Changes to the Australian Government’s Cheaper Home Batteries Program Explained

Are you thinking about getting a solar battery? With the government changing the rebate, you might be wondering if you’ve missed your chance.

The Cheaper Home Batteries Program is changing in May 2026.

At PSC Energy, we’ve helped thousands of Australians with the federal rebate, and we’re here to guide you through these new changes, too. You probably have questions, and that’s understandable. Battery prices are dropping, but so is the rebate you can claim. The updated system also gives more support to smaller batteries than larger ones.

In this article, you’ll learn about the following:

• What is the Cheaper Home Batteries Program?
• What is Changing in May 2026 and Why?
• Will You Still Save Money on a Home Battery After May 2026?
• Should You Install a Home Battery Before or After May 2026?
• How to Choose the Right Battery Size for Maximum Value
• Helpful Cheaper Home Battery Program Resources and Next Steps
• FAQ: Cheaper Home Batteries Program Changes

We’ve looked into all the details of the program update, so you don’t have to. By the end of this article, you’ll know what’s changing, why it’s happening, and how it could affect your savings.

What is the Cheaper Home Batteries Program?

The Cheaper Home Batteries Program is a federal government scheme that helps lower the upfront cost of installing a battery for your home or business.

It launched in 2025 under the Small-scale Renewable Energy Scheme (SRES), which has already helped millions of Australians install rooftop solar.

The battery program builds on that same structure and lets you claim a discount based on the size of your battery system.

The discount works through virtual tokens called Small-scale Technology Certificates (STCs). These certificates are based on how much usable energy your battery can store. The term STC is sometimes confused with SRES, but they are different.

The more usable kilowatt-hours (kWh) your battery has, the more STCs it generates, and the bigger your discount.

You don’t have to apply separately for this rebate. You can access it in two ways:

1. Through your installer or retailer. Most people get the discount upfront or as a rebate when they use an accredited installer. The installer handles the paperwork and factors the discount into your quote.
2. You can also claim STCs yourself through the REC Registry. If you want more control, you can register directly with the Clean Energy Regulator’s REC Registry and trade your own STCs. Be sure not to assign your STC rights to your installer if you choose this option. This process can be complicated and has a learning curve, so it’s usually best to let your installer handle it.

Here’s a quick snapshot of what the program offered last year:

• Around 30% off the cost of eligible batteries between 5 kWh and 100 kWh.
• Discount applies to both new solar installations and existing solar systems.
• Rebates are calculated based on usable battery size and the current STC factor.

By late 2025, the program had already helped over 155,000 households and small businesses install batteries. This number is rising quickly, which is one reason the rebate is changing.

If you’re interested in learning a bit more about the federal solar battery rebate, also known as the Federal Cheaper Home Batteries Program, you might want to check out the following article titled, What the 2025 Federal Election and the Government Rebate Means for Solar Batteries in Australia.

Power up your savings!

What is Changing in May 2026 and Why?

Starting 1 May 2026, the Cheaper Home Batteries Program will change. These updates will affect the rebate you can claim, especially if you’re installing a medium or large battery.

The goal is to keep the program running through 2030, support more households, and maintain the discount as battery prices drop.

The government has increased the program’s funding from $2.3 billion to $7.2 billion. This is expected to support over 2 million battery installations by 2030. Without these changes, the original rebate structure would have run out of funds by mid-2026.

Here’s what’s changing:

1. The STC Factor Will Decline More Often and More Sharply

The STC factor is the number used to calculate the number of certificates your battery is eligible for per kilowatt-hour. The more STCs you have, the bigger your rebate.

Currently, the STC factor is updated once a year. From May 2026, it will be updated every six months, and the decrease will be steeper.

