13 December 2025: The federal government has announced changes to the Cheaper Home Batteries Program beginning 1 May 2026. The information about the program has been updated to reflect these changes.
From 1 July 2025, the Australian Government rolled out the Cheaper Home Batteries Program, helping households and small businesses cut energy costs by making battery storage more affordable. With strong uptake across Australia, the Government has now announced changes that will kick in from 1 May 2026 and run through to 2030.
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About the program
The Cheaper Home Batteries Program is an Australian Government initiative designed to speed up the uptake of small-scale batteries. It helps Australians store their solar energy, reduce power bills, and take pressure off the grid.
The Government has expanded the program’s estimated funding, following stronger-than-expected demand.
Objective: Support more than 2 million batteries by 2030
Program start: 1 July 2025
Backdating: Eligible installations from 6 April 2025, if commissioned on or after 1 July 2025
End date: Until 2030, with discounts reducing over time
Funding: Australian Federal Government
Update announced: Changes to apply from 1 May 2026 (subject to regulations)
Eligibility criteria
To be eligible for the discount under the program, you must:
Be an Australian homeowner, small business, or eligible organisation
Install a battery connected to a new or existing solar PV system
Use a Solar Accreditation Australia (SAA) accredited installer
Use Clean Energy Council (CEC) approved products
Install an eligible battery system between 6 April 2025 and 2030
Install a system between 5 kWh and 100 kWh nominal capacity
Claim STCs only on the first 50 kWh of usable capacity
Ensure the battery is commissioned on or after 1 July 2025
Install a battery that is VPP capable (where required under program rules)
Rebate amount
Eligible households and small businesses can receive an upfront discount, typically around 30% off an eligible battery system. The discount is delivered through the Small-scale Renewable Energy Scheme (SRES) as Small-scale Technology Certificates (STCs).
Here’s the important bit: the discount is not a cash rebate paid later. Your installer usually applies it upfront as a point-of-sale discount.
How the STC discount works
Batteries earn a set number of STCs based on usable capacity and the current STC factor
Each STC has a market value, often treated as roughly $40, but it fluctuates
Most installers offer an upfront discount by taking the STCs and selling them
New changes from 1 May 2026
From 1 May 2026, the Government plans two major changes (subject to regulations):
The STC factor reduces faster and updates twice a year
The rebate tapers as battery size increases from 0 to 50 kWh usable capacity
That means small to mid-sized household batteries keep stronger support, while very large batteries receive a reduced discount per additional kWh.
STC factor changes from 2025 to 2030
These figures show the proposed STC factors over time. From May 2026, the factor steps down every six months.
| Period | Estimated value per kWh (at $40 per STC) | STC factor |
|---|---|---|
| 2025 (July to December) | $372 | 9.3 |
| 2026 (January to April) | $336 | 8.4 |
| 2026 (May to December) | $272 | 6.8 |
| 2027 (January to June) | $228 | 5.7 |
| 2027 (July to December) | $208 | 5.2 |
| 2028 (January to June) | $184 | 4.6 |
| 2028 (July to December) | $164 | 4.1 |
| 2029 (January to June) | $144 | 3.6 |
| 2029 (July to December) | $124 | 3.1 |
| 2030 (January to June) | $104 | 2.6 |
| 2030 (July to December) | $84 | 2.1 |
Important note: the discount you receive depends on STC market price and installer margins. Many reputable installers price STCs closer to $36 to $38 per certificate, not $40.
New tapering from 1 May 2026 (0 to 50 kWh)
From 1 May 2026, the STC factor will apply differently across usable capacity bands:
| Usable battery capacity band | STC factor applied |
|---|---|
| 0 to 14 kWh (inclusive) | 100% |
| Over 14 to 28 kWh (inclusive) | 60% |
| Over 28 to 50 kWh (inclusive) | 15% |
The first chunk of capacity gets the strongest support. After that, the per kWh discount drops sharply.
Who it's for and how to apply
This rebate is ideal for:
Households with existing solar looking to add a battery
Homeowners installing both solar and battery systems
Small businesses aiming to cut energy bills and boost sustainability
Those upgrading or replacing an old battery system
How to apply
The program is delivered through the Small-scale Renewable Energy Scheme (SRES). Rather than being a rebate, you will receive an upfront discount from your installer.
As such, you will not need to apply for the program. The battery MUST be installed with a new solar system OR be added to an existing solar system. Stand-alone batteries will not be eligible for the rebate.
To receive the upfront discount, you must:
Install an eligible battery connected to solar
Use an SAA-accredited installer
Ensure the system is commissioned on or after 1 July 2025
Use approved products
Energy Matters can connect you with accredited installers who will provide you with free, no-obligation quotes. Click the button below to begin.
Frequently asked questions
The Cheaper Home Batteries program operates under the existing Small-scale Renewable Energy Scheme (SRES). The SRES allows small-scale systems to generate certificates, known as Small-scale Technology Certificates (STCs), at the point of commission. Each certificate is worth around $40 and batteries will attract 9.3 certificates per kWh of storage (in 2025). Your installer will offer an upfront discount and allocate the generated certificate to themselves to then on-sell on the market.
As such, the program is not a rebate, as you will receive an upfront discount.
You can, however, opt to sell the STCs yourself rather than receiving an upfront discount. This process can be complex and it is not recommended.
The federal rebate has no restrictions on ‘double-dipping’ or ‘stacking’. However, the state rebates/loan programs may have their own restrictions.
In NSW, there’s incentives available via the Peak Demand Reduction Scheme with VPP bonuses. However, the current program disallows the stacking of rebates where RECs (renewable energy certificates) are involved. More information to come.
In Victoria, combine with interest-free loans from the Solar Homes Program
- The Western Australia government has announced “The WA Residential Battery Scheme will complement the Federal Government’s Cheaper Home Batteries Program for a combined rebate of up to $5,000 for Synergy customers and $7,500 for Horizon Power customers.”
Other states may have schemes or feed-in tariff bonuses that also apply
Always check with your installer to maximise your combined savings.
A VPP is a network of connected batteries that can feed energy back into the grid when needed. It helps balance supply and demand, and often earns you extra credits or income. VPP-ready batteries can “talk” to the grid, helping lower costs for everyone.
If your battery was installed on or after 6 April 2025, you may still be eligible as long as your battery has not been ‘switched on’ and it meets all the other criteria. Contact your installer for further information and instruction.
Renters will need the approval of their landlord to benefit from this program.
The program runs until 2030, but the discount reduces over time. From 1 May 2026, the STC factor reduces faster and updates twice yearly. From 1 May 2026, larger batteries also receive tapered support across 0 to 50 kWh.
STCs trade on an open market, and prices move. Installers also factor in admin and risk costs. It’s normal to see a discount based on $36 to $38 per STC rather than $40.
Energy Matters works with a nationwide network of installers who can provide up to 3 free quotes for batteries or solar plus batteries. If you want to lock in stronger settings before 1 May 2026, it’s worth getting quotes early.
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