Expanded Support for Cheaper Home Batteries Program
On 13 December 2025, the Australian Government announced a major expansion of the Cheaper Home Batteries Program, significantly increasing its long-term funding commitment. The program budget has been lifted from the original estimate of $2.3 billion to approximately $7.2 billion over the next four years, reinforcing the government’s support for household energy storage across Australia.
This expanded funding is designed to accelerate battery adoption, improve grid stability, and help more households access affordable energy storage solutions.
Upcoming Changes to Battery Rebates (From 1 May 2026)
As part of the program expansion, the government has outlined planned updates to how Small-scale Technology Certificates (STCs) apply to solar battery systems.
From 1 May 2026 (subject to regulations being finalised), STCs for batteries will be tiered and adjusted based on battery size. This approach ensures rebate levels remain fair and effective for small, medium, and large battery systems, rather than favouring one size over another.
Long-Term Savings & Program Stability
Over the life of the Cheaper Home Batteries Program, discount values will be periodically adjusted to match expected declines in battery pricing. This ensures households continue to receive meaningful savings — targeted to remain around 30% off eligible battery systems — while allowing the government to responsibly manage funding.
Importantly, all other existing eligibility requirements remain unchanged, providing certainty for homeowners considering a battery installation. Installations will continue to be closely monitored as the updated rebate structure is rolled out.
What the Changes Aim to Achieve
The proposed adjustments are designed to ensure that:
- Discounts remain at approximately 30%across different battery sizes
- Rebates reflect falling battery costs over time, keeping incentives realistic
- Government support continues throughout the life of the program
- Financial sustainability is maintained, ensuring the program can operate long-term
- Grid stability and resilience are strengthened through increased battery adoption
By aligning rebate calculations with market pricing trends, the program aims to deliver consistent savings while adapting to changes in battery technology and cost.
What This Means for Homeowners
For Australian households, this announcement delivers:
- Greater confidence in long-term rebate availability
- Fairer incentives across all battery sizes (including larger systems)
- Continued government backing for clean energy storage
- More affordable access to solar batteries now and into the future
Disclaimer (Recommended for Compliance)
Program details, rebate values, and implementation dates are subject to change based on final regulations. Eligibility and savings may vary depending on system size, location, and installation requirements.
| Year | Period | Existing STC Factor | Proposed STC Factor |
|---|---|---|---|
| 2026 | January – April | 8.4 | 8.4 |
| 2026 | May – December | 8.4 | 6.8 |
| 2027 | January – June | 7.4 | 5.7 |
| 2027 | July – December | 7.4 | 5.2 |
| 2028 | January – June | 6.5 | 4.6 |
| 2028 | July – December | 6.5 | 4.1 |
| 2029 | January – June | 5.6 | 3.6 |
| 2029 | July – December | 5.6 | 3.1 |
| 2030 | January – June | 4.7 | 2.6 |
| 2030 | July – December | 4.7 | 2.1 |
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