Australia's Cheaper Home Batteries Program operates through the Small-scale Renewable Energy Scheme. Eligible solar-connected batteries can create STCs that are commonly assigned to a registered agent for an upfront discount. From 1 May 2026, the certificate calculation became tiered, so battery size now affects the discount more directly.
Use the Clean Energy Regulator's current calculator for an installation-specific estimate. Older “about 30%” summaries may not reflect the post-May 2026 calculation.
How the battery discount works
An eligible installation creates certificates based on scheme rules. The homeowner can assign the right to create them to a registered agent, usually through the retailer, reducing the invoice.
The discount is influenced by certificate quantity, market value, and agent arrangements. It is not a fixed cash payment made later to every purchaser.
The quote should show gross price, STC count, assigned value, fees, and final payable amount.
The 1 May 2026 change
The Clean Energy Regulator confirms that the rebate changed from 1 May 2026 and now uses a tiered approach. Larger batteries can receive a lower certificate rate for capacity in higher tiers.
Installation date matters and is tied to the electrical certificate of compliance or equivalent under scheme guidance. A contract date or deposit alone does not preserve an earlier calculation.
Retailers should model the actual expected installation date and current rules.
Eligible battery capacity
Program rules define eligible usable capacity ranges and how much capacity can create certificates. The battery must be connected to a new or existing eligible solar PV system and satisfy current technical requirements.
Do not size a battery to maximise a rebate. Size it for household load, solar surplus, tariff, backup target, power requirement, and expected cycling.
Check the current CER calculator because thresholds and tier effects are material.
Existing batteries
The scheme contains rules for addresses with batteries installed before the program began, as well as replacement or expansion. New capacity is not automatically eligible merely because equipment is added.
The CER states that an ineligible battery installed before 1 July 2025 may allow a future eligible installation under specified rules. Upgrades, replacements, and expansions require careful evidence.
Ask the registered agent to document the applicable pathway before purchase.
Approved products
The battery and relevant inverter equipment must meet current approved-product and technical requirements. Check exact model numbers, not only brand.
Approval does not establish suitability for the home. Compare usable capacity, continuous and surge power, backup operation, environmental limits, warranty, throughput, local service, and compatibility.
Save the approved-list record used at installation.
Installer requirements
Only appropriately trained, accredited, and licensed people can complete eligible installations. Battery work must comply with national standards and state or territory law.
CER compliance controls include installation evidence and labelling photos. Confirm who designs, installs, certifies, and submits the STC claim.
Battery location, clearances, protection, switchboard, fire safety, and network connection need site-specific assessment.
Solar-connected does not mean backup-ready
A battery can reduce bills without providing outage power. Backup requires compatible inverter controls, safe isolation, protected circuits, and commissioning.
Ask which circuits operate, maximum output, surge capability, expected runtime, solar recharge behaviour, and reserve settings during an outage.
The rebate does not certify that a design supplies the whole home.
State and territory incentives
Additional support may be available. NSW offers a VPP connection incentive and introduced broader Home Energy Saver finance. Victoria's former interest-free battery-loan applications are closed under current Solar Victoria guidance, while federal battery STCs remain relevant.
Other programs can target low-income customers, resilience, utilities, or VPP participation. Check the Australia State Solar Rebates Hub.
VPP participation
A virtual power plant coordinates many batteries. Programs may offer an upfront incentive, recurring payment, special tariff, or bill arrangement in return for control during events.
Review event frequency, minimum reserve, opt-out, payment, contract term, data access, cycling, backup impact, and warranty. Program value should not be counted for the battery's full life without a conservative scenario.
Read Australia Virtual Power Plants.
Battery savings
A battery can increase self-consumption, avoid peak rates, reduce demand charges, participate in a VPP, and capture energy otherwise curtailed.
Model:
- Solar surplus by season.
- Household evening and overnight load.
- Import and feed-in tariffs.
- Usable capacity and power.
- Round-trip losses.
- Backup reserve.
- Degradation and warranty.
- Installed cost after STCs.
- Confirmed VPP or state benefits.
Avoid assuming the battery completes one full profitable cycle every day.
Quote checklist
Record:
- Gross battery and installation price.
- STC quantity under post-May 2026 rules.
- Assignment value and final price.
- Usable kWh and output kW.
- Approved model and inverter compatibility.
- Backup circuits and hardware.
- Switchboard, meter, network, and permit scope.
- Warranty limits and labour coverage.
- VPP obligations.
- State or local support.
Verify the current calculation
The battery program has already changed since launch and remains high-freshness content. Recheck CER rules, calculator, approved lists, and evidence requirements immediately before contracting and installation.
For the underlying decision, read Are Solar Batteries Worth It? and continue through the Australia Home Solar Hub.