diff --git a/apps/predbat/inverter.py b/apps/predbat/inverter.py
index 7f2072069..acdded6e1 100644
--- a/apps/predbat/inverter.py
+++ b/apps/predbat/inverter.py
@@ -372,8 +372,8 @@ def __init__(self, base, id=0, quiet=False, rest_postCommand=None, rest_getData=
                 ivtime = idetails["Invertor_Time"]
         else:
             self.battery_temperature = self.base.get_arg("battery_temperature", default=20, index=self.id, required_unit="°C")
-            self.soc_max = self.base.get_arg("soc_max", default=0.0, index=self.id) * self.battery_scaling
-            self.nominal_capacity = self.soc_max
+            self.nominal_capacity = self.base.get_arg("soc_max", default=0.0, index=self.id)
+            self.soc_max = self.nominal_capacity * self.battery_scaling
 
             if self.inverter_type in ["GE", "GEC", "GEE"]:
                 self.battery_rate_max_raw = self.base.get_arg("charge_rate", attribute="max", index=self.id, default=2600.0, required_unit="W")
@@ -641,6 +641,7 @@ def update_soc_max_calculated_sensor(self, found_size, nominal_capacity=0):
                     "history": history,
                     "nominal_capacity": round(nominal_capacity, 3),
                     "degradation_percent": None,
+                    "configured_degradation": round((1 - self.battery_scaling) * 100, 2),
                     "unit_of_measurement": "kWh",
                     "device_class": "energy",
                     "state_class": "measurement",
@@ -658,7 +659,11 @@ def update_soc_max_calculated_sensor(self, found_size, nominal_capacity=0):
 
         found_size_str = "{:.2f} kWh".format(found_size) if found_size is not None else "None"
         degradation = (self.nominal_capacity - trimmed_mean) / self.nominal_capacity if self.nominal_capacity > 0 else 0
-        self.log("Inverter {} battery size tracking: found_size {}, history {}, trimmed_mean {:.2f} kWh, degradation {:.2%}".format(self.id, found_size_str, history, trimmed_mean, degradation))
+        self.log(
+            "Inverter {} battery size tracking: found_size {}, history {}, trimmed_mean {:.2f} kWh, degradation {:.2%}, configured battery_scaling {:.0f}% (configured degradation {:.0f}%)".format(
+                self.id, found_size_str, history, trimmed_mean, degradation, self.battery_scaling * 100, (1 - self.battery_scaling) * 100
+            )
+        )
 
         self.base.dashboard_item(
             sensor_name,
@@ -667,6 +672,7 @@ def update_soc_max_calculated_sensor(self, found_size, nominal_capacity=0):
                 "history": history,
                 "nominal_capacity": round(nominal_capacity, 3),
                 "degradation_percent": round(degradation * 100, 2),
+                "configured_degradation": round((1 - self.battery_scaling) * 100, 2),
                 "unit_of_measurement": "kWh",
                 "device_class": "energy",
                 "state_class": "measurement",
@@ -700,7 +706,7 @@ def find_battery_size(self, nominal_capacity=0):
                         clean_increment=False,
                         smoothing=False,
                         divide_by=1.0,
-                        scale=self.battery_scaling,
+                        scale=1.0,
                         required_unit="%",
                     )
                 else:
diff --git a/apps/predbat/tests/test_find_battery_size.py b/apps/predbat/tests/test_find_battery_size.py
index cb97dd77c..da3ddd9f0 100644
--- a/apps/predbat/tests/test_find_battery_size.py
+++ b/apps/predbat/tests/test_find_battery_size.py
@@ -783,6 +783,7 @@ def test_battery_size_tracking_none_stored_on_failure(my_predbat):
 
