At the end of 2025, the Federal Government announced changes to the Cheaper Home Batteries Program that will come into effect on the 1st of May. The proposed changes will significantly reduce current battery rebates but enable the longevity of the program.
Home battery rebates are changing in 2026. The good news is that discounts are here to stay! However, there are changes coming that affect how you can save thousands of dollars.
Here’s everything you need to know about what is changing with battery rebates, staying the same and what it all means for you.
What is The Cheaper Home Batteries Program?
The Cheaper Home Batteries Program is a federal initiative designed to make home batteries more affordable.
The program, which has been around for years and has been updated to include batteries, is delivered through Small-scale Technology Certificates (STCs) and reduces the upfront cost of installing a home battery.
What Was Announced in December 2025?
The Federal Government announced it will significantly expand funding for the Cheaper Home Batteries Program. By 2030, the Government has committed to:
- Increasing funding for the program from $2.3 billion to ~$7.2 billion
- 2 million battery installations
- ~40 gigawatt hours of additional storage capacity added to the grid
The Government has also confirmed that how battery rebates are calculated will change by the 1st of May 2026.
What’s Changing About Battery Rebates from 1 May 2026?
There are two main changes homeowners need to understand:
- Discounts will reduce over time
- Battery sizes will affect discounts differently
1. How Battery Discounts Will Reduce Faster Over Time Than Before
From the 1st of May, changes will be applied to how the STC’s are calculated every six months.
At the time of publication, a 45kWh system will earn an STC of 8.4.
For the same battery installed after the 1st of May, your rebate would see a significant decrease down to approximately $6,000.
| Before the 1st of May | After the 1st of May | |
|---|---|---|
| System (kWh) | 45 kWh system | 45 kWh system |
| STC Factor | 8.4 | 6.8 |
| STCs earned | 378 | 169 |
| STC value | $36 | $36 |
| Estimated rebate | ~$13,000 | ~$6,000 |
To increase your savings, you need to act fast and lock in your battery install before the 1st of May to get your maximum rebate for your system.
2. Battery Size Will Affect the Discount More Than Before
While the program will still support batteries up to 100 kWh, new discount ratios will be applied. This means larger kWh systems will see less savings over time than before.
| kWh system | % of STC factor applied |
|---|---|
| 0–14 kWh | 100% applied |
| 14–28 kWh | 60% applied |
| 28–50+ kWh | 15% applied |
What This Means For You
Typical household batteries will receive the strongest support. Larger systems will receive smaller discounts per kWh.
In simple terms, this means:
- Typical household batteries receive the strongest support; and
- Very large systems receive a smaller discount per additional kilowatt-hour
What Isn’t Changing About Battery Rebates?
Despite some of the noise online, several important things remain the same.
Battery rebates are not ending.
The Government has stated it intends to keep discounts at around 30%, adjusting for changing battery prices.
STCs will continue to reduce upfront costs, not turn into a pay-back-later scheme.
Batteries paired with solar remain a key focus.
If you’re still not familiar with how STCs work, this guide explains it in plain English:
What Does This Actually Mean for Homeowners?
For most households, these changes are about planning, not panic.
If you already have solar:
- A battery installed before May 2026 may attract a higher STC entitlement
- Correct sizing will matter more than chasing the biggest system possible
If you’re still planning upgrades:
- Timing matters, but so does how your home uses energy
- Batteries often work best when planned alongside hot water, heating and cooling upgrades
We’ve seen firsthand how battery rebates can add up when systems are designed properly, not rushed.
This case study shows what’s possible when everything is aligned: How One Home Claimed Over $20,000 in Rebates
The Bottom Line
The Cheaper Home Batteries Program is getting bigger, not smaller, however it’s also getting more targeted.
From 2026 onwards:
- Install date matters more
- Battery size matters more
- Good advice matters more than ever
For homeowners, the goal hasn’t changed. The program is still focused on:
- Reducing energy bills
- Increasing self-consumption
- Future-proofing your home.
The program will continue to reach these goals, but has created a clearer path to get there.
Frequently Asked Questions
Are battery rebates ending in 2026?
No. The Cheaper Home Batteries Program is continuing to support battery rebates and has been expanded. What’s changing is how the discount is calculated.
What date do the changes start?
The proposed changes to battery rebates are set to begin on 1 May 2026, subject to regulations being made.
Will I get a better discount if I install before May 2026?
Yes. The STC factor is higher before May 2026, which will mean a larger upfront discount. However, the right timing still depends on your home, usage and budget to determine your battery rebate.
Does battery size affect the discount?
Yes. From May 2026, the discount will taper based on battery size. Typical household batteries (up to 14 kWh) receive the strongest support, while larger systems receive a lower discount per additional kilowatt-hour.
Is the discount still around 30%?
The government has said it intends to keep discounts around 30%, adjusting for falling battery prices over time. The actual dollar amount will depend on battery size, install date and system design when calculating battery rebates after the 1st of May.
When is my STC entitlement locked in?
Your STC entitlement is based on the date the battery is installed, not when you sign a quote or pay a deposit.
The Government has shared the upcoming changes to STCs as part of their recent announcement.
Should I rush to install a battery now?
Not necessarily. While timing matters, proper system design matters more. A well-sized battery planned around your household’s energy use will usually outperform a rushed install.