The writing was on the wall. The Cheaper Home Batteries Program did in seven months what the federal solar rebate took more than a year to achieve in 2009. Almost 200,000 Australian homes installed a battery between July 2025 and early 2026. The speed of uptake, paired with much larger battery sizes than forecast, forced the federal government to act sooner than planned.
The program was originally designed around households installing batteries of roughly 10 kWh. Instead, the average installation size landed closer to 20 kWh. That sharp increase in capacity rapidly consumed the initial $2.3 billion allocation. While demand exceeded expectations, funding could not keep pace without change.
From 1 May 2026, the value of the federal battery rebate will reduce. The rebate will taper more aggressively, particularly for larger battery systems. Smaller batteries will retain a greater proportion of support, while larger systems will see diminishing rebate returns. The program will continue through to 2030, but with less generous incentives for each installation.
Read more: Cheaper Home Batteries Program Changes Explained From 1 May 2026
What this means if you already have a battery quote
If you already have a battery quote, timing is critical. There are no changes if your battery is installed before 1 May 2026. You will remain eligible under the current rebate settings, including higher rebate values and more favourable treatment of larger battery capacities.
The rebate is applied based on the installation date, not the quote date. This makes installer availability and delivery timelines extremely important. Battery supply remains tight for some popular systems, and installer schedules are still under pressure.
Anyone holding a quote should confirm installation dates as soon as possible. A delay beyond 1 May 2026 could result in a noticeably smaller rebate, even if the quote was signed months earlier.
What this means if you are waiting to get a quote
If your battery is installed on or after 1 May 2026, the new rebate rules will apply. This means a lower rebate overall, particularly for larger batteries. The days of heavily subsidised 20 kWh home batteries are fading.
This does not mean batteries stop making sense. It does mean the financial decision becomes more nuanced. Payback periods may lengthen, and system design will play a larger role in overall value.
Homes with high evening electricity use, low feed-in tariffs, or plans to add electric vehicles or heat pumps will still see strong benefits. For households with lower energy use, the numbers may not stack up as easily as they once did.
Should you still install the biggest battery possible?
The short answer is no, at least not automatically. Large batteries make sense for large energy users. Households with electric vehicles, home offices, growing families, or plans for full electrification often benefit from additional storage capacity.
For smaller households, oversizing can lead to underutilised battery capacity and weaker returns. Under the earlier rebate structure, oversizing was often rewarded. That incentive is now shrinking fast.
From May 2026, battery sizing should reflect actual usage patterns rather than future speculation. A well-matched 10 to 13 kWh battery can deliver better value than a poorly used 20 kWh system. Bigger only works when the maths supports it.
Other factors to consider as rebates reduce
As rebate support declines, other factors become more important. Battery prices may soften slightly as demand stabilises, but supply chains and interest rates still influence costs. Cheap batteries paired with short warranties can quickly become expensive mistakes.
Quality, warranty length, and local support matter more when incentives shrink. Inverter compatibility, backup functionality, and future expansion options should also be considered carefully. A rebate does not fix technical limitations.
Grid rules, export limits, and state-based requirements can also affect system performance and savings. Good advice becomes increasingly valuable as government support tapers.
No need to panic!
The Cheaper Home Batteries Program is not ending. It is maturing faster than expected. Early adopters benefited from unusually generous conditions, while later adopters face more complex decisions.
If you already have a quote, timing is everything. If you are still planning, smart design is essential. The rebate may be smaller, but a well-planned battery system can still deliver long-term savings, resilience, and energy independence.