     # Mock find_battery_size to always fail
     inv.find_battery_size = lambda _nc=0: None
+    original_soc_max = inv.soc_max  # 10.0
 
     try:
         inv.battery_size_tracking()
@@ -799,6 +800,13 @@ def test_battery_size_tracking_none_stored_on_failure(my_predbat):
             failed = True
         else:
             print("SUCCESS: None correctly stored in history to prevent re-calculation")
+
+        # soc_max must remain unchanged when find_battery_size fails and battery_scaling_auto is off
+        if inv.soc_max != original_soc_max:
+            print("ERROR: soc_max changed from {:.3f} to {:.3f} when it should remain unchanged after a failed find_battery_size".format(original_soc_max, inv.soc_max))
+            failed = True
+        else:
+            print("SUCCESS: soc_max remains {:.3f} kWh after failed find_battery_size".format(inv.soc_max))
     except Exception as e:
         print("ERROR: test raised exception: {}".format(e))
         import traceback
@@ -960,6 +968,66 @@ def test_update_soc_max_calculated_sensor_mixed_none(my_predbat):
     return failed
 
 
+def test_find_battery_size_with_scaling(my_predbat):
+    """
+    Test find_battery_size with battery_scaling < 1.0 (80% depth-of-discharge).
+
+    A 10 kWh nominal battery with battery_scaling=0.8 has a usable capacity of 8 kWh.
+    The SoC sensor reports 0-100% of that 8 kWh usable range.
+    find_battery_size must return ~8 kWh, not ~10 kWh.
+
+    This regression test catches the bug where battery_scaling was applied to the SoC
+    percentage values inside find_battery_size, causing the nominal capacity to be
+    returned instead of the usable (scaled) capacity.
+    """
+    print("*** Running test: find_battery_size_with_scaling ***")
+    failed = False
+
+    nominal_kwh = 10.0
+    battery_scaling = 0.8
+    usable_kwh = nominal_kwh * battery_scaling  # 8 kWh
+
+    inv = Inverter(my_predbat, 0)
+    inv.battery_rate_max_charge = 2600 / 60000
+    inv.battery_rate_max_discharge = 2600 / 60000
+    inv.soc_max = usable_kwh
+    inv.nominal_capacity = nominal_kwh
+    inv.battery_scaling = battery_scaling
+
+    setup_predbat(my_predbat)
+
+    # History data reflects 0-100% SoC of the usable 8 kWh range
+    create_test_history_data(my_predbat, num_days=2, battery_size_kwh=usable_kwh)
+
+    try:
+        estimated_size = inv.find_battery_size(nominal_kwh)
+        if estimated_size is None:
+            print("ERROR: find_battery_size returned None; expected ~{} kWh".format(usable_kwh))
+            failed = True
+        else:
+            print("Estimated battery size: {:.2f} kWh (expected: {:.2f} kWh usable, nominal {:.2f} kWh)".format(estimated_size, usable_kwh, nominal_kwh))
+            tolerance = 0.05  # 5% tolerance since scaling should be applied correctly
+            lower_bound = usable_kwh * (1 - tolerance)
+            upper_bound = usable_kwh * (1 + tolerance)
+            if not (lower_bound <= estimated_size <= upper_bound):
+                print(
+                    "ERROR: Estimated size {:.2f} kWh is outside usable range [{:.2f}, {:.2f}] kWh. "
+                    "If this is ~{:.2f} kWh the battery_scaling bug is present (SoC percent was scaled "
+                    "inside find_battery_size, returning nominal instead of usable capacity).".format(estimated_size, lower_bound, upper_bound, nominal_kwh)
+                )
+                failed = True
+            else:
+                print("SUCCESS: find_battery_size returned usable capacity {:.2f} kWh (within 5% of {:.2f} kWh)".format(estimated_size, usable_kwh))
+    except Exception as e:
+        print("ERROR: find_battery_size raised exception: {}".format(e))
+        import traceback
+
+        traceback.print_exc()
+        failed = True
+
+    return failed
+
+
 def test_find_battery_size_soc_kw_unavailable(my_predbat):
     """
     Test find_battery_size when soc_kw history contains 'unavailable' entries.
@@ -1033,6 +1101,7 @@ def patched_get_history(entity_id, now=None, days=30):
 
     # Restore soc_percent for subsequent tests
     setup_predbat(my_predbat)
+
     return failed
 
 
@@ -1133,5 +1202,9 @@ def run_find_battery_size_tests(my_predbat):
     if failed:
         return failed
 
+    failed |= test_find_battery_size_with_scaling(my_predbat)
+    if failed:
+        return failed
+
     print("**** find_battery_size tests completed ****")
     return failed