Federal government battery incentive scheme

Power Up Your Home: Understanding the Federal Government's Battery Incentive Scheme

G'day, SolarInsights readers! Australia is already a world leader in rooftop solar, with over 4.2 million systems installed across the country. But capturing that sunshine is only half the battle. What about when the sun goes down, or on those cloudy days? That's where battery storage comes in, and the Federal Government is throwing its weight behind making home batteries more affordable for Aussies.

In this blog post, we'll break down the Federal Government's "Cheaper Home Batteries Program" – a scheme designed to lower the upfront cost of installing battery systems and accelerate the transition to a cleaner, more reliable energy future.

Why Batteries Matter

We all know solar panels are great, but without storage, you're still reliant on the grid for power when the sun isn't shining. Batteries allow you to store excess solar energy generated during the day and use it later, reducing your dependence on the grid, potentially lowering your electricity bills, and increasing your energy independence. Plus, more home batteries on the grid contribute to overall grid stability.

The "Cheaper Home Batteries Program": How it Works

The core of the government's strategy is simple: reduce the upfront cost of battery installation. The "Cheaper Home Batteries Program" offers a discount of approximately 30% on the upfront cost of eligible small-scale battery systems, ranging in size from 5 kWh to 100 kWh, for Australian households, businesses, and community organisations. This makes a significant difference, bringing batteries within reach for more Australians who previously found the initial investment too high.

Previously, only one in forty homes had batteries installed with their solar PV systems. Now, thanks to the scheme, that number has improved to one in twenty-four.

Key Features and Changes:

• Discount on Upfront Costs: The program provides a direct discount, reducing the financial barrier to entry for many households.
• Broad Eligibility: Australian households, businesses, and community groups can all potentially benefit, subject to meeting the eligibility requirements outlined in the Renewable Energy (Electricity) Regulations 2001.
• Small-Scale Systems Focus: The incentive is targeted towards smaller systems (5 kWh to 100 kWh), making it ideal for residential and small business applications.
• Administered by the Clean Energy Regulator (CER): The CER oversees the program and manages the discount mechanism.
• No Direct Application Required: Consumers don't need to apply directly to the government or the CER for the discount. The discount is typically applied at the point of sale by accredited installers.
• STCs (Small-scale Technology Certificates): The incentive works through Small-scale Technology Certificates. You can calculate your STC entitlement up to April 30, 2026 using the REC Registry STC calculator. Updated information regarding STCs from May 1, 2026, is available in the "Summary of Revised Small-scale Technology Certificate Entitlement to 2030."
• Program Expansion: In December 2025, the government significantly increased its investment in the program, expanding it from an initial $2.3 billion to an estimated $7.2 billion over the next four years. This expansion is projected to lead to over 2 million Australian homes installing batteries by 2030, adding around 40 gigawatt hours of storage capacity to the grid.
• Future Changes (From May 1, 2026): Be aware that changes to the program are scheduled to take effect from May 1, 2026, subject to the making of Regulations. It's essential to stay informed about these updates as they may affect eligibility and the amount of the discount available.

How to Access the Incentive

The good news is that accessing the incentive is relatively straightforward. You don't need to fill out complicated application forms. Instead, the discount is typically applied at the point of sale by your accredited solar and battery installer. They will factor in the STCs you are entitled to, reducing the overall cost of the system.

To take advantage of the program:

1. Contact a reputable solar and battery installer: Choose an installer accredited by the Clean Energy Council (CEC). They will be familiar with the program requirements and can guide you through the process.
2. Discuss your energy needs: Your installer will assess your energy consumption patterns and recommend a suitable battery system size for your home or business.
3. Get a quote: The quote should clearly show the total cost of the system, including the discount provided through the "Cheaper Home Batteries Program."
4. Ensure eligibility: Make sure you meet the eligibility criteria outlined in the Renewable Energy (Electricity) Regulations 2001. Your installer can help you with this.

Looking Ahead

The expansion of the "Cheaper Home Batteries Program" signals a strong commitment from the Federal Government to accelerate the uptake of battery storage in Australia. By reducing the upfront costs, the government aims to empower more Australians to take control of their energy consumption, reduce their reliance on the grid, and contribute to a cleaner, more sustainable energy future.

Keep an eye on SolarInsights for future updates on this and other important solar and battery initiatives. Now is a great time to investigate whether battery storage is right for you and your home!