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Cheaper Home Batteries Program New Update (1 May 2026): What Australian Homeowners Should Do Now
HOME > Cheaper Home Batteries Program New Update (1 May 2026): What Australian Homeowners Should Do Now
On 1 May 2026, the way Australia’s Cheaper Home Battery Program delivers incentives will change and it matters for anyone thinking about adding a solar battery system this year or in the next few years. The government has expanded the program’s funding significantly and adjusted how incentives are calculated to ensure the scheme remains sustainable as uptake has far exceeded early expectations.
In this blog, we’ll break down what changed, how it affects your home battery incentive in Australia, and what you should do now to get the best value from the federal home battery incentive.
The Cheaper Home Batteries Program is a federal initiative designed to reduce the high upfront cost of installing a home battery system by delivering a discount of around 30 % off eligible solar battery storage systems. It expands Small-scale Renewable Energy Scheme (SRES) the which has historically supported rooftop solar to include batteries and between 5 kWh and 100 kWh nominal capacity
This home battery incentive Australia initiative removes barriers to battery adoption, helping Australians maximise their solar energy, cut grid dependence, and reduce power bills.
The government announced on 13 December 2025 that the cheaper home batteries program would be expanded from the original $2.3 billion budget to about $7.2 billion over the next four years; after very strong uptake in 2025.
From 1 May 2026, the way the home battery incentive Australia is calculated will change so that:
In practical terms, this means that the incentive you receive depends on the date your system is installed not the date you apply. Installing before 1 May 2026 locks in the current, more generous STC factor, whereas installations after that date will receive a reduced STC factor based on the updated schedule.
Previously, batteries up to 100 kWh were eligible under the scheme, but the incentive was not applied uniformly per kWh across the full capacity. Under the new structure, the incentive per kWh will taper according to battery size, with different percentages of the STC factor applied across capacity bands:
Batteries above 50 kWh still qualify for support up to the 100 kWh program limit, but only the first 50 kWh of usable capacity will attract incentives.
This tiered model encourages homeowners to choose right-sized systems rather than oversized ones driven solely by incentive value.
Let’s look at how these changes play out for typical scenarios:
If you install a 10–14 kWh battery before 1 May 2026, you’ll get full STC credit for that storage capacity. After the date, the same system will still attract support; but with a lower STC factor. This makes timing especially important for smaller, typical household systems.
Medium systems (14–28 kWh) will see reduced incentives on the portion above 14 kWh after May. Families must balance incentive timing against their actual energy needs to avoid overpaying for capacity that doesn’t contribute to cost savings.
Larger storage (28 kWh+) may still be worthwhile; but the incentive value after May will be lower per kWh above key thresholds. Many homeowners choose to stage installations: install the core battery now, and expand later if needed.
Because the incentive is tied to installation date and STC factor, homeowners looking for the largest upfront discount will often prefer to complete installations before 1 May 2026.
Under the new tiered support, “bigger is better” from a incentive perspective no longer holds true. Batteries up to 14 kWh get the strongest incentive per kWh, while medium systems still receive good support before tapering.
Optimal sizing now prioritises systems sized to actual usage patterns, not just large capacity for its own sake. Oversizing can reduce not only incentive value but also the economic return per dollar spent.
The ongoing evolution of the Cheaper Home Batteries Program reflects broader energy trends in Australia:
By tying incentives to both battery size and timing, the government aims to keep battery incentive meaningful across a range of storage needs while maintaining program longevity.
The Cheaper Home Batteries Program is evolving; thanks to rapid uptake and federal government expansion. From 1 May 2026, incentives will be calculated on a tiered size basis with faster STC reductions, but the program’s core benefit (around a 30 % discount on upfront cost) remains in place.
Homeowners considering solar battery system now have a clear choice: install sooner to maximise incentive value, or plan longer-term upgrades with an eye on sustainable incentive structures through to 2030.
Incentives will be tiered by battery size and STC factors will be reduced more frequently, leading to lower incentives for installations after May.
Yes. Even with the changes, support remains strong; especially if you install before the updated rules take effect.
Yes, up to 100 kWh; but incentive support is limited. Only the first 50 kWh of usable capacity qualifies for STCs, with tiered incentives applied within that portion.
The program is designed to integrate with existing or new solar systems, so consult your installer for specific eligibility guidance.
The expanded program is currently set to continue through to 2030, with STC factors declining in stages.
