Federal Cheaper Home Batteries Program: what changed on 1 May 2026

What changed on 1 May 2026

The federal government announced changes to the Cheaper Home Batteries Program on 1 May 2026:

• Total program funding increased from $2.3 billion to $7.2 billion.
• Faster annual reduction in the rebate value.
• Reduced funding for larger batteries (over 50 kWh usable).

The rebate is now approximately $311 per usable kWh in May 2026, down from approximately $370 per usable kWh at the program launch in July 2025.

What it means in dollar terms

A standard 14 kWh battery saves roughly:

• July 2025 (program launch): ~$5,180
• May 2026 (current): ~$4,350
• January 2027 (next scheduled step-down): ~$3,650 (estimated)
• January 2028: ~$2,950

The rebate will continue tapering at this pace until 2030.

Should you buy now?

If you are within 12 months of installing a battery anyway, yes - lock in the current rebate. The financial case strengthens every 6-12 months as battery hardware prices fall, but the rebate falls faster than hardware prices. Net cost trends upward despite manufacturer improvements.

Eligibility recap

• Battery nominal capacity 5-100 kWh.
• Rebate applies to the first 50 kWh of usable capacity.
• Homeowners, small businesses, community facilities eligible.
• Not means tested.
• One battery per electricity meter.
• Stackable with state battery incentives in NSW and WA.
• SA: stackable with nothing because the SA Home Battery Scheme closed in 2023.

The install process

1. Choose a battery from the CEC Approved Product List.
2. Get quotes from CEC-accredited installers.
3. Installer claims STCs on your behalf.
4. Discount applied upfront on your invoice.
5. You pay the post-rebate price.

You do not apply to the federal government directly. The installer handles everything.