On Saturday, 13 December 2025, the Australian Government announced essential updates to the Cheaper Home Batteries Program, which commenced on 1 May 2026. For Perth and wider Western Australian households, these changes don’t remove the battery discount – but they do affect how much support you can receive and when it makes most sense to install a system.
This article walks you through what’s changing, what’s staying the same, and how to plan your next steps with confidence.
Contents
- The federal battery program is expanding significantly: The Australian Government has increased funding for the Cheaper Home Batteries Program from $2.3 billion to an estimated $7.2 billion, aiming to support over 2 million battery installations by 2030.
- The rebate calculation changed on 1 May 2026: From this date, under regulations finalised on 5 February 2026, the STC Factor was reduced and adjusted every 6 months, meaning the per-kWh discount now declines faster than previously planned.
- Support is tiered based on battery size: From 1 May 2026, the rebate applies at: 100% of the STC Factor for the first 0–14 kWh, 60% for 14–28 kWh, and 15% for 28–50 kWh of usable capacity.
- Timing matters for households planning to install: Your installation date determines the rebate. Installs before 1 May 2026 used a higher STC Factor with no size-based tapering. Installs from that date still get a discount, but a smaller one, especially for medium and large systems.
A quick refresher of how the Cheaper Home Batteries Program works now: The Cheaper Home Batteries Scheme (battery rebate) is a national initiative designed to make battery storage more affordable by reducing the high upfront cost that has traditionally held people back. Right now, the program:
Provides a discount of around 30% off the upfront cost of a range of eligible battery systems from 5kWh to 100kWh, with STCs created for the first 50kWh of usable capacity.
Applies to batteries connected to new or existing solar PV systems.
Delivers the discount through Small-scale Technology Certificates (STCs) under the Small-scale Renewable Energy Scheme (SRES).
Is funded by the Australian Government and administered by the Clean Energy Regulator (CER).
In practical terms, most customers see the benefit as an upfront reduction on their quote or invoice, with the installer or retailer handling the STC side of things in the background. You can instead choose to manage STCs yourself through the REC Registry, but most people prefer the simpler “discount on the bill” option.
The program is also designed so that the discount will be reviewed at least annually and gradually decrease until 2030, in line with expected reductions in battery prices.
On 13 December 2025, the government announced that the Cheaper Home Batteries Program would be significantly expanded and adjusted from 1 May 2026. The key points are:
Program funding will increase from the original estimate of $2.3 billion to an estimated $7.2 billion over the next four years.
The government expects this to support over 2 million battery installations by 2030, adding around 40 GWh of storage capacity to the grid.
To keep the discount “about right” as batteries get cheaper, the way the discount is calculated changed on 1 May 2026.
Those calculation changes revolve around two levers:
The STC Factor (how many STCs you get per kWh of battery capacity).
How that factor is applied to different battery sizes.
Currently, the discount you receive depends largely on a single number called the STC Factor, which represents the number of STCs you can create per kilowatt-hour (kWh) of usable battery capacity. On 1 May 2026, the government adjusted this factor so that it:
Declines more frequently – every 6 months, instead of annually.
Declines at a higher rate than initially planned.
The formal table in the announcement indicates that for the period 2026–2030, the existing STC Factor and the amended STC Factor begin to diverge. For example, in 2026:
Year | Period | Existing STC factor | Amended 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 |
Source: Department of Climate Change, Energy, the Environment and Water, Table 1
The pattern continues in later years, with the amended factor dropping more quickly in each 6-month period than previously planned.
What this means for you: The date your battery is installed determines which STC Factor applies. A battery installed before 1 May 2026 used the higher earlier factor, while one installed on or after 1 May 2026 uses the lower amended factor for that period.
The second big change is how the STC Factor is applied across different battery sizes. Before 1 May 2026, the calculation was relatively simple: the same STC Factor applied to each kWh of usable capacity, up to the program’s cap, so larger systems attracted proportionally larger discounts.
Since 1 May 2026, the program has continued to support batteries up to 100 kWh, but the level of support decreases as the system size increases. The amended regulations set out three capacity bands for the first 50 kWh of usable storage:
Banding – kWh | STC Factor |
|---|---|
0 kWh up to 14 kWh (inclusive) | The STC Factor applies at 100% (full value) |
Every kWh greater than 14 and up to 28 kWh (inclusive) | The STC Factor applies at 60% of its value |
Every kWh greater than 28 and up to 50 kWh (inclusive) | The STC Factor applies at 15% of its value |
You can still install up to 100 kWh, but the rebate calculation tapers off after 50 kWh. | |
In simple terms:
- Smaller and moderate-sized batteries (up to about 14 kWh) will continue to receive the strongest support per kWh.
- Larger systems will still get help, but each extra kWh beyond 14 kWh will attract less rebate, and even less again once you pass 28 kWh.
- The new structure is designed to maintain an overall discount of around 30% for common system sizes, aligning with declining battery costs and ensuring the budget can support more households.
The announcement on 13 December focuses on changes related to funding and calculation but does not alter the eligibility criteria for participation. Most households in Western Australia will still need to meet the following requirements:
You are an Australian household, business or community organisation installing an eligible battery.
The battery is 5–100 kWh usable capacity and connected to rooftop solar.
The battery and installer both meet accreditation and safety requirements outlined in the Renewable Energy (Electricity) Regulations 2001.
The system is installed and documented in a way that allows STCs to be created for the battery component.
For more detailed eligibility conditions, the government still directs people to the full regulations and official eligibility guidance.
Our responsibility is to minimise PSW customer inconvenience due to this adjustment in battery rebate values.
Yes. Batteries installed from 1 May 2026 use the lower STC Factor of 6.8 and the new size-based tiers, so the federal discount is smaller than it was for installs before May.
The factor now steps down every six months. Installs from 1 January 2027 use 5.7.
If your install date moves into a lower factor period, a contract revision is required.
Possibly. Your rebate is determined by the installation date, not the quote date.
If your install is on or after 1 May 2026, the lower STC Factor and size-based tiers apply: 6.8 to 31 December 2026, then 5.7 from 1 January 2027.
The factor steps down every six months through 2030, so a later install date means a lower federal discount per kWh.
Yes, if the quoted rebate used a higher STC Factor than the one that applies on your install date.
Ask for an updated quote. For example, a quote at 6.8 changes if your battery is installed from 1 January 2027, when the factor drops to 5.7.
Yes.
Yes. The federal program is designed to work alongside state schemes, including the WA Residential Battery Scheme.
Eligibility criteria for each scheme are separate, so you may be able to receive both, depending on your circumstances.
Australian Government, Department of Climate Change, Energy, the Environment and Water: Cheaper Home Batteries Program
