Federal Solar Rebate: Government Support for Solar and Batteries

The federal solar rebate is the term commonly used for the financial benefit eligible small-scale solar installations receive through Australia’s Small-scale Renewable Energy Scheme. Eligible solar PV systems can create Small-scale Technology Certificates, or STCs. Their value is commonly assigned to a registered agent and reflected as an upfront reduction in the installation price. It is therefore not a single fixed cash payment made directly to every solar customer.

Eligible small-scale solar installations can create STCs under the Small-scale Renewable Energy Scheme. The number of certificates depends on factors including system capacity, installation location, installation date and the applicable deeming period. Most customers assign the right to create those certificates to a registered agent. The commercial value of the STCs can then be reflected as an upfront reduction in the solar installation price.

Yes, although the main federal government rebate for solar panels is technically a certificate-based incentive rather than a conventional cash rebate. Eligible small-scale solar PV systems can create STCs under the SRES, and the value of those certificates is commonly reflected as an upfront installation discount.

There is no single fixed dollar value for the federal solar rebate. The number of STCs an eligible solar system can create depends on the system capacity, installation location, installation date and applicable deeming period. The certificate value also affects the financial benefit reflected in the installation price. For solar systems installed during 2026, the applicable solar deeming period is five years.

The number of Small-scale Technology Certificates associated with an eligible solar installation depends on factors including system capacity, location, installation date and the remaining deeming period under the SRES. The applicable certificate value can also change, so the financial benefit should be assessed for the actual system and installation timing.

Not usually. For eligible small-scale rooftop solar, the main federal incentive operates through Small-scale Technology Certificates rather than a direct universal cash payment. Customers commonly assign the right to create their eligible STCs to a registered agent, with the value reflected as an upfront reduction in the installation price.

The Australian Government’s Cheaper Home Batteries Program provides upfront support for eligible small-scale battery installations through the STC framework. Eligible households, businesses and community organisations may receive support for qualifying batteries connected to new or existing solar, subject to current capacity, equipment, installation and technical requirements. The amount is not one fixed dollar figure.

The Cheaper Home Batteries Program is designed to provide a substantial upfront discount for eligible battery installations, but there is no single fixed dollar amount. The number of STCs depends on usable battery capacity and the applicable STC factor when the battery is installed. From 1 May 2026, support tapers as battery capacity increases. The first 14 kWh receives the full applicable factor, capacity above 14 kWh and up to 28 kWh receives 60%, and capacity above 28 kWh and up to 50 kWh receives 15%. Only the first 50 kWh of usable battery capacity can receive battery STCs.

Potentially, yes. An eligible battery can be connected to either a new or an existing qualifying solar PV system. The battery still needs to satisfy the current program requirements, including eligible capacity, approved equipment, installation and technical requirements.

Generally, no. Consumers do not normally lodge a direct application with the Department of Climate Change, Energy, the Environment and Water or the Clean Energy Regulator for the battery discount. The support operates through STCs. Where the owner assigns the eligible certificate rights to a registered agent, their value can be provided through the commercial arrangement, commonly as an upfront discount.

The nationwide Energy Bill Relief Fund has ended. Its final extension provided eligible households and small businesses with up to $150 of electricity-bill relief between July and December 2025, and the program ended on 31 December 2025. Separate state or territory electricity concessions may still be available depending on the customer’s circumstances and location.

The Household Energy Upgrades Fund is a $1 billion Clean Energy Finance Corporation initiative supporting discounted finance for eligible household energy improvements. Finance is delivered through participating banks and non-bank lenders rather than directly by the Australian Government. Eligible technologies can include solar, batteries, heat pumps, insulation, energy-efficient heating and cooling, induction cooktops and EV chargers, depending on the participating lender.

Potentially. Some federal incentives can operate alongside eligible state or territory support when the requirements of each program are satisfied. For example, an eligible battery project may potentially receive federal support while also qualifying for a separate NSW incentive. ACT households may similarly qualify for targeted territory programs alongside applicable federal solar or battery support. Combination rules vary, however, and some programs restrict double claiming. Eligibility should therefore be checked for the actual project.

Yes, subject to the requirements of the relevant program. The SRES is available to eligible households and businesses installing qualifying small-scale renewable energy systems. The Cheaper Home Batteries Program can also apply to eligible businesses and community organisations, subject to the battery, solar, equipment and installation requirements. Larger commercial solar projects should be assessed against the specific federal rules applying to their system size and installation date.

No. Government support should improve the economics of an appropriately designed system rather than determine its capacity. Solar sizing should consider electricity consumption, roof conditions, shading, network export limitations and future electrical demand. Battery sizing should consider solar surplus, evening consumption, tariffs, inverter capacity, backup requirements and expected battery use.

No. Eligibility depends on the requirements applying to the individual program. Factors can include installation date, equipment eligibility, system capacity, property type, installer accreditation, technical standards, existing equipment and previous incentive claims. Government programs can also change over time.

Some federal incentives reduce over time. The Small-scale Renewable Energy Scheme is scheduled to run until 2030, and the solar deeming period reduces each year. Battery STC factors under the Cheaper Home Batteries Program also decline according to the applicable program schedule and are reviewed periodically. This does not necessarily mean a customer should install immediately simply to capture a larger incentive. The project still needs to make technical and financial sense.

Yes. Decarby can help identify relevant federal solar, battery and household energy incentives and explain how they may apply to a proposed project. Where appropriate, we also consider relevant ACT and NSW programs because state and territory support may operate alongside federal incentives. Eligibility remains subject to the requirements of the individual program. Our role is to help you understand those options while ensuring the system is designed around the property’s actual energy requirements.