The Cheaper Home Batteries Program is a federal scheme, in place since 1 July 2025, that cuts the upfront cost of an eligible home battery by creating small-scale technology certificates (STCs) for it. At launch the discount was roughly 30 per cent. In 2026 it got smaller for bigger batteries and it falls again on 1 January 2027. This guide pulls the moving parts into one place and points to the detail.
Everything marked “at the time of writing” should be confirmed with the Clean Energy Regulator (CER) and the Department of Climate Change, Energy, the Environment and Water (DCCEEW), because this is a program that has already been adjusted once.
The program in one paragraph
An accredited installer fits a battery that is on the approved list, has between 5 and 100 kWh of usable capacity, and can connect to a virtual power plant (VPP). The battery creates STCs on up to 50 kWh. The customer assigns those certificates to the installer or their trader, and the value comes off the invoice. One battery per property, new or existing solar, no means test.
Who qualifies
- Households, small businesses and community groups
- Properties without a previous claim under the program
- Batteries on the CEC-approved list, 5 to 100 kWh usable, VPP-capable
- Installations by an accredited installer
The full test, with the common slips, is in Cheaper Home Batteries Program eligibility.
How the discount is built
Certificates equal usable kWh, applied in bands, multiplied by the STC factor for the install date:
| Band | Share of the factor |
|---|---|
| First 14 kWh | 100% |
| 14 to 28 kWh | 60% |
| 28 to 50 kWh | 15% |
The factor is 6.8 for installs from 1 May 2026 and 5.7 from 1 January 2027 and 5.2 from 1 July 2027, and keeps stepping down every six months to 2030. A 10 kWh battery at 6.8 makes 68 STCs; at the spot market of roughly $38 to $40 that is about $2,584 to $2,720. The same battery at 5.7 makes 57 STCs, about $2,166 to $2,280. The method is walked through in how the program works.
What changed in 2026
Three things. The factor dropped to 6.8 on 1 May. The band structure began on the same date, trimming the discount on larger batteries. And evidence rules for photos and documents tightened from 1 March. We cover each in the 2026 changes.
The timing question
With another step on 1 January 2027, many households ask whether to buy now. The saving from beating the date is roughly $400 to $600 on a typical system. It is worth having, but not worth a rushed decision. See should you buy a battery before 2027.
Stacking with other incentives
The federal program was designed to sit alongside state and retailer incentives, though the rules differ by state and some state schemes have closed. VPP sign-up payments, state certificate schemes such as the NSW Peak Demand Reduction Scheme, and the Western Australian program each work differently. We look at them in can you stack battery rebates, federal and state stacking and battery rebates by state.
What a VPP has to do with it
The program requires a battery that is capable of joining a VPP. It does not require you to join one. Joining can add income or credits, in return for letting an operator draw on the battery at certain times. Should you join a VPP lays out the trade-offs.
For installers
Installers sell the battery at a discounted price and wait for the certificate value. On a 10 kWh battery that is around $2,500 outstanding, on 20 kWh about $4,500. The things that decide whether this works for you are accurate quotes, clean claims and a trader who pays fast. Start with how battery STCs work and the submission guide, and see the installer guide.
For households
Ask for a quote that separates the battery price, the number of STCs, the dollar value per certificate and the amount you pay. Ask for the usable capacity in kWh and the model on the approved list. Check the installer’s accreditation. Then decide whether you would buy the battery without the discount; if yes, the discount is a bonus, not a reason.
How long it lasts
The program runs to 2030 with the factor stepping down. A discount that shrinks every six months means the case for a battery rests more on bills and resilience than on the rebate over time. Whatever you decide, plan around dated steps rather than hoping for extensions.
Questions people ask most
Is it a one-off? No. It runs to 2030, with the factor declining. But because the factor falls, the discount available today is the biggest you can count on, not the smallest.
Do I get the money in cash? No. The usual route is an upfront discount, applied through assigned certificates. If you want to hold the certificates and sell them yourself, you can, but most households do not.
Does the program cover solar panels? No. Rooftop solar has its own STC mechanism, with a deeming period that is 5 years for 2026 installs and falls to 1 year in 2030, and the scheme ends 31 December 2030. See what changes in January.
Will my electricity bill drop? That depends on your solar, usage pattern and tariff. The discount lowers the purchase price; it does not change your bill.
Common pitfalls in one list
- Quoting on nominal kWh instead of usable
- Forgetting that the installation date sets the factor
- Assuming the discount is the same for a 10 kWh and a 25 kWh battery, per kWh
- Treating a VPP credit as part of the federal discount
- Letting a claim sit without photos that meet the evidence rules from 1 March 2026
- Counting on a state scheme without checking that it is open
Each of these has its own article in this series. Start with whichever one matches the decision in front of you, and use the battery submission guide when you are ready to lodge.
What to do next
- Read the battery STC page for the full certificate picture.
- Installers: check today’s rates and how settlement works on the how it works page.
- Households: get quotes that show the discount separately and confirm dates with your installer.
If you are an installer and want a trader that pre-checks every battery claim, start trading with Energy Merchants.