Cheaper Home Batteries Program: Everything You Need to Know
As energy costs continue to rise, more homeowners face the challenge of keeping their electricity bills under control while ensuring their home remains powered during outages. Many people struggle with high utility costs, unpredictable blackouts, and the limitations of traditional energy sources. The federal government’s “Cheaper Home Batteries Program” offers a practical solution. By joining this program, homeowners can access government battery rebates and gradually build a reliable home backup battery setup. This approach helps families reduce expenses, gain energy independence, and protect their homes from unexpected power outages. In this article, we will explain the program in detail, including eligibility requirements, how to apply, and tips for choosing the best battery for your home, enabling you to make smarter decisions.
What is the Cheaper Home Batteries Program?
The Cheaper Home Batteries Program is an initiative launched by the Australian federal government on July 1, 2025. The program offers approximately 30% battery rebates on the upfront cost of solar batteries. It is a direct expansion of the successful Small-scale Renewable Energy Scheme (SRES) and operates through the Small-scale Technology Certificate (STC) mechanism. Homeowners do not need to wait for a tax refund, as accredited installers apply the rebate directly to the purchase quote at the time of installation.
The program supports battery systems with capacities ranging from 5 kWh to 100 kWh and is available across Australia. It is open to households, small businesses, and community organisations, with no income restrictions. To qualify, the battery must be used in conjunction with a new or existing rooftop solar system.
Changes to the Cheaper Home Batteries Program After 2026
Starting in 2026, the Cheaper Home Batteries Program will undergo important updates. On December 13, 2025, the Australian government announced an increase in the program’s budget from the initially planned AUD 2.3 billion to AUD 7.2 billion over the next four years. It is estimated that by 2030, more than 2 million Australians will install home energy storage batteries, adding around 40 GWh of storage capacity.
These changes also come with adjustments to the program itself, ensuring that the rebates continue to apply to small, medium, and large battery systems. The updated rules take effect on May 1, 2026, with the following specific adjustments.
STC Factor Adjustments
The STC factor determines how many certificates can be generated per kilowatt-hour of battery capacity, which in turn affects the rebate amount a homeowner receives. The discount you are eligible for is based on the STC factor on the day your battery is installed.
Starting from May 1, 2026, the STC factor will decrease every six months. The reduction rate will be faster than before, meaning future installations may receive slightly lower rebates over time. Homeowners planning to install a battery system are encouraged to consider this schedule when deciding on installation timing, as acting sooner can help maximise the available rebate.
Year | Period | STC Factor |
2026 | January – April | 8.4 |
2026 | May – December | 6.8 |
2027 | January – June | 5.7 |
2027 | July – December | 5.2 |
2028 | January – June | 4.6 |
2028 | July – December | 4.1 |
2029 | January – June | 3.6 |
2029 | July – December | 3.1 |
2030 | January – June | 2.6 |
2030 | July – December | 2.1 |
Adjusted Support Based on Battery Size
The program will continue to support battery installations with capacities up to 100 kWh. However, starting from May 1, 2026, the level of battery rebates will be adjusted. The discount calculations have been adjusted to align with declining battery costs, with the aim of maintaining around 30% discount for a range of battery systems at each capacity level.
The STC factor now decreases based on the installed battery capacity:
From 0 kWh up to 14 kWh (inclusive): 100% STC factor.
Over 14 kWh and up to 28 kWh (inclusive): 60% STC factor per kWh.
Over 28 kWh and up to 50 kWh (inclusive): 15% STC factor per kWh.
This adjustment ensures that the rebate proportion remains consistent for small, medium, and large battery systems, allowing homeowners to plan their installations more effectively according to their energy needs.
Eligibility for the Cheaper Home Batteries Program
To participate in the Cheaper Home Batteries Program, homeowners must meet certain eligibility requirements. Understanding these criteria ensures a smooth application process and helps plan the battery installation effectively.
The battery system must have a nominal capacity between 5 kWh and 100 kWh.
It must be installed on or after 1 July 2025 (or certificated on that date) to qualify.
The battery must be installed alongside a new or existing solar PV system on the same premises. Batteries installed without solar are not eligible.
The system must be installed by an installer accredited by the Solar Accredited Authority (SAA) in Australia, and the battery/inverter must be listed on the CEC-approved product list.
For grid-connected systems, the inverter must have Virtual Power Plant (VPP) capability, though participation in a VPP is not mandatory.
For off-grid properties, some rules differ. For example, VPP functionality may not be required if the grid connection is very remote or uneconomical.
Only one battery system per meter (NMI) is eligible. If you upgrade or increase capacity, the system must not have previously received a rebate, and the total capacity must remain within the allowed range.
How to Claim the Cheaper Home Batteries Program?
Check Eligibility
Before installation, confirm that your battery system is compatible with the program requirements, including pairing with a rooftop solar PV system and meeting technical installation standards.
Choose an Accredited Installer
Select an installer accredited by the SAA. These installers are familiar with the rebate process and know how to handle the necessary paperwork correctly. By working with an accredited installer, the rebate can be applied directly to your purchase quote, allowing you to receive the discount upfront. Choosing a qualified professional also ensures that the installation meets all program requirements and reduces the risk of delays or issues during the application process.
