source: DCCCEW
1 May 2026: Changes to the program
On 13 December 2025, the Australian Government announced it would expand the Cheaper Home Batteries Program from original estimates of $2.3 billion to an estimated $7.2 billion over the next four years. This is expected to see more than 2 million Australians install a battery by 2030, delivering around 40 gigawatt hours of additional storage capacity.
This change is accompanied by proposed program adjustments to ensure the discount remains appropriate for small, medium and larger battery systems.
The proposed changes will help ensure:
- the discount remains at around 30% for a range of batteries across battery sizes
- the discount aligns with falling battery costs over time
- the government can continue to support battery installations over the life of the program.
Subject to regulations being made, two adjustments will be made to the discount and will come into effect from 1 May 2026.
The STC Factor will be adjusted
The discount is provided through the creation and trading of STCs. To fund the discount, the government purchases the equivalent number of STCs created for batteries.
The STC Factor, which determines the number of STCs a system is entitled to create per kWh of useable capacity, will be adjusted to:
- decline more frequently (every 6 months)
- decline at a higher rate.
Table 1 outlines the changes to the STC Factor.
| Year | Period | Existing STC factor | Proposed STC factor |
|---|---|---|---|
| 2026 | January – April |
8.4 |
8.4 |
| 2026 | May – December |
8.4 |
6.8 |
| 2027 | January - June |
7.4 |
5.7 |
| 2027 | July - December |
7.4 |
5.2 |
| 2028 | January - June |
6.5 |
4.6 |
| 2028 | July - December |
6.5 |
4.1 |
| 2029 | January - June |
5.6 |
3.6 |
| 2029 | July - December |
5.6 |
3.1 |
| 2030 | January - June |
4.7 |
2.6 |
| 2030 | July - December |
4.7 |
2.1 |
The discount that you are entitled to is determined by the STC Factor on the date the battery is installed.
The amount of support will be adjusted according to system size
The program will continue to support battery installations up to 100 kWh. However, subject to regulations being made, the level of support for batteries will shift.
The discount calculations have been adjusted to align with declining battery costs, with the aim of maintaining around 30% discount for a range of battery systems at each capacity level.
The STC Factor will taper according to the amount of capacity installed:
- From 0 kWh up to 14 kWh (inclusive): STC Factor applied at 100%.
- Every kWh greater than 14 and up to 28 kWh (inclusive): STC Factor applied at 60%.
- Every kWh greater than 28 and up to 50 kWh (inclusive): STC Factor applied at 15%.
To understand the amount of STCs that will be created for each 1kWh of battery storage please refer to the:
For more information about STCs, see discount for eligible battery systems.
