More households will be able to invest in solar battery systems in 2026 with proposed changes to the Cheaper Home Batteries Program announced this week by the Australian Government.
Minister for Climate Change and Energy Chris Bowen said the program will be lifted to an estimated $7.2 billion over four years, an increase from the initial $2.3 billion.
“This is expected to see more than 2 million Australians install a battery by 2030, delivering around 40 gigawatt hours of capacity, increasing the expected capacity by almost four times”, Bowen added.
The program has already been producing results.
“In less than six months, the Cheaper Home Batteries program has helped more than 155,000 households and small businesses cut their power bills and take control of their energy, with around three-quarters of installations in our suburbs and regions”, Bowen noted.
The 3.5 GWh of battery storage delivered over this period has increased home battery capacity in Australia to almost twice the level before the program – with half of these households also installing solar panels for the first time or upgrading existing systems.
Stored rooftop solar via batteries is also playing an increasingly important role in smoothing out evening demand and reducing peak pricing which benefits all bill payers. Data from the Australian Energy Market Commission found, even on a conservative outlook, increased home battery uptake could deliver a 3 per cent reduction in bills annually across the energy system as it evens out those expensive peaks.
Alongside increased support for the program, from 1 May 2026 the Government will make adjustments to ensure the 30 per cent discount is encouraging households to get the right-sized battery for their needs and the program remains sustainable.
Under the tiered system, support will be staggered in line with the size of the battery, with support moderating per kWh for medium and larger batteries. It remains that the first 50kWh of a system is eligible for support, for battery systems sized up to 100kWh.
With declining battery costs and more choice for consumers, this tiered support will enable more Australians to install batteries in their homes.
“We want more Aussie households to have access to batteries that are good for bills and good for the grid - because it means more cheap, fast, safe solar energy is available in our homes night or day, when and where it’s needed”, Bowen concluded.