With the Cheaper Home Batteries Program launching in July 2025, homeowners across Australia can access significant rebates on eligible home battery systems. But how exactly is the rebate calculated — and what’s the deal with STCs?
Let’s break it down in simple terms so you can understand how much you could save.
What Are STCs and How Do They Work?
STCs, or Small-scale Technology Certificates, are a form of renewable energy credit issued by the Australian Government under the Small-scale Renewable Energy Scheme (SRES).
Think of STCs like a “discount token” — the more STCs your system is eligible for, the bigger the rebate you get upfront from your installer or energy provider. In the case of batteries, the Cheaper Home Batteries Program issues a set number of STCs based on the usable capacity (in kWh) of your battery.
STC Rates for Battery Rebates (2025–2030)
The rebate is calculated by multiplying the number of STCs per kilowatt-hour by the current STC market value (usually around $40). These rates decrease each year, so the sooner you install, the more you can save.
Rebate Calculation Table:
| Year | STCs per kWh | Rebate per kWh (at $40/STC) |
|---|---|---|
| 2025 | 9.3 | $372 |
| 2026 | 8.4 | $336 |
| 2027 | 7.4 | $296 |
| 2028 | 6.5 | $260 |
| 2029 | 5.6 | $224 |
| 2030 | 4.7 | $188 |
These figures are based on a fixed STC price of $40 — which can vary slightly depending on the market.
Real-World Example: 10 kWh Battery in 2025
Let’s say you install a 10 kWh battery system in 2025:
STCs per kWh in 2025: 9.3
Total STCs = 10 × 9.3 = 93 STCs
Rebate = 93 × $40 = $3,720
So, your $3,720 rebate is taken off the total system cost — usually upfront by your installer. No need to claim it yourself.
Try our Federal Battery rebate Calculator in this page.
What Affects Your Final Rebate Value?
A few factors can influence how much you actually receive:
- Installer fees or admin costs: Some may deduct admin fees before applying the rebate.
- STC price fluctuations: While $40 is the assumed value, the real price might be slightly higher or lower at the time of installation.
- Battery capacity: Rebates only apply to up to 50 kWh of usable capacity per system.
Why It Pays to Act Early
The STC rate drops each year, which means your rebate gets smaller the longer you wait. Installing a battery in 2025 could save you up to 30% off the system cost, while by 2030 that figure could be almost halved. If you’re planning to install a battery soon, locking in your system before the next drop can significantly boost your savings. You can pre-register here.
FAQ – Battery Rebate Calculation
Q: What are STCs and who gives them?
A: STCs are Small-scale Technology Certificates issued by the Australian Government. They’re typically claimed by your installer, who applies the discount upfront.
Q: Is the rebate cash or a discount?
A: The rebate is applied as an upfront discount on your battery system by your installer — not as a separate cash payout.
Q: How many STCs will I get?
A: It depends on your battery’s usable capacity and the year you install. For example, a 10 kWh battery in 2025 gets you 93 STCs.
Q: Can I sell the STCs myself?
A: Most installers handle this for you as part of the sale. You’ll see the rebate reflected in your final invoice.
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