The Cheaper Home Batteries Program began on 1 July 2025 and has been adjusted since, partly because uptake was much higher than first expected.
The schedule so far
| Period | Factor |
|---|---|
| 1 Jul to 31 Dec 2025 | 9.3 |
| 1 Jan to 30 Apr 2026 | 8.4 |
| 1 May to 31 Dec 2026 | 6.8 |
| 1 Jan to 30 Jun 2027 | 5.7 |
| 1 Jul to 31 Dec 2027 | 5.2 |
The schedule steps every six months and continues down to 2030. From 1 May 2026 the tier rule applies: first 14 kWh at 100%, 14 to 28 kWh at 60%, 28 to 50 kWh at 15%. New photo and evidence rules for batteries apply from 1 March 2026. See the 1 May 2026 changes.
Why people ask about “mid 2026”
The May 2026 step reduced the factor and introduced the tiers, which cut the rebate for large batteries. Installers and customers asked whether another change would follow mid-year. At the time of writing the factor is unchanged at 6.8 until 1 January 2027, when it steps to 5.7.
The review question
Regulators, including the Clean Energy Regulator and the Department of Climate Change, Energy, the Environment and Water (DCCEEW), watch uptake, safety and compliance. The CER has reported on battery inspection results and compliance priorities in 2026. A review can lead to rule changes, tighter evidence or adjustments to the schedule, but nothing beyond the steps above is confirmed. See demand surge for installers.
How to plan
- Treat the legislated steps as certain and anything else as possible.
- Quote batteries with the discount at the install date’s factor, not today’s.
- Check the CER and DCCEEW pages before you promise customers a number.
- Use the battery STC calculator at both 6.8 and 5.7.
Why the rate steps by calendar
The steps by date give installers and buyers a predictable path, which is why you can plan around 5.7 on 1 January 2027 and 5.2 on 1 July 2027. Any additional change would be announced by the government or the CER, so subscribe to their updates. Until then, the safest assumption is that the legislated steps apply and that the installation date, not the contract date, decides which factor you get.
What this means for you
If you are buying, the saving from deciding before 31 December 2026 can be a few hundred dollars on a typical 13.5 kWh battery: about 91 STCs at 6.8 versus about 76 at 5.7. If you install, read the installer guide, the battery STC overview and the market and policy hub. Energy Merchants’ rate is on pricing.