Battery Rebates Drop May 2026: What Victorians Must Know

January 27, 2026

Andrew Damianou

If you’ve been considering adding a solar battery to your home, now’s the time to act. A scheduled change to the federal battery rebate delivered via Small-scale Technology Certificates (STCs) means rebate values are set to decline from May 2026, reducing the upfront discount available to Victorian households. For most homes, that could mean missing out on thousands in savings especially if you’re planning to install a larger battery system. Here’s the context:

The Victorian Solar Homes Battery Rebate officially closed to new applicants in June 2025.
Since July 2025, federal support has continued through the Cheaper Home Batteries Program, offering rebates (around 30%) via Small-scale Technology Certificates (STCs).¹
From May 2026, the way those STCs are calculated will change, including more frequent step‑downs (every 6 months) at higher rates and rebate tapering for larger systems. This will reduce the overall rebate available for many battery sizes compared to current settings.

For Victorian homeowners who’ve already installed solar, or are planning to pair a battery with other upgrades (like hot water heat pumps or HVAC), locking in your battery install before May could mean thousands in extra savings.

What Is the Federal Solar Battery Rebate?

Launched in July 2025, the federal Cheaper Home Batteries policy replaced the earlier Victorian battery rebate and introduced a national incentive to encourage household battery uptake across Australia.

Here’s how it works:

Rebate value: The rebate you receive is based on the usable battery capacity (measured in kWh) installed on your home. The government subsidises this by issuing STCs that your installer claims on your behalf.
System size: Most household battery systems fall between 5-50 kWh, and under current settings, the rebate can cover a significant portion (often around 30%, depending on system size and prevailing STC prices).
Installer’s role: Your accredited installer will typically calculate and apply the STC discount for you. This means you don’t need to submit paperwork yourself. It’s reflected in your quote before you sign off.

Example:

If you install a 20kWh battery, you could currently receive around $6,000+ in rebates under the STC scheme (as of early 2026).

But from May onwards, that figure will decline, as the number of eligible certificates is reduced under the federal program schedule.

So if you’re already eligible, or close to making a decision, delaying a few months will cost you.

It’s worth noting this federal rebate is not means‑tested. All eligible Victorian homeowners can access it regardless of income, as long as the battery system and installation meet program requirements.²

Why the Battery Rebate Is Declining (And When)

Battery rebates don’t stay the same forever and that’s by design.

Under the STC system, the number of certificates a battery installation earns declines each year as part of a scheduled reduction through to 2030. This means that the value of the upfront discount decreases over time, so a system installed earlier in the scheme typically earns more STCs (and a larger rebate) than the same system installed later.

From 1 May 2026, two key changes kick in:

The “STC factor” determines how many certificates a battery earns per kilowatt‑hour (kWh) of usable capacity. Under the revised schedule, the STC factor declines more frequently (every six months) and at a higher rate, resulting in fewer certificates per kWh over time and therefore a lower upfront rebate value for systems installed later.³
A tiered support system applies smaller batteries (e.g., up to ~14 kWh) will receive full support, but larger capacity above that level will earn proportionally fewer certificates. This means larger systems become less financially supported compared with today’s settings.⁴

For example, an installer looking at a 30 kWh battery after May 2026 can expect:

Full certificate support on the first ~14 kWh
Reduced support on additional capacity
A smaller total rebate than the same battery installed before the change

Battery Size (Usable Capacity)	System Cost (Estimate)	Upfront Rebate (Before May 2026)	Upfront Rebate (After May 2026)	Out-of-Pocket (Before)	Out-of-Pocket (After)
20kWh	$14,360	~$6,160	~$4,600	~$8,200	~$9,760
30 kWh	$18,240	~$9,240	~$6,006	~$9,000	~$12,234
40 kWh	$44,220	~$12,320	~$6,400	~$31,900	~$37,820

What this means for Victorian homeowners is simple: timing matters. Installing before May 2026 can earn you a higher rebate and reduce your upfront cost significantly more than waiting until later in the year.

How to Maximise Your Battery Rebate in 2026

If you’re planning to install a solar battery in the next 12 months, timing is everything. The federal rebate amount drops from May 2026, so acting early could mean thousands more in upfront savings.

Here’s how to lock in the highest rebate available:

Install before 1 May 2026
Battery rebate rates are based on a system of certificates (STCs), and the number you receive is set to decline under new rules. The earlier your system is installed, the more you save.

Choose a battery from the approved STC list
Not all batteries are eligible. Make sure your product appears on the Clean Energy Regulator’s approved battery list. Ask your installer to confirm this before proceeding.

Use an approved installer
Your installer must be Clean Energy Council (CEC) accredited and participate in the Cheaper Home Batteries Program. They’ll also apply the rebate on your behalf (no paperwork required on your end).

Coordinate your upgrades
Planning to install multiple systems? Speak to a trusted provider about how to sequence your upgrades to avoid missed rebates or eligibility issues:

Solar panels (federal STC program, different rebate rules)
Heat pump hot water (federal + VEU rebates)
EV chargers (Some state incentives may exist or be introduced in future phases, check local programs)

🛠️ Pro Tip: Some homeowners accidentally miss out on one rebate by installing the wrong system first. Get expert advice before you start.

Final Thoughts: Why May 2026 Is a Key Deadline for VIC Homeowners

Battery rebates are generous now but they won’t stay that way.
From May 2026, new federal rules mean the value of your rebate could drop by up to 30% or more, depending on your battery size.