Here’s how the STC factor will drop over time with the existing STC factor and the changed one on the right:

2026	Jan–Apr	8.4	8.4
2026	May–Dec	8.4	6.8
2027	Jan–Jun	7.4	5.7
2027	Jul–Dec	7.4	5.2
2028	Jan–Jun	6.5	4.6
2028	Jul–Dec	6.5	4.1
2029	Jan–Jun	5.6	3.6
2029	Jul–Dec	5.6	3.1
2030	Jan–Jun	4.7	2.6
2030	Jul–Dec	4.7	2.1

This means the longer you wait to install, the smaller your rebate will be.

2. Bigger Batteries Will Get Less Support Per Kilowatt-Hour

At the moment, you get the full rebate for every kWh up to 100 kWh. After 1 May 2026, a tiered structure will reduce the rebate for batteries larger than 14 kWh.

Here’s how the new support levels will work:

• 0–14 kWh: Full rebate (100% of STC factor applies)
• 14–28 kWh: 60% of the STC factor applies
• 28–50 kWh: 15% of the STC factor applies
• Above 50 kWh: No rebate on capacity above 50 kWh

If you’re planning a battery system larger than 14 kWh, you’ll still get some support, but it will be less than before. The maximum supported size is 100 kWh.

This new structure encourages homeowners to choose a battery that fits their actual energy needs, rather than just picking the largest system possible.

Why the Change Makes Sense

Battery systems have grown quickly. In 2024, the average battery size was about 10 to 12 kWh. By late 2025, it had increased to 28 kWh.

Larger batteries were taking up more of the rebate budget. Without these changes, the program would have helped fewer people.

The government says these updates will help:

• Keep the discount close to 30% as battery prices fall.
• Give more people access to affordable battery storage.
• Make sure the program runs through to 2030 as promised.

Minister Chris Bowen called it “responsible policy” that keeps costs low while helping more Australians use clean solar energy when they need it.

If you’re interested in learning a bit more about solar and battery rebates in NSW, Australia, you might want to check out the following article titled, Ultimate Guide to Australia’s 2025 Solar Rebate and Battery Rebate: Federal and NSW Rebate for Solar.

Let’s talk solar savings.

Will You Still Save Money on a Home Battery After May 2026?

Yes, you can still save money after the changes in May 2026, but your rebate will be smaller, especially if you install a medium or large battery. The discount will still be available, but it will decrease every six months and be lower for bigger batteries.

Your rebate amount depends on two main things:

1. How big your battery is (in usable kilowatt-hours).
2. When your battery is installed (which STC factor applies at the time).

Let’s look at how rebate amounts will shift for different battery sizes before and after the changes.

Small Batteries (10–14 kWh)

• You will still receive the full rebate per kilowatt-hour up to 14 kWh.
• The total rebate will shrink over time because the STC factor drops every six months.
• Installing before May 2026 could save you $800 to $1,000 more than installing the same system later in the year.

Medium Batteries (15–28 kWh)

• Only the first 14 kWh will get the full rebate.
• The next portion (up to 28 kWh total) will get only 60% of the rebate per kWh.
• The rebate will drop even further after May 2026 because the STC factor will be lower.
• You could lose around $1,000 to $1,500 in rebate value by waiting.

Large Batteries (28–50 kWh)

• After the first 28 kWh, any extra capacity will only get 15% of the rebate per kWh.
• If you install a large system after May 2026, your rebate could be more than $10,000 less than what you would get today.
• Support still applies up to 50 kWh, but anything over that gets no rebate.

So, you’ll still get support, but the program will reward systems that are the right size for your needs, not just the largest you can buy.

Will You Still Save Money Over Time with a Home Battery?

Even with a smaller rebate, installing a battery still reduces your power bills, especially if you:

• Use more power at night.
• Already have solar panels.
• Live in an area with high peak energy rates.
• Use your battery every day to avoid buying power from the grid.

Having more batteries on the grid helps everyone by reducing demand spikes in the evening. Even if you don’t install a battery, you might still benefit from others who do.

