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Battery STCs and Cheaper Home Batteries Program

Cheaper Home Batteries Program: what changed on 1 May 2026

Short answer

From 1 May 2026, battery STCs became tiered: the first 14 kWh earns the full factor, 14 to 28 kWh earns 60 per cent, and 28 to 50 kWh earns 15 per cent. The factor is 6.8 for the rest of 2026, down to 5.7 on 1 January 2027.

Written and checked by the Energy Merchants desk · Reviewed 2 October 2026 · For installers and homeowners

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.

From the desk: Check the install date on the quote, not the contract date. The factor that applies is the one in force when the battery is installed and commissioned.

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.

Follow-up questions

People also ask

Did the changes affect batteries already installed?
The tiering applies to installations from 1 May 2026. Earlier installs were assessed under the rules in force on their install date.
Why was the program changed?
The government expanded the program budget in December 2025 and tiered the support so it favours typical household batteries over very large ones.

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