Changes to Cheaper Home Batteries From 1 May 2026

From 1 May 2026, the Government has reshaped the battery incentives and this will mostly affect home and business owners wanting to install larger system sizes.

Since the Cheaper Home Batteries Program has far exceeded original expectations, there are two major changes:

*The number of STC rebate will decline faster and update twice yearly instead of yearly

*The rebate tapers as a battery size increases (up to 50kwh).

Example of declining STC rebate between May to December 2026:

*The first 14kWh earns 6.8 STCs per kWh

*The next 14kWh earns 4.08 STCs per kWh

*Capacity above 28kWh earns 1.02 STCs per kWh

So in a nutshell, if you want to oversized your solar battery system, the battery rebate will be drastically reduced, meaning you will pay more.

Key dates:

*Now to 30 April 2026: no change in rules or STC rebate calculations

*From 1 May 2026: new STC factors and tapering begin

*January and July each year: STC rebates step down again