Cheaper Home Batteries Program

Save on a Home Battery with the New Government Rebate

From 1 July 2025, eligible Australians can access a federal rebate of up to $3,720 on a 10kWh battery system, making it more affordable than ever to store your solar energy and reduce your power bills.

Solahart is here to help you take full advantage of the Cheaper Home Batteries Program, with expert advice, premium battery solutions, and trusted installation.

How Much Is the Solar Battery Rebate?

The Cheaper Home Batteries Program offers up to $372 per usable kilowatt-hour (kWh) of battery capacity (before fees). After fees, the average customer saves approximately $330 per kWh — which could reduce the upfront cost of a 10kWh home battery by around $3,300.

Who Is Eligible for the Cheaper Home Batteries Program?

You may qualify for the rebate if your battery system meets the following criteria:

• Between 5kWh and 100kWh in nominal capacity (Only the first 50kWh are rebate-eligible)
• Installed by a CEC-accredited battery installer
• Uses a Clean Energy Council–approved solar battery
• Capable of connecting to a Virtual Power Plant (VPP) (participation not required)
• Installed on a residential home, small business, or community building
• Connected to a new or existing solar PV system
• Installed for permanent use (not portable or resold)
• Not an electric vehicle or portable energy storage device

You may also upgrade or expand an existing battery system if it hasn’t previously received the rebate and the added capacity is at least 5kWh.

For full eligibility criteria, read Intended eligibility for the Cheaper Home Batteries Program from the Department of Climate Change, Energy, the Environment and Water. 

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.

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 being made). This increased support is expected to help more than two million households install a battery by 2030, adding around 40 gigawatt hours of new energy storage capacity nationwide.

To keep the program sustainable and ensure the discount remains fair across different battery sizes, several adjustments are planned to take effect from 1 May 2026, subject to final regulations.

What's Changing? 

1. 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.

Your discount will be based on the STC Factor on the day your battery is installed.

2. 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:

• 0–14 kWh: 100% of the STC Factor

• >14–28 kWh: 60% of the STC Factor

• >28–50 kWh: 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. 

Why These Changes Matter

The Cheaper Home Batteries Program is an expansion of the long‑running Small‑scale Renewable Energy Scheme (SRES), which has helped millions of Australians adopt rooftop solar. By bringing batteries into the SRES framework, the program benefits from:

• Established consumer protection measures

• Strong electrical safety standards

• Accredited products through the Clean Energy Council

• Installer accreditation via Solar Accreditation Australia

• A proven compliance and inspections program

This ensures homeowners receive safe, high‑quality installations backed by a trusted national scheme.

For full details of these changes, visit the Department of Climate Change, Energy, the Environment and Water.