The Cheaper Home Batteries Program, explained

How the rebate is calculated

The CHBP works by issuing Small-scale Technology Certificates (STCs) for battery installs, similar to the long-running solar PV scheme. Each STC represents 1 MWh of expected energy storage benefit over the deeming period.

Pre-1 May 2026 formula:
rebate ($) = usable kWh × deeming factor × STC price

A 10 kWh battery in April 2026 is therefore: 10 × 8.4 × $38 (typical spot) = $3,192. The deeming factor of 8.4 represents 8.4 STCs per kWh of usable capacity, deemed for the full 8.4-year remaining program life.

From 1 May 2026: the formula gains a size taper. The full 6.8 deeming factor applies to the first 14 kWh of usable capacity; capacity above 14 kWh receives a reduced rate (the band percentages have not yet been gazetted by the Clean Energy Regulator at time of writing).

The STC price is market-based and floats — typically $36–$40 in 2025–26. The clearing house caps it at $40 (rarely used because it's illiquid). Most installers create and sell STCs on your behalf and pass through the value as an upfront discount on your quote, minus a small admin fee (usually 2–5%).

Eligibility

• System size: battery nominal capacity 5–100 kWh. STCs are claimable on the first 50 kWh of usable capacity (which is typically less than nominal).
• Solar pairing:battery must be paired with a new or existing solar PV system. If you have existing compliant solar, you don't need to reinstall.
• VPP capability: on-grid batteries must be capable of connecting to a Virtual Power Plant. Enrolment is not required — only capability.
• Approved products: battery and inverter must be on the Clean Energy Council approved products list.
• Installer: must be supervised by an SAA-accredited installer.
• Property type: no owner-occupier restriction — investors, landlords and small businesses are all eligible. One rebate per property NMI (National Metering Identifier).
• Date eligibility: installs completed before 1 July 2025 are not eligible. STCs are assigned on install date, not signed-quote date — a deposit alone does not lock in the current rate.

How it stacks with state schemes

The federal CHBP is independent of state-level schemes. Where state rebates exist, they typically stack on top of the federal rebate. As of April 2026:

• NSW — Peak Demand Reduction Scheme (PDRS) active, additional VPP bonus available
• WA — Synergy Home Battery Scheme active in SWIS (up to $1,300 VPP bonus); separate Horizon scheme for regional WA
• ACT — Sustainable Household Scheme interest-free loan; separate $5,000 rebate scheduled to end May 2026
• VIC, SA, QLD, TAS, NT — federal CHBP only at present

Why the rebate fades each year

The deeming factor declines because the “deeming period” (the number of years of expected benefit assumed at install time) shrinks as the program approaches its 2031 end. A battery installed in 2025 receives credit for ~9 years of expected operation; a battery installed in 2030 receives credit for ~1 year. Plus the per-year rate itself drops over time as battery costs fall.

The deliberate phase-out structure mirrors how the long-running federal solar PV STC scheme has worked since 2011 — generous launch incentives that gradually reduce as the technology matures and prices come down.