Last reviewed: October 2026. Australia’s federal Cheaper Home Batteries Program provides an upfront discount for eligible small-scale batteries connected to new or existing rooftop solar. The program is delivered through the Small-scale Renewable Energy Scheme (SRES), using small-scale technology certificates (STCs).
The Australian Government describes the support as being designed to provide a discount of around 30% on eligible battery systems, although the dollar value for an individual installation depends on usable battery capacity, the applicable STC factor, certificate value and the way the retailer passes the benefit through.
Estimate your battery STCs with the SunnyWatly Battery Rebate Calculator →
What changed on 1 May 2026?
From 1 May 2026, the rebate became tiered by usable capacity. The Clean Energy Regulator states that the STC factor applies at:
- 100% for usable capacity from 0 to 14 kWh inclusive.
- 60% for each kWh above 14 kWh and up to 28 kWh.
- 15% for each kWh above 28 kWh and up to 50 kWh.
Batteries can be larger than 50 kWh under the program’s broader eligibility rules, but STCs are only supported for the first 50 kWh of usable capacity.
What is the current STC factor?
For batteries installed from May to December 2026, the amended STC factor is 6.8. The factor is scheduled to decline every six months through 2030, so the installation date matters.
| Installation period | STC factor |
|---|---|
| May–December 2026 | 6.8 |
| January–June 2027 | 5.7 |
| July–December 2027 | 5.2 |
| January–June 2028 | 4.6 |
The current factor should always be checked before signing a quote because support declines over time.
Basic eligibility
Current government guidance says the program supports eligible batteries with nominal capacity from 5 kWh to 100 kWh, provided the system satisfies the program rules. The battery must be connected to new or existing solar PV, and approved products and accredited installation requirements apply.
Do not assume every product advertised as a “home battery” qualifies. Ask the retailer to identify the approved battery model, usable capacity, installer accreditation and the STC quantity shown in the quote.
How much is the rebate worth?
There is no single fixed dollar rebate for every battery. STCs are certificates with a market value, and the final customer discount can differ from a simple STC-count × market-price calculation because of retailer pricing, fees and certificate trading arrangements.
SunnyWatly therefore shows an indicative certificate value, not a guaranteed retailer discount. Change the assumed STC value in the calculator if your quote uses a different figure.
Does a bigger battery receive a bigger rebate?
Generally, more supported usable capacity creates more STCs, but the tiering introduced in May 2026 deliberately reduces the rate of support for capacity above 14 kWh and reduces it further above 28 kWh. That means doubling battery size does not necessarily double the rebate.
This makes battery sizing more important. A system should be chosen around household consumption, excess solar, tariff structure, backup needs and budget rather than around the largest rebate number.
What should you check on a battery quote?
- Nominal and usable battery capacity.
- STC quantity and the assumed certificate value.
- Whether the quoted price is before or after the STC discount.
- Battery and inverter model numbers.
- Warranty, power rating and backup capability.
- Installation scope and switchboard work.
- Whether the installation date changes the STC factor.
For sizing, use the Battery Size Calculator. For a simple financial comparison, use the Battery Payback Calculator.
Official sources
Program rules can change. Verify current information with the Department of Climate Change, Energy, the Environment and Water and the Clean Energy Regulator before making a purchase decision.