Cheaper Home Batteries Program: how the discount works in 2026

You don’t apply for this discount yourself. When an eligible battery is installed, it creates STCs. You assign them to your retailer or a registered agent, who sells them and takes their value off your price. That’s why the discount appears on the quote instead of arriving as a payment, and why two quotes for the same battery can show different discounts.

The program started on 1 July 2025. From 1 May 2026 the discount became tiered by battery size, and it now steps down every six months. Here’s how it works.

How is the discount calculated?

Three numbers decide your discount: the battery’s usable capacity, the STC factor when it’s installed, and the price your retailer gets for each certificate.

Since 1 May 2026, the factor tapers as battery size grows. The first 14 kWh of usable capacity earns the full factor, the next 14 kWh earns 60% of it, and capacity from 28 to 50 kWh earns 15%. Anything above 50 kWh earns nothing.

Worked examples

Here’s roughly how many certificates common battery sizes earn if installed by 31 December 2026. The dollar column assumes $35 per certificate to show the scale. Your retailer’s price will differ: the clearing house caps STCs at $40 excluding GST, and open-market prices change daily.

These are estimates. Our battery rebate calculator works them out for any size, installation date and certificate price, and the Clean Energy Regulator’s solar battery STC calculator gives the exact figure for a specific battery and install date.

Why your installation date matters

The Clean Energy Regulator has made clear that the discount is set by when the battery is installed, not when you sign. The factor steps down every six months until the end of 2030:

On a 13.5 kWh battery, an installation that slips from December 2026 to January 2027 drops from about 92 certificates to about 77, roughly $520 less at $35 each.

Is your battery eligible?

The Clean Energy Regulator’s eligibility rules for solar batteries cover the battery, the installation and the property:

Adding to a battery you already have? The extra capacity must be at least 5 kWh, the total can’t exceed 100 kWh, and your existing battery can’t have claimed certificates.

You can check a model on the Clean Energy Council’s approved battery list and an installer on Solar Accreditation Australia’s status check.

Do you have to join a virtual power plant?

No. A virtual power plant (VPP) links home batteries so an operator can use them together to support the grid, usually in exchange for credits or a better feed-in rate. The battery must be capable of joining one at installation, but the Clean Energy Regulator confirms you don’t have to participate. You can join at installation, later, or never.

If you’re considering a VPP, compare operators, understand the costs, and check how extra charging and discharging affects your battery warranty.

Can you combine it with state programs?

Sometimes. The Clean Energy Regulator suggests checking whether a state or territory battery program can be combined with the federal discount. State programs open, change and close often, so check your state energy department’s site and ask the retailer to show each discount on its own line.

Before you sign

Still choosing a battery? See our best home batteries for different needs. A battery quote should show the usable capacity, the number of certificates, the price per certificate, and any state discount, each on its own line. Our guide to questions to ask before you sign a solar or battery quote covers the rest, from accreditation to cooling-off rights. You can also see which battery retailers service your postcode.

This guide is general information, not financial or legal advice. Rules, rebates and prices change, so check the linked sources before you decide. Facts checked 18 October 2026.