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[JANUARY 2026 UPDATE] Australia’s Solar Battery Rebate Has Ended. Here’s How Homeowners Still Save Thousands

7 January 2026

[JANUARY 2026 UPDATE] Australia’s Solar Battery Rebate Has Ended. Here’s How Homeowners Still Save Thousands

KEY POINTS AT A GLANCE

✔ The strongest rebate value lands in early 2026, with January offering the best return
✔ After 1 May 2026, battery incentives reduce and continue falling every six months
✔ A battery only qualifies when installed with solar PV
✔ Larger battery systems receive lower rebate support after May


Australia has reworked how solar battery incentives operate.

What delivered big savings in the past no longer applies the same way today.

A government-backed battery incentive still exists. It can reduce upfront battery costs by up to 30% and cut long-term power bills. But it is no longer something you can assume will be there later when you finally call an installer.

This incentive is on a scheduled decline.
Every six months, the value drops.

Delay the decision and you lock in less support for the exact same battery system.

Battery prices are not falling fast enough to offset this.
Rebate value is shrinking.
Installer schedules are filling earlier.

That urgency you are feeling is justified. This is a time-sensitive window.

Below is what homeowners, landlords, and business owners across Australia need to understand right now to secure the highest available solar battery rebate before the next reduction hits.

Let’s break it down.

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The Cheaper Home Batteries Program: What is The Battery Rebate in January 2026

 

KEY SUMMARY: Battery Rebate Rules & the May 1 Deadline

  • The government handles the STCs for you. No paperwork. Savings come off the price upfront.

  • 2025 install capacity is full. New bookings now target early 2026.

  • Locking in before 1 May 2026 is critical to keep the higher rebate rate.


January to April 2026. The Safe Window

  • Highest available rate at 8.4 certificates

  • Strongest rebate remaining for new installs

  • Install must be completed before 1 May 2026 to qualify


After 1 May 2026. Rebate Drops Hard

  • Certificate rate falls to 6.8

  • New size-based penalties apply

Rebate tiers after May 1

  • 0–14 kWh: full rebate

  • 14.1–28 kWh: about 60% of rebate

  • 28.1–50 kWh: about 15% of rebate


What This Means in Plain Terms

  • Large batteries lose most of their rebate after May

  • Same system. Same install. Much less support

  • Waiting can erase thousands in savings

Example:
A 30 kWh battery installed early 2026 may qualify for around $9,000.
Installed after May 1, that can fall to around $5,500 or less.


Bottom line:
The rebate does not disappear overnight.
It shrinks fast after May 1.

Full details of the solar battery rebate program are available here: CLICK HERE, Solar Battery Rebate 101

 

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FAQ

The solar battery rebate program started on 1 July 2025 and is live now.


Can I install before July 1 and still claim the solar battery rebate?
Yes. As long as your certificate of electrical compliance is dated after 1 July, the solar battery rebate can still apply.


Do I need solar to qualify for the solar battery rebate?
Yes. The solar battery rebate only applies when the battery is paired with solar PV.


Do larger systems receive a bigger solar battery rebate?
Only up to 50 kWh. From 1 May 2026, the solar battery rebate reduces for larger battery sizes.


Can the solar battery rebate be combined with state rebates?
Yes. The solar battery rebate can be stacked with state-based incentives, where program rules allow it.


Do I have to join a VPP to get the solar battery rebate?
No. The battery must be VPP-capable, but joining a virtual power plant is not required to claim the solar battery rebate.


When does the solar battery rebate end?
The solar battery rebate is set to gradually taper and reduce in value through to 2030.

You are likely eligible for the solar battery rebate if:

✔ You install a battery with 5 to 100 kWh of usable capacity
✔ The battery is installed with solar PV
✔ The system meets Clean Energy Council and safety standards
✔ Your installer correctly applies STCs at installation

💡 Important: Only the first 50 kWh of usable battery capacity qualifies for STCs under the solar battery rebate.

The solar battery rebate does NOT apply to:

❌ Grid-only batteries with no solar PV
❌ Batteries certified before 1 July 2025
❌ Batteries installed by non-accredited installers
Portable batteries or solar systems designed only for EV charging

This is a deliberate government design to stop battery oversizing.

Under the new solar battery rebate rules:

    • Household-sized batteries receive the strongest rebate support
    • Larger systems still qualify, but the rebate percentage drops fast
    • After 1 May 2026, batteries above 28 kWh receive only around 15% of the rebate value

Yes. WA has defined rebate caps, which limit how much you can claim under state-based programs.


Can a 200W solar panel run a refrigerator?
A 200W solar panel can assist with powering a fridge, but on its own it will not run a refrigerator continuously day and night without battery storage.


How long will a 120Ah lithium battery run a fridge?
A 120Ah lithium battery can typically run a small, efficient fridge for about 24 hours, depending on usage and temperature.


What is the biggest downside of solar electricity?
Solar power only generates electricity during daylight hours. That’s why combining solar with a battery is the most effective way to keep power available at night and during outages.

 

 

 


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