Skip to content

WA incentives

WA battery rebate 2026: the amounts and the VPP rule

Western Australia pays up to $1,300 for Synergy customers and $3,800 for Horizon Power customers, counted on no more than 10 kWh of usable capacity. The rebate is conditional: you must commit to a virtual power plant product from your retailer for two years.

Reading time: 8 minPublished: 22 Sep 2026Last checked: 22 Sep 2026
Aerial photograph of Perth, looking across parkland and residential streets towards the city skyline.

What WA households can claim now

Worth knowing

The WA Residential Battery Scheme is open, and joining a virtual power plant is a condition of it — not an optional extra. Western Australia is currently the only state offering a broad household battery rebate of its own, and it attaches a two-year VPP commitment to the money.

The scheme page states that "Applications for rebates and loans under the WA Battery Scheme are now open." The rebate is up to $1,300 for Synergy customers and up to $3,800 for Horizon Power customers, and the applicant information counts it on batteries with usable capacity between 5 kWh and 10 kWh. A larger battery is not disqualified, but the rebate stops counting above 10 kWh.

A separate no-interest loan of $2,001 to $10,000 is available over three to ten years, for households with gross income under $210,000. The loan and the rebate are administered together, and your approved vendor claims the rebate: "Your approved vendor will apply for the rebate on your behalf; you do not apply directly to the government for your rebate."

Two boundaries decide whether you are in or out before anything else is assessed. Batteries installed before 1 July 2025 are not eligible for either the rebate or the loan. And the scheme page describes the program as running until its planned 100,000 rebates have been distributed, so the funding is finite even though no fixed closing date is published.

The condition: a two-year VPP commitment

This is where the WA scheme differs from the federal discount, and from the way most rebates are described in advertising. The questions and answers page is explicit: "You must also commit to participating in a Virtual Power Plant (VPP) product offered by your electricity retailer (Synergy or Horizon Power) to be eligible for the rebate."

The applicant page sets the length and the exit: "The VPP agreement is only two years, after which you can opt out at any time." Synergy customers may use a different VPP instead of Synergy's own, but only where the alternative "is offered by the supplier of the customer's battery and is compatible with the customer's equipment," shares the value of orchestration with the customer, and is backed by genuine market or service contracts.

For most Synergy customers the product will be Battery Rewards. Synergy's page says it will "remotely monitor and control your battery storage system," pays 70 cents per unit exported during an activation event, runs up to 30 activation events a year on a two-year term, and charges and holds the battery during a standby window before an event. Synergy describes events as running up to four hours, typically two to three.

The WA scheme's own boundaries. The retailer's VPP contract supplies the operating detail.
RuleWhat it means
RebateUp to $1,300 (Synergy) or $3,800 (Horizon Power).
Capacity countedUsable capacity between 5 kWh and 10 kWh.
VPPCommitting to your retailer's VPP product is a condition of eligibility.
VPP termTwo years, then you can opt out at any time.
Who appliesYour approved vendor, not you.
Installed before 1 July 2025Not eligible for the rebate or the loan.

Read the 70 cents as what it is. It is an event rate, paid on energy exported during a limited number of activations, not a monthly income. What a household can earn from it depends on how much the battery exports during those events, which depends in turn on the standby window, the state of charge and the home's own demand at the time.

Who can claim it

The applicant requirements are property-based as well as personal. You must be an Australian permanent resident aged 18 or older and a Synergy or Horizon Power customer. The property must be in Western Australia, be a standalone home or unit-titled property with the necessary approvals, be used mainly for residential purposes, and be owned by you — or rented with the landlord's consent.

Several categories of property are excluded outright: those majority-owned by State, Commonwealth or Local Government entities under low-income housing schemes, and those owned by government entities, telecommunications companies or mining and resources companies.

The battery itself must be "on the Clean Energy Council-approved list and meet Synergy or Horizon Power technical and compliance standards." The property also needs a reliable internet connection for system testing — which is a scheme requirement in its own right, and separately a condition most battery warranties impose before they will run their full term.

Being on the approved list is not the same as being accepted. Your retailer's VPP has its own technical and compatibility requirements, and Synergy's Battery Rewards conditions add further tests, including an eligible tariff, connection to the Western Power network, no life-support equipment at the property, and no participation in a conflicting VPP service.

How it combines with the federal discount

The WA rebate adds to the federal discount rather than replacing it. The government's own worked example says that "A 10kWh battery would be eligible for the maximum $1,300 rebate from the WA Battery Scheme. The rebate would increase to $5,000 when combined with the federal rebate," and that a larger battery keeps attracting the federal component.

That example does not say which federal certificate factor it assumes, and the federal factor has since stepped down. Working the same 10 kWh battery through the current factor of 6.8 for installations from 1 May to 31 December 2026: 10 kWh × 6.8 = 68 certificates, and at the Clean Energy Regulator's Clearing House price of $40 excluding GST that is $2,720, or $4,020 alongside WA's $1,300. That is arithmetic on published rates, not a quote: the open-market certificate price varies and installers may charge fees.

Both schemes calculate on usable capacity, but cap it differently. WA counts usable capacity and stops at 10 kWh. The federal program uses nominal capacity only to set its 5–100 kWh eligibility range; its certificates are calculated from usable capacity, up to 50 kWh, with a taper by capacity band. See the federal battery rebate guide for the bands and the full step-down schedule.

The federal side is the part that moves. The WA page itself warns that changes from 1 May 2026 "have reduced the subsidy available for battery systems over 14 kWh capacity, with the general subsidy rate applied also reducing at six-monthly intervals over the life of the program." A combined figure quoted in a proposal is only accurate for the installation date it assumes.

What the VPP and your exports actually pay

The VPP events are capped in number. Everything else your battery does is priced by your buyback rate, and in WA that is the Distributed Energy Buyback Scheme. Synergy's price schedule for SWIS customers, correct as at 1 July 2026 and excluding GST, pays 10 c/kWh between 3pm and 9pm and 2 c/kWh before 3pm or after 9pm, and the rates are "subject to change at any time."

That five-to-one gap is the single most useful number for a WA battery owner, and it is not a VPP payment. Solar exported at midday earns 2 cents; the same energy held in a battery and exported in the evening window earns 10 cents. Horizon Power customers cannot use these rates: Horizon states that buyback rates are set from varying wholesale generation costs and differ by town, so check your own town's rate rather than a statewide figure.

Set the two against each other before signing. Up to 30 activation events a year at 70 cents is the headline, but the daily arithmetic of avoided imports and the 3pm–9pm buyback window applies every day of the two-year term.

What to check before signing

Ask your approved vendor and your retailer to put these in writing:

  • the battery's usable capacity, and the capacity the $1,300 or $3,800 is calculated on;
  • the rebate amount, the loan amount and repayment term, and what each costs you;
  • which VPP product you are being enrolled in, and whether an alternative is permitted;
  • the number and maximum length of activation events, and the credit rate for each;
  • what state of charge, if any, is reserved for your household during a standby window or an event;
  • whether you can override or decline an individual event;
  • what happens at the end of the two years, and what leaving earlier would cost;
  • whether VPP participation affects the battery's warranty, in writing from the manufacturer;
  • your current buyback rate and whether joining the VPP changes your tariff.

Compare the required electricity plan, not just the rebate. A two-year commitment priced against the wrong tariff can cost more than the incentive returns — that comparison is worked through in what a VPP is and whether to join one.

Compare

Compare VPP terms before you commit

Check current payments, costs, retailer requirements, battery support and control terms side by side.

Compare VPPs

Primary sources (8)

Related pages