Guide · updated 30 September 2026
Battery rebate NSW 2026: what you're eligible for, and what changes on 1 January
The federal Cheaper Home Batteries discount takes around 30% off a typical home battery at install. It's worth around $272 per kWh of usable capacity for the first 14 kWh until 31 December 2026, then around $228 per kWh from 1 January 2027, and it keeps stepping down every six months until 2030.
By Micheal Foley, owner of MF Energy and licensed electrician · Updated 30 September 2026
days until the federal battery discount steps down (1 January 2027). Installed before then, you’re eligible for more.
What the discount is worth
| Usable battery size | Installed by 31 Dec 2026 | Installed from 1 Jan 2027 |
|---|---|---|
| 10 kWh | 68 STCs ≈ $2,720 | 57 STCs ≈ $2,280 |
| 13.5 kWh | 91 STCs ≈ $3,640 | 76 STCs ≈ $3,040 |
| 16 kWh | 103 STCs ≈ $4,120 | 86 STCs ≈ $3,440 |
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Discount figures assume $40 per certificate (STC) and are approximate; the exact amount depends on your install date, usable battery capacity and certificate prices on the day.
How does the battery discount work?
It's paid through small-scale technology certificates (STCs). Your installer claims them and takes the value off your price, so you don't apply for anything yourself. The number of certificates depends on your battery's usable capacity and the date it's installed.
Is it 30% or so much per kWh?
Both describe the same thing. The government describes it as around 30% off a typical battery; the actual calculation is per usable kWh. At 6.8 certificates per kWh now and about $40 per certificate, that's around $272 per kWh for the first 14 kWh.
What changes on 1 January 2027?
The rate drops from 6.8 to 5.7 certificates per kWh, which is around $228 per kWh instead of $272. It then keeps stepping down every six months until the end of 2030. It doesn't end on 31 December; it gets smaller. What counts is the installation date, not the date you sign.
Who is eligible?
- ✓Homes, small businesses and community organisations
- ✓The battery must be installed with solar, new or existing
- ✓The battery must be capable of joining a virtual power plant (joining is optional)
- ✓The battery must be an approved product, installed by accredited installers and wired by a licensed electrician
- ✓One claim per property
Is there a separate NSW battery rebate?
The NSW household battery installation discount closed on 1 July 2025. NSW still pays an incentive if you connect your battery to a virtual power plant, and that stacks with the federal discount. The amount varies by provider. Businesses have a separate NSW battery incentive from 1 September 2026.
How larger batteries are treated
| Usable capacity band | Discount rate |
|---|---|
| First 14 kWh | Full rate |
| 14 to 28 kWh | 60% of the rate |
| 28 to 50 kWh | 15% of the rate |
| Above 50 kWh | No discount |
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Can I get the battery rebate without solar panels?
+
No. The battery must be installed with solar, either new or existing, to be eligible for the federal discount.
Does the signing date or the install date count?
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The installation date. A battery signed in December but installed in January gets the lower January rate.
Is the discount paid to me or taken off the price?
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It's taken off the price. Your installer claims the certificates and shows the discount as a line on your quote.
Can I add a battery to existing solar and still get the discount?
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Yes, adding a battery to an existing solar system is eligible.
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