Federal vs State Battery Rebate Schemes in Australia

Last updated on February 13, 2026

Home batteries are becoming an increasingly common part of Australian households. When paired with solar, they help you store excess energy for later use, cut electricity bills, and reduce stress on the grid during peak periods.

Yet, batteries remain expensive.

That’s why the government offers support through rebates and incentives. There’s a federal battery rebate available nationwide and, in many states, additional local incentives that can stretch your savings even further.

This article breaks them down in a simple, clear way so you can see what’s available and how it all works together.

Federal Battery Rebate — National Support Scheme

The Cheaper Home Batteries Program is Australia’s main federal support for residential battery storage. It sits under the Small-scale Renewable Energy Scheme (SRES) and is designed to make battery systems more affordable by reducing the upfront cost.

This support applies across all states and territories, giving homeowners a consistent baseline rebate no matter where they live.

Key Features

Around 25–30% reduction in upfront battery cost
Instead of a rebate you claim later, the discount is applied upfront through your installer. For example, on a $12,000 battery system, you might see around $3,000–$3,600 taken off your total cost.
Available for installations from July 1, 2025
Only battery systems installed from this date forward qualify for the federal rebate. If your system was installed earlier, it won’t be eligible.
Covers a broad range of battery sizes
Systems from roughly 5 kWh to 100 kWh are eligible, with the rebate usually only applying to the first ~50 kWh. This covers most residential battery installations.
Simple eligibility with no means testing
The rebate isn’t based on income; as long as the system is eligible and installed by an accredited installer, you qualify.
The installer claims the rebate for you
You don’t have to fill out separate forms. The accredited installer handles everything, and you see the rebate reflected in your quote.

Pros of Federal Battery Rebate

Lower entry cost

Rebates and loans reduce the cash needed upfront. This helps households act sooner rather than waiting years.

More control over energy use

Batteries let you decide when to use your solar energy. That control matters during peak pricing.

Reduced electricity bills over time

Even loan-based support can lead to net savings once the system settles into daily use.

Better use of rooftop solar

Storing excess solar beats exporting it cheaply. Especially in the evening.

Grid support during peak demand

Incentivised batteries ease pressure on the network. This helps everyone, not just battery owners.

Cons of Federal Battery Rebate

The rebate value is designed to reduce over time as battery costs fall. That means waiting too long could result in smaller support even if battery prices stay high.

State & Territory Battery Schemes — Local Incentives (Variable)

How They Differ from Federal Support

State and territory incentives vary widely. They differ in:

whether they offer cash rebates, loans, or payments
how much support they provide
eligibility criteria
whether they require things like Virtual Power Plant (VPP) participation

These incentives are separate from the federal rebate and, in many cases, can be combined with it, but not always. Each state sets its own rules.

Examples of State & Territory Incentives

🟩 Western Australia (WA)

Direct battery rebates (Federal + $1,300 for synergy –$3800 for Horizon Customers)
Rebates generally scale with battery size. Larger systems may attract the higher end of this range, instantly lowering your purchase price.
Interest-free loans ($2001 ~$10,000)
Zero-interest finance spreads the cost over several years. Compared to commercial loans, households often save $2,000–$4,000 in interest. Household gross income must be under $210,000.
Combined rebate + loan approach
You can often use both rebates and loans together, lowering upfront costs and reducing monthly cash flow pressure. But note that the combined rebate and loan cannot exceed the total purchase and installation cost.
Retailer grid-support incentives ($300–$1,000)
Some WA energy companies reward you if your battery supports the grid during peak events.

🟩 New South Wales (NSW)

Federal Battery Rebates (~$3,000–$4,500)

Rebates scale with battery size (approx. $302–$311 per usable kWh until May 2026). This is a uniform federal discount from the Cheaper Home Batteries Program applied by your installer to instantly lower your purchase price.

State VPP Sign-on Incentive(Up to $1500 a year

A one-off payment for connecting your battery to a Virtual Power Plant (VPP). Small systems (6–9 kWh) typically receive around $300–$450, while larger systems can reach the $1,500 cap.

Annual VPP Passive Income (~$300/year)

Earn around $300 every year in bill credits or direct payments by selling your battery’s extra energy back to the grid. This recurring reward helps you pay off your solar panels and battery faster.

Interest-free loans (Up to ~$30,000)

Zero-interest finance via NSW-partnered providers like Brighte spreads the cost over several years. This reduces upfront cash flow pressure while your energy savings help cover the repayments.

🟩 Victoria

Battery rebates are mostly closed (previously up to ~$4,800)
Most direct Victorian rebates are no longer available to new applicants.
Solar and efficiency rebates ($250–$1,400)
While battery support is limited, incentives for solar and energy upgrades can free up household budgets.
Government-backed loans (up to ~$8,800)
Victorian households can access interest-free loans of up to $8,800 for batteries, repayable over four years. While this doesn’t reduce the sticker price like a rebate, it eliminates interest costs associated with commercial finance.
Staged path to battery adoption
Many Victorian households utilise the Solar Victoria Solar for Rental or owner-occupier programs to install solar first. They then add a battery later, once they have tracked their export data to ensure the right system size

🟩 Tasmania

Tasmania’s approach works quietly in the background. It doesn’t grab attention with big rebates. But for the right household, it still makes sense.