If you’re interested in solar batteries, you might want to check out the following article titled, Are Solar Batteries Worth It in NSW? PSC’s Ultimate Guide for 2025.

Ready to go solar?

Should You Install a Home Battery Before or After May 2026?

In short, if you’re ready to install a battery and can do it before May 2026, you’ll get a bigger rebate. But there’s no need to rush for everyone. The best time to install depends on your energy use, budget, and plans.

Here’s how to think it through.

Reasons to Install a Home Battery Before May 2026

If you already have quotes, a budget, and an installer lined up, installing before May will give you the highest rebate. Here’s why:

• The STC factor is still at its peak (8.4) until the end of April 2026.
• There are no tiered rebate limits yet, so all usable capacity up to 100 kWh gets full value.
• You could save hundreds or even thousands of dollars more, depending on your system size.

This is especially important if you’re installing a medium or large system, since those will be most affected by the changes.

If you plan to install solar panels alongside your battery, doing both now may also help you achieve the best combined return.

Reasons You Might Wait to Install a Home Battery After May 2026

If you’re not ready to commit, don’t worry. Battery prices are coming down. Even with lower rebates, your out-of-pocket cost could still be manageable, especially if:

• You’re installing a smaller system (under 14 kWh), which still gets the full rebate (for that time) per kWh.
• You expect battery prices to keep dropping in your area.
• You qualify for other incentives through your state or territory.
• You want more time to compare systems and find the right setup for your needs.

The government aims to keep the discount close to 30%, even as battery prices go down. While the STC factor will decrease, the base cost of batteries should also fall.

You may also want to wait if:

• Your home needs upgrades to support a battery.
• You’re still researching which battery size fits your solar and usage.
• You want to take advantage of upcoming local schemes or rebates.

Questions to Ask Yourself Before Deciding on a Home Battery

1. Can I install before May without rushing or cutting corners?
2. Is my battery system sized properly for my solar and energy use?
3. Am I confident in the quote and the installer I’ve chosen?
4. Do I qualify for any other local rebates or finance programs?
5. Am I financially ready now, or would waiting help me more long term?

There’s no one-size-fits-all answer, but here’s the bottom line:

• If you’re going ahead soon, try to install before May 2026 to get the most value.
• If you’re still getting ready, focus on choosing the right-sized system and use the available tools to check your savings.

Next, you’ll learn how to avoid common mistakes and how to choose a system that works for you, not just for the rebate.

If you’re interested in learning a bit more about the price of solar batteries, you might want to check out the following article titled, How Much Are Solar Batteries? A Full Breakdown of Prices, Rebates, and Value in 2025.

Get started with solar.

How to Choose the Right Battery Size for Maximum Value

The new rebate rules reward batteries that are the right size for your home. Bigger isn’t always better. If your battery is too large for your solar output or daily energy use, you might pay more than necessary and won’t get the full rebate after May 2026.

Here’s how to choose a battery that gives you the best return:

1. Understand Your Energy Use

Start by reviewing your electricity bill or smart meter data. You want to know:

• How much electricity you use each day.
• When you use it (day, evening, overnight).
• How much solar energy you’re exporting back to the grid.

If you send a lot of power to the grid during the day and buy power at night, a battery can help you store your solar energy and use it when you need it.

2. Match Your Battery to Your Solar and Inverter

Talk to your installer about:

• The output capacity of your solar system.
• The size of your inverter.
• The amount of solar energy available to charge your battery.

If your solar system doesn’t generate enough power to fill a large battery, you won’t get the full benefit. Sometimes, it’s better to get a smaller battery that charges and discharges efficiently each day.

3. Pick a Battery Size That Hits the Rebate “Sweet Spot”

From May 2026, the rebate drops off at certain points. Here they are again from the table above:

• 0–14 kWh: Full rebate.
• 14–28 kWh: 60% of the rebate per kWh.
• 28–50 kWh: 15% of the rebate per kWh.

