Cheaper Home Batteries Program: Your 2026 Battery Rebate Guide
Last updated: 27 October 2026
The Cheaper Home Batteries Program is the federal battery rebate that takes money off the upfront price of a home battery. Since 1 May 2026 the discount is tiered by battery size, and it steps down every January and July until 2030. This guide explains the current rules, shows what the rebate is worth for common battery sizes, and walks you through eligibility, claiming and state schemes. GetBatteryQuotes doesn’t sell batteries. We match you with up to three accredited installers so you can compare Cheaper Home Batteries Program quotes with the rebate already included.
Cheaper Home Batteries Program at a Glance
- What it is: a federal discount on eligible home batteries, delivered through Small-scale Technology Certificates (STCs).
- Start date: batteries must not be commissioned before 1 July 2025.
- Current rate (May to December 2026): 6.8 STCs per usable kWh, worth roughly $252 per kWh at an STC price of $37.
- Tiers from 1 May 2026: full rate on the first 14 kWh, 60% on 14 to 28 kWh, 15% on 28 to 50 kWh.
- Cap: only the first 50 kWh of usable capacity earns a discount.
- Next step-down: 1 January 2027, then every January and July until 2030.
- Who can claim: households, small businesses and community groups installing an approved battery with accredited installers.
What Is the Cheaper Home Batteries Program?
The Cheaper Home Batteries Program is a federal scheme that lowers the cost of installing a solar battery. It runs through the Small-scale Renewable Energy Scheme, administered by the Clean Energy Regulator, which means the discount is created as STCs when your battery is installed. Your installer claims those certificates and passes the value on to you as an upfront reduction on the quote. You don’t lodge a claim with the government yourself. Industry reports say more than 430,000 batteries were installed in the program’s first 12 months.
The program aims to make storage affordable, help households use more of their own rooftop solar, and ease pressure on the grid during the evening peak. It is also why on-grid batteries must be virtual power plant (VPP) capable, which we explain in our virtual power plant guide.
How the Rebate Tiers Work From 1 May 2026
The biggest changes to the rebate took effect on 1 May 2026. Before that date the rebate was a flat amount per kWh across the whole battery. Now the Cheaper Home Batteries Program tapers support as the battery gets bigger. Our guide to the 1 May 2026 rebate changes covers the reasoning in more detail:
Usable capacity | Share of the STC factor | STCs per kWh (May to Dec 2026) |
|---|---|---|
First 14 kWh | 100% | 6.80 |
Above 14 kWh, up to 28 kWh | 60% | 4.08 |
Above 28 kWh, up to 50 kWh | 15% | 1.02 |
Two things changed alongside the tiers. The STC factor itself dropped from 8.4 (January to April 2026) to 6.8, and the factor now steps down every January and July. Batteries up to 100 kWh nominal capacity remain eligible, but only the first 50 kWh of usable capacity earns STCs. Our STC deeming period explainer shows how certificate values are set
Heads up: you may still see older guides quoting a flat figure such as $372 per kWh. That rate no longer applies. The battery rebate you get is set by the STC factor on the day your battery is installed.
How Much Is the Cheaper Home Batteries Program Rebate Worth?
The rebate equals the number of STCs your battery earns multiplied by the STC price. The table below uses an STC price of $37, which is within the range retailers have been quoting this year. Your installer’s figure will differ slightly depending on the STC price on the day and any admin costs.
Usable battery size | STCs (May to Dec 2026) | Estimated rebate | Estimated rebate (Jan to Jun 2027) |
|---|---|---|---|
5 kWh | 34.0 | about $1,260 | about $1,050 |
10 kWh | 68.0 | about $2,520 | about $2,110 |
13.5 kWh | 91.8 | about $3,400 | about $2,850 |
20 kWh | 119.7 | about $4,430 | about $3,710 |
28 kWh | 152.3 | about $5,640 | about $4,720 |
40 kWh | 164.6 | about $6,090 | about $5,100 |
50 kWh | 174.8 | about $6,470 | about $5,420 |
Notice how little the rebate grows above 28 kWh. Going from 28 kWh to 50 kWh adds only around $830 under the Cheaper Home Batteries Program, so very large batteries rarely get a proportionate discount. For most households a battery in the 10 to 14 kWh range gets the full per-kWh rate on every kilowatt-hour.