Federal Battery Rebates (~30% off)

This is a uniform nationwide discount from the Cheaper Home Batteries Program. It scales with battery size and is applied directly by your installer to instantly lower your purchase price.

Interest-free loans up to about $10,000

Many Tasmanian households can access zero-interest loans that cover batteries, solar, or both. You pay back only what you borrow.No added cost over time. That alone changes the maths for families watching their cash flow.

Tasmania’s Energy Saver Loan Scheme

The Energy Saver Loan Scheme has now closed, effective Monday, 1 September 2025 at 11:59 pm. No further applications can be submitted. All inactive referrals have now expired.

🟩 Australian Capital Territory (ACT)

Federal Battery Rebate (~30% Upfront Discount)

From 1 July 2025, the Australian Government’s Cheaper Home Batteries Program offers an upfront discount of around 30% on the cost of installing a battery. This is available to households, businesses, and community organisations to instantly lower the purchase price.

Sustainable Business Program Rebates (Up to $10,000)

Eligible businesses can receive a rebate of up to $10,000 to install energy-efficient upgrades, including batteries. This incentive from the ACT Government helps businesses reduce overheads and pay back their energy investments faster.

Low-interest Sustainability Loans (Up to $15,000)

Under the Sustainable Household Scheme, eligible households can access low-interest loans of up to $15,000 to buy a battery. This allows residents to spread the cost over several years, using energy savings to help cover repayments.

Special Energy Retailer Battery Plans

Some energy retailers offer specialised plans that allow you to buy and sell stored energy at competitive prices. These plans are based on how much solar power you generate and use, which can further lower your power bills.

🟩 Northern Territory

Solar for Multi-Dwellings Grant (Up to $7,500 per unit)

Funded by the Australian Government’s Community Solar Banks Program, this grant helps apartment buildings and strata complexes in the NT install shared battery systems. Eligible corporations can receive up to $7,500 per dwelling, covering up to 50% of the total installation costs for shared solar and battery storage.

Home and Business Battery Scheme

This has now reached its $6 million funding allocation and is now closed to new grants.

Federal Battery Rebate (~$3,100–$4,500)

This uniform nationwide discount from the Cheaper Home Batteries Program covers approximately 30% of the system cost.

Stacking Federal + State Rebates

In most states, you can stack the federal rebate with local incentives, meaning you reduce your battery cost in more than one way. But always check specific rules. Some programs require things like VPP participation, or they limit how rebates stack with loans.

The key is to confirm eligibility before signing a contract with your installer.

Quick Comparison — Federal vs State Support (With Figures)

State/Territory	Direct Rebates & Discounts	Interest-Free / Low-Interest Loans	VPP & Grid Support Incentives
Western Australia (WA)	$1,300 – $3,800 (Federal + Synergy/Horizon); scales with battery size.	$2,001 – $10,000 (Zero-interest); Income must be under $210k.	$300 – $1,000 for grid support during peak events.
New South Wales (NSW)	$3,000 – $4,500 (Federal); approx. $302–$311 per usable kWh.	Up to $30,000 (Zero-interest) via partners like Brighte.	Up to $1,500 sign-on bonus + ~$300/year passive income.
Victoria (VIC)	$250 – $1,400 (Solar/Efficiency upgrades); direct battery rebates are mostly closed.	Up to $8,800 (Zero-interest); repayable over 4 years.	–
Tasmania (TAS)	~30% off (Federal); Energy Saver Loan Scheme is now Closed.	Up to $10,000 (Zero-interest) for solar and/or batteries.	–
ACT	~30% upfront discount (Federal); Up to $10,000 for eligible businesses.	Up to $15,000 (Low-interest) via Sustainable Household Scheme.	Special retailer plans for buying/selling stored energy.
Northern Territory (NT)	$3,100 – $4,500 (Federal); Up to $7,500 per unit for multi-dwellings.	Home & Business Battery Scheme is now closed.	Shared battery systems for apartment/strata complexes.

Bottom Line

The federal battery rebate gives you a strong, predictable foundation to reduce your installation cost.

On top of that, several states and territories offer additional incentives, ranging from rebates and interest-free loans to ongoing VPP payments. Some support is direct and immediate, and others reward you over time.

If you live in WA or NSW, the combination can be especially valuable. In Victoria, support is currently more limited but still available through efficiency rebates and loans. Tasmania, the ACT, and the NT each offer their own useful pathways, too, so make sure to check them all out.

Your best approach?

Check both federal and local incentives before making a purchase. That’s how you’ll maximise your savings and make the most of clean energy in your home.