🔋📈
Cheaper Home Batteries Program

Upcoming Changes to Australia's Cheaper Home Battery Program: Act Now for Maximum Savings on Larger Systems

Effective May 1, 2026, the Australian Government is transitioning the Cheaper Home Battery Scheme to a tiered rebate system. This change ensures that standard-sized household systems remain highly subsidised while discouraging the oversizing of systems at the government's expense.

Estimated Upfront Discounts (From May 1, 2026)

The discount is applied as an upfront reduction in the purchase price. The percentage varies based on which "tier" the battery capacity falls into.

Breaking Down the Rebate Changes

The program divides batteries into three capacity tiers:

Small (0-14kWh): For basic backup and light usage.
Medium (14-28kWh): For standard homes with moderate energy storage needs.
Large (28-50kWh): For high-demand setups, offering extensive storage for off-peak usage or grid export.

  
        Dates
      
        0–14 kWh
      
        14–28 kWh
      
        28–50 kWh
      
        2026 January–April
      
      $300
      $300
      $300
    
        2026 May–December
      
      $242
      $145
      $36
    
        2027 January–June
      
      $203
      $122
      $30
    
        2027 July–December
      
      $185
      $111
      $27
    
        2028 January–June
      
      $164
      $98
      $25
    
        2028 July–December
      
      $146
      $87
      $21
    
        2029 January–June
      
      $128
      $77
      $20
    
        2029 July–December
      
      $110
      $66
      $16
    
        2030 January–June
      
      $92
      $55
      $14
    
        2030 July–December
      
      $75
      $45
      $11

Note: Based on installation completion, not order acceptance. Rebates are calculated using an STC price of $36. Figures rounded to nearest whole number.

  
        Battery Capacity Tier
      
        Rebate Weighting
      
        Est. Upfront Discount %
      
        Tier 1: First 14 kWh
      
        100% of STC Factor
      
        ~25% to 30%
      
        Tier 2: 14 kWh to 28 kWh
      
        60% of STC Factor
      
        ~15% to 18%
      
        Tier 3: 28 kWh to 50 kWh
      
        15% of STC Factor
      
        ~4% to 5%

Note: For systems larger than 14 kWh, the rebate is calculated cumulatively. For example, a 20 kWh battery receives the full 100% rate for the first 14 kWh and the 60% rate for the remaining 6 kWh.

Example: Powerwall rebates under the new rules

This table shows indicative rebate values for Tesla Powerwall systems under the updated battery incentive framework. The scheme strongly favours the first 14 kWh of storage, with reduced rebate weighting above that level and significantly lower support beyond 27 kWh.

Installing additional capacity before 1 May 2026 allows higher rebate values to be captured across multiple Powerwalls, before steeper reductions apply. For homes with high evening demand, EV charging, or future electrification plans, the time is now to take advantage of the current rules to maximise the rebates on offer.

Table of rebates by year and Powerwall capacity.

  
    
  
      
        Tesla Powerwalls
      
      
        1 (13.5 kWh)
      
      
        2 (27 kWh)
      
      
        3 (40.5 kWh)
      
      
        4 (54 kWh)
      
    

  
      2026 January–April
      $4050
      $8100
      $12150
      $15000
    

      2026 May–December
      $3278
      $5294
      $5895
      $6241
    

      2027 January–June
      $2748
      $4437
      $4941
      $5231
    

      2027 July–December
      $2507
      $4048
      $4508
      $4772
    

      2028 January–June
      $2217
      $3581
      $3988
      $4222
    

      2028 July–December
      $1976
      $3192
      $3554
      $3763
    

      2029 January–June
      $1735
      $2802
      $3121
      $3304
    

      2029 July–December
      $1494
      $2413
      $2687
      $2845
    

      2030 January–June
      $1253
      $2024
      $2254
      $2386
    

      2030 July–December
      $1012
      $1635
      $1820
      $1927
    


  

Key Program Updates

Total Budget: Expanded to $7.2 billion to support roughly 2 million installations by 2030.
Scheduled Reductions: From 2026 onwards, rebate rates (STC factors) will decrease every six months (January 1 and July 1) instead of annually.
Eligibility Window: To secure the pre-tiering flat 30% discount for large systems (over 14 kWh), the system must be installed and certificates created before May 1, 2026.

Rebate "Stacking"

The federal rebate can be combined with several state-level incentives for even higher total savings:

ACT: Residents can access the federal rebate alongside a 3% fixed-interest loan (up to $15,000) through the Sustainable Household Scheme.
NSW: Stackable with the Peak Demand Reduction Scheme (VPP incentive) for an extra rebate of up to $1,500.

🔋📈Cheaper Home Batteries Program