How Much Is the Home Battery Rebate in 2026?

The Cheaper Home Batteries Program can take around 30% off the cost of a home battery. But the rules changed on 1 May 2026, and the rebate now drops every six months. This guide explains how the program works, what changed, and how to get the most from it.

What is the Cheaper Home Batteries Program?

The Cheaper Home Batteries Program is a federal government scheme that began on 1 July 2025. It makes solar batteries cheaper for households, small businesses and community groups.

You get the discount upfront. Your installer claims it for you, so it comes off your invoice. You don’t have to wait for a refund.

The discount comes from small-scale technology certificates, known as STCs. Your rebate is worked out like this:

Rebate = usable battery capacity (kWh) × STC Factor × STC price

Why are home batteries so popular right now?

Feed-in tariffs, the credit you get for sending solar power to the grid, keep falling. Many households now save more by storing their solar power and using it at night than by exporting it.

The program has driven a surge in installations:

  • More than 82,000 batteries were installed in the first three months of 2026. That’s over 2.5 GWh of storage.
  • After six months, the program had supported more than 160,000 installations.
  • About half of the installations in early 2026 were added to homes that already had solar.

What changed on 1 May 2026?

In December 2025, the government raised the program’s funding from $2.3 billion to an estimated $7.2 billion over four years. It aims to help more than 2 million households install a battery by 2030.

Two rule changes came with that expansion.

01. The STC Factor drops more often

The STC Factor decides how many certificates your battery earns. It now falls twice a year, not once. The government says this keeps the discount near 30% as battery prices fall.

The factor is 6.8 for May to December 2026. By 2030 it falls to 2.1. Your discount depends on the factor on the day your battery is installed.

02. Bigger batteries get a smaller rebate per kWh

The rebate now tapers as battery size goes up:

Battery sizeShare of the STC Factor you receive
Up to 14 kWh100%
Over 14 up to 28 kWh60%
Over 28 up to 50 kWh15%

The program still supports batteries up to 100 kWh. Only the way the discount is calculated has changed.

How much rebate can you get?

Solar Choice puts the current rebate at about $252 per usable kWh. That assumes an STC price of $37. STC prices move, so treat these as estimates.

 

Battery sizeEstimated rebate (May to Dec 2026)
10 kWhAbout $2,520
14 kWhAbout $3,530
20 kWhAbout $4,430

A 20 kWh battery has about 43% more capacity than a 14 kWh battery. Its rebate is only about 25% higher. That gap is the taper at work.

How do you choose the right battery size?

The new rules reward right-sized batteries. Here’s what we suggest:

  • Check your evening and overnight use. Size the battery to the power you use after the sun goes down.
  • Look at how much solar you export. If you export a lot, a battery will help you more.
  • Don’t oversize. Extra capacity above 14 kWh earns a lower rebate.
  • Plan around the six-monthly drops. Waiting costs you rebate value. But don’t rush into a badly sized system just to beat a step-down.

Who is eligible?

  • Only one battery system per premises can claim STCs.
  • The battery must be eligible and VPP-capable. That means it can connect to a virtual power plant.
  • It can be paired with new or existing solar.
  • Your state or territory may offer extra support. Check the current rules where you live.

Frequently asked questions

Is the home battery rebate ending?

No. The program runs until 2030. The rebate falls over time, though.

 

Do I get the rebate as cash?

No. It’s taken off your battery price at the time of purchase.

 

Can I get a rebate if I already have solar?

Yes. The battery can be added to an existing solar system.

 

Will the rebate be lower if I wait?

Probably. The STC Factor drops every six months, so the rebate for the same battery usually shrinks over time. STC prices can also move.

 

Is a bigger battery always better?

No. Above 14 kWh, each extra kWh earns a smaller rebate. Pick a size that matches how you use power.

The bottom line

The Cheaper Home Batteries Program has made home batteries affordable for many more households. It now favours batteries sized to your needs, and the rebate shrinks every six months. Get a quote based on your actual power use before you decide.

Want help sizing a battery for your home? Talk to the Polygon Energy team for advice based on your usage.

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