Understanding the Cheaper Home Battery Program

The Biggest Battery Support Program We’ve Ever Seen (And Why You Shouldn’t Wait)

The federal government has now officially confirmed that the Cheaper Home Battery Program will begin on July 1st. This is a significant moment for homeowners who have been waiting for real support to make the leap toward energy independence. But with so much talk about “30% off” and $370 per kilowatt-hour, there’s plenty of confusion floating around.

Let’s break it down in plain English.

Not a Flat 30% Discount – Here’s What It Actually Means

You might have seen headlines claiming this new rebate will reduce battery costs by 30%. That’s misleading.

That 30% figure is just an example to help explain the scale of the program. It’s not how the rebate is calculated.

In reality, this incentive is based on Small-scale Technology Certificates (STCs) – the same system used for solar panels & heat pump hot water.

Each battery system is eligible for a certain number of STCs, calculated at 9.3 STCs per usable kilowatt-hour of storage, from 5kWh up to 50 kWh. The larger your battery, the more STCs you earn.

What About the $370/kWh?

You might also have heard the number $370 per kWh. It’s important to know that this isn’t the amount that will go into your pocket.

That figure is based on 9.3 STCs at $40 each, but $40 is the spot price the government is paying. Solar companies like Bluegum don’t receive the full spot price when they redeem STCs. Instead, we sell them to registered agents (aggregators), and most of the time, the real value is closer to $36 per STC.

So while $370/kWh gives you a ballpark idea, and is what it will cost the government, it can be misleading if you’re expecting that exact amount in your quote.

Timing Matters: STCs Decrease Every Year

One of the most important things to understand is that this program isn’t a set-and-forget offer. It is part of the existing STC framework, which has a scheduled phase-out.

The number of STCs you receive for your battery (or solar or heat pump hot water system) drops by around 25% every calendar year. That means the earlier you install, the more government support you’ll receive.

For example:

• If you install a 13.8 kWh battery in 2024, you’ll be eligible for 128 STCs.
• If you wait until 2025, you’ll only receive 115 STCs for the exact same battery.

STCs are always rounded down, and you cannot claim partial credits.

Also important: The number of STCs you receive is locked in based on your system size, but the value of those STCs is not locked in until the rebate is claimed. That usually happens after final inspection and certification, often several weeks after your installation.

One Claim Per Property – Make It Count

Here’s something else you need to know: you can only claim the battery rebate once per property.

So, if you install a 13.8kWh battery this year, you’ll receive 128 STCs, which at an approximate $37 value is worth around $4,608.

But if you decide next year to expand add another 13.8 kWh, to get your total capacity up to 27.6 kWh at a later date, you won’t be eligible for any additional rebate.

On the other hand, if you install a larger system initially – say 27.6 kWh – you’ll receive 256 STCs, potentially worth $9,216.

The bigger and earlier you go, the more value you can access – and you only get one shot.

Who Is Eligible for the Battery Rebate?

The good news? Almost everyone.

• Every homeowner, business, and community group is eligible.
• You must have a solar system installed (or install one alongside your battery).
• You can expand an existing battery, as long as you haven’t previously claimed STCs for battery storage at that property.
• It is not means-tested – your income does not affect eligibility.
• There are no applications required. The rebate is processed through your installer after certification.

This is one of the most available government incentives we’ve seen. But that doesn’t mean it will last forever.

What About Solar Victoria’s Interest-Free Loan?

The previous Solar Victoria Interest-Free battery loan program has now ended. With just a few days’ notice, the loan was pulled and is no longer available.

It’s a reminder that waiting too long can cost you, both in rebates and in financial support.

We saw several clients miss out on accessing the loan due to not acting fast enough.

What to Do Now

If you haven’t booked your free onsite consult yet, now’s the time.

We expect demand to surge after July 1st, and by the end of the year, many households will miss out on this year’s higher STC allocation. We don’t want that to be you.

Book Your Free Consult Today and make this your year for energy independence.