Battery rebate update: another $5 billion on the table, but rebates slashed for bigger batteries
On 13 December 2025, the Albanese government announced it will double down on its Cheaper Home Batteries rebate, tipping nearly $5 billion more of funding into the red-hot scheme, while also adjusting the scheme parameters to make it go further. The stunning success of the scheme has defied all expectations, with the Clean Energy Regulator forecasting in December 2025 it would hit 175,000 valid applications by the end of 2025 – just 6 months after the start of the scheme.
On the flip-side, this runaway success has raised major concerns, including that the soaring popularity of super-sized home battery systems of 50kWh and above is chewing through the four-year scheme’s initial $2.3B budget at an unsustainable rate.
Rebate scheme extended
On 13 December 2025, Federal Energy Minister Chris Bowen put to bed any concerns the rebate would be a one-year wonder, announcing instead that it’s being boosted with fresh funding, while also being tweaked to make it more sustainable for consumers, industry and the federal budget. Bowen says the government will expand the program to an estimated $7.2 billion over 4 years, helping a total of more than 2 million households install batteries by 2030, and adding around 40 gigawatt-hours of storage capacity.
The key change to the scheme’s settings will be the introduction of a sliding scale rebate, where the size of the discount decreases as the size of the battery increases.
Under the changes, which will come into play from 1 May 2026, batteries sized up to 14kWh will continue to receive the full roughly 30 per cent discount off the upfront cost of a storage system. Batteries sized between 14kWh and 28kWh will get 60% of the discount, while batteries between 28kWh and 50kWh will get 15%.
| Size of Battery | Support Rate | Household Size |
|---|---|---|
| Small (up to 14kWh) | 100% for each kWh | Suitable for a smaller household |
| Medium (14kWh to 28kWh) | 60% for capacity over 14kWh | Suitable for a larger household |
| Large (28kWh to 50kWh) | 15% for capacity over 50kWh | Small business and households with high energy needs |
Big battery sizes have become the norm c/o the rebate
The 50-75 kWh and the 30-50kWh market segments grew by 71% and 58%, respectively, in November, according to SunWiz – so it’s no surprise the government is putting measures in place to make it accessible for more Australians to take advantage of the rebate and benefit from the consumer energy solar & storage revolution.
Now is the time
If you want to get the biggest rebate possible, your battery storage system has to be installed and commissioned before 1 May 2026.
We make it super easy for you to save with storage by working out the right size and type of battery for your needs and whether a supplementary solar power system is needed to consistently fill your batteries. We also take care of the Federal government rebate paperwork for you. We’ll even steer you in the right direction as far as battery-friendly energy providers go.
We figure you’ll be kicking yourself if you don’t take advantage of the current subsidy. You can get started with just 5% deposit. If you’d prefer to keep your cash in the bank or if funds are a bit tight at the moment, we can connect you with a lending broker so you get an ultra-low rate finance to pay for your system over 1-10 years.
