Photography: Marnie Hawson / Styling: Belle Hemming Bright
If you have been hearing more about home battery systems, then it’s probably because of changes due on 1st May 2026 to the Labor government initiative that’s already making solar power more affordable for Australian homeowners. But if you’re wondering what a home battery actually is, how it works and whether The Cheaper Home Batteries Program will actually make solar more affordable, keep reading.
NEED TO KNOW
- On May 1, 2026, the Australian Government will expand the Cheaper Home Batteries Program from $2.3 billion to an estimated $7.2 billion over the next 4 years.
- The battery discount remains at around 30% for small, medium and larger battery systems.
- The discount is available for batteries connected to new or existing solar PV systems.
- The discount you are entitled to is determined by the small-scale technology certificates (STC) factor on the date the battery is installed.
How does a home battery work?
A home battery, also known as a solar battery, is an energy storage system that stores excess energy from solar panels for later use.
Due to Australia’s sunny climate, our solar panels generate a lot of power in the middle of the day, leading to excess solar power being sent into the system. The problem with this is that most of us actually need power when the sun goes down—when we are getting home from work and running the dishwasher and washing machine. This leads to more pressure being placed on the greater system and not enough households making use of their solar energy.
A home solar battery system, however, allows households to store excess solar power that is generated during the day for use at night or at other times they may need to use it—such as during a power outage.
What is the home battery subsidy?
Delivered through the existing Small-Scale Renewable Energy Scheme, the Labor government’s successful Cheaper Home Batteries Program, launched in July 2025, reduced the price of home batteries by 30% and “strapped a rocket to the momentum” of home battery installation and solar power uptake, according to the Clean Energy Council. The subsidy remains available to households that already have solar panels, as well as those who have yet to install their solar and battery system.
While the discount remains at around 30%, changes coming on 1 May 2026, are hoping to help over 2 million Australians install a battery by 2030. The rebate will shift to a tiered structure, with the discount strongest for the first 14kWh of capacity, tapering for larger systems. Some companies, such as Tesla, are offering additional savings for a limited time.
“The Cheaper Home Battery Program will usher in one of the biggest changes in the energy sector since the introduction of solar,” says John Grimes, Chief Executive of Smart Energy Council.
According to the Clean Energy Council, rooftop solar generated 12.8 per cent of Australia’s electricity in the first half of 2025. “Solar is the cheapest form of power generation in Australia by a country mile, and it’s getting cheaper, now households can store that cheap solar and use it when they need it,” says Grimes.
According to Labor’s modelling, the new subsidy aimed to save households with existing solar $1,100 on their power bill and around $2,300 off the power bill for those installing it new. The first six months of the program have seen 160,000 new installations, more than in the previous five years combined, according to the Clean Energy Council. “Our biggest power station now resides on the rooftops of more than 4.3 million households, which is helping to drive downward pressure on power bills for consumers and businesses, with less reliance on expensive gas or unreliable coal to power our grid,” says Jackie Trad, Clean Energy Council CEO.
“Until now, many households have been priced out of buying a home battery, but we expect this rebate will mean 100,000 people will now get one. This will, in turn, bring down the cost of batteries for everyone,” Grimes explained when the program was launched. “Batteries will help people regain control of their power bill, stabilise the grid, and allow the exit of coal and gas to continue.”
“Australian consumers and small businesses are delivering the transition at breathtaking speed, turning suburban roofs into one of the biggest power stations in the country,” said Con Hrstodoulidis, General Manager, Distributed Energy, in a report from the Clean Energy Council.
How much are solar batteries?
The price of a solar battery can vary, but Grimes says that households can generally expect to pay between $5000 and $10,0000—before the rebate.
“There are around a dozen 5-7kWh batteries for sale in Australia now, ranging in price from between $5000 to $10,000. That’s before the 30 percent rebate from the federal government, or other state or territory subsidies,” Grimes explains.
It’s also good to know that solar batteries typically come with a ten-year warranty.
What size home battery do I need?
While every household has different energy needs and demands, most households would find a 5-6kWh battery suitable.
“There are 77 home batteries on the market in Australia, that’s a large range for households to choose from,” explains Grimes.
“We surveyed almost 10,000 energy users and found that a 5-6kWh battery would meet 90 percent of their needs.”
How to claim the rebate
There are two ways to claim the rebate under the Cheaper Home Batteries Program:
- Through an accredited installer and/or solar battery retailer. Make sure your installer is accredited by Solar Accreditation Australia (SAA) and that your product is accredited by the Clean Energy Council (CEC).
- Applying for the discount directly through the REC registry. Your small-scale technology certificates (STCs) can be sold or traded.
Are home batteries safe?
If you are concerned about the safety of a home battery, then you should be reassured that they are perfectly safe to have installed in your home.
“Before batteries can be sold in the Australian market they must be on an approved product list—a regime that includes testing and meeting of standards. On top of that, solar battery installers must complete specific training with Solar Accreditation Australia,” confirms Grimes.
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