Get a Quote
After selecting an accredited installer, request a detailed quote for your battery system. The quote should clearly outline the total cost, including the applied rebate, so you understand the net expense upfront. Review the quote carefully to ensure that all components, such as the battery and inverter, meet the previously mentioned requirements. Getting a clear, itemised quote helps you plan your budget, compare options if needed, and avoid any unexpected costs during installation.
Installation
Once the quote is approved, have the battery system installed by your accredited installer. During installation, the system will be set up according to program requirements, including being paired with your rooftop solar PV system. The installer will certify the installation date and ensure everything is properly documented. Completing the installation correctly is essential for the rebate to be applied and to guarantee the system operates safely and efficiently.
STC Creation and Discount Application
After installation, STCs are created based on the usable capacity of the battery system. These certificates are then assigned to the installer or trading entity, who applies their value as an upfront discount on the system cost.
Record Keeping
Homeowners should retain installation certificates, invoices, and system documentation for compliance and warranty purposes. There is no separate government approval stage for the rebate once STCs have been applied.
How to Choose the Right Home Battery?
Selecting the right home battery is an important step in making the most of your energy storage investment. A well-chosen battery can provide reliable backup power, support your household energy needs, and help you get the most value from available rebates.
1. Battery Capacity
Start by evaluating your household’s typical energy usage and how much backup power you may require during outages. Choosing the right capacity ensures the battery can reliably cover essential loads, avoid unnecessary costs, and provide peace of mind during power interruptions.
However, permanent, large-scale home batteries require substantial upfront investment and structural installation. If you require less capacity or prioritise mobility, a portable power station provides a practical alternative. These units combine lithium battery storage with built-in inverters in a standalone design that requires no household rewiring, helping reduce installation costs while offering flexible power options.
A great example is the EcoFlow DELTA Pro 3 Portable Power Station. It offers powerful output and expandable capacity, making it capable of running most household appliances with ease. Additionally, the EcoFlow app allows you to monitor energy consumption in real time, giving you greater control over your usage and helping to optimise electricity use, which can lead to further savings over time.
For homeowners seeking a more stable and long-lasting energy solution, the EcoFlow DELTA Pro Ultra Whole-home Backup Battery is an excellent choice. Its substantial capacity provides extended power for both daily household consumption and backup needs. To distribute this electricity to your entire home, you must pair the battery with the EcoFlow Transfer Switch, which links the unit directly to your main electrical panel. The system also supports multiple charging options, giving homeowners greater flexibility while reducing reliance on the grid and helping essential appliances stay powered when needed.
2. Power Output
Check the battery’s power output to understand how many devices it can run simultaneously. Ensuring sufficient output allows essential appliances and electronics to operate smoothly during peak usage or power outages, preventing interruptions and maintaining comfort in your home.
3. Efficient Use of Solar Energy
Choose a battery that can efficiently store and manage the energy generated by your rooftop solar system. A well-designed battery maximises the use of excess solar power, reduces reliance on the grid, and helps you get the most value from your solar installation.
4. Warranty and Lifespan
Consider the battery’s warranty and expected lifespan when making your choice. A strong warranty and a long cycle life provide peace of mind, ensuring the battery remains reliable for years and continues to deliver consistent performance without unexpected costs.
5. Maintenance Requirements
Evaluate the maintenance needs of the battery before making a decision. Batteries that require minimal upkeep save time and reduce ongoing costs, while ensuring reliable performance and long-term efficiency.
Conclusion
For homeowners looking to secure their energy future, the cheaper home batteries program provides an excellent opportunity to invest in reliable storage solutions. By participating in this initiative, you can significantly reduce upfront costs while establishing a robust backup power generator at home, ensuring your household stays powered during outages. Selecting the right battery and carefully planning your system will not only enhance energy security but also deliver long-term savings and increased flexibility for your home.
FAQs
How long will the cheaper home batteries program last?
The cheaper home batteries program is set to continue until the allocated budget is fully utilised or until 2030, whichever comes first. The Australian government has progressively increased funding, ensuring more homeowners can access battery storage solutions. It’s important to act early, as eligibility and rebate amounts may change over time. By applying sooner, you can maximise your chances of receiving the full benefit before the program reaches capacity.
Can I get a rebate if I add a battery to the existing solar power?
Yes, you can qualify for a rebate when adding a battery to your existing solar system. The program allows homeowners to pair new batteries with both newly installed and already operational solar panels. As long as the battery meets the program’s capacity requirements and is installed by a certified installer, you can receive the subsidy directly on your purchase, making it easier to expand your home energy storage without waiting for separate refunds.
What is the rebate for a 10kWh battery?
The rebate for a 10 kWh home battery in Australia typically ranges from $2,500 to $4,000, depending on your state. Some regions may also provide additional bonuses if you participate in a Virtual Power Plant (VPP) program. The exact amount depends on your local policies and the installer you choose. By meeting the program’s requirements and installing a certified battery, you can significantly reduce upfront costs for your energy storage system.
*Disclaimer: Before reading this guidance, please note that rebate programs can vary based on individual circumstances, location, and eligibility criteria. EcoFlow does not provide any assurances or guarantees concerning potential rebates associated with our products. Any information in this guidance is solely for educational purposes and shall not be construed as legal or financial advice. We recommend you consult the official program guidelines or seek professional advice for accurate and personalised information.