In December 2025 the federal government expanded the Cheaper Home Batteries Program and announced it would tier support by battery size. The new structure applied from 1 May 2026 and is the version homeowners and installers are working with now.
What the tiers look like
Support is calculated on usable capacity in three bands. The first 14 kWh earns the full STC factor. Capacity above 14 kWh and up to 28 kWh earns 60 per cent of the factor. Capacity above 28 kWh and up to 50 kWh earns 15 per cent. Anything beyond 50 kWh earns nothing, though systems up to 100 kWh usable can still be installed under the program.
For 2026 installs the factor is 6.8. These are approximate certificate counts before rounding:
| Usable size | Approx. STCs | At $40 per STC |
|---|---|---|
| 14 kWh | 95 | about $3,800 |
| 28 kWh | 152 | about $6,100 |
| 50 kWh | 175 | about $7,000 |
The STC price is a spot figure that moves, and $40 is the clearing house ceiling at the time of writing. Treat the dollar column as an illustration only.
What it means in practice
The tiers make the first 14 kWh the best-value part of any purchase. A homeowner stepping from 14 to 28 kWh adds about 57 STCs for 14 kWh of extra hardware, which is a much smaller discount per kWh than the first block. A 50 kWh system earns only about 23 STCs more than a 28 kWh one.
The factor also now falls on a schedule: 6.8 until the end of 2026, then 5.7 from 1 January 2027, 5.2 from 1 July 2027 and lower again every six months after that. Our January 2027 cut page covers what that does to a typical quote.
What this means for you
Homeowners should size the battery to their evening load rather than chase the biggest number, because the rebate per kWh drops sharply past 14 kWh. Installers should rebuild their quote templates around the tiers and the 2027 factor. The battery STC pillar and the battery guide for installers have the detail, and today’s rates show what the certificates are worth to an installer.