The Australian Government announced an expansion of the Cheaper Home Batteries Program on 13 December 2025. The program's estimated four-year funding increased from $2.3 billion to $7.2 billion, alongside changes to how support is calculated from 1 May 2026.
The program operates through small-scale technology certificates. The certificate value is commonly assigned to a registered agent in exchange for an upfront discount, but the final discount can vary with certificate factors, market values and the installation configuration.
- 1Previous estimate$2.3 billion
- 2Announced increase+$4.9 billion
- 3Expanded estimate$7.2 billion
Estimated four-year funding, as announced on 13 December 2025. The $4.9 billion increase is derived from $7.2 billion minus $2.3 billion. This is programme funding, not a household rebate or expenditure to date.
Data table
| Measure | Value | Status |
|---|---|---|
| Previous estimate | $2.3 billion | Reported |
| Announced increase | $4.9 billion | Derived |
| Expanded estimate | $7.2 billion | Reported |
Installation-date factor
The settings applying from 1 May 2026 are based on the battery installation date, not the contract or deposit date.
A quote prepared before an installation should therefore use the factor expected to apply when the battery is installed. If the installation moves into a later factor period, the certificate entitlement and quoted discount may change.
Capacity-based support tiers
The current calculation applies different percentages of the certificate factor across usable capacity bands:
| Usable battery capacity | Percentage of the applicable factor |
|---|---|
| Up to and including 14 kWh | 100% |
| Above 14 kWh and up to 28 kWh | 60% |
| Above 28 kWh and up to 50 kWh | 15% |
The tiering is cumulative. For a battery larger than 14 kWh, the first 14 kWh receives the full factor and only the capacity above that threshold receives the lower percentage.
An eligible battery must have nominal capacity from 5 kWh to 100 kWh. Certificates apply to no more than the first 50 kWh of usable capacity.
The tiers are cumulative. Each percentage applies only to capacity inside that band. Certificates do not apply to usable capacity above 50 kWh.
Data table
| Capacity band | Range | Applicable factor |
|---|---|---|
| First 14 kWh | 0 to 14 kWh | 100% |
| Next 14 kWh | 14 to 28 kWh | 60% |
| Next 22 kWh | 28 to 50 kWh | 15% |
Pre-contract checks
The available discount should be calculated against the actual proposed battery and expected installation date. A sound pre-contract review should confirm:
- current Clean Energy Council product approval
- battery nominal and usable capacity
- the installation-date certificate factor
- whether the battery is new or being added to an existing solar system
- installer accreditation and attendance requirements
- evidence, serial-number and claim documentation
- any separate state rebate or virtual power plant conditions
Federal certificate eligibility does not establish eligibility for the WA Residential Battery Scheme. The WA scheme guide for retailers and installers separates the two frameworks.
The maintained WA battery incentives guide places federal certificates, the state rebate, loan conditions and product eligibility in one current reference.
Selecting capacity
The largest certificate entitlement is not a sizing method. Battery selection should begin with interval consumption, solar generation, evening demand, backup priorities, future loads and the technical limits of the site.
The battery retrofit guide sets out the compatibility and connection checks that sit alongside incentive calculations. Customers seeking a system assessment can review PSW Energy and Perth Solar Warehouse within the McKercher group.
Primary references
- Australian Government program expansion announcement (opens in a new tab)
- Clean Energy Regulator guidance on the 1 May 2026 changes (opens in a new tab)
- Clean Energy Regulator solar battery guidance (opens in a new tab)
Program settings and certificate values can change. Current Clean Energy Regulator guidance should be checked before a discount is represented in a quote.
