Is a battery right for you?
A battery tends to make the most sense when you:
- export a lot of solar during the day and buy power back at night;
- pay a high evening rate or are on a time-of-use tariff;
- want backup power for outages (this needs a backup-capable setup, not just a battery); or
- are interested in joining a virtual power plant (VPP).
If you don't have solar yet, installers can quote both together.
Sizing: usable kWh matters
Compare batteries on usable capacity (kWh), not nominal capacity. A sensible size usually covers your typical evening and overnight use. Oversizing costs more, and from 1 May 2026 the federal discount is smaller for capacity above 14 kWh.
| Question to ask | Why it matters |
|---|---|
| Usable capacity and continuous power (kW)? | Capacity is how long it runs; power is how many appliances at once. |
| Backup — whole home or selected circuits? | Backup needs extra hardware and switchboard work. |
| Hybrid or AC-coupled? | Affects cost and how it works with existing solar. |
| Warranty years and throughput/retention? | Warranties are usually limited by years and energy throughput. |
| VPP compatible? | Can unlock extra credits, and is relevant to rebate eligibility. |
Battery rebates and incentives
Federal — Cheaper Home Batteries Program. Eligible batteries installed with new or existing solar receive a discount through small-scale technology certificates. From 1 May 2026 the discount is tiered by size: full certificate factor for the first 14 kWh, 60% for capacity between 14 and 28 kWh, and 15% for capacity between 28 and 50 kWh. The rebate is set by the installation date, not the date you sign. Clean Energy Regulator — Battery rebates are changing 1 May 2026
NSW — Peak Demand Reduction Scheme. NSW offers incentives for installing a battery and for connecting it to a VPP. The rules were updated from 1 July 2026, with new battery activities from 1 September 2026. NSW Energy Sustainability Schemes — new ESS and PDRS rules from 1 July 2026
For a full breakdown, read our battery rebates guide, or search the energy.gov.au — Rebates and assistance finder.
Last checked 21 October 2026. Programs change often — always confirm eligibility with the program and your installer.
How to compare battery quotes
- The installer's licence and any required accreditation, with numbers you can check.
- An itemised quote: exact brands and model numbers, quantities and what's included.
- Any rebate or certificate discount shown as a separate line, with who claims it.
- Product warranty, performance warranty (if relevant) and the installer's workmanship warranty — in writing.
- Who handles network/connection approvals and compliance certificates.
- Deposit amount, payment schedule and what happens if the job is delayed.
- The number of certificates (STCs) claimed and their dollar value, shown separately.
- The installer's SAA accreditation for battery installation.
- Exactly which circuits are backed up, if backup is included.
Be wary of "act now before the rebate drops" pressure. The regulator has warned retailers not to promise installation dates they can't meet. Get the install date in writing.
Frequently asked questions
How much does a home battery cost?
It depends mainly on usable capacity, brand and whether backup is included. See our battery cost guide for how the price and discount are calculated.
Can a battery power my house in a blackout?
Only if it's installed with backup capability. Many systems back up selected circuits (lights, fridge, internet) rather than the whole home.
Do I need solar to get the federal battery discount?
The program is for batteries installed with new or existing rooftop solar. Check the current rules with the Clean Energy Regulator and your installer.
What is a VPP?
A virtual power plant lets an energy company use part of your battery's stored energy during peak demand, usually in exchange for credits. Read the terms carefully — they vary a lot.