Cheaper Home Batteries Scheme

Save thousands on a home battery – but timing matters

The Australian Government has introduced the Cheaper Home Batteries Scheme, a national incentive designed to make battery storage more affordable for households and small businesses.

The scheme provides a federal rebate of around 30% off the upfront cost of an eligible battery, applied through Small-scale Technology Certificates (STCs) – similar to how solar rebates work today.

However, the rebate reduces each year (January), with the first reduction occurring from 1 May 2026. Installing earlier means a higher rebate and lower out-of-pocket cost.

How the Cheaper Home Batteries Scheme Works

The rebate is delivered by creating STCs at the time of installation. These certificates are usually applied as an upfront discount by your installer, reducing the purchase price immediately.

Key features of the scheme:

• Available Australia-wide

• Around 30% discount at launch

• Battery sizes from 5 kWh up to 50kWh (nominal capacity)

• Applies to new or existing solar systems

• Available to homes and small businesses

• Can be installed with new solar or as a retrofit

Rebate Reduction From 1 May 2026

Just like solar rebates, the Cheaper Home Batteries Scheme is designed to step down over time.

What’s changing?

• The rebate starts at its highest level

• From 1 May 2026, the number of STCs available reduces

• Up to 14kWh: 100% STC (full incentive)

• 14-28kWh: 60% STC (40% less rebate)

• 28-50kWh: 15% STC (85% less rebate)

What this means for homeowners

Installing before 1 May 2026 can mean:

• Thousands of dollars more in rebate value

• Faster payback on your battery investment

• Better protection against rising electricity prices

If you’re already considering a battery, acting earlier can make a significant financial difference.

How Much Can You Save?

While the exact rebate depends on:

• Battery size

• Installation date

• STC market value

As a guide:

• A typical home battery may receive $3,000 – $15,000+ in rebates at launch

• The rebate decreases each January of each year after 1 May 2026 until 2030.

• Larger batteries receive higher total rebates (up to the capped limit)

Eligible Battery Systems

To qualify, the battery must:

• Be on the Clean Energy Council (CEC) approved list

• Be installed by a CEC-accredited installer

• Meet Australian safety and performance standards

Popular eligible batteries include:

• Tesla Powerwall

• Sigenergy

• GoodWe

• BYD

• Sungrow

• Fox ESS
  (and other CEC-approved systems)

Do I Need Solar to Access the Rebate?

• No, you can add a battery to an existing solar system

• Yes, batteries installed with new solar are also eligible

• Off-grid systems are not eligible

• Systems must be grid-connected

Why Install a Battery Now?

A home battery allows you to:

• Store excess solar instead of exporting it cheaply

• Reduce reliance on the grid at night

• Protect against power price rises

• Add blackout protection (with compatible systems)

• Prepare for EV charging and future electrification

With the rebate reducing from 1 May 2026, installing sooner means:

• Higher rebate

• Lower upfront cost

• Faster return on investment