Battery Rebate Calculator: Work Out Your Own Discount
Use the federal battery rebate calculator below, or estimate your own rebate by hand in four steps:
01
Find the usable capacity of your battery in kWh (not the nominal capacity). It’s on the datasheet.
02
Apply the tiers. Count the first 14 kWh at 100%, the next 14 kWh at 60%, and the next 22 kWh at 15%. Ignore anything above 50 kWh.
03
Multiply by the STC factor for your installation date. It is 6.8 until 31 December 2026, then 5.7 for January to June 2027
04
Multiply the STCs by the STC price. At $37, a 20 kWh battery earns 14 × 6.8 plus 6 × 4.08, which is 119.7 STCs, or about $4,430.
Federal Battery Rebate Calculator
Estimate your Cheaper Home Batteries Program discount. Estimates only.
| First 14 kWh (100%) | 0 |
| 14 to 28 kWh (60%) | 0 |
| 28 to 50 kWh (15%) | 0 |
| Total STCs | 0 |
Based on Clean Energy Regulator tiers from 1 May 2026. Only the first 50 kWh of usable capacity earns STCs. Your installer's figure will differ with the STC price on the day.
If you would rather skip the maths, our free quote request shows the discount line by line, so you can see how each installer has applied the rebate. This STC arithmetic is the same method every accredited installer uses for a battery STC calculator.
Who Is Eligible for the Cheaper Home Batteries Program?
Households, small businesses and community groups can claim the Cheaper Home Batteries Program discount. There is no income test. To qualify, your battery installation needs to meet these conditions:
- New battery, installed after 1 July 2025. The system must not have been commissioned or tested as operational before that date.
- Size: nominal capacity between 5 kWh and 100 kWh, with the discount applied to the first 50 kWh of usable capacity.
- Solar: installed with a new or existing rooftop solar system of 100 kW or less, in a single job.
- VPP capable: on-grid batteries and their inverters must be able to join a virtual power plant, though you don't have to join one.
- Approved products: the battery and inverter must be on the Clean Energy Council list and meet AS/NZS 5139:2019.
- Accredited installer: the installation must be carried out by an installer accredited with Solar Accreditation Australia.
- Off-grid homes: more than 1 km from the grid, the battery must be on the approved list but doesn't need to be VPP capable. Closer than 1 km, you need written proof that a grid connection would cost more than $30,000, or the battery must be VPP capable.
- One battery per premises: a second battery at the same address isn't eligible after the first claim.
- Stay put: the battery has to remain at the premises until after 2030 or the end of its warranty, whichever is later.
Check Your Battery Is Approved
The Clean Energy Council approved product list is the register of batteries that qualify for the rebate. Check that the exact model and inverter combination you are quoted is on it, because a battery that isn’t listed gets no discount. Our guide to Clean Energy Council approved batteries shows how to check, and our battery reviews cover popular systems including the Tesla, Sungrow, BYD and Sigenergy batteries.
Already Have Solar or a Battery? Cheaper Home Batteries Program Rules
Already have solar? You don’t need new panels. The Cheaper Home Batteries Program covers a battery added to an existing rooftop system of 100 kW or less, provided the battery and inverter meet the approved product rules.
No solar yet? The battery must be installed with solar in a single job, so a combined solar and battery system qualifies.
Already have a battery? Industry guides report that an expansion of at least 5 kWh may qualify if the total nominal capacity stays under 100 kWh. The official rule allows one battery per premises, and guides report the limit is applied per electricity meter (NMI). Ask your installer to confirm your case before you rely on it. Our guide to STCs for stackable battery systems covers upgrades in more detail.
How to Claim the Cheaper Home Batteries Program Rebate
Most households never fill in a government form. The process looks like this:
01
Compare quotes. Ask each installer to show the STC discount as a separate line, and confirm the battery is on the CEC approved list.
02
Choose an accredited installer. Check their Solar Accreditation Australia status before signing.
03
Installation and commissioning. Your installer completes the work and signs the electrical certificate of compliance. That date sets your STC factor.
04
The installer lodges the STCs. They claim the certificates and the discount is already built into your price.
05
Keep your paperwork. Save the invoice, warranty and compliance certificate.
Ready to compare? Get up to 3 quotes from accredited installers with the rebate included.
How Long Does a Battery Take to Pay Back?