If you want to maximise your return, try to stay within the first 14 kWh where possible, or add just enough extra capacity to match your needs, not more.

4. Choose the Right Solar Battery Installer

Your installer should:

• Be accredited by Solar Accreditation Australia (SAA).
• Be on-site for the setup and commissioning of your system.
• Give you clear information about your rebate, warranty, and payback period.

You can also read reviews and ask family or friends for recommendations. A good installer will help you choose the right battery size and make sure you get the rebate.

5. Ask These Questions Before You Sign Anything

• What is the usable capacity of the battery in kWh?
• How much of the battery’s cost will the rebate cover?
• What is the estimated payback period?
• How long is the warranty?

These questions can help you avoid poor advice or pushy sales tactics. The goal isn’t just to get a battery, but to get the right one at the right price.

If you’re interested in looking at some solar battery choices, you might want to check out the following article titled, Which Solar Battery Should I Buy?

Let’s go solar today.

Helpful Cheaper Home Battery Program Resources and Next Steps

If you’re considering a battery, now is a good time to get informed, compare quotes, and make sure you’re prepared. Whether you install before or after May 2026, the most important thing is to choose a system that fits your home and energy needs.

Here are the most useful tools and resources to help you make a confident decision:

1. Check Your Rebate and STC Entitlement

Use the REC Registry STC Calculator to see how many certificates your system might earn. This will give you an idea of how much your rebate could be based on your battery’s size and install date.

To see how the number of STCs will change between now and 2030, download the government’s official Summary of Revised STC Entitlements to 2030.

2. Confirm Your Eligibility and Understand the Rules

Check the complete Clean Energy Regulator guide to eligibility to make sure your battery, installer, and installation plan meet all the program requirements.

3. Get Informed Before You Buy

Use these free, independent tools to plan your battery installation:

• Solar Consumer Guide: for simple, trusted advice.
• SUNSPOT Calculator: to estimate costs and savings from solar and battery systems.
• Clean Energy Council Accredited Product List: to make sure your system is approved.
• Solar Accreditation Australia Installer Search: to find a qualified, trusted installer.

4. Look for Other Rebates and Support

The federal battery rebate can work alongside some state and territory rebates.

Check your state or territory’s website to see what extra help is available and whether you can combine programs for better savings.

5. Talk to Solar Battery Installers and Compare Quotes

Get quotes from at least two or three accredited installers. Ask each one:

• What size battery do you recommend and why?
• How much will I get in rebates and when?
• What is the expected payback period?
• What warranties are included?

Be careful with anyone who tries to sell you an oversized system or who can’t clearly explain how the rebate works.

If you’re interested in learning more about sizing solar batteries, you might want to check out the following article titled, What Size Solar Battery Do You Need?

Shine brighter with solar.

Final Takeaway: The Rebate Still Has a Charge

The Cheaper Home Batteries Program is still a strong incentive, but the biggest rebates are available now. After May 2026, rebates will be reduced more often and will be lower for larger batteries.

You don’t need to rush into a decision, but if you’ve done your research and feel ready, installing before the changes could save you more money.

At PSC Energy, we guide customers through the whole process of getting the Federal Battery Rebate. We ask the right questions and install a system that fits your home, not just the rebate. It’s what we do.

If you’d like to learn a bit more about what solar batteries are on the market, you might want to check out the following article titled, 6 Best Solar Batteries on the Market.

Get a free solar quote!

FAQ: Cheaper Home Batteries Program Changes

How does the Cheaper Home Batteries Program work?

The Cheaper Home Batteries Program gives you a government-funded discount on the upfront cost of installing a battery. The discount is based on your battery’s usable capacity and is calculated using Small-scale Technology Certificates, or STCs. The bigger your battery, the more STCs it can generate. You can get the discount through your installer or apply for it yourself using the REC Registry.

Who can get the home battery rebate in Australia?

