In 2025, significant updates to Australia’s solar rebate landscape made clean energy systems more affordable — especially for people installing rooftop solar and batteries. Understanding these changes can help you maximise your savings and choose the right system for your home or business.
🔆 Ongoing Federal Solar Panel Rebate (STCs)
The core federal solar rebate for solar panels continues to be delivered through the Small-scale Renewable Energy Scheme (SRES), which provides Small-scale Technology Certificates (STCs) that installers apply at the point of sale to reduce upfront cost.
How it works:
- The number of STCs a system qualifies for is based on its size and expected energy generation until the scheme ends in 2030.
- STCs act as an upfront discount on your solar system quote — meaning you don’t need to apply separately; your installer handles it for you.
Important update:
In 2025–26, the STC rebate is gradually reducing as part of a planned phase-down tied to the Renewable Energy Target, meaning installing sooner generally yields a larger rebate compared with later years.
🔋 Cheaper Home Batteries Program — New Federal Battery Rebate
For the first time from 1 July 2025, batteries became eligible for federal rebates under the expanded SRES through the Cheaper Home Batteries Program.
💰 What This Means for You
- You can receive a discount of around ~30 % off the cost of an eligible battery at point-of-sale.
- This is applied via STCs under the SRES and depends on usable battery capacity and installation date.
- Batteries must be installed with solar PV and by an SAA-accredited installer to qualify.
The rollout of this rebate led to a dramatic increase in battery installations across Australia in mid-2025, showing that many households are taking advantage of the support.
📉 Changes Ahead: 2026 & Rebates Stepping Down
The federal battery rebate is not static — it’s designed to gradually step down over time as clean energy technologies become more affordable and widespread.
🗓 Key Changes:
- From 1 May 2026, the rebate structure will become tiered by battery size rather than a flat per kWh rate, helping balance incentives across smaller and larger systems.
- STC values are now reducing every 6 months rather than annually, meaning if you install later in 2026, the effective rebate value per kWh will be lower than in 2025.
- By 2030, both solar STCs and battery STC-based rebates are scheduled to phase out entirely as the SRES winds down.
These adjustments encourage homeowners to install systems earlier rather than later — particularly before May 2026 — to secure higher rebate values.
🏠 State & Territory Supplements Still Available
While federal incentives form the backbone of solar and battery rebates, several states also offer their own incentives that can stack with federal support:
Example programs:
- Victoria: Solar Homes program provides rebates for panels and interest-free loans; recent updates increased the hot water rebate.
- New South Wales: Offers support for battery connections and previously had peak demand programs.
- ACT: Sustainable Household Scheme delivers interest-free loans for solar and batteries.
- Western Australia: Introduced a $7,500 battery rebate from July 2025.
State incentives vary and often have eligibility conditions, so it’s worth checking specific programs in your location to see if extra rebates or loans are available.
📅 Why Timing Matters for 2026
Because federal rebates — for both solar panels and batteries — are declining over time, installing earlier in 2026 generally means:
✔ Higher STC count for solar panels
✔ Larger upfront discount applied
✔ Better value per kWh of battery capacity under the federal rebate rules
✔ More opportunity to stack state-level incentives
This timing can make a significant difference to your total out-of-pocket price on solar + battery systems compared to waiting later in 2026 or beyond.
📈 Planning Your Solar Investment
When considering a solar + battery system, it’s important to factor in:
- How much federal and state rebate support you can claim
- Whether your installer is Solar Accreditation Australia (SAA)-accredited (which is required for rebate eligibility)
- Your future energy use patterns and goals (e.g., energy independence, bill reduction, backup power)
A tailored approach ensures you maximise rebate value and optimise long-term savings.
📞 How Arise Solar Can Help
At Arise Solar, we help Australian homeowners:
✔ Understand current and upcoming solar + battery rebates
✔ Access federal and state incentives correctly
✔ Design systems that meet your energy and financial goals
✔ Work with SAA-accredited installers so rebates apply to your installation
Contact us today for a free rebate review and personalised solar + battery quote to make the most of the 2025–26 incentive landscape.