Your net cost is the installer’s price minus the rebate, and the Cheaper Home Batteries Program discount is already built into a compliant quote. Real prices vary by brand, inverter and location, so see our solar battery price guide for current ranges by size. Here is the payback maths.
Worked example: a 10 kWh battery at an illustrative $11,000 earns about $2,520 at the May to December 2026 rate, leaving a net cost of about $8,480.
Payback is the net cost divided by your yearly savings. A 10 kWh battery is commonly estimated to save between $700 and $1,500 a year, depending on your tariff, how much solar you export and whether you join a VPP. On the illustrative $8,480 net cost above, that works out to roughly 6 to 12 years. The Cheaper Home Batteries Program shortens payback, but it doesn’t guarantee it. The best test is to compare real quotes against your last few electricity bills.
Can You Combine State Battery Rebates With the Federal Rebate?
Sometimes. Federal STCs are separate from state incentives, and some states layer their own support on top. Availability changes often, so confirm the current terms before you sign:
- Western Australia: the WA Residential Battery Scheme offers $130 per kWh up to $1,300 through Synergy, or $380 per kWh up to $3,800 through Horizon Power, plus interest-free loans of up to $10,000. It can be combined with the federal discount. See our WA battery rebate guide.
- New South Wales: a VPP incentive is available for eligible batteries. The amount depends on the battery and provider, and it can be used alongside the federal discount. See our NSW battery rebate guide.
- ACT: the Sustainable Household Scheme offers low-interest loans for batteries. See our ACT battery rebate guide.
- South Australia: a VPP incentive has existed, but funding has often run out, so check availability first.
- Victoria: there is no standalone state battery rebate at present. The federal discount is the main support.
- Northern Territory: the territory battery scheme has reached its funding allocation and is closed to new grants.
- Queensland and Tasmania: no major state battery rebate is currently listed.
Install Now or Wait?
The Cheaper Home Batteries Program STC factor falls on a fixed schedule, so waiting reduces the discount even if battery prices drop:
Installation period | STC factor |
|---|---|
May to Dec 2026 | 6.8 |
Jan to Jun 2027 | 5.7 |
Jul to Dec 2027 | 5.2 |
Jan to Jun 2028 | 4.6 |
Jul to Dec 2028 | 4.1 |
2029 | 3.6, then 3.1 |
2030 | 2.6, then 2.1 |
A 10 kWh battery loses roughly $400 of rebate between December 2026 and January 2027. Whether to use the Cheaper Home Batteries Program now depends on your bills, your solar system and your budget. The date that counts is the day your installation is signed off, so ask installers for a realistic commissioning date before you commit.
Cheaper Home Batteries Program FAQs
Batteries installed from 1 July 2025 can claim the discount. The tiered system and faster step-downs began on 1 May 2026.
For the first 14 kWh it is about $252 per usable kWh at an STC price of $37. Capacity from 14 to 28 kWh earns about $151 per kWh, and from 28 to 50 kWh about $38 per kWh.
No. Your battery and inverter must be capable of joining one, but joining is optional.
Yes. The Cheaper Home Batteries Program covers a battery added to an existing solar system or installed with a new one.
No. The program isn’t means tested.
The STC factor drops from 6.8 to 5.7 on 1 January 2027, then to 5.2 in July 2027, and keeps stepping down until 2030.
Only the first 50 kWh of usable capacity earns STCs, so at the May to December 2026 rate the practical maximum is about $6,470 at a $37 STC price.
The official rule allows one battery per premises. Industry guides report that an expansion of at least 5 kWh may qualify if total nominal capacity stays under 100 kWh, so confirm with your installer before relying on it.
Yes. The battery must be installed with a solar system of 100 kW or less, either one you already have or a new one installed in the same job.
Yes, but with diminishing returns. Capacity from 14 to 28 kWh earns 60% of the full rate, and 28 to 50 kWh earns 15%.
The program isn’t capped by household numbers, though the rebate per battery keeps stepping down on schedule until 2030.
Compare Quotes With the Cheaper Home Batteries Program Rebate Included
The Cheaper Home Batteries Program rebate is large, but its value depends on your battery size and your installation date. Request quotes now to see the discount applied to real installer pricing. We connect you with up to three accredited installers, and we don’t sell batteries ourselves. Get your free battery quotes, or browse our battery guide and installer information first.