If you’ve been thinking about installing a solar battery, the best time to act is now.
Early installation means:

Bigger rebates
Lower upfront costs
Faster return on investment
More flexibility to plan future upgrades

Thinking about a solar battery?
Get in touch with a trusted installer to check your eligibility and lock in your rebate before the changes hit.

Frequently Asked Questions

Can I get both the federal and Victorian battery rebate?

Not anymore. The Victorian Solar Homes battery rebate closed to new applicants in June 2025. Right now, only the federal rebate (STCs) is available for battery systems and that’s why acting before May 2026 is so important.

What size battery should I choose to maximise the rebate?

Choosing the right battery size is one of the most important steps in making sure your investment pays off. Bigger isn’t always better and in fact, oversizing your battery can cost you more than it saves.
For most Victorian homes, a battery size between 10–20 kWh is usually sufficient to store excess solar power and cover typical overnight usage. However, some companies push 30–40 kWh systems onto households who don’t need them, just to access larger rebates. This can actually work against you.

Here’s why oversizing a battery can be a bad deal:
You might never use all the capacity: If your household doesn’t produce or consume that much energy, the extra storage just sits there.
Batteries degrade over time: Even unused battery capacity slowly loses effectiveness through a process called calendar ageing. That means you’re paying for storage that might never be used before it starts to fade.
Your rebate is changing: From May 2026, the federal rebate will reduce support for larger batteries. The first ~14 kWh will get full subsidy, but anything above that will receive fewer certificates and therefore, a smaller discount.

Right-sizing your battery means getting the best value over the system’s lifespan. A trusted installer will assess your actual energy usage, solar output, and lifestyle needs and design a solution that matches.

Will installing solar panels help me get the battery rebate?

Not directly, but solar panels + batteries = bigger savings.
Solar panels help charge your battery during the day, so you can use free stored energy at night when electricity prices spike.

And yes, solar panels have their own rebate program (STCs), which your installer can apply at the same time.

Is it too late to qualify for the highest rebate?

No, but time is running out.

You can still lock in the higher rebate if your system is installed before 1 May 2026. Delays in quotes, approvals or installation could cost you thousands.

Get a quote and confirm your eligibility early especially if you’re planning a larger system or coordinating multiple upgrades.

What if my installation date gets delayed?

Only completed installations count for the higher rebate. If your system is installed after 1 May, you’ll receive the lower rebate amount even if you paid a deposit or signed a contract before the deadline.
That’s why it’s important to:

Choose an experienced, accredited installer
Confirm the timeline in writing
Avoid leaving it too close to the deadline

1: Can I get both the federal and Victorian battery rebate?
Not anymore. The Victorian Solar Homes battery rebate closed to new applicants in June 2025. Right now, only the federal rebate (STCs) is available for battery systems and that’s why acting before May 2026 is so important.

2: What size battery should I choose to maximise the rebate?
Choosing the right battery size is one of the most important steps in making sure your investment pays off. Bigger isn’t always better and in fact, oversizing your battery can cost you more than it saves.
For most Victorian homes, a battery size between 10–20 kWh is usually sufficient to store excess solar power and cover typical overnight usage. However, some companies push 30–40 kWh systems onto households who don’t need them, just to access larger rebates. This can actually work against you.

Here’s why oversizing a battery can be a bad deal:
You might never use all the capacity: If your household doesn’t produce or consume that much energy, the extra storage just sits there.
Batteries degrade over time: Even unused battery capacity slowly loses effectiveness through a process called calendar ageing. That means you’re paying for storage that might never be used before it starts to fade.
Your rebate is changing: From May 2026, the federal rebate will reduce support for larger batteries. The first ~14 kWh will get full subsidy, but anything above that will receive fewer certificates and therefore, a smaller discount.

3: Will installing solar panels help me get the battery rebate?
Not directly, but solar panels + batteries = bigger savings.
Solar panels help charge your battery during the day, so you can use free stored energy at night when electricity prices spike.

And yes, solar panels have their own rebate program (STCs), which your installer can apply at the same time.

4: Is it too late to qualify for the highest rebate?
No, but time is running out.
You can still lock in the higher rebate if your system is installed before 1 May 2026. Delays in quotes, approvals or installation could cost you thousands.

Get a quote and confirm your eligibility early especially if you’re planning a larger system or coordinating multiple upgrades.

5: What if my installation date gets delayed?
Only completed installations count for the higher rebate. If your system is installed after 1 May, you’ll receive the lower rebate amount even if you paid a deposit or signed a contract before the deadline.
That’s why it’s important to:

Choose an experienced, accredited installer
Confirm the timeline in writing
Avoid leaving it too close to the deadline

References

Andrew Damianou

Andrew serves as CEO of Carbon Savers, guiding the organisation’s vision, performance, and long-term strategy. He is committed to helping households and businesses adopt cleaner, more efficient energy solutions through trusted, customer-focused service.

Battery Rebates Drop May 2026: What Victorians Must Know

What Is the Federal Solar Battery Rebate?

Why the Battery Rebate Is Declining (And When)

How to Maximise Your Battery Rebate in 2026

Final Thoughts: Why May 2026 Is a Key Deadline for VIC Homeowners

Frequently Asked Questions

References

Andrew Damianou

Save Big on Heating & Cooling!