Cheaper Home Batteries Program (Australia): How It Works, Eligibility & Rebates

Been watching your power bills creep up? Are your solar panels just feeding cheap energy back into the grid for cents on the dollar? Australia leads the world in rooftop solar – more than 4.2 million systems installed nationwide – but until recently, only one in 40 households even had a battery to store that energy for you to use when the sun sets. 

The federal government’s Cheaper Home Batteries Program was made so that more people would buy batteries. You’re getting roughly 30% off the upfront cost of your home battery, and it’s already helped over 350,000 households, businesses and community organisations since launching less than a year ago.

But the rebate was reduced as of the 1st of May 2026. The STC factor dropped from 8.4 to 6.8, and the discount became tiered by battery size. We’ll come to the details soon, but what this means is that potential savings have already been lost if you missed that date. 

The next cut lands on 1 January 2027, too, with the next in July (and so on every six months until the program ends in 2030). The rebate is still genuinely valuable today, but if a battery has been on your list, you’re far better off installing it now than waiting another eight months.  

What is the Cheaper Home Batteries Program?

The Cheaper Home Batteries Program is a federal initiative to give Australian homes, businesses and community organisations roughly 30% discounts on the upfront cost of installing a battery sized between 5 kWh and 100 kWh. The idea is to support more Australians to buy solar batteries. It started on the 1st of July 2025 and runs until 2030.

The Program isn’t a cash rebate. The Government delivers it through the Small-scale Renewable Energy Scheme (SRES), which is the same legislated framework that’s been behind Australia’s rooftop solar boom since 2011. 

Key Features of the Program

• Offers ~30% upfront discount on battery installation
• Applies to 5 kWh to 100 kWh battery systems
• Available for homes, businesses, and community organisations
• Starts 1 July 2025
• Delivered via Small-scale Renewable Energy Scheme (SRES)
• Discount is applied via installers/retailers (not direct cash)
• Uses Small-scale Technology Certificates (STCs) for subsidy calculation
• Valid until 2030 (phased down over time)
• Must be paired with a solar PV system (new or existing)

How the Program Works

The discount is calculated using Small-scale Technology Certificates (STCs). Again, those are the same tradeable certificates we’ve been used to with the solar rebate for over a decade:

1. You install an eligible battery with a CEC-approved product list and an SAA-accredited installer.
2. Your battery generates STCs based on its usable capacity. Each kWh of usable storage earns a set number of certificates, which is determined by the “STC Factor”.
3. You assign those STCs to your installer (this is standard – your installer manages the paperwork).
4. Your installer trades the STCs and applies the value as an upfront discount on your invoice.

Example 

Current STC Factor is 6.8 STCs per kWh of usable capacity for the first 14 kWh. STCs trade at roughly $37 each (after admin costs), working out to about $252 per usable kWh of discount on the first 14 kWh of your battery.

So, with a 10 kWh usable battery, that’s ~68 STCs, which is roughly $2,520 off the installed price.  

Come January 2027, though, the STC Factor will be 5.7. Meaning for the same system, your savings are just $2,109, which is why it’s key to act now.

Eligibility Criteria

The eligibility rules are in the Renewable Energy (Electricity) Regulations 2001 and haven’t been changed under the new May amendments. Only the discount calculation we went through before did. You still need to tick all of these boxes:

• Battery size between 5 kWh and 100 kWh nominal capacity. Smaller modular units can qualify if “stacked” together to reach the 5 kWh minimum.
  
• Listed on the Clean Energy Council (CEC) approved product list at the date of certification.
  
• Installed by an installer with battery accreditation through Solar Accreditation Australia (SAA).
  
• Paired with a solar PV system – either a new system installed at the same time or an existing one already on your roof.
  
• Installed for permanent use at the property – retailers must provide assurance that the battery won’t be moved or resold.
  
• Both on-grid and off-grid properties are eligible.

How Much Can You Save?

Your discount the usable capacity of your battery, the STC Factor at the time of installation and the prevailing STC market price.

Since the 1st of May 2026 updates, though, we now have a tiered structure. Instead of every kWh earning the same number of STCs, the factor tapers as the battery gets larger:

• From 0 kWh up to 14 kWh (inclusive): STC Factor applied at 100%.
• Every kWh greater than 14 and up to 28 kWh (inclusive): STC Factor applied at 60%.
• Every kWh greater than 28 and up to 50 kWh (inclusive): STC Factor applied at 15%.

So for a typical 8kWh home battery system, you’re saving about 30%. But as you can see, the marginal rebate per kWh shrinks once you cross the 14 kWh threshold, and again at 28 kWh.

This is what it looks like at today’s rates:

Benefits of the Program

Obviously, 30% upfront discounts are a game-changer, but there are a few extra day-to-day benefits that go further:

• Lower electricity bills by self-consuming solar instead of buying grid power at peak rates.

• Energy independence – store cheap daytime solar to use through the evening peak.

• Backup during outages when paired with a battery that supports backup mode (not all do – worth checking).

• Reduced grid reliance, which puts downward pressure on wholesale prices for all of us.

• Faster payback on existing solar by avoiding the gap between low feed-in tariffs and high peak retail rates.

• Contribution to the energy transition – over 3.6 GWh of storage was added to the grid in the program’s first six months alone.

What Changed on the 1st of May 2026  

The program is in its second phase now. We saw two main changes take effect on the 1st of May 2026, and we’ll see a further step-down on the 1st of January 2027.

1. The STC Factor dropped from 8.4 to 6.8. Every kWh of usable battery capacity now earns fewer certificates, which means a smaller upfront discount than was available before April 2026.

2. The discount became tiered by battery size. Instead of applying the STC Factor uniformly across the full eligible capacity, it now tapers (the bands set out in the previous section). The idea here is to encourage us to get the right-sized batteries rather than oversized systems chosen purely to maximise the rebate.

