3 Critical Changes in 3 Minutes: Battery Rebate ⬇️ | System
Price ⬆️ | Energy Price ⬆️
Energy costs are becoming harder for Australian businesses to predict.
Supply chain pressures and global energy volatility could reshape the economics of solar and batteries over the next 3–12 months.
Here are three changes worth knowing now:
1. Federal Battery Rebate Changing
The Federal Battery Rebate has been expanded to around $7.2 billion, extending support well into the next decade. This is accessible to residential and commercial customers ( 100 kWh max).
However, the structure of the rebate is being refined to prevent oversizing and ensure better value for public funding:
a. Tiered rebates from 1 May 2026
The rebate will move from a flat $/kWh model to a tiered structure:
Smaller batteries will continue to receive the full rebate. Medium batteries will receive a reduced rate. Larger batteries will receive minimal subsidy
This makes right-sizing more important than ever.
b. Rebate value declines over time
The rebate amount per kWh will gradually step down, meaning earlier installations generally receive higher incentive than later ones.
Here’s the estimated value of the rebate per kWh:
Jan-April 2026: $336 per kWh
May-Dec 2026: $272 per kWh
Jan-Jun 2027: $228 per kWh
2. Panel Price Increase
Due to silver price volatility and regulation changes in China, solar panel prices are expected to considerably increase 20% - 50% in stages until mid 2026. This could be made worse by the impact of the Middle East war, which has not been accounted for in those figures.
3. Energy Price Increase
On the other hand, it’s natural that the surge in oil and gas prices due to the war will be followed by increased electricity prices. This is concerning and unpredictable as it depends on how the war evolves. We’ve had conversations with customers who want to put on solar/ battery quickly to shelter themselves from the potential energy market shock.
Final Thought
Battery rebates aren’t disappearing — but they are reducing over time.
If you’re considering solar or battery storage, it just makes sense to beat the battery rebate reduction dates and panel price increases. Global energy uncertainty is a reality to prepare for.
Control more energy – Protect your business
As solar/ battery projects take a few weeks, don’t hesitate to start the discussion now.