Australia is rapidly transitioning to renewable energy, with rooftop solar now on more than four million homes. Yet until recently, many households have been missing out on energy storage because home batteries — which store excess solar power for use when the sun isn’t shining — were expensive. That changed with the Cheaper Home Batteries Scheme, a federal government initiative now receiving a major funding boost to make home batteries more affordable for Australian households and small businesses.
Let’s unpack what this scheme is, who can qualify, how much you could save, and why it matters for your electricity bills and energy independence.
What Is the Cheaper Home Batteries Scheme?
The Cheaper Home Batteries Scheme is an Australian Government-backed initiative designed to reduce the upfront cost of installing small-scale home battery systems that pair with existing or new rooftop solar. The scheme works by subsidising part of the cost through Small-Scale Technology Certificates (STCs) under the existing Small-Scale Renewable Energy Scheme (SRES).
From 1 July 2025, eligible homeowners and small business owners can receive around a 30% discount on the cost of eligible battery installations — a significant saving that brings battery storage within reach for far more Australians.
Expansion and Funding Boost
In December 2025, the Government announced a major expansion of the program — increasing funding from about $2.3 billion to an estimated $7.2 billion over four years. This expansion aims to continue making batteries cheaper and support more than two million homes and businesses by 2030.
Why This Scheme Matters?
Home batteries offer significant benefits beyond upfront savings:
- Lower electricity bills: Store cheap solar energy generated during the day for use at night, reducing reliance on grid power.
- Better energy independence: Reduce exposure to rising energy costs and peak demand charges.
- Grid stability: Distributed storage helps balance supply and demand across the energy network.
These benefits mean battery storage is not just a household convenience — it’s a valuable contributor to Australia’s clean energy future.
Who Is Eligible?
Understanding eligibility is crucial before you invest in a battery system.
Property and System Requirements
To benefit from the Cheaper Home Batteries Scheme:
- Your battery must be between 5 kWh and 100 kWh in nominal capacity.
- The battery must be installed with a new or existing rooftop solar PV system.
- The battery installation must meet Australian electrical safety standards and be installed by a qualified installer.
These conditions ensure that the scheme supports systems that provide real household benefit and contribute to grid performance.
How the Discount Works?
The discount is applied through small-scale technology certificates (STCs). Essentially, the installer assigns the value of the STCs on your behalf, and this discount is reflected in your upfront cost.
From 1 May 2026, subject to regulatory changes, the STC calculations will shift to ensure the discount remains fair across different battery sizes, generally aiming to maintain the ~30% saving.
No Means-Testing
Unlike some state rebates, the federal scheme does not include income testing — so eligibility is based on the battery and system criteria, not household income.
How Much Could You Save?
While figures vary, the ~30% discount can equate to thousands of dollars off the upfront cost of an eligible battery. Industry analysis suggests that typical rebates can be in the order of several thousand — for example, around $4,000 off an 11.5 kWh system — though exact figures depend on system size and configuration.
These savings can dramatically improve the return on investment (ROI) for a battery installation, often shortening the payback period when coupled with lower electricity bills.
Steps to Claim Your Battery Incentive
1. Choose an Accredited Installer
Select a Clean Energy SAA accredited installer. They can apply the STC discount on your behalf.
2. Ensure Your Battery Meets Criteria
Verify the battery system meets capacity and installation requirements. Smaller modular batteries can be combined to meet the minimum 5 kWh capacity.
3. Installation and Compliance
After installation, a certificate of electrical compliance confirms it meets state/territory rules, finalising eligibility.
4. Receive the Discount
The installer will apply the STC-backed discount to your upfront costs or you may claim the certificates directly through the REC Registry if you prefer.
Potential Limitations and Future Changes
While the scheme significantly lowers battery costs, it is subject to the following:
- Gradual reduction of incentives: STC values and discount rates will decline through to 2030, tracking falling battery costs.
- Regulatory shifts from 1 May 2026: Changes to STC calculations may make larger batteries relatively more expensive compared to smaller ones.
Installing sooner rather than later may capture the highest available discount before tapering begins.
Frequently Asked Questions (FAQs)
Q1: What is the Cheaper Home Batteries Scheme?
A1: It’s a federal program providing around a 30% discount on eligible home battery installations through Small-Scale Technology Certificates (STCs) under the Small-Scale Renewable Energy Scheme.
Q2: Who is eligible for the battery incentive?
A2: Households and small businesses installing a qualifying battery system (5–100 kWh) with a compliant rooftop solar system and SAA accredited installer.
Q3: Do I need to apply for the discount myself?
A3: No — in most cases, your SAA accredited installer will arrange the discount through STC assignment on your behalf.
Q4: Will the incentive always stay at 30%?
A4: The program aims to maintain around a 30% subsidy, but gradual reductions tied to STC factors are planned through to 2030.
Q5: Can renters benefit from this scheme?
A5: Yes, provided the installation meets criteria and the property owner agrees to the installation.
Conclusion
The Cheaper Home Batteries Scheme represents one of the most transformative energy incentives in recent Australian history — significantly lowering the barrier to home battery ownership, saving households thousands, and bolstering the transition to clean, affordable renewable energy. With the government’s recent funding boost and ongoing refinements to the program, more Australians can benefit from cheaper battery storage, lower energy bills, and greater energy independence. Talk to Prosolar Global’s expert team today to see if you’re eligible and how much you could save under this scheme.
