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Cheaper Home Batteries Program: 1 May 2026 changes

The expanded federal battery program now applies capacity tiers and installation-date certificate factors that should be checked before quoting.

Cheaper Home Batteries Program: 1 May 2026 changes

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.

The installation date controls the 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 capacityPercentage of the applicable factor
Up to and including 14 kWh100%
Above 14 kWh and up to 28 kWh60%
Above 28 kWh and up to 50 kWh15%

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.

Applicable certificate factor by usable capacity band
Data to
First 14 kWh100%0-14 kWh
Next 14 kWh60%14-28 kWh
Next 22 kWh15%28-50 kWh

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
Data for Applicable certificate factor by usable capacity band
Capacity bandRangeApplicable factor
First 14 kWh0 to 14 kWh100%
Next 14 kWh14 to 28 kWh60%
Next 22 kWh28 to 50 kWh15%

A quoted discount rests on seven 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

Program settings and certificate values can change. Current Clean Energy Regulator guidance should be checked before a discount is represented in a quote.

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