Cheaper home batteries program: Everything you need to know

What is the Cheaper Home Batteries Program?

Households and small businesses can access a federal government discount when they add a battery to a new or existing solar system. The discount is expected to reduce the upfront cost of installing a home battery system between 5kWh and 100kWh by around 30%.  

From 1 May 2026, the way this discount is calculated will change. Below, we break down the benefits of a home battery and how the program works, what’s changing and what it means for you.

What are the benefits of a home battery?

Solar panels on your roof help you harness the sun’s energy when it’s shining, but without a battery you’ll need to rely on the grid once the sun sets. 

A home battery helps store the extra energy your solar panels collect, so you can use it at night or on cloudy days – reducing your reliance on the grid and lowering your bills.

The Federal Government estimates households and small businesses can save up to around $2,300 on their energy bill each year by installing solar and a battery for the first time. If you already have solar panels, the same analysis estimates adding a battery can save you an additional $1,100 annually.

See how much you could save by moving to solar.

Keep in mind, every circumstance is different so make sure you do your research to work out if a battery makes sense for you.

How much could I get back from the Cheaper Home Batteries Program and how do I apply?

Your discount amount will depend on the battery system you’re installing. 

Discounts will be provided for up to 50kWh of battery capacity, initially offering expected rebates of around $372 per kilowatt-hour (kWh) (minus admin fees).  

Compare batteries now – speak to our sales team to discuss your discount eligibility and final pricing.  

You don’t need to apply. If you meet the eligibility criteria, you’ll receive an automatic discount upfront through your installer. 

What are the eligibility criteria for the discount?

To be eligible for the discount:

• You must be a homeowner or small business owner
• Your battery must be Virtual Power Plant (VPP) ready – but it doesn’t have to be connected to a VPP
• The battery must be installed on or after 1 July 2025
• You must use a Solar Accreditation Australia (SAA) approved installer and Clean Energy Council (CEC) approved battery and inverter
• The battery must be paired with a new or existing solar system – stand-alone batteries will not be eligible
• The battery must be between 5kWh and 100kWh in nominal capacity (but the discount will be provided for up to 50kWh of the battery’s usable capacity)
• Only one battery installation per premises is eligible for the discount
• An eligible battery system could include a single battery unit, or a system of modular battery units connected to serve as one battery unit.  To be eligible, the combined capacity of the system needs to be at least 5kWh (even if the individual units are smaller) and not exceed 100kWh in nominal capacity.
• Battery capacity that is added to an existing battery system is also eligible for a discount for the additional capacity (provided the existing system has not previously received a discount under the system.) The additional capacity must be at least 5kWh nominal capacity and the total system size after the upgrade must not exceed 100kWh.

What's changing from 1 May 2026?

The Cheaper Home Batteries Program has proven to be very popular. The government has reviewed the program and set a more ambitious target of around 2 million batteries by 2030.  Two changes take effect from 1 May 2026.

1. The STC Factor will decline more quickly

The STC Factor determines how many certificates a battery can create per kWh of usable capacity. The discount that you are entitled to is determined by the STC Factor on the date the battery is installed.

From 1 May 2026:

• The STC Factor will reduce every six months

• The rate of reduction will be faster than before

This reflects the expectation that battery prices will continue to fall. 

2. Batteries over 14kWh will receive a proportionally lower discount

From 1 May 2026, the STC Factor will scale differently depending on battery size. Battery systems up to 14kWh will receive the full factor, while larger systems will receive a tapered amount.

What this means for you

If you’re considering a battery, here’s how the changes may affect your timing:

• Installing after 1 May 2026 means your discount will depend more on the size of your system

• The program aims to continue to offer around 30% off the upfront cost of battery installation for most households.

• Batteries remain a powerful way to reduce bills and increase energy independence

If you already have solar, adding a battery can help you store more of the energy you generate and use it when it matters most.

Choosing the right battery for your home

A battery is a long-term investment, so it’s worth taking the time to get it right. Consider:

• Your household’s daily energy use

• How much solar you generate

• Whether you want backup power during outages

• Warranty, performance and expected lifespan

• Whether you plan to join a Virtual Power Plant (VPP)

An accredited installer can help you size a system that suits your needs not just today, but well into the future.

How the national rebate works with other incentives

Depending on where you live, you may also be eligible for:

• State or territory rebates

• Low interest loans

• VPP participation payments

• Financing through the Household Energy Upgrades Fund

  These can work alongside the national program to further reduce your upfront costs. You can also increase savings by selecting a battery specific energy plan, like AGL’s Battery Rewards Plan.

Make the switch today

As an SAA-approved installer offering great deals on solar panels and eligible home batteries, at AGL we can help you reduce your energy costs and contribute to cleaner energy in Australia.