What’s Changing?
From January 1, the subsidy rate will reduce from:
- 9.3 certificates per usable kWh
to - 8.4 certificates per usable kWh
Each certificate (STC) is currently worth around $38, so the reduction equates to:
- $684 less for a 20kWh battery
- $1,026 less for a 30kWh battery
With battery sizes trending upward, the average installed battery is now 20kWh, the financial impact could be significant.
Why Timing Matters
The subsidy is calculated on the date your battery is installed, not when it is ordered or contracted. That means homeowners who wait until late December to book may miss out on the higher rebate if their system can’t be installed before the new year.
As demand builds into summer and installers book out, the risk of missing the cut-off grows.
“It’s important to understand that this isn’t a tax-time situation where the date you buy is what matters — it’s the installation date that locks in the subsidy,” says an industry spokesperson.
“If you’re aiming to maximise your rebate, now’s the time to act.”
The Bigger Picture
Since launching in July 2025, the Cheaper Home Batteries program has significantly boosted uptake, with battery inquiries and installations climbing nationwide. The federal government allocated $2.3 billion to the initiative over five years, but strong early interest may accelerate uptake faster than anticipated.
This is particularly relevant for larger systems, such as the popular 30kWh units, which are becoming more common as households aim to store enough energy to power their homes through the evening, and benefit from emerging opportunities like off-peak and free power windows.
What Homeowners Can Do
If you’re considering a battery system, it’s worth checking:
- How much capacity you need for your usage and lifestyle
- What rebates you’re eligible for based on system size and install timing
- Whether your chosen provider will honour today’s pricing if install times shift
Some providers, such as SunEnergy, based in South Australia, have indicated they will lock in current pricing for customers who sign contracts before their installation calendar fills, even if the install occurs after Jan 1. But this isn’t universal, so it’s worth confirming at the time of purchase.
Summary
- The Cheaper Home Batteries rebate drops January 1, 2026
- The drop is ~10%, equal to hundreds or thousands in lost value
- Rebate is based on install date, not contract date
- Book early to secure the current level of subsidy
For households on the fence, this shift adds a new layer of urgency to an already popular incentive.
