Federal Battery Rebate Changes Explained: What It Means For You

Home » Federal Battery Rebate Changes Explained: What It Means For You

The Federal Government has confirmed changes to the Cheaper Home Batteries Program, expanding its budget and adjusting how rebates are applied for home battery installations.

Bigger Budget = A Stronger Program

Originally launched with a $2.3 billion budget, the home battery rebate has been expanded to $7.2 billion over the next four years. The aim is to support more Australians in adopting home energy storage and boost overall storage capacity across the country.

Why the Changes?

The rebate has been extremely popular, with uptake much higher than first expected. Early projections suggested the original funding could run out well before 2030, so changes were needed to keep the program running sustainably.

What’s Different Now?

More Frequent Reductions – Under the updated structure, the rebate discount will reduce every six months rather than once a year, helping spread funding over a longer period.

Tiered Incentives for Battery Size – To manage budget pressure and encourage appropriate system sizing, the rebate will vary depending on how large the battery is:

Full rebate applies to smaller systems (up to 14 kWh).
Reduced rebate applies to medium systems up to 28 kWh.
Further reduced rebate applies up to 50 kWh

This approach aims to balance household needs with long-term sustainability of the rebate program.

When Do These Changes Start?

The updated rebate structure is set to apply to batteries installed from May 2026 onwards, with scheduled step-downs continuing through to 2030.

What This Means for You

If you’re considering a home battery installation, these changes are important to understand — especially when planning timing and system size. Early action could help you secure a higher rebate before reductions take effect, and choosing the right size system remains a key part of maximising value for your investment.