The Cheaper Home Batteries Program
Australia is a world leader in rooftop solar with more than 4 million rooftop solar PV systems, however only one in 40 households have installed batteries. The high upfront cost of batteries means installing batteries is out of reach for many households and businesses.
Australian households, businesses and community organisations can now get a discount of around 30% on the upfront cost of installing small-scale battery systems (5 kWh to 100 kWh). The discount is:
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available for batteries connected to new or existing solar PV systems
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funded by the government to ensure no extra costs are passed on to consumers
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based on the battery’s usable capacity and the number of small-scale technology certificates the battery is eligible for
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going to be reviewed at least annually and will gradually decrease until 2030, in line with reducing battery prices.
The program is administered by the Clean Energy Regulator (CER) and the government is funding the discount.
The rebate is available for:
o New solar + battery installations
o Adding a battery to an existing solar system
o Upsizing an existing battery system
Eligibility
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A single solar battery with a nominal (total) capacity of 5 kWh to 100 kWh will be eligible.
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The solar battery's usable capacity will be used to calculate the number of STCs it will be eligible for. STCs can only be claimed for the first 50 kWh of usable capacity.
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The solar battery will need to be installed with a new or existing solar photovoltaic (PV) system.
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The solar battery is considered ‘installed’ when a certificate of electrical compliance or equivalent is signed, which confirms that the system complies with relevant state and territory electrical safety regulations.
Cheaper Home Battery Rebate Amount
For instance, a typical 10 kWh battery system (costing roughly $11,120) would be eligible for a rebate of about $3,440, bringing the net cost down to $7,680.
The value of the rebate will decline each year from 2026 to 2030, as detailed in the official Cheaper Home Batteries government guidelines. This program is funded through the 2025–26 Federal Budget and will remain in place until 2030, with yearly updates to rebate amounts.
As battery technology becomes more affordable over time, the STC discount will be regularly reviewed and adjusted to reflect market changes. At a minimum, reviews will occur annually and will incorporate market data and industry consultation, particularly in the program’s early years.
The number of STCs a battery system is eligible for will depend on its usable capacity—the amount of energy (in kilowatt-hours, kWh) that can be discharged and used by a home or small business. Eligibility and Capacity Limits
* Battery systems with usable capacities between 5 kWh and 100 kWh are eligible.
* At program launch, STCs will be issued for up to the first 50 kWh of usable capacity only.
* Systems above 50 kWh (up to 100 kWh) will still qualify, but only the first 50 kWh will be eligible for STCs. STC Value and Discount in 2025 In 2025, the STC rate is 9.3 STCs per kWh, translating to approximately $372 per kWh, based on an assumed STC price of $40 (excluding retailer fees).
This equates to a 30% discount on battery installation costs in 2025.
Example:
An 8 kWh battery system priced at $10,000 would receive a discount of around $3,000. The number of STCs per kWh will decrease annually until the program ends in 2030.
Additional Notes
STC calculations for battery systems will follow similar rounding rules as for solar, wind, and other small generation units: partial STCs will be rounded down.
The discount rate will continue to be reviewed annually. If battery prices drop more rapidly than expected and the discount exceeds 30% for most systems, the STC formula may be revised.
Special focus will be placed on larger battery systems, particularly as they approach the 50 kWh threshold, where economies of scale may reduce costs more significantly.
As battery technology becomes more affordable over time, the STC discount will be regularly reviewed and adjusted to reflect market changes. At a minimum, reviews will occur annually and will incorporate market data and industry consultation, particularly in the program’s early years.
The number of STCs a battery system is eligible for will depend on its usable capacity—the amount of energy (in kilowatt-hours, kWh) that can be discharged and used by a home or small business. Eligibility and Capacity Limits
* Battery systems with usable capacities between 5 kWh and 100 kWh are eligible.
* At program launch, STCs will be issued for up to the first 50 kWh of usable capacity only.
* Systems above 50 kWh (up to 100 kWh) will still qualify, but only the first 50 kWh will be eligible for STCs. STC Value and Discount in 2025 In 2025, the STC rate is 9.3 STCs per kWh, translating to approximately $372 per kWh, based on an assumed STC price of $40 (excluding retailer fees).
This equates to a 30% discount on battery installation costs in 2025.
Example:
An 8 kWh battery system priced at $10,000 would receive a discount of around $3,000. The number of STCs per kWh will decrease annually until the program ends in 2030.
Additional Notes
STC calculations for battery systems will follow similar rounding rules as for solar, wind, and other small generation units: partial STCs will be rounded down.
The discount rate will continue to be reviewed annually. If battery prices drop more rapidly than expected and the discount exceeds 30% for most systems, the STC formula may be revised.
Special focus will be placed on larger battery systems, particularly as they approach the 50 kWh threshold, where economies of scale may reduce costs more significantly.
Year | STC per kWh | Estimated Value per kWh (based on $37/STC) |
2025 | 9.3 | $344.00 |
2026 | 8.4 | $311.00 |
2027 | 7.4 | $274.00 |
2028 | 6.5 | $240.00 |
2029 | 5.6 | $207.00 |
2030 | 4.7 | $174.00 |
What Size Battery System Should I Install?
1. Understand Your Energy Needs - Look At Your Electricity Bills For The Following Information:
* Analyze your energy consumption: Calculate your average daily and monthly electricity usage (in kWh).
* Identify peak usage times: Determine when you use the most energy, as this will influence how much battery capacity you require.
* Consider future needs: Will you be adding more appliances or getting an electric vehicle?
However, choosing the right system involves more than just picking a big-name brand. It's essential to assess your specific energy needs, budget, and the long-term support available for the product. Equally important is selecting a reputable installer—ideally one with at least five years of industry experience—to ensure a safe, compliant, and efficient installation.
Why Choose All Natural Energy?
At All Natural Energy, we bring over 25 years of hands-on experience in solar energy systems across a wide range of applications.
Our lead installer, Nathan Brown, is fully accredited by the SAA (Solar Accreditation Australia) for:
* Grid-Connected Solar Power Systems
* Stand-Alone (Off-Grid) Solar Power Systems
* Grid-Connected Systems with Battery Backup
This ensures that your system will be designed and installed to meet the highest industry standards.
The Whispr-7 is built with high-quality CATL lithium cell technology and features an ultra-quiet inverter, making it ideal for both urban and rural homes. Housed in a durable, weather-resistant IP65-rated enclosure, it offers flexible power input and output options to suit a range of energy demands. With local support and an office in Australia, PowerPlus Energy provides peace of mind with reliable service and competitive pricing.
If you would like to add a battery system to your home and take advantage of the new Govenment Rebate, All Natural Energy is here to provide expert advice and quality installations tailored to your home and lifestyle. Let us help you harness the power of the sun—with confidence.