On 13 December 2025, the Australian Government announced a major expansion of the Cheaper Home Batteries Program, increasing its funding from the original estimate of $2.3 billion to an estimated $7.2 billion over the next four years. The announcement reflects the government’s continued focus on supporting household battery adoption and ensuring the long-term sustainability of the program.
As part of the expanded funding, the government stated that the program will include additional adjustments to small-scale technology certificates (STCs). From 1 May 2026, subject to regulations being made, STCs for solar batteries will be tiered and adjusted according to the size of the battery system installed. This change is intended to ensure that the level of discount provided under the program remains appropriate for small, medium, and larger battery systems.
The government said the proposed changes are designed to help ensure that the discount remains at around 30 percent across different battery sizes. The adjustments are also aimed at aligning the discount with falling battery costs over time, allowing the program to remain responsive to changes in the market. According to the announcement, these measures will enable the government to continue supporting battery installations throughout the life of the program.
The government further stated that the program adjustments will help ensure the financial sustainability of the Cheaper Home Batteries Program. At the same time, the changes are intended to continue providing cheaper battery options for households while contributing to the stability and resilience of the electricity grid.
It was noted that discount calculations over the life of the program will be adjusted to align with declining battery costs. This approach is expected to maintain an average saving of about 30 percent on battery systems for eligible participants, while ensuring that support remains balanced and appropriate as technology costs change.
The government also clarified that all other existing aspects of program eligibility will remain unchanged. Households and participants who meet the current eligibility requirements will continue to be able to access the program under the same conditions.
In addition, the government said it will continue to closely monitor battery installations as the changes come into effect. This monitoring will help ensure that the revised arrangements are operating as intended and that the program continues to deliver affordable battery solutions while supporting broader energy system stability.
The expanded funding and associated adjustments form part of the government’s broader approach to maintaining a sustainable and effective battery support program over the coming years.
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