Key points
- The federal Cheaper Home Batteries Program currently pays 6.8 STCs per kWh of usable battery capacity, for installs up to 31 December 2026.
- On 1 January 2027 it falls to 5.7, about 16% less, and keeps dropping every six months until 2030.
- The first 14 kWh gets the full rate. Capacity above that gets 60%, then 15%, and nothing above 50 kWh.
- South Australians are leading the country: SA has about 7% of Australia’s population but about 13% of installs under the program.
South Australia has embraced home batteries faster than anywhere else in Australia. More than 72,000 SA homes now have one, and the average new battery has grown from about 14 kWh to 22 kWh. If you’re still weighing it up, here’s how the federal discount works in 2026, how much you can expect, and why installing before New Year makes a real difference.
How the Cheaper Home Batteries Program works
Since 1 July 2025, home and small business batteries have earned small-scale technology certificates (STCs), the same system that has discounted rooftop solar for years. The number of certificates is based on your battery’s usable capacity multiplied by an “STC factor”. Your installer creates and sells the certificates and takes their value off your quote, so you get the discount upfront rather than claiming it back.
The government expanded the program in December 2025, lifting its budget from $2.3 billion to around $7.2 billion, with a goal of more than 2 million batteries by 2030.
The 2026 discount schedule
From 1 May 2026 the STC factor steps down every six months:
| Installation date | STCs per usable kWh |
|---|---|
| 1 May – 31 Dec 2026 (now) | 6.8 |
| Jan – Jun 2027 | 5.7 |
| Jul – Dec 2027 | 5.2 |
| Jan – Jun 2028 | 4.6 |
| Jul – Dec 2028 | 4.1 |
| Jan – Jun 2029 | 3.6 |
| Jul – Dec 2029 | 3.1 |
| 2030 | 2.6, then 2.1 |
Bigger batteries also earn less for each extra kWh: 100% of the factor for the first 14 kWh, 60% from 14 to 28 kWh, 15% from 28 to 50 kWh, and nothing beyond 50 kWh.
How much will I save?
STC prices move with the market, so these are estimates, based on about $37 per certificate at today’s factor of 6.8:
| Usable capacity | Approx. STCs | Approx. discount |
|---|---|---|
| 10 kWh | 68 | ~$2,500 |
| 13.5 kWh | 91 | ~$3,370 |
| 20 kWh | 119 | ~$4,400 |
| 28 kWh | 152 | ~$5,600 |
| 40 kWh | 164 | ~$6,050 |
Beat the 1 January 2027 cut. When the factor drops to 5.7, a 13.5 kWh battery loses about 15 certificates, roughly $550 of discount. Installers get busy before Christmas, so book early.
Who is eligible?
- Homes, small businesses and community organisations, with new or existing solar.
- Batteries of 5 to 100 kWh usable capacity. STCs are only paid on the first 50 kWh.
- The battery must be on the approved product list and be VPP-capable (able to join a virtual power plant). You don’t have to join one.
- It must be installed by a Solar Accreditation Australia (SAA) accredited installer.
Can I stack it with SA incentives?
South Australia’s old Home Battery Scheme closed in 2022, so there’s no separate state battery rebate. However, the state’s Retailer Energy Productivity Scheme (REPS) has offered an incentive for connecting a battery to an approved virtual power plant. General REPS funding for this ran out in May 2026; for the rest of 2026 it’s available to priority group households such as concession card holders and some renters, with new funding expected in 2027. Ask us whether you qualify.
From 1 July 2026, SA households with a smart meter can also choose a Solar Sharer plan with free power in the middle of the day, which is perfect for topping up a battery. See our guide to SA feed-in tariffs and Solar Sharer.
Size your battery for how you actually use power
Since the May 2026 changes, the most popular battery size nationally has shifted from 40–50 kWh to 20–30 kWh, because very large batteries now earn much less per kWh. The right size depends on your evening usage, whether you have an EV or pool, and whether you want blackout backup. A good installer will look at your bills before recommending a size. Read our guide to choosing a battery in Adelaide.
Sources: Clean Energy Regulator – Changes to Cheaper Home Batteries Program (13 Dec 2025); Energy Matters – Changes from 1 May 2026; SA Power Networks – South Australians embracing home batteries (17 Feb 2026); SolarQuotes – SA VPP REPS incentive (Jun 2026). Discount figures are estimates and depend on the STC price at installation. Featured image: Raysonho @ Open Grid Scheduler / Grid Engine / Wikimedia Commons, CC0.
