The Cheaper Home Batteries Program is the federal government's scheme to knock roughly 30% off the upfront cost of a home battery. It launched on 1 July 2025, got expanded from $2.3 billion to $7.2 billion in December 2025, and changed its discount structure again on 1 May 2026. We process these discounts on every battery quote we write, so this guide covers how it actually works at the point of sale, not just the policy overview.
All rebate amounts, tariffs and bill-savings figures on this page are estimates unless identified as a published program rule. Confirm current eligibility and figures at quote stage.
How the discount actually works
The rebate isn't a cash payment or a tax credit you claim back later. It works through the same Small-scale Technology Certificate (STC) mechanism that's been discounting solar panels for years. When your installer commissions an eligible battery, the system generates a set number of STCs based on its usable capacity. Those certificates have a market value, and your installer passes that value through as an upfront discount on your quote. You pay the reduced "net" price and the installer deals with the STC paperwork.
That means the exact dollar value fluctuates with the STC spot price, which trades on a market. At the time of writing (September 2026), the effective discount works out to roughly $252 per usable kWh for batteries up to 14 kWh, after the Clean Energy Regulator's administration fees. A 10 kWh battery gets approximately $2,500 to $3,100 off the sticker price. A 13.5 kWh battery (a Tesla Powerwall 3, for example) gets approximately $3,400 off. For a breakdown of which battery brands we install and recommend, see our inverter and battery ranking. If you're adding a battery to an existing solar system, our retrofit guide covers the AC vs DC coupling decision.
Melbourne-west worked example — estimated figures, October 2026
Estimated installed price before discount: ~$14,500
Estimated STC discount (13.5 kWh × an estimated ~$252 per usable kWh): ~$3,400
Estimated price after discount: ~$11,100 installed
All prices and the rebate amount are estimates, not a quote. Actual STC value depends on eligibility, the spot price when certificates are created and administration fees.
What changed in May 2026
Two things, and both matter if you're sizing a battery.
Tiered STC factor by battery size. Before May 2026, the STC factor was flat regardless of battery size. Now, batteries up to 14 kWh get the full factor. Above 14 kWh, the factor tapers down, which means the per-kWh discount is lower on larger systems. The practical effect: a 10 kWh battery gets a proportionally better deal than a 20 kWh battery. This is deliberate, the government is steering the discount toward the most common residential size rather than large commercial-adjacent systems.
Eligible capacity cap increased. The cap went from 50 kWh to 100 kWh nominal capacity, but STCs are still only generated on the first 50 kWh of usable capacity. Most residential installs are well under that threshold, so this change mainly affects small commercial or large off-grid setups.
Who's eligible
The eligibility criteria are straightforward but the details trip people up. You need all of these:
A solar PV system, existing or new. The battery must be connected to solar. A standalone grid-only battery without any solar panels does not qualify.
Battery between 5 kWh and 100 kWh nominal capacity. Smaller batteries can be stacked (e.g., two 3 kWh units totalling 6 kWh) to reach the 5 kWh minimum. This is relevant for Enphase IQ Battery setups where you add modules incrementally.
An SAA-accredited installer. The installer must hold current Solar Accreditation Australia accreditation for battery installation (grid-connected battery storage, GCBS class). Solar-only accreditation doesn't count.
A property with its own NMI (National Metering Identifier). Each eligible property needs its own grid connection point. Apartments with shared meters or embedded networks may not qualify.
The battery must be VPP-ready. This means the hardware is technically capable of joining a Virtual Power Plant. It does not mean you have to actually join one. It's a hardware spec requirement, not a commitment to hand over control of your battery. We cover the VPP decision in detail in our VPP guide.
One rebate per property. You can't claim it a second time on the same NMI, though if you add capacity to an existing battery, the additional capacity (minimum 5 kWh, total system not exceeding 100 kWh) can qualify for its own STCs provided the original battery didn't already receive a discount under this program.
Can I stack it with state programs?
| State | State battery program | Stacks with federal? |
|---|---|---|
| Victoria | Solar Homes Battery Rebate — closed | Federal rebate only |
| NSW | VPP incentive (up to $1,500) | Yes, stackable |
| Queensland | Battery Booster — closed | Federal rebate only |
| WA | Residential Battery Scheme ($5,000–$7,500) | Yes, stackable |
| SA | No current state battery rebate | Federal rebate only |
| ACT | Sustainable Household Scheme (0% interest loan) | Yes, stackable |
For Melbourne specifically: Victoria's state battery rebate has closed, so the federal program is the only upfront discount available. That makes it more important, not less, to get it applied correctly at quote stage. For a detailed look at whether a battery makes financial sense for your household, see our solar and battery payback guide.
What happens on your quote
When we quote a battery, the STC discount is already factored into the price you see. You don't need to apply separately, submit paperwork, or wait for a refund. The process works like this: we specify the battery, calculate the STC entitlement based on its usable capacity, apply the discount to the quote, install the system, and then create and lodge the STCs with the Clean Energy Regulator after commissioning. The discount is yours at point of sale.
One thing worth knowing: the STC price can move between when you accept a quote and when we actually create the certificates. Most installers (including us) lock the quoted discount at the time you sign, absorbing any STC price movement in either direction. Ask your installer whether the quoted STC discount is fixed or variable, it's a detail that can shift your final price by a few hundred dollars.
Explore the numbers for your home
Estimate a battery size and payback, then ask us to review your home's requirements and prepare a quote.
Common questions
All rebate amounts and tariffs mentioned in this guide are estimates unless otherwise specified. This guide reflects the Cheaper Home Batteries Program rules as at September 2026, cross-checked against the DCCEEW program documentation and the Renewable Energy (Electricity) Regulations 2001. Reviewed by Gagandeep Gill before publishing. Program rules, STC prices, and state incentives change; confirm current details with us at quote stage.