The Australian Government’s Cheaper Home Batteries Program has quickly become one of the most impactful clean energy initiatives in recent years. Since its launch in July 2025, the program has dramatically increased the adoption of home battery systems across Australia, helping households store solar energy, reduce electricity bills, and contribute to the national energy transition.
With strong uptake in its first six months, the government has now announced expanded funding and proposed changes to the program that are expected to take effect from 1 May 2026, subject to final regulations.
Six Months In: How the Program Is Performing
Just six months after launch, the Cheaper Home Batteries Program has exceeded early expectations. The program has significantly reduced the upfront cost of installing solar-connected battery systems, making energy storage more accessible to Australian households.
Program Impact So Far
Since July 2025, the program has:
- Supported over 160,000 battery installations nationwide
- Added more than 3.6 gigawatt hours (GWh) of energy storage capacity to the grid
- Enabled the creation and purchase of over 21 million Small-scale Technology Certificates (STCs)
These results demonstrate how financial incentives can accelerate household adoption of renewable energy technologies.
Expanded Government Funding: What’s Been Announced
In response to strong demand, the Australian Government has announced plans to expand the program’s funding from its original estimate of $2.3 billion to approximately $7.2 billion over the next four years.
With this increased investment, the government expects the program to:
- Help more than 2 million Australian households install a battery system by 2030
- Deliver around 40 GWh of additional storage capacity across the country
This expansion is designed to ensure the program remains effective and accessible through to its original target year of 2030.
Why the Government Is Making Changes
The success of the rebate has also changed how Australians are buying batteries:
- Installations have increased sharply
- Homeowners are choosing larger-capacity batteries more frequently
- Battery prices continue to trend downward
To keep the program sustainable while still delivering meaningful savings, the government has proposed adjustments to how the rebate is calculated over time and across battery sizes.
The Two Key Proposed Changes From 1 May 2026
Subject to regulations being made, two major changes are expected to begin on 1 May 2026.
1. Faster Rebate Step-Down Over Time
Currently, the battery rebate reduces once per year.
From May 2026, the proposal introduces:
- Six-monthly rebate reductions instead of annual step-downs
- Adjustments expected in January and July each year
- A rebate structure better aligned with declining battery costs
What this means for homeowners:
Installing earlier could result in a higher rebate, even within the same year. Waiting longer may reduce the available discount.
2. Rebate Tapering Based on Battery Size
The second proposed change relates to battery capacity.
From 1 May 2026:
- Typical household-sized batteries will continue to receive strong rebate support
- Larger-capacity battery systems will receive a lower rebate per kilowatt-hour (kWh)
- Rebate support will gradually taper as battery size increases
This approach is designed to encourage households to choose right-sized batteries while keeping the program financially viable.
Key takeaway for larger systems:
If you’re considering a battery above approximately 14 kWh, installing before 1 May 2026 may result in a higher overall rebate compared to installing later.
What’s Not Changing
Despite these proposed adjustments, many core elements of the program remain unchanged:
- The rebate will continue to be delivered via Small-scale Technology Certificates (STCs)
- Battery systems up to 100 kWh remain eligible (subject to program rules)
- Batteries can be installed with new or existing solar PV systems
- Homeowners usually receive the rebate as an upfront discount through their installer
- Rebates continue to be based on usable battery capacity, not total capacity
Key Dates to Keep in Mind
- Now – 30 April 2026:
Current rebate calculation settings apply - From 1 May 2026 (proposed):
Faster rebate step-downs and size-based tapering begin - From 2027 onwards (proposed):
Rebate values reduce twice per year until 2030
Should You Act Now?
The Cheaper Home Batteries Program remains one of Australia’s most valuable renewable energy incentives. While expanded funding ensures its longevity, timing and battery size will increasingly influence rebate outcomes.
For homeowners:
- Installing sooner may unlock higher rebates
- Choosing the right-sized battery is more important than ever
- Understanding upcoming changes helps avoid missed savings
When choosing a battery installer, it’s important to work with a trusted and accredited provider. Arise Solar is an SAA-accredited retailer, ensuring all battery systems are designed and installed to meet Australian standards, compliance requirements, and best-practice guidelines.
With Arise Solar, homeowners can feel confident they’re investing in reliable solutions backed by industry expertise and quality assurance.
CONTACT NOW
