Home Battery Rebates 2026: Why You Need to Act Fast

Director Josh Gilbert standing in front of home battery system eligible for battery rebates

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. 

 
A 45kWh system that would receive ~$13,000 in battery rebates is expected to drop to ~$6,000 after the 1st of May.
 
If you are considering installing a home battery this year, you’ll want to act fast to get the largest rebate possible before May.

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:

  1. Discounts will reduce over time
  2. 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 Are STCs and Why They Still Matter in 2025

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.

Free Quote

Fill in the form to book your free consultation & quote. You’ll have a reply within 24 hours business hours, but if you need a faster response, please call us at 1300 306 342.

Why Choose Us?

Free Quote

Fill in the form to book your free consultation & quote. You’ll have a reply within 24 hours business hours, but if you need a faster response, please call us at 1300 306 342.

Book Your Free Consultation & Quote

When you’re ready for reliable, integrated energy solutions, Bluegum Electrical Solutions is here to make it easy. Start by booking your free onsite consultation & quote to see how we can help you achieve efficient, sustainable energy for your home or business.