13/12/2025
HUGE CHANGES TO CHEAPER HOME BATTERY PROGRAM.
My name is Aaron Green - Owner of Greenswell Electrical in Wollongong. We service Wollongong, Southern Highlands, Sydney and South Coast NSW.
If you would like a quote - visit www.greenswellelectrical.com
Changes to the Cheaper Home Batteries Program from 1 May 2026
On 13 December 2025, the Australian Government announced it would expand the Cheaper Home Batteries Program from original estimates of $2.3 billion to an estimated $7.2 billion over the next four years. This is expected to see more than 2 million Australians install a battery by 2030, delivering around 40 gigawatt hours of additional storage capacity.
The proposed changes will help ensure:
- The discount remains at around 30% for a range of batteries across battery sizes
- The discount aligns with falling battery costs over time
- The government can continue to support battery installations over the life of the program.
^Subject to regulations being made, two adjustments will be made to the discount and will come into effect from 1 May 2026.
The STC Factor Changes
The STC Factor, which determines the number of STCs a system is entitled to create per kWh of useable capacity, will be adjusted to:
- Decline more frequently (every 6 months)
- Decline at a higher rate.
The amount of support will be adjusted according to system size
The STC Factor will taper according to the amount of capacity installed:
(1) From 0 kWh up to 14 kWh (inclusive): STC Factor applied at 100%.
(2) Every kWh greater than 14 and up to 28 kWh (inclusive): STC Factor applied at 60%.
(3) Every kWh greater than 28 and up to 50 kWh (inclusive): STC Factor applied at 15%.
Eligibility for the Cheaper Home Battery Program includes:
- A single solar battery with a nominal (total) capacity of 5 kWh to 100 kWh will be eligible.
- The solar battery's usable capacity will be used to calculate the number of STCs it will be eligible for. STCs can only be claimed for the first 50 kWh of usable capacity.
- The solar battery will need to be installed with a new or existing solar photovoltaic (PV) system.
- The solar battery is considered ‘installed’ when a certificate of electrical compliance or equivalent is signed, which confirms that the system complies with relevant state and territory electrical safety regulations.
If you would like a quote - visit www.greenswellelectrical.com
Wollongong's local solar specialist electricians using only quality products and best practices to electrify homes in our coastal location.