Apple posted on the iPad  Frequently Asked Questions page that if your iPad requires service due to the battery’s diminished ability to hold an electrical charge, Apple will replace your iPad for a service fee of $99, plus $6.95 shipping.

They did note that if your iPad is not eligible for Battery Replacement Service if the product has been damaged, for example, as result of an accident, liquid contact, disassembly, unauthorized service or unauthorized modifications, or if the product is not operating correctly as a result of a component failure.

Before sending in your iPad you have to backup your data because the new iPad will not contain any of your personal data.

Apple, Battery, iPad