If you’ve been thinking about adding a battery to your home or small business, there’s good news: the Australian Government has announced a major expansion of the Cheaper Home Batteries Program. That means more funding, more support, and more Australians able to store solar and use it when it matters most.
From 1 May 2026, two updates are planned to keep the discount fair across different battery sizes and sustainable over the long term.
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On 13 December 2025, the Government announced it will expand the program from original estimates of $2.3 billion to an estimated $7.2 billion over the next four years. The aim is to support more than 2 million Australians to install a battery by 2030, delivering around 40 gigawatt hours of additional storage capacity.
The program is growing, not shrinking. The adjustments below are intended to keep the discount at around 30% for a range of battery sizes, while aligning with falling battery costs over time so support can continue across the life of the program.
Key points
- The program is growing from $2.3b to an estimated $7.2b, aiming to help 2+ million Australians install batteries by 2030 (around 40 GWh of storage).
- The STC Factor drops more often (every 6 months) and by more each step — for example 8.4 (Jan–Apr 2026) down to 6.8 (May–Dec 2026), then continues declining through 2030.
- Your discount is set by the installation date, and from 1 May 2026 it tapers by capacity to keep discounts around ~30% across sizes: 0–14 kWh = 100%, 14–28 kWh = 60%, 28–50 kWh = 15% (program still supports batteries up to 100 kWh).
The two key changes
These adjustments are subject to regulatory changes, and the discount you receive is determined by your installation date.
1. The STC Factor will step down more often
The discount applied to your battery system is calculated using a multiplier known as the STC Factor. This factor determines the amount of support granted per kWh of usable battery capacity. Starting May 1, 2026, the STC Factor is set to decline every six months, rather than annually, and at an increased rate.
Proposed STC Factor values:
- Jan–Apr 2026: 8.4
- May–Dec 2026: 6.8
- Jan–Jun 2027: 5.7
- Jul–Dec 2027: 5.2
- Jan–Jun 2028: 4.6
- Jul–Dec 2028: 4.1
- Jan–Jun 2029: 3.6
- Jul–Dec 2029: 3.1
- Jan–Jun 2030: 2.6
- Jul–Dec 2030: 2.1
A simple timing example: the same battery installed in April 2026 versus May 2026 would result in a change from a factor of 8.4 to 6.8 — approximately 19% less support in the calculation because the factor is lower.
2. The discount will taper by battery size
The program will continue to support battery installations up to 100 kWh. From May 1, 2026, the discount calculation is planned to vary by system size to help maintain a discount of approximately 30% across different battery capacities. The STC Factor will be applied like this:
0–14 kWh (inclusive): 100% of the STC Factor
>14–28 kWh (inclusive): 60% of the STC Factor
>28–50 kWh (inclusive): 15% of the STC Factor.
In practice, that means you’ll get the strongest support on the first 14 kWh, and a smaller discount per extra kWh above that. (STCs can only be claimed for the first 50 kWh of usable capacity.)
Sizing examples:
20 kWh system: first 14 kWh at the full rate; remaining 6 kWh at 60%.
35 kWh system: first 14 kWh at the full rate; next 14 kWh at 60%; remaining 7 kWh at 15%.
Discount is tied to your installation date
Because the STC Factor changes on set dates, timing matters. Under the program, a battery is considered installed when the certificate of electrical compliance (or equivalent) is signed off — so when you’re comparing quotes, it’s worth checking the expected installation and sign-off timing.
PSW Customer FAQ's
Our responsibility is to minimise PSW customer inconvenience due to this adjustment in battery rebate values.
Priority 1: Existing customers. We’ve been building improved installation capacity over the Q4 2025 period. This will ensure existing PSW customers scheduled from May 1 2026 have the opportunity to come forward to ensure the rebate amount remains unchanged.
Most likely reschedule date availability: March or April 2026.
If your installation date can not be brought forward, a contract revision is required.
Possibly. Your rebate is determined by the installation date, not the quote date.
If your install occurs after 1 May 2026, the new lower STC Factor and tiering rules will apply.
Our 1st priority given the shift is to existing customers and ensuring their installation can be scheduled earlier.
Yes.
If the quoted rebate was calculated under the current STC Factor and you install after 1 May 2026.
It’s best to request an updated quote reflecting both pre- and post-May scenarios. Please note that within one week of the announcement we are adjusting forms and quoting templates and this information may not be available (pre-Christmas 2025).
Yes.
Yes. The federal program is designed to work alongside state schemes, including the WA Residential Battery Scheme.
Eligibility criteria for each scheme are separate, so you may be able to receive both, depending on your circumstances.
