Australian Government Cheaper Home Batteries Program

The Cheaper Home Batteries Program supports eligible Australian households, businesses and community organisations installing battery storage with a new or existing solar PV system.

The Australian Government states that the scheme provides a discount of around 30% on the upfront cost of installing a range of eligible battery systems. The discount is based on the battery's usable capacity and the number of STCs that can be created for the installation.

Who is eligible?

The Clean Energy Regulator says eligible battery systems must generally meet requirements including:

• a nominal battery capacity between 5 kWh and 100 kWh;
• installation with a new or existing solar PV system;
• the battery and relevant components satisfying applicable eligibility requirements;
• installation as a qualifying system under the scheme; and
• compliance with applicable product, installation and accreditation requirements.

The Clean Energy Regulator also states that only the first 50 kWh of usable battery capacity can receive STCs, even though an eligible system can have a nominal capacity of up to 100 kWh.

How much is the federal battery discount in 2026?

There is not one fixed dollar rebate amount for every battery.

From 1 May 2026, the STC factor is applied differently across portions of usable battery capacity:

The applicable 2026 STC factor for installations from May to December 2026 is 6.8 before the capacity taper is applied. The dollar value ultimately associated with STCs can vary, so the exact customer discount should be confirmed for the particular installation and quote.

What does this mean for homeowners?

It means that simply buying a bigger battery does not produce the same level of government support per additional kWh.

The strongest support rate applies to the first 14 kWh of usable capacity. Support tapers for capacity above that level.

This is one reason battery sizing should be based on:

• your electricity consumption;
• when you use electricity;
• existing solar production;
• available surplus solar generation;
• inverter capacity;
• backup requirements; and
• plans for future loads such as an EV, pool equipment or electric appliances.

The Australian Government itself advises consumers that bigger is not always better and recommends considering daily electricity use, solar output and inverter capacity when sizing a battery.