3. The reduction schedule moved from annual to biannual. Previously, the STC factor stepped down once a year. From 2026 onwards, it steps down every six months – January and July – through to 2030.

Why the Timing Still Matters

The rebate is calculated on the installation completion date. Not the quote date or the contract date. So a signed contract in December 2026 that doesn’t get installed until February 2027 would fall under the – crucially – lower January 2027 rates. 

The Clean Energy Regulator has been explicit on this and is actively monitoring retailers who misquote the timing.

For a 10 kWh battery, the difference between installing in December 2026 versus February 2027 will likely be a few hundred dollars. For a 20 kWh+ system, it could be over a thousand. 

Already considering a battery? Our team at Volteam can install a new solar battery in time before the next rebate reductions.

How to Apply for the Cheaper Home Battery Program

There’s no separate application form. The process is built into a normal battery purchase, and your installer handles the certificate paperwork on your behalf:

1. Choose a CEC-approved battery that fits your daily energy use, solar output and inverter capacity. Bigger isn’t always better – an oversized battery that never fully cycles is dead money, and the tiered rebate structure now actively discourages oversizing.
   
2. Get quotes from accredited installers. You need them to be SAA-accredited for batteries (separate from solar accreditation) and make sure that the battery model is on the CEC-approved product list at the time of certification.
   
3. Compare quotes carefully. The discount should be itemised on your quote. Any quote that doesn’t break out the STC value clearly is worth questioning.
   
4. Sign and schedule installation – ideally, completing the install before the 1st of January 2027 step-down, so you’re locking in the current rates.
   
5. Your installer creates and assigns the STCs, applies the value as an upfront discount and handles all reporting to the Clean Energy Regulator.
   
6. Sit back. That’s your role done. 

At Volteam, we handle the entire STC process for you – from confirming product eligibility to applying the discount on your invoice. If you’d like a quote, check your eligibility with our team or browse our solar battery installation services.

Can You Combine It with Other Rebates?

You can, but it depends on the state:

• Queensland: No active state battery rebate, so the federal program is your main lever. (Solar sponge tariffs are available to boost battery payback.)
  
• New South Wales: The NSW Peak Demand Reduction Scheme offers additional incentives for batteries connected to a Virtual Power Plant (VPP).
  
• Western Australia: The WA Residential Battery Scheme can be combined with the federal STC discount, subject to VPP participation requirements.
  
• Victoria: Solar Victoria offers interest-free loans for batteries that you can use alongside the federal discount.
  
• ACT, SA, NT, TAS: Various smaller programs and VPP incentives – check your state energy department for current options.
  

There might be a few exclusions where state schemes specifically prohibit stacking, so always confirm with your installer before assuming both incentives apply.

Is the Program Worth It?

It’s worth it for most solar households. But there are a few things worth considering:

It’s most worth it if:

• You already have solar (or are installing it) and you’re exporting a lot of energy at low feed-in tariffs while paying premium retail rates at night.
  
• Your daily evening consumption is genuinely 6-13 kWh – the sweet spot where a right-sized battery cycles fully each day and sits comfortably in the highest-value 0-14 kWh rebate tier.
  
• You’re installing before the next subsidy cut on the 1st of January 2027.

It’s less worth it if:

• You don’t have solar and aren’t planning to install any (the program requires a paired solar system).
  
• You have very low evening usage – a battery that only half-cycles takes much longer to pay back.
  
• You’re tempted to oversize just so you can maximise the rebate. The marginal rebate above 14 kWh drops heavily under the new tiered structure, and the rebate above 28 kWh is barely worth chasing.

For more details on how to size and choose a battery, see our guide to buying and installing a solar battery at home.

FAQs

What is the Cheaper Home Batteries Program?

The Cheaper Home Batteries Program is a federal Australian Government program that provides a discount of around 30% on the upfront cost of installing a battery system between 5 kWh and 100 kWh, paired with rooftop solar. It’s delivered through the Small-scale Renewable Energy Scheme (SRES), running from July 2025 until 2030.

How much rebate do you get with the Cheaper Home Batteries Program?

At current rates (May to December 2026), the rebate works out to roughly $252 per usable kWh for the first 14 kWh of battery capacity – about $2,520 off a 10 kWh battery, or around $3,400 off a 13.5 kWh Tesla Powerwall. Capacity between 14 and 28 kWh attracts 60% of that rate, and capacity between 28 and 50 kWh attractes 15%.  

Who is eligible for the Cheaper Home Batteries Program Australia?

Australian homes, small businesses and community organisations with a new or existing solar PV system are eligible for the Cheaper Home Batteries Program. The battery must be 55-100 kWh nominal capacity, listed on the CEC-approved product list and installed by an SAA-accredited installer. There’s no means test.

Can I apply for the Cheaper Home Batteries Program without solar?

You cannot apply for the Cheaper Home Batteries Program without solar. The program requires the battery to be paired with a rooftop solar PV system – either new or existing. If you don’t have solar yet, installing solar and a battery together at the same time is the most cost-effective route, and you’ll capture both the solar STC rebate and the battery discount.

Is the Cheaper Home Batteries Program available in all states?

Yes, the Cheaper Home Batteries Program is a federal scheme available nationwide, including in regional and off-grid areas. Many states also offer additional incentives that can stack on top of the federal discount.

Thinking about a battery before the next rebate cut on the 1st of January 2027? Volteam is a CEC-accredited installer based in Brisbane, covering South East Queensland with full-service solar and battery installation. 

Get in touch for a no-obligation quote and we’ll walk you through your STC entitlement, sizing and the realistic payback for your home. The earlier you book in, the better your chances of completing installation before the rebate steps down again.

Get a battery quote from Volteam