May 2nd, 2026Battery rebate changes start today
Households looking to install a solar battery are now subject to lower rebates, with rules changing today. Analysis by Compare the Market has revealed the return on investment on an example 10kWh battery could be reduced by around three years, but not for long.
In response to surging uptake, the federal government has redesigned its Cheaper Home Batteries Program to deliver more rebates by reducing the size of returns on larger systems.
From 1 May, retailers and installers will be able to claim a reduced full discount on 0-14kWh systems, but for every kilowatt-hour (kWh) between 14-28kWh (inclusive) the incentive drops to 60%, and for every kWh between 28-50kWh (inclusive) it is 15%.
The new tiered system will reduce every six months from January 2027.
Please find quotes attributable to Compare the Market’s Henry Man below.
“If you’re looking to slash your energy bills and make the most out of your solar, now is the time to consider installing a home battery,” Mr Man said.
“We’ve seen electricity retailers lower their feed-in tariffs and the introduction of the ‘sun tax’, where some plans could penalise Aussies for exporting energy back into the grid at certain times. Having a battery allows your household to use as much free solar-generated energy for yourself when the sun isn’t shining.
“The government’s rebate scheme has been so popular that it will be winding down the amount it hands out earlier and faster than initially planned from today.
“While it claims the discount will still be around 30% of the purchase price, it assumes battery product costs will decline – but this isn’t guaranteed. Bigger systems will also have a reduced rebate.
“We crunched the numbers and found an example 10kWh battery costing $10,000 will have a nine-year return on investment (ROI) based an assumed household and energy profile. However, with a 30% discount, it’s cut to 6.3 years.
“Aussies should speak to a qualified battery retailer to see if installing one is right for you and your household.”
To learn more about solar batteries, please visit: https://www.comparethemarket.com.au/energy/solar-batteries/
