Why Are Changes Being Made?
The Cheaper Home Batteries Program was launched mid-2025 with $2.3 billion in funding and aimed to provide up to 30% off the cost of battery storage through an expansion of the Small-scale Renewable Energy Scheme (SRES).
But take-up has been far stronger than expected, largely due to:
- A growing number of homes already fitted with rooftop solar
- The availability of midday “free electricity” windows
- The scheme rewarding larger battery sizes, which led many to maximise capacity up to 50kWh
As a result, almost half the budget was consumed within six months. To ensure the program lasts through to 2030 as promised, the government has injected another $5 billion into the scheme and introduced changes to make it fairer and more sustainable.
What Are the Changes, and When Do They Start?
The rebate is based on the number of Small-scale Technology Certificates (STCs) allocated to your battery system. The more STCs, the greater the subsidy.
Change 1 – January 1, 2026: Lower STC Factor
- The STC Factor drops from 9.3 to 8.4
- This means the rebate value per kilowatt-hour (kWh) will slightly reduce
- However, there is no change to the subsidy tiering, you still receive 100% of the rebate on all battery sizes up to 50kW
For example, a 30kWh battery that previously received 279 STCs will now receive 252 STCs, about $1,000 less in total rebate (based on current STC value of ~$38).
Change 2 – May 1, 2026: Double Impact
This is when the major shift happens. Two changes kick in simultaneously:
- STC Factor drops again, from 8.4 to 6.8
- New tiered structure based on battery size:
- 100% of STCs for the first 14kWh
- 60% of STCs for the next 14kWh (up to 28kWh)
- Only 15% of STCs for any capacity above 28kWh (up to 50kWh max)
This change drastically reduces the number of STCs a larger battery can claim, and therefore the subsidy amount.
What’s the Real-World Impact?
Let’s take a 30kWh battery as an example. Using the official government rebate table and current STC value of $38 per certificate:
- Installed before January 1, 2026 → 279 STCs ≈ $10,602 rebate
- Installed between January 1 and April 30, 2026→ 252 STCs ≈ $9,576 rebate
- Installed on or after May 1, 2026→ 154 STCs ≈ $5,852 rebate
That’s a total rebate reduction of $4,750 compared to installs booked this year.
The biggest shift comes in May, when the STC factor drops again, meaning thousands in lost savings unless customers secure an install beforehand.
Why Act Now?
Because your rebate is based on the day the system is installed, not the day it’s ordered.
As we approach the May deadline, there’s a real risk that installation books will fill up, especially for high-demand systems like 20–30kWh batteries, which require more time and planning.
SunEnergy will honour current rebate pricing for all customers who are contracted before our booking limits are reached, even if installation is after January 1st. But once capacity is full, the only option will be post-May pricing.
What Should You Do?
If you’re considering adding a battery, whether to store your solar, take advantage of free midday power, or protect yourself from outages, now is the time to act.
This isn’t just a limited-time offer. It’s a structural shift in the way Australia’s battery subsidies work.
