SolarInsights: Powering Your Future
Key Updates on the Cheaper Home Battery Program for 2026
As Australians increasingly embrace renewable energy, rooftop solar continues to boom. With over 4.2 million rooftop solar photovoltaic (PV) systems installed nationwide, we're world leaders in harnessing the sun's power. But what happens when the sun isn't shining? That's where home batteries come in, storing excess solar energy for use at night or during peak demand, helping you maximise your savings and reduce reliance on the grid.
The Australian Government is committed to driving the adoption of home batteries to complement this solar revolution. The Cheaper Home Batteries Program is a key initiative in making battery storage more accessible to everyday Australians. And with significant updates coming in 2026, now is the time to get informed. For a deeper dive, check out our Complete Guide to home battery tech.
Why Home Batteries Matter
Previously, the high upfront cost was a major barrier to battery adoption. Before the program, only a small fraction of households – around one in forty – had installed batteries. The Cheaper Home Batteries Program is designed to break down this barrier, significantly reducing the financial burden of investing in battery storage. Thanks to the program, that number is improving, with around one in 24 households now boasting battery storage alongside their solar PV systems.
How the Program Works (Currently)
The Cheaper Home Batteries Program provides a discount – around 30% – on the upfront cost of installing a range of small-scale battery systems, typically between 5 kWh and 100 kWh. This support is available to Australian households, businesses, and community organisations, making it a broad and impactful initiative.
The discount is facilitated through Small-Scale Technology Certificates (STCs). You don't need to apply directly to the Clean Energy Regulator (CER) or the government for the discount. Instead, your installer will typically factor the STC value into the upfront cost, passing the savings on to you.
The Big Changes Coming in May 2026
The Australian Government has announced some significant changes to the Cheaper Home Batteries Program set to come into effect from 1 May 2026, subject to the finalisation of Renewable Energy (Electricity) Regulations 2001. These changes aim to further enhance the program's effectiveness and impact.
While the exact details are still being finalised, the updates largely affect the number of STCs you're entitled to. To get an estimate of your STC entitlement under the revised scheme, you can use the CER’s Solar battery STC calculator. Make sure you are referring to the most current guidelines about the 1 May 2026 changes to STCs.
It is important to remember that all eligibility criteria is defined in the Renewable Energy (Electricity) Regulations 2001.
Massive Investment for a Battery-Powered Future
In December 2025, the Australian Government demonstrated its commitment to battery storage by announcing a massive expansion of the Cheaper Home Batteries Program. Funding has increased from an initial estimate of $2.3 billion to a staggering $7.2 billion over the next four years.
This significant investment reflects the government's vision for a future powered by clean, reliable energy. The expanded program is expected to drive the installation of batteries in over 2 million Australian homes by 2030, adding approximately 40 gigawatt hours of additional storage capacity to the grid. This increased storage capacity will play a crucial role in stabilising the grid, reducing reliance on fossil fuels, and ensuring a more sustainable energy future for all Australians.
What This Means for You
The upcoming changes to the Cheaper Home Batteries Program in 2026, coupled with the substantial increase in funding, present a fantastic opportunity for Australian households and businesses to invest in battery storage. By taking advantage of the available discounts, you can:
- Reduce your energy bills: Store excess solar energy for use during peak demand periods, minimising your reliance on expensive grid electricity.
- Increase your energy independence: Become less reliant on the grid and enjoy greater control over your energy supply.
- Support a cleaner environment: Contribute to a more sustainable energy future by reducing your carbon footprint.
- Increase the value of your home: Home battery systems are increasingly seen as a valuable asset, potentially boosting your property's value.
Staying Informed
Keep an eye on SolarInsights for further updates and detailed analysis of the Cheaper Home Batteries Program changes as they are finalised. We'll continue to provide you with the information you need to make informed decisions about your energy future.
As always, it's wise to consult with a qualified solar installer to assess your specific energy needs and determine the best battery storage solution for your home or business.
