The $7.2 billion federal Cheaper Home Batteries Program was first introduced on 1st July 2025. Since its introduction, home battery installs have surged with a remarkable 284,580 batteries installed in the 10 months to May 2026 – over a 200% increase on all batteries installed in Australia up until that point.
The Cheaper Home Batteries Program is an Australian Government initiative aimed at increasing the adoption of small-scale battery systems among owners of new and existing rooftop solar installations. The program provides a rebate that reduces the cost of installing a solar battery by around 25%.
For full details on current rebates, the STC schedule and full rebate calculator, see our federal battery rebate guide.
Why is the Cheaper Home Batteries Program being rolled out?
Australia has the highest global adoption rate of residential solar in the world. With over 4.3 million solar systems installed, nearly two out of every five homes now have rooftop solar.
While Australians had been quick to adopt rooftop solar, making the most of ongoing federal rebates and incentives available for solar panels, the same wasn’t the case for batteries. Returns and payback for battery installs were marginal and, there were teething issues with new battery technology. It is a different case now.
The Cheaper Home Batteries Program has seen the price of solar batteries decrease significantly, savings and payback figures are now favourable in most Australian states.
The Cheaper Home Batteries Program is an extension of the Small-scale Renewable Energy Scheme (SRES).
How much can I save?
In 2026, the federal home battery rebate/subsidy provides a rebate of around $252 per kilowatt-hour (kWh) of usable battery capacity.
For popular home batteries, including the Tesla Powerwall 3 and similar alternatives with a capacity of around 11 kWh, the Cheaper Home Batteries Program delivers savings of over $3,000 on the upfront cost of installation.
Under the new program, the average solar battery payback period would be significantly shorter, making battery storage an ROI positive investment in many households within just a few years, especially when paired with high solar self-consumption, diminishing feed-in-tariffs and rising electricity prices.
Cheaper Home Batteries Program eligibility criteria
The Cheaper Home Batteries Program is open to all eligible Australian households, small businesses, and community organisations. It is a nationwide program that runs independently of other state and territory rebates, allowing them to be combined where applicable. The NSW Peak Demand Reduction Scheme has been altered to work in conjunction with the new national program.
Both the NSW VPP battery rebate and the WA battery incentive can be combined with the federal battery rebate.
System requirements
- The battery must be under 100 kWh capacity with a maximum rebate on up to 50 kWh of usable capacity.
- Systems must be new; second-hand or refurbished systems are not eligible for the rebate.
- Must be installed with a new or existing rooftop solar PV system.
- Existing systems must:
- Meet electrical safety standards.
- Have VPP (Virtual Power Plant) capability, where required.
- Batteries (and inverters) must be approved by the Clean Energy Council (CEC), and installers must be accredited.
Note: The system does not require a full replacement – existing systems can be upgraded if they are compliant.
Installation standards
- Battery and solar components must be on the Clean Energy Council’s (CEC) approved product list.
- Installers must:
- Be properly trained and accredited.
- Follow SRES compliance and safety rules.
- Must be a permanent installation – portable and temporary installations are not eligible for the rebate.
Subsidy details
- The Cheaper Home Batteries Program started on 1 July 2025 and will continue until 2030.
- The rebate will be phased out at 6-month intervals from January 1 2027.
- Eligible systems receive an upfront discount of approximately 25%.
- The discount is based on the battery’s usable capacity.
Final thoughts
The Cheaper Home Batteries Program is the most significant extension to the Small-scale Renewable Energy Scheme (SRES) in quite some time. With installs of solar panels and systems now widepsread, the Cheaper Home Batteries Program marks a significant shift towards the next phase of Australia’s clean energy transition by helping small businesses and households maximise the value of their solar investment.
The program is set to carry through to 2030 with diminishing returns expected each year under the program. For those on the fence about a solar battery, now is the time to act. Early adopters will benefit from the highest available rebates and shorter payback periods as electricity prices continue to rise and feed-in tariffs decline.
written byBy Michael Henderson
