Changes to the Cheaper Home Batteries Program
Changes to the program from 1 May 2026
The Australian Government has announced major enhancements to the Cheaper Home Batteries Program, expanding its investment from the original $2.3 billion to an estimated $7.2 billion over the next four years (subject to regulations). This increased support is expected to help more than two million households install a battery by 2030.
To keep the program sustainable, several adjustments are planned to take effect from 1 May 2026, including a new, tiered, and faster-reducing rebate structure and smaller incentives for larger systems.
What does this mean for me? To maximise your savings, we recommend booking an in-home solar assessment now to give you the best chance of locking in available incentives.
What's Changing?
- The STC Factor will be adjusted
The program provides discounts through the creation and trading of Small‑scale Technology Certificates (STCs). The number of STCs a battery can create is determined by the STC Factor, which will now:
- Decline more frequently (every six months), and
- Decline at a higher rate.
This ensures the discount keeps pace with falling battery prices while maintaining long‑term program viability.
| 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 |
Your discount will be based on the STC Factor on the day your battery is installed.
Adjusted Support Based on Battery Size
The program will continue to support batteries up to 100kWh, but the way the discount is calculated will change to better reflect real‑world battery pricing.
The goal is to maintain an average discount of around 30% across a wide range of battery sizes.
How the New Tapering Works
The STC Factor will apply differently depending on the size of the battery:
0–14kWh: 100% of the STC Factor
>14–28kWh: 60% of the STC Factor
>28–50kWh: 15% of the STC Factor
This ensures support remains strong for typical home battery systems while still assisting larger installations.
For detailed calculations, the Clean Energy Regulator has provided a Solar Battery STC Calculator.
For full details of these changes, visit the Department of Climate Change, Energy, the Environment and Water.
What Can You Do Now?
-
Book a Free Solar Assessment
If you don’t yet have solar, we’ll guide you through installation — batteries are only eligible when connected to a solar PV system.
-
Explore Battery Options
Solahart offers a range of advanced battery systems, including options that are fully VPP-ready, helping you unlock even greater savings and energy independence.
-
Review Your Quote
Our local Solahart team will confirm your eligibility and help you maximise your rebate.
Why Home Batteries Are a Smart Move
As more Australians embrace solar energy, home batteries are quickly becoming the next step towards smarter, more sustainable living. Here’s why installing a battery could be one of the best energy decisions you make:
- Maximise your solar investment
- Store your excess solar energy and use it day or night
- Reduce your energy bills and reliance on the grid
- Enjoy greater energy independence and backup during blackouts (blackout functionality may be required at an additional cost)
- Take part in a smarter, more sustainable energy future
Why Choose Solahart
As one of Australia’s most trusted names in solar, Solahart has been helping households take control of their energy bills for over 70 years. When it comes to battery storage – especially with new government rebates announced creating unprecedented demand – choosing the right partner is more important than ever. Here’s why thousands of Australians choose Solahart:
- Experience you can trust
- Premium battery solutions
- We are not just solar; we are part of a Smart Energy Ecosystem
- Warranties & Support you can rely on
- Tailored Interest-free finance available for eligible customers
Disclaimer
*Australian Government incentive: From 1 July 2025, incentives for batteries are available to eligible households under the Small-scale Renewable Energy Scheme (SRES). For further details, including full eligibility criteria, see https://cer.gov.au/batteries. Western Australia: From 1 July 2025, battery rebates are available under the WA Residential Battery Scheme to eligible Synergy and Horizon Power customers in Western Australia. Households are required to participate in a Virtual Power Plant (VPP) in order to receive this rebate. For further details, including full eligibility criteria, see www.wa.gov.au/organisation/energy-policy-wa/wa-residential-battery-scheme. The WA Scheme is complimentary to the Federal Government’s battery rebate under the Small-scale Renewable Energy Scheme. New South Wales: The amount shown above is not a deduction from this Quotation. Rather, it is an estimate of an incentive that eligible NSW homeowners may be able to receive under the NSW Government’s Peak Demand Reduction Scheme (PDRS). The BESS2 incentive requires connection of an eligible home battery to a Virtual Power Plant (VPP). Interested homeowners should contact their desired VPP operator to receive an accurate estimate and to access the incentive. For further details, including full eligibility criteria, see www.energy.nsw.gov.au/nsw-plans-and-progress/regulation-and-policy/energy-security-safeguard/residential-solar-battery-demand-response-eligibility.
