The Federal Government's Cheaper Home Batteries Program has been a runaway success, with more than 160,000 battery installations supported by the scheme so far.
However, there are major updates in store for the program in 2026 - here's the changes you need to know about
Increased funding
The Australian government will be investing an extra $4.9 billion into the Cheaper Home Batteries Program over the next four years.
At launch, the government committed over $2.3 billion to the program. The updated funding brings the scheme’s total budget to $7.2 billion.
A new tiered discount
Prior to the announcement, the program offered a one-off 30% flat discount for the installation of small-scale solar batteries sized between five kilowatt hours (kWh) and 100kWh.
However, that 30% discount is also slated to change on 1 May 2026, with the value of the discount to be inversely related to the size of the battery installed — the larger the battery, the smaller the upfront discount:
- Small batteries (up to 14kWh): 30% discount
- Medium batteries (14kWh to 28kWh): 18% discount
- Large batteries (28kWh to 50kWh): 4.5% discount.
Why is the Cheaper Home Batteries Program changing?
Funding is running out
The Australian government is investing more funds into the program because its original $2.3 billion investment was projected to run out in early June 2026 — three and a half years earlier than the scheme’s intended lifespan.
To date, the Australian government has helped install over 160,000 solar batteries. Sadly, this is still a far cry from the government’s ambitious target of 2 million installations by 2030.
The main reason why the funds would run out so quickly is because larger batteries were being installed.
To discourage unnecessarily large battery installations
Before the government’s recent announcement, the program permitted Aussies to claim a 30% discount for batteries with a usable capacity between 5kWh and 50kWh, with the maximum discount capped at $18,500.
However, buyers could claim the maximum discount on batteries sized between 50kWh and 100kWh. Because of this loophole, renters, homeowners, and businesses alike are incentivised to maximise their discount with larger batteries.
Survey data from SunWiz shows that the markets for 50-75 kWh systems have grown by 78% in each state, exhibiting the fastest month-on-month growth.
According to the Clean Energy Regulator’s Quarterly Carbon Market Report in September, over 80% of all battery installations for that quarter were for batteries sized 10kWh and above, with the average battery capacity per home rising from 16.6kWh in July to 18.3kWh.
For context, an average household of three typically uses 20kWh of electricity daily.
In reality, a small battery (e.g. 5kWh to 6kWh) can store roughly between 15kWh and 22kWh daily — this amount is more than adequate for most homes to store enough energy in the day for use during the peak hours.
That means additional kWhs of storage aren’t necessary to help homes cut their reliance on the grid.
While larger batteries still add value to Australia’s total storage capacity, additional kWhs of storage are only productive if they are being used by homes that need it the most.
This new tiered discount structure is a course correction to encourage homes to only install the battery sizes they actually need, ensuring a healthier and productive spread of funding per home.
How do I apply for the Cheaper Home Batteries Program?
If you reach out to an accredited installer or retailer, they will typically apply for the program on your behalf. The discount will apply either at the time of purchase/payment or after the installation as a rebate.
You could apply for the discount directly through the REC Registry, bypassing an accredited installer altogether, but this process is more complicated.
It’s also important to remember that the changes to the value of the discount will only commence starting 1 May 2026 — that means that you can still enjoy a flat 30% discount until the cutover date.
If you’re already interested in a solar battery, we recommend researching your options and speaking to an accredited installer for expert recommendations. Our best solar installers page features some of the nation's highest-rated solar installers based on customer feedback.
