VPP incentive | Payment for joining VPP | Up to $2,050 (If available) |
| ACT | Sustainable Household Scheme | Low interest loan (3%) | Up to $20,000 |
New South Wales
Program: NSW VPP Incentive
Incentive Value: NSW will provide a payment for batteries from 2-28kWh that join a VPP. The amount varies because it’s based on certificates called PRCs (Peak Reduction Certificates), which can change in value. At the time of writing, they are worth around $60 per kWh, so the total value of certificates could range from $60-$1,680 depending on battery size. Unfortunately, the compliance and administration costs are absurdly high, and households typically only receive around 60% of the certificate value. So even with the maximum allowed battery size of 28kWh, the most a household can expect to receive is around $1,000.
Eligibility: The battery must have from 2-28 kWh of usable capacity, be on the Clean Energy Council’s approved list, be VPP capable, have a minimum operating temperature range from -10 to 50 degrees, and have a 10 year warranty that promises it will retain at least 70% of its original capacity and also provide a minimum of 2,800kWh of output per kWh of usable storage. If the battery is not new, it must have at least 6 years remaining on its warranty. It must be on-grid and connected to solar.
Details can be found on the SolarQuotes NSW VPP payment page.
Contact: Visit the NSW Government website or consult with SolarQuotes for details on VPP compatibility.
Western Australia
Program: WA Residential Battery Scheme
Rebate Value: $130 per kWh up to a maximum rebate of $1,300 for Synergy customers in the southwest of the state, and $380 per kWh up to a maximum rebate of $3,800 for Horizon Power customers in regional WA.
Loan Option: Zero-interest loans from $2,000 to $10,000 are available to help with the purchase of batteries. These loans can also be used to cover the cost of solar if it’s installed at the same time as a battery. Households must have a combined income of under $210,000 to be eligible. Loan repayments are made over 10 years.
Eligibility: Open to all residential properties in Western Australia, including those used for home businesses.
Conditions: The batteries must:
- Have a minimum capacity of 5 kWh
- Be VPP-ready and must join a VPP
Two new VPPs have been introduced to allow for the requirement to join one:
- Battery Rewards in the southwest Synergy area, and…
- Community Wave in the Horizon area.
The scheme will provide up to 100,000 rebates. The program is being rolled out in rounds.
Contact: Full details and updates can be found on the WA Government website.
South Australia
Program: SA REPS VPP Incentive
Incentive Value: Up to $2,050 for connecting a new or existing home battery to a REPS-approved Virtual Power Plant (VPP). The payment goes directly to the household once the VPP connection is approved.
Availability: This incentive is often unavailable. In 2026, funding for most households ran out in May. But at the time of writing, funding is available for “priority group” members, which includes pensioners and those with health care cards. Funding should be topped up and made available for the majority of households at the start of 2027.
Eligibility: Battery must be installed by an accredited retailer/installer and connected to a VPP activity provider approved under the Retailer Energy Productivity Scheme. Priority-group households (e.g. concession-card holders) may receive higher per-kWh rates.
Notes: You can claim the incentive on multiple batteries at the same address, up to a combined 28 kWh of total capacity. The VPP incentive can also be claimed again when renewing a VPP contract of at least three years.
Contact: Apply through an authorised activity provider such as MAC Trade Services or check with your chosen VPP operator for current application steps.
Australian Capital Territory (ACT)
Program: Sustainable Household Scheme
Loan Value: Low-interest loan from $2,000 to $20,000, repayable over up to 10 years.
Eligibility: Open to ACT residents for energy-efficient upgrades like battery storage, solar, and EV charging infrastructure.
Requirements: Loan capped at $20,000 for specific products. You may be required to attend an energy efficiency workshop.
Additional Rebates: Concession card holders may qualify for up to $5,000 in rebates through the Home Energy Support Program. This can include rooftop solar, hot water heat pumps, reserve cycle air conditioners, electric stoves, and ceiling insulation – but not home batteries.
Process: Approved applicants receive a QR code for installation validation.
Contact: Call 13 22 81 or email [email protected].