Making Energy Storage More Accessible — And More Affordable

Australia stands at the forefront of the renewable energy revolution, with more than 4 million rooftop solar systems installed across the nation — the highest rate in the world. Yet until recently, only one in 40 households had a battery to store all that cheap solar power for later use, mainly due to high upfront costs that put battery systems out of reach for many Australians.

The new Cheaper Home Batteries Program — updated and expanded in late 2025 — is changing that dynamic by significantly reducing the cost of installing home energy storage. With the latest changes now set to take effect from 1 May 2026, this initiative has far-reaching implications for everyday households looking to save on energy bills, increase energy independence, and support a more resilient grid. 

What Is the Cheaper Home Batteries Program?

Australia’s Cheaper Home Batteries Program is a federal government initiative designed to help households and small businesses reduce the upfront cost of installing solar battery systems by roughly 30%.

The discount applies to small-scale battery systems — typically between 5 kWh and 100 kWh in capacity — that are installed together with new or existing rooftop solar panels. These batteries store excess solar energy generated during the day, so it can be used later when electricity prices are higher or during peak demand times. 

Importantly: 

• The discount is delivered through small-scale technology certificates (STCs) under the Small-scale Renewable Energy Scheme (SRES).
• The government covers the cost directly, so no extra fees are passed on to consumers through energy retailers or installers.

The Big 2026 Update — What’s New?

In December 2025, the Australian Government announced major updates to the Cheaper Home Batteries Program: a significant expansion of funding and changes to how discounts are calculated to ensure the scheme remains fair and sustainable over time. 

1. Major Funding Increase 

Originally budgeted at around $2.3 billion, the scheme has now been expanded to an estimated $7.2 billion over the next four years — a clear signal of strong government support for household energy storage and its role in Australia’s energy transition. 

2. Adjusted Discount Structure from May 2026 

Subject to regulations being made, changes from 1 May 2026 will: 

• Adjust the number of STCs per kWh of battery capacity, ensuring the discount stays around 30% even as battery costs fall over time. 
• Tailor support across different battery sizes, with higher support for smaller systems (e.g., up to 14 kWh) and scaled support for larger ones up to 50 kWh. 

These changes are intended to keep the program affordable and sustainable while encouraging households to install batteries that match their needs. 

Why This Matters for Everyday Homes?

So what does this mean for the everyday Australian homeowner? Let’s break it down.
1. Lower Upfront Costs — More Accessible Batteries
Before the program, a typical home battery system — such as an 11.5 kWh system — could cost around $13,000 or more. Under the Cheaper Home Batteries Program, that upfront cost can be reduced by around $4,000, thanks to the government discount. 

Lower upfront costs mean: 

• More households that were previously priced out can now afford battery storage. 
• A greater number of Australians can benefit from using more of their own solar energy — and less from the grid. 
• Payback periods on battery systems become shorter, meaning savings start sooner.

2. Reduced Electricity Bills 
Stored solar energy doesn’t just reduce reliance on grid power — it cuts electricity costs. By storing excess solar during low-cost daytime hours and using it during evening peaks, households can significantly reduce their power bills. Independent estimates suggest solar plus battery setups can save households hundreds of dollars annually. 

3. Greater Energy Independence & Resilience 

With rising electricity prices and an increasingly variable energy supply, having a battery system on-site gives households more control over their energy use and costs. Batteries also enhance resilience during peak demand events or short grid outages — offering backup power where it’s needed most. 

4. Supporting a Cleaner Grid for Everyone 

More batteries distributed across homes help to balance supply and demand on the broader grid — especially during peak times. This reduces stress on traditional generation sources and helps lower the overall cost of electricity for all consumers, not just those with batteries installed.

Who Can Access the Discount?

The Cheaper Home Batteries Program is intentionally inclusive: 

• Any Australian household or small business can access the discount, provided the battery system meets eligibility rules.
• Eligible systems must be installed by an accredited installer and connected to a solar PV system.
• Batteries should be between 5 kWh and 100 kWh in capacity (though STCs are claimable only for the first 50 kWh of usable capacity).

There’s no means testing — meaning homeowners from all income levels can benefit from more affordable clean energy storage.

Maximising the Benefits — Tips for Homeowners

If you’re considering a home battery under the updated Cheaper Home Batteries Program, here are some practical ways to make the most of it: 

1. Get Multiple Quotes 

Always compare quotes from different accredited solar and battery installers to find the right balance of performance, warranty, and cost. 

2. Match Battery Size to Your Needs 

Larger batteries offer more storage but often come at higher upfront costs (even with rebates). Talk with installers about your household’s typical usage patterns to choose the right size. 

3. Explore Virtual Power Plant (VPP) Options 

Some states and retailers offer additional incentives when batteries are connected to Virtual Power Plants, which can deliver extra income by feeding stored energy back into the grid at peak times. 

4. Time Your Installation 

With changes coming in May 2026, you may want to install before the STC adjustments take effect — especially if you’re considering a larger battery system. 

Looking Ahead — What the Future Holds?

The massive expansion of the Cheaper Home Batteries Program reflects Australia’s commitment to accelerating the energy transition and empowering homes to take control of their energy use. With over 160,000 batteries installed already and program funding increasing dramatically, the uptake of home energy storage is set to rise sharply. 

By 2030, the program aims to help over 2 million households install battery systems, collectively adding around 40 gigawatt-hours of storage capacity — a major boost to both grid reliability and renewable energy adoption.

Frequently Asked Questions (FAQ)

Q: What is the Cheaper Home Batteries Program?
A: It’s a government initiative that provides around a 30% discount on the cost of installing small-scale battery systems for homes and small businesses, delivered through the Small-scale Renewable Energy Scheme. 

Q: Who can access the discount?
A: Eligible Australian households and small businesses can access the discount if they install a battery system (5–100 kWh) with an accredited installer and connect it to new or existing solar panels. 

Q: When do the program changes take effect?
A: Updated program rules, including adjustments to how discounts are calculated, are expected to come into force from 1 May 2026 (subject to regulations). 

Q: How much can I save with a battery?
A: The upfront discount can be around 30% of the battery cost — often saving households several thousand dollars. Additionally, using stored solar can cut electricity bills significantly each year. 

Conclusion 

The updated Cheaper Home Batteries Program represents a major opportunity for everyday Australian homeowners to embrace energy storage with greater affordability and long-term savings. By lowering upfront costs, improving energy independence, and supporting a more resilient national grid, this initiative empowers households to maximise their rooftop solar investment like never before. 

Whether you’re curious about reducing your power bills, preparing for future energy price rises, or simply want more control over your electricity use, now is a powerful time to explore a home battery system. 

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