Investing in a solar and battery system is one of the smartest ways to reduce energy bills and increase energy independence. Beyond environmental benefits, federal and state incentives can dramatically lower upfront costs, improve payback periods, and make solar adoption accessible for more Australians.
This guide breaks down all major rebates, incentives, and upcoming changes across every state and territory, providing homeowners with the most comprehensive, up-to-date information available. It also explains how rebates stack, how to calculate savings, and why acting now is financially advantageous.
Federal Programs: The Backbone of Solar Incentives
1. Small-scale Renewable Energy Scheme (SRES)
The SRES provides Small-scale Technology Certificates (STCs) for eligible solar systems installed across Australia. These certificates are applied by installers as upfront discounts, reducing the cost of solar panels significantly.
Key points:
- Reduces installation costs by roughly 25–30%, depending on system size and location.
- Covers residential systems up to 100 kW.
- Gradually phases out through 2030, so earlier installations capture higher rebates.
- Administered at installation, requiring no additional paperwork for homeowners.
2. Cheaper Home Batteries Program
Introduced from 1 July 2025, this federal program provides a rebate of ~30% off the upfront cost of eligible batteries, up to the first 50 kWh of usable capacity.
Highlights:
- Works with both new and existing solar arrays.
- Rebate is applied by accredited installers.
- Gradually steps down through to 2030, with tiered reductions from May 2026 to preserve budget sustainability.
- Example: A 10 kWh battery can receive roughly $3,300–$3,700 in rebates.
These programs form the baseline support for solar + battery systems nationwide, allowing homeowners to significantly reduce initial outlay.
State and Territory Breakdown: Current and Upcoming Incentives
New South Wales (NSW)
Current Incentives:
- Federal STCs and battery rebates apply.
- VPP incentives: Up to ~$1,500 for battery owners who join a Virtual Power Plant.
- Local council programs may provide small top-ups.
Upcoming Changes:
- VPP participation may see more structured incentives as grid management programs expand.
- Federal rebate tapering over 2026–2030 means earlier installations will capture higher value.
Victoria (VIC)
Current Incentives:
- Federal rebates apply nationwide.
- Historical Solar Homes Panel Rebates closed but other council-level programs (solar for multi-unit dwellings) remain.
Upcoming Changes:
- Potential introduction of additional state-supported financing for batteries in certain council regions.
- Emphasis on Solar for Rentals and multi-dwelling programs is expected to continue.
Queensland (QLD)
Current Incentives:
- Federal STC and battery rebates.
- State battery rebates have closed.
Upcoming Changes:
- Some council-specific programs may emerge in the coming years.
- Continued federal support ensures savings remain attractive.
South Australia (SA)
Current Incentives:
- Federal programs apply.
- Some councils offer local rebates (~$1,000–$2,000).
- SA’s strong VPP program rewards battery participation.
Upcoming Changes:
- VPP incentives are likely to be enhanced as battery adoption grows.
- Local council top-ups may continue to emerge in targeted programs.
Western Australia (WA)
Current Incentives:
- Federal rebates apply.
- State Residential Battery Scheme provides additional rebates or no-interest loans that can be stacked with federal support.
Upcoming Changes:
- Likely continuation of WA battery programs.
- Budget adjustments could increase eligibility or rebate per kWh in future.
Tasmania (TAS)
Current Incentives:
- Federal rebates available.
- Energy Saver Loans: Interest-free loans for solar, batteries, and EV chargers.
Upcoming Changes:
- Likely continuation of interest-free loans to complement federal rebates.
- New council programs may provide small grants or incentives.
Australian Capital Territory (ACT)
Current Incentives:
- Federal rebates apply.
- Sustainable Household Scheme (SHS): Loans for solar, battery, and EV chargers.
Upcoming Changes:
- SHS program expected to remain, offering low-interest loans that stack with federal support.
Northern Territory (NT)
Current Incentives:
- Federal rebates apply.
- State battery scheme has closed.
Upcoming Changes:
- NT residents still have federal support.
- Future local incentives may be reintroduced as part of energy transition plans.
How Rebates Stack Nationwide
Across Australia, homeowners can combine federal STC rebates, battery rebates, VPP incentives, and select state/council rebates for significant upfront savings.
Example Scenarios:
- SA homeowner: Federal STC + federal battery rebate + local council rebate + VPP incentive.
- WA homeowner: Federal solar + federal battery + state battery rebate/loan.
- ACT homeowner: Federal rebates + SHS low-interest loan.
Upcoming Changes Nationwide
- Federal battery rebate taper: May 2026 introduces tiered reduction by battery size.
- STC reduction: Gradual decline through 2030.
- VPP expansions: Some states increasing incentives for battery participation.
Key Takeaways
✔ Federal incentives form the backbone of nationwide support.
✔ State and council programs vary in value and availability.
✔ Rebates tapering over 2026–2030 makes early installation advantageous.
✔ Stacking multiple incentives maximizes savings and reduces payback period.
Solar and battery adoption is now more affordable than ever, thanks to federal programs and selective state initiatives. Acting early ensures homeowners capture the most value from rebates, accelerate payback, and secure long-term savings.
Speak with a solar specialist today for a customized rebate-inclusive quote, ensuring you capture every available incentive and maximize the financial return of your solar + battery system.
