On 13 December 2025, the Federal Government announced it will expand the Cheaper Home Batteries Program, increasing funding from $2.3 billion to an estimated $7.2 billion over the next four years. From 1 May 2026, the rebate structure will also be adjusted to help ensure the program can continue offering support to households well into the future.
This will be achieved through two key changes to the program.
- Rebates will decline every six months instead of annually.
- Larger battery systems will receive lower rebates under a new tiered system.
The changes are designed to keep rebates at around 30% across battery sizes, align with expected falls in battery costs, and ensure the government can continue to provide support for battery installations throughout the program’s life.
We’ve outlined the changes to the rebate in more detail below.
What this means for you
Now is the best time to install a battery and maximise your savings under the Cheaper Home Batteries Program. From 1 May 2026, rebates will decrease for all installations. With installation lead times currently 12 weeks or more, timing matters.
If you have accepted a quote already, there’s no impact. All Kleenheat Spark quotes are fixed price, so you’ll receive the current rebate no matter when your installation takes place.
If you’re interested in getting a quote but haven’t started the process yet, lock in your quote now to secure the current rebate. Our fixed price quotes are valid for 14 days.
Any new recommendations and quotes we provide from 23 January 2026 will reflect the updated, reduced rebate values.
Change 1: Rebate to decline every six months
The Cheaper Home Batteries Program reduces the upfront cost of installing a home battery by giving you access to Small-scale Technology Certificates (STCs). When you install an eligible battery system, STCs are generated based on its capacity. These certificates are typically assigned to your installer in return for a reduction in the price you pay. The more STCs you get, the bigger your rebate.
Two things determine how many STCs you receive:
- Battery size (usable capacity):
This is how much energy your battery can store and use, measured in kilowatt-hours (kWh). A bigger battery generally earns more STCs. - STC Factor:
This is a government-set number that tells you how many certificates can be created for each kWh of usable battery capacity. It changes over time and depends on the installation date.
Example: If the STC Factor is 10 and your battery has 10 kWh usable capacity, you can create 100 STCs. STCs apply only to the first 50 kWh of usable capacity, even though batteries up to 100 kWh are eligible.
How the rebate amount is calculated:
The rebate amount can be calculated using the formula:
Your rebate = Usable battery capacity × STC Factor × STC Price.
The amount an installer receives for an STC will change depending on the current market price and their fees but generally will be in the range of $38-$40 per STC.
From 1 May 2026, the government will adjust the STC Factor to:
- decline more frequently (every 6 months)
- decline at a higher rate than was previously planned
The proposed adjustments to the STC factor are shown in the table below.
| 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 |
Change 2: Amount of support to be based on system size
From 1 May 2026, the Cheaper Home Batteries Program will also adjust the level of support provided for battery systems based on their size.
The proposed discount calculations have been adjusted to align with declining battery costs, with the aim of being able to continue providing around a 30% discount for a range of battery systems at each capacity level.
The STC Factor will taper according to the amount of capacity installed, meaning smaller batteries will continue to receive strong rebates while larger systems will see proportionally less support over time.
| Battery size | STC factor applied at: |
| 0 kWh to 14 kWh (inclusive) | 100% |
| Greater than 14 to 28 kWh (inclusive) | 60% |
| Greater than 28 to 50 kWh (inclusive) | 15% |
The percentages are applied progressively. The first 14 kWh of capacity receives the full STC Factor, the next 14 kWh (14–28 kWh) receives 60%, and any capacity from 28 kWh up to 50 kWh receives 15%. No STCs are created for capacity beyond 50 kWh, even though batteries up to 100 kWh are eligible for the program.
For example, under the old rules, installing a 25 kWh battery in May 2026 could earn a federal battery rebate of about $7,980. Under the new rules, the rebate would drop to roughly $5,320.
Want to see what we’d recommend for your home?
Head to our Kleenheat Spark online tool to get three personalised recommendations for solar and battery (or battery only) packages. We’ll apply the government rebates you’re eligible for automatically, so you can see exactly how they reduce the cost of each package when you request a quote.