You can get the rebate if you install a battery between 5 kWh and 100 kWh that meets safety and quality standards. Someone accredited by Solar Accreditation Australia must install your battery. The battery must also be on the Clean Energy Council’s approved list. It can be added to either a new or existing rooftop solar system.

What changes are happening to the battery rebate in May 2026?

Two main changes start on 1 May 2026. First, the rebate will go down every six months instead of every year. Second, larger batteries will receive a lower rebate per kilowatt-hour under the new tiered structure. Only the first 14 kWh of a battery will get the full rebate. Capacity above that will get a smaller percentage.

Will I still get a rebate if I install my battery after May 2026?

Yes, you will still get a rebate, but it will likely be smaller. The government is lowering the rebate amount over time and reducing support for large batteries. The program will still offer savings until 2030, but it will reward smaller, right-sized batteries more than oversized systems.

How much money can I save with the battery rebate?

The average rebate covers about 30% of the battery’s cost, depending on the battery’s size and when it’s installed. Installing before May 2026 gives you the highest rebate. After that, the rebate drops every six months. Large systems can lose thousands in rebate value once the new changes take effect.

Should I install a battery before or after May 2026?

If you’re ready and have a plan, it’s better to install before May 2026. You’ll get a higher rebate and full value for a larger battery. If you need more time to research or save, waiting is still okay. Battery prices are expected to keep falling, and the rebate will remain available, just at a lower level.

How is the battery rebate calculated?

The rebate is based on the number of STCs your battery earns. STCs are calculated using your battery’s usable size and the STC factor at the time of installation. The STC factor is a number set by the government that indicates how many certificates you receive per kilowatt-hour. More certificates mean a bigger discount.

What is the STC factor in the battery rebate program?

The STC factor is a number used to calculate how many certificates your battery system earns. It depends on when you install the battery. The higher the STC factor, the more you save. After May 2026, the STC factor will decrease every six months, reducing your rebate over time.

What size battery gets the full rebate after May 2026?

Only the first 14 kilowatt-hours of usable capacity will get the full rebate after May 2026. From 14 to 28 kWh, the rebate will be reduced to 60%. From 28 to 50 kWh, it drops to 15%. Anything over 50 kWh won’t qualify for a rebate.

Can I combine this rebate with other government battery rebates?

Yes, in many cases, you can combine the federal battery rebate with state or territory programs. These may offer extra discounts or financing. Check with your local government to see what other rebates you qualify for and if they can be used with the national program.

Do I need to apply for the battery rebate myself?

Usually not. Most people receive the rebate through an accredited installer, who handles the paperwork. The installer will apply the discount to your quote or give you a rebate after installation. If you prefer, you can apply directly through the REC Registry and sell your STCs yourself. We recommend letting your installer take care of this.

Where can I find a trusted battery installer?

You can find certified installers through Solar Accreditation Australia. Make sure your installer is accredited and uses products approved by the Clean Energy Council. Also, check reviews and ask questions before signing anything.

What is the deadline to install before the rebate drops?

To get the current full rebate, your battery must be installed before 1 May 2026. After that date, the STC factor will drop, and tiered support will begin. Installing before this deadline can save you hundreds or even thousands more, depending on your battery size.

What happens if my battery is installed after the rebate cut-off date?

If your battery is installed after 30 April 2026, it will be subject to the new rules. You will still receive a rebate, but it will be smaller. Only the first 14 kWh of capacity will get the full value, and the STC factor used to calculate your rebate will be lower.

Is it worth installing a battery if I don’t have solar panels?

You can still install a battery, but it works best when paired with rooftop solar. Solar panels let you charge the battery with free power during the day so that you can use it at night. If you don’t have solar, the battery may not save you as much money, but it can still reduce your peak-time energy bills.

How long will the battery rebate program last?

The Cheaper Home Batteries Program is expected to run until 2030. However, the rebate value will decline every six months. The earlier you install, the more you can save. The government has committed $7.2 billion to support over 2 million battery installations across